Week 4 question 8 - Assignment Example

1. Organizational structures differ as a result of business they are involved in. A mechanistic structure is characterised by centralisation of powerand all levels of authority follow a hierarchy where the orders are given from top to bottom. On the other hand, an organic structure is characterised by openness and interaction among the members in the organization. In an innovative organization like Apple, an organic structure is ideal. Participation of employees in the decision making process is encouraged and this helps them to share their ideas which in turn helps to create knowledge.

On the other hand, an organization that focuses on cost minimisation like Wal-Mart should have a mechanistic structure. Through centralization of power and authority, it can be observed that the nature of business follows a particular routine and costs are minimised since there are few people involved in the decision making process that is vital for the operations of the organization as a whole. 2. Organizational culture refers to “a system of shared meaning held by the members that distinguishes the organization from the other organizations,” (Sanchez, 2014, p.4). In many ways, organizational culture is beneficial when it fosters innovation and risk taking.

Organizational culture is also beneficial when the employees are innovative. More importantly, organizational culture is beneficial when it is people, organization and team oriented. Another sign that shows that organizational culture is beneficial is when it creates stability in the firm. However, organizational culture becomes a liability if it is resistant to change since it will be counterproductive. A culture that hinders diversity in the organization is also a liability. A diverse workforce is productive since the members can share their ideas and knowledge.

ReferencesSanchez, S. (2014). El Pais Photos/Newscom. Viewed from: .