Organizational structure is one of the key factors that play a role in the success and stable growth of a company. Each employee and working environment is different. The characteristics of each individual and group within the organization can affect the success of the business. Successful and professional managers know how to influence and guide different groups and individuals within the organizational structure.
The organizational structure can be classified by:
• Size, sector, ownership
• Public or private business
• Profit-oriented or non-profit oriented business
• Production or service based business
• Partnership or singular relationships
• Formal - informal
• Legal and illegal
Successful companies make the best use of the organizational structure to both facilitate the production process and have a good distribution of duties and responsibilities. The company structure of companies can be functional (activity based), geographic (location and department), product (detached departments) or customer (business, individual or government) based.
Businesses can use one or more structures together for a successful organization. In this context, they can also choose central (individual) or decentralized (appealing to many individuals) structures. Each firm has specific goals. The selected organizational structures ensure that these objectives are achieved in a more accurate way and in a short time. Of course, while advancing towards this goal, some organizational boundaries can be encountered.
Considering that there are hundreds or even thousands of employees in a large company, the organizational structure should be well planned for a healthy business environment. In addition, different levels of work in the business will lead to hierarchy within the enterprise. It is very important to determine who will take responsibility at the point of decision making and who will be blamed when things go wrong. Therefore, there are three main organizational structures:
It is seen that the hierarchical structure is better established in large firms. Workers in a flat structure can communicate with people at the manager level more easily. This structure can be easily adapted for small firms and start-ups. A combination of hierarchical and flat structure is seen in the matrix structure. Each employee has different professional skills and positions.
Organizational culture is the result of the thinking structure, feelings, culture and behavior of each individual in the business. At the same time, the organization's expectations, experiences, philosophy, vision and values can also be part of the culture. The result of this culture is how each employee, customer and community is treated. Also included in the culture is the ease of decision making, developing new ideas and self-expression of employees.
Big companies like Google create the organization structure by considering the efficiency of the company. For efficiency, it is important for each employee to be healthy, happy and free in the business. Therefore, the psychological, sociological and mental characteristics of the employees are taken into consideration.
The Relationship Between Organizational Structure and Culture
In fact, the organizational structure and culture are tightly linked. The management structure shapes behavior, plans, ethical values, and working culture. For example, if the organizational structure of a firm is too hierarchical, the decision mechanism can only be at the management level. Employees at lower levels cannot easily express themselves and feel free. In decentralized companies, employees can express themselves more comfortably. Interactions between different levels are stronger. The way chosen by the business authority also defines how employees behave.
In order to achieve the targets effectively, companies should have a formal organizational structure as much as possible. This is also important for defining the distribution of tasks between different groups. At the same time, it ensures that different behaviors, expectations and perspectives take place peacefully under the same enterprise. In short, the preferred organizational structure affects the organizational culture. When determining an organizational structure, it can be considered what the main purpose is to be achieved. Therefore, while organizational culture comes first; organizational structure takes the second row.