Significance of an Organizational Culture in an Organization - Essay Example

? SIGNIFICANCE OF AN ORGANIZATIONAL CULTURE IN AN ORGANIZATION Developing an organizational culture in a company Introduction “As many corporations become increasingly global, and their workforce increasing diverse, people find themselves working with increasing number of coworkers different from them. Similarly, various companies wish to operate and recruit from the extensive possible pool of talents; therefore, inclusive companies have higher capacity to appeal to and maintain the crucial talents” (Osland, Kolb & Rubin, 2001, p368), courtesy of their strong and viable organizational structure. Workforce diversity is crucial because it contributes to the productivity and profitability of the company through injecting multiple talents to the company structure. Similarly, organizational culture is essential to facilitate interactive and harmonious socialization of a diverse workforce to attain the company objectives. Studies reveal a viable relationship between diversity of the workforce and organizational structure of a company to attain best results. When people come into contact and interact with each other, there is the likelihood for people with the common interest and features form an influential cohesive team to gain organizational goals and objectives. Therefore, companies and organizations require an effective organizational structure to guide their operations, code of conducts and direct their goals and objectives, (Ashkenas, 1995). Companies with diverse people cannot work without organizational structure because the organizational structure is the main framework for the organization of the company, and the underpinnings that maintain the functioning of the group. Discussion Organizational culture is the operating strategy that tells the team members how the group is consolidated and how it functions. “A company’s organizational structure is a critical aspect that determines the company’s performance.” (Osland, Kolb & Rubin, 2001, p. 429). More significantly, the organizational structure describes how leadership is organized, how group partners are accepted and how organizational decisions are made. It is thus, the aim of this discussion to explore the relationships that occur between the company and organizational structure. In other words, the discussion will explore the benefits of developing a viable organizational structure on the levels of productivity of a company (with employees’ diversity) for effective management. Workers, leaders and the anticipated projects influence the organizational structure of the group. The organizational structure aids state the functions and duties of the team members, companies or work team. “The organization design of the company must much employees with responsibilities and motivate them to best use their talents and tailor roles and strategies that are able to cope with demands and opportunities of workplace” (Osland, Kolb & Rubin, 2001, p. 462). The organizational structure reflects a system of activities or roles and reporting policies in the right place to give members of a team or organization a direction when implementing programs. An effective organizational structure will enable individuals and groups to function efficiently together while implementing ethics of hard work and appropriate work attitudes. Every company or group must have a powerful organizational structure. Experts agree that a well organized and strategic, organizational structure aids support better communication process and justifies lines of power and relationships of reporting to ensure that processes of workflow in a clear process, (Rant, 2004). A company without an organizational structure is dysfunctional and dead. When the company organizational structure fails communication worsen, disruptions in job product result and bottom-line benefits are impacted. The company must frequently check its organizational structure to ensure it is achieving the needs of the organization as it grows and transforms. Absence of an effective organizational structure in a company leads to communication breakdown. Orders are not shipped; schedules, not in the tract and consumers are constrained when communication fails in an organization. Workforce depends on the organizational structure to inform their daily roles and production. When workers are not informed of the changes and fail to meet deadlines because of inaccurate and inadequate information, organizational departments are affected. A right command chain, appropriate system of information are communicated through the group and effective mechanisms for obtaining and transferring information are crucial to sustain the flow of operations to realize profits. Workers who lack a clear organizational structure to follow always lose motivation. Economists agree, “One of the fundamental aspects of organizational structure is to facilitate integration of new workers into the company and ensure that they fit within the company goals and operations” (Osland, Kolb & Rubin, 2001, p. 462). Therefore as an essential mechanism, to communicate new ideas and enhance innovative input, if it fails, workers lose interest and motivation in the organization and this reduce productivity. Organizational departments without a defined organizational tool to guide them fulfill their job requirements lack the motivation to produce. Additionally, frustrations lead to reduced motivation that affects the organization’s retention rates. Experts agree that even with an effective mission statement, well defined and efficient leadership, with unclear organizational structure, organizations will always head for a failure. Consumers who constantly face challenges in attempting to obtain their product at the right time find another person to cater for their requirements. Poor internal management or structure of an organization eventually reaches the consumers, who lose trust in the ability of the organization to serve them well. Profitable customers are attracted to streamlined operations where they can build their confidence, (Ashkenas, 1995). While organizational worker’s uneasiness with inefficient organizational operations may lead to temporary obstacles that the group may salvage, losing more consumers may mean disaster. The company does not only endanger potential business, but the organizational referral stream may also decline. Dissatisfied consumers will always talk of their disappointments, rather than benefits, with business providers and suppliers, making it harder to run a new business. In addition to link organizational product flow between the operations of the organizations, a company needs to develop a strong organizational structure that includes and links all the strategies. Strong organizational structure links all the processes, operations and departments of an organization or group. Therefore, when one part of the group is dysfunctional, due to lack of the organizational structure, it impedes the functionality of all other group parts. An effective organizational structure considers efficient business management, placing the key stakeholders in the right work, offering appropriate incentives and having adequate resources to meet organizational obligations. The organizational plans will be effective when all parts of the group function in harmony with each other, enabling the group to provide constant and reliable service to their clientele. An organizational structure is a set of guidelines tailored to reach various goals of the firm. Without a coherent organizational structure, a group lacks appropriate road map to guide them when pursuing business opportunities and carrying out routine operations. Therefore, lack of comprehensive organizational structure may mean lack of organizational objectives. For instance, without a coherent organizational structure, the group does not have defined or clear business objective. Without a comprehensible organizational structure, the group lacks the focus required to attain corporate objectives and establish plans that will push the organization forward. Additionally, a lack of organizational objectives implies that the organization does not have primary set of activities and roles it is proficient in and has no clear dream for the future. Objectives are crucial to establish long-term growth and profitability plans that are vital for the sustained achievement of the organization. Organizational structure aids to reorganize group activities. Organization owners, leaders and managers are responsible for the coordination of business operations into parts that can accomplish diverse processes of the business. Structuring business operations into departments allows achievements of business functions in an effective manner. A company can save resources by minimizing various similar business operations accomplished by various departments, (Cavanaugh, 2007). In addition, strong organizational structure is crucial in allocating organizational resources into programs and functions that require them. Without an effective organizational structure, it is hard to create plans and budget programs and comprehend the personnel and monetary resources required to introduce new products and develop the company. A company may lack resources for essential activities like payroll and rewarding suppliers’ invoices without an efficient organizational structure. Companies utilize organizational structure to enhance its operational process of decision-making. Organizational decisions always relate to the nature of information group owners, executives, or leaders gather over time, (Ashkenas, 1995). Similarly, organizational structures foster information flow from internal operations to leaders responsible for organizational decision-making. Executive management levels can employ channels of the organizational structure for communicating information to leaders or workers responsible for taking certain group functions. A group’s organizational structure can facilitate a highly efficient process of making decisions. For example, with a defined hierarchy, the group is intensively equipped to take crucial decisions and adjust its operations and practices to satisfy competition demands. Therefore, without organizational structure, company’s decision-making processes are paralyzed and the company loses focus. Utilizing a coherent organizational structure enable a group to concentrate on fundamental set goals rather than each team striving to reach its own goal or agenda. This leads to effective information flow and responsibility creation, as well as respect for the organization hierarchy that results from comprehensive organizational structure, (Lord, Klimoski & Kanfer, 2002). It aids the organization to utilize resources wisely to accomplish the goals of the group instead, of experimenting with functions perhaps, not in line with the organization’s interest. An effective organizational structure facilitates workers training and coaching. It also enables the organization to be flexible depending on the transformations within the group. When organizational structure controls the information flow, then transformations within such information are possible to monitor and highly adaptable for a group-wide training projects. Without strong organizational structure in a group, there is no clear direction of distinctions for the workforce to function. An organizational structure offers clear guidelines, polices and process to prevent various misunderstanding in the group, (Cavanaugh, 2007). If the organizational structure of a group is appropriately fostering the communication, it leads to satisfaction and motivation of organizational members. In addition, a coherent organizational structure is fundamental to prepare competent workers for group management. When the group functions under a comprehensive organizational structure, an intensive management-coaching plan is possible to develop and execute, and sustain an effective managerial core. Groups can function together on a strong developmental strategy to motivate the managerial candidate training within all the departments. Conclusion Every group requires an organizational structure to function systematically. Additionally, any company may utilize the organizational structures if the structure is appropriate for the nature and the growth of the company. In various occasions, companies evolve through organizational structures which they develop through and expand their procedures and authority. The productivity of a company anchors on the nature of its organizational structure. Therefore, a company that wishes to maximize its benefits and reduce the limitations of diversity, based on workforce cohesiveness, employee turnovers, workforce challenges and coherent operation on key organizational objectives must develop a multicultural corporation guided by an effective organizational structure. References Ashkenas, R. N. (1995). The boundaryless organization: Breaking the chains of organizational structure. San Francisco: Jossey-Bass Publishers. Cavanaugh, J. (2007). Organizational structure. University Park, Pa.: Pennsylvania State University. Lord, R. G., Klimoski, R. J., & Kanfer, R. (2002). Emotions in the workplace: Understanding the structure and role of emotions in organizational behavior. San Francisco: Jossey-Bass. Osland, J., Kolb, D. A., & Rubin, I. M. (2001). Organizational behavior: An experiential approach. Upper Saddle River, N.J: Prentice Hall. Rant, M. (2004). Role of organizational structure and organizational learning process. 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