Corporate culture is a collection of shared values, attitudes, beliefs, assumptions, and norms that create clear and successful business principles and operations which are helpful to attain higher degree of HRM and customer satisfaction. It is useful to understand organizational functioning and structure which provide information and guidelines for organizational behavior.
Corporate culture works like a system. It takes Inputs from the people of any organization in the form of values, beliefs, norms and service that provide outputs in the form of generational behaviors, technologies, strategies, products, and services.
Importance Of Corporate Culture
A strong and clear defined corporate culture improves the performance of organizational processing or operations. It provides internal behavior consistency. Corporate culture provides information about expectations of members and organization. It conveys a sense of who the company is. This sense of identity is helpful among all the company’s stakeholders. Corporate culture provides an environment for better decision making process and useful to reduce overall risk. Corporate culture also provides a friendly environment among organizational members for completion of their tasks, objectives and goals efficiently and effectively.
Impacts Of Corporate Culture On Organizational Structure And Design
Corporate culture plays a vital role in any organizational structure and design. It has many impacts on organizational structure and design. Organizational design is the process, in which different dimensions and components of organizational structure and culture can manage in such a way that lead the organization towards its objectives. Organizational structure is the system which provides information about task and reporting relationships among all the members that is helpful to controls, coordinates, and motivates employees. Organizational structure and design both are interrelated with each other.
Typically, three fundamental structures that organizations have found, these are functional structure, divisional structure and matrix structure.In functional structure, corporate culture groups people together because they hold similar position in an organization and perform a similar set of tasks. It creates easy communication among all the members which leads towards quick and effective decision making. Corporate culture makes it easier for people to learn from one another’s experiences in functional organizational structure.
[adsense1]Divisional Structures consist on Product, Market, and Geographic. In divisional structure, with the help of strong corporate culture organizations can achieve high quality products and customer services. Divisional structure facilitates teamwork and decision making process and corporate culture polished both teamwork and decision making process.
A complex form of differentiation organizations use to control their activities results in the matrix structure which groups people in two ways, by the functional team and by the product team. Corporate culture is an essential part of matrix type of organization because in matrix structure work done through collaboration. Corporate culture improves the performance of integrated processes which are used within matrix structure. It provides clear flow of communication among all team members efficiently and effectively.