Organisational Structure and Culture

This assignment delves into the importance of organisational structure, communication systems, and culture in a business context. It highlights the need for effective organisational structure, various types of communication systems, and the significance of organisational culture in achieving organisational objectives. The assignment also touches on the impact of these factors on productivity, employee engagement, and overall business performance.

Organisation
Structure

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
1.1 Analysis of features of different types of organisational structures......................................1
1.2 Evaluation of effectiveness of structure for specific organisation........................................2
2.1Analysis of different types of communication system...........................................................2
2.2 Evaluation of effects of communication system...................................................................3
Task 2...............................................................................................................................................4
3.1. Analysis of characteristics of different organisational cultures...........................................4
3.2. Evaluation of impact of culture on organisation..................................................................4
4.1 Identification of employee organisations and their roles......................................................4
CONCLUSION................................................................................................................................5

INTRODUCTION
Organisation structure refers to identification of roles, power and responsibilities which
are allotted, possessed and coordinated and determine ways in which information is transferred
between different management levels. It defines hierarchy of an organisation (Carlos Pinho, Paula
Rodrigues and Dibb, 2014). In this three organisations are considered on the basis of structure they
have opted for. McDonalds, Thomas Cook group and IBM is taken into consideration. They
follow different organisational structures. In this report types of organisational structures are
analysed and their effectiveness. Different communication systems within organisation are
determined and their effectiveness is also evaluated. Furthermore, organisational cultures are
identified and their impact. At last employee organisations and their role is identified.
Task 1
1.1 Analysis of features of different types of organisational structures.
Organisational structure is defined as system which is used to determine hierarchy of
organisation. It evaluates job, their function and where they must be reported within
organisation. Different types of organisational structures are mentioned below:
 Divisional structure: This structure organises functionalities of business around
geographic locations. They are rendering their services in different countries, each
division have their own set of functions. McDonald's has opted for this structure as

responsibilities are divided on the basis of operational requirements. Each division carry
out their operations on strategic objectives.
 Hierarchy structure: In this structure employees are organised at different levels within
organisation, in this every level is above other. In this stage person who is at top manage
number of employees. Thomas Cook group has opted for this structure. They are
operating hospitality sector in travel and tourism industry. They have used this structure
as it provides clear command to all employees and clear paths of advancement (Carlström
and Ekman, 2012).
 Matrix structure: In this structure individuals has to report to more than one person ,
they can be either leaders, managers or supervisor. They depict management of cross
business groups, cross-functional and other working models which do not have restricted
vertical functions. IBM has opted for this structure to carry out their activities. This
structure is used by them to ensure that resources are used effectively and also resources
can be shared on the basis of projects.
1.2 Evaluation of effectiveness of structure for specific organisation.
Different organisational structures are discussed above. These structures are followed by
organisation depending upon sectors in which they operate (Gupta and Kumar, 2013). Each
structure has certain capabilities by which they assist organisation to formulate their strategies.
There effectiveness with respect to organisation context is illustrated below:
 Divisional structure: McDonald's has opted for this structure as it provides them with
quick decision-making as every division is dependent on themselves and manager
formulates decision for their own team only. Apart from this, divisional structure aids
McDonald's to analyse their results as they are independent according to that they makes
alteration in their strategies.
 Hierarchy structure: Thomas Cook Group of UK has opted for this structure as it is
highly effective in terms of, clear authority is established for departments and their
activities, effective communication occurs and work can be categorised on basis of job
profile. If employees face any kind of problem they know with whom they can
communicate and they can report.
 Matrix structure: Matrix structure is followed by IBM (International Business
Machine). This structure is highly effective as by using this team leader can articulate

objectives of project clearly, employees will be able to merge functional objectives with
objectives of project and information flows rapidly among different departments of IBM.
2.1Analysis of different types of communication system.
Communication refers to process in which individuals share their point of view related
with any aspect. There are various types of communication systems which are used in
organisation to carry out operations in effective manner (Laforet, 2011). It is essential for
organisations like McDonald's, Thomas Cook or IBM to have a effective communication
between their employees so that there activities can be carried out in appropriate manner. Some
communication systems are mentioned below:
 Downward communication: This type of communication occurs from top to bottom
like from Ceo to downward employees. It goes from top management to subordinates
which include junior level functionaries to controlling office of branch, theses are
examples of this communication. An example in this within organisations like
McDonald's, IBM, Thomas Cook, etc are budgeting performance which includes two-
way process.
 Upward communication: This takes place in upward direction which is carried out
from lower level to higher level in an hierarchy (Linke and Zerfass, 2011). Example can
be considered like employees communicate with supervisors then they talk with
executives then regional manager and then others depending upon topic of discussion.
In this performance reports and feedback is taken from employees which results positive
for organisation.
 Lateral communication: This communication usually takes place within organisation,
it is neither downward nor upward. This type of communication occur within
organisations like McDonald's, Thomas Cook or IBM between employees who are at
same level. It is also addressed as peer level of communication.
2.2 Evaluation of effects of communication system.
Communication plays vital role within organisation. This assist employees as well as
employers to share a view point on different topics. Communication promotes motivation level
of employees as they will be clear about their job role and working environment of organisation.
Communication provides source of information by which organisation formulates decisions and
also it helps to identify different alternatives related to activities which they will carry out within

organisation (Marceau, 2011). If effective communication do not occur within organisation then
it will not provide channels by which employees can share their issues or suggestion. Suppose
within an organisation like IBM, McDonald's or Thomas Cook team work is carried out. But if
employees are not open to each other then healthy interaction will not occur within team which
can lead to adverse impact on performance of team. As they will not be clear about their team
objectives and goals. This will lead to decline in performance of organisation as well as
employees. But when healthy communication occur between employees of organisation then it
will lead to positive impact on overall growth of organisation as well as employees.
Communication leads to enhanced result in profitability and productivity of IBM or any
other organisation. As when people are open with each other they will not hesitate to share their
viewpoint and ideas. By this team can identify best idea and work on it for accomplishing their
goal.
Task 2
3.1. Analysis of characteristics of different organisational cultures.
Bureaucratic: This types of organisational culture is more formal and highly organized.
In this it is essential for an organisation to communicate every employee actual role and
responsibilities (Obeidat and et. al, 2012). In a bureaucratic organisational structure there are
different set of management levels. In this power lies only in the hands of few individuals.
Competitive: This culture emphasizes on a fact that, in order to increase job
performance of an individual managers can encourage their employees to work in a collaborative
manner. Along with this by rewarding their employees with different types of benefits. This will
help an organisation to extract best out their employees.
Community: In order to gain more goodwill in a marketplace it is essential for an
organisation to provide their offerings in environment friendly manner. It is important for large
organisations like, McDonald's, IBM etc. to take care of community values and beliefs. This will
benefit them to gain more trust of society and employees along with great production.
3.2. Evaluation of impact of culture on organisation.
Impact of culture on organisation:
Culture is social norms as well as behaviour that are identified in societies. It is refers as a
manner of life of individuals group, the values, symbols, behaviours and beliefs which they

accepts and imitation from one generation to another (Sanchez de Pablo Gonzalez del Campo and
Škerlavaj, 2011). Culture of the organisation is considered as a underlying assumptions, beliefs
and means of interacting which contribute towards the unique social as well as psychological
environment of firm. It helps firm to direct the way workers behave amongst each other and with
outside individuals. As all employees comes from different cultures within company so, some of
its impact are mentioned below:
Positive impact:
 If people are from various culture come together in company then many creative idea
arises to perform the task effectively, introduce different types of innovative products
into market etc. to attain more profitability.
 Culture creates a competition among employees so the employees are more focused to
give their best in order to accomplish the target of company.
 With different cultural employees in organisation it will become easy for them to do
business in different nation without facing language, cultural and other barriers.
Negative impact:
 Employees that come from various culture have different thoughts, beliefs so the
conflicts arises among them which is not good for the company and also misleads them
from goal accomplishment (Watson, 2011).
 In case if diverse culture arises within firm then company have to provide training to their
employees which is a cost bearing for them.
 Due to different culture language barriers occurs among workers which creates
unfamiliar environment in the organisation.
4.1 Identification of employee organisations and their roles.
An employee is a person in which they will make different decisions in the
organisation so that they establish good relations with the manager in an organisation. They are
those who can make success to IBM, McDonald's and Thomas Cook. The role of an employee
organisation had implemented in a good way so that all employees can able to make different
decisions. In an organisation the role of a manager to determine the effectiveness of a particular
employee so that they satisfy all needs and requirements (Carlos Pinho, Paula Rodrigues and Dibb,
2014). The communication will be good so that all managers can work in an effective team of an
organisation. All managers would require to identify strengths and weaknesses of a particular

employee. This can implement different strategies and programmes that IBM and MacDonald
will determined.
Role of an employee organisation-
In different countries different workers can make policies and procedure which help them
in making various decisions in an organisation. It basically deals in the employee empowerment
in which all employees get empowered by receiving different rewards and compensation in IBM
and MacDonald.
Encourage creativity and innovation-The employees in an organisation would make
new innovations that help IBM and MacDonald to attain common goal and objectives. The
creativity and innovation can be developed by making new technologies in an organisation
(Carlström and Ekman, 2012).
Increase productivity- If employees work good in an organisation then their
compensation can be increased and they are in term to attaining goals and objectives. This may
certain to increase productivity so that all employees can employ and allocate various kinds of
resources in an organisation
Align goals of employees in an organisation- In an organisation all employee should
work in effective teams so that they can received the common goals and objectives. This may
increased the value of firm in IBM and MacDonald in which managers of them would give
rewards according to work they have done in an organisation.
CONCLUSION
From above, it can be concluded that organisational structure refers to way in
organisational functionalities and activities are carried out by which objectives and goals can be
attained in effective manner. Different organisations follows different organisational structure
depending upon sectors they are operating on. Moreover, there are different types of
communication system depending upon with whom communication is carried out and each have
relevant impact on organisation, it can be either positive or negative. Furthermore, characteristics
of organisational culture are discussed which involves working environment of organisation and
there impact has been evaluated. Every organisation is employee organisation as any business
cannot operate without employees.

REFERENCES
Books & Journals
Carlos Pinho, J., Paula Rodrigues, A. and Dibb, S., 2014. The role of corporate culture, market
orientation and organisational commitment in organisational performance: the case of non-profit
organisations. Journal of Management Development. 33(4). pp.374-398.
Carlström, E. D. and Ekman, I., 2012. Organisational culture and change: implementing person-centred
care. Journal of health organization and management. 26(2). pp.175-191.
Gupta, S. and Kumar, V., 2013. Sustainability as corporate culture of a brand for superior performance.
Journal of World Business.48(3). pp.311-320.
Laforet, S., 2011. A framework of organisational innovation and outcomes in SMEs. International Journal
of Entrepreneurial Behavior & Research. 17(4). pp.380-408.
Linke, A. and Zerfass, A., 2011. Internal communication and innovation culture: developing a change
framework. Journal of Communication Management. 15(4). pp.332-348.
Marceau, J. ed., 2011. Reworking the world: organisations, technologies, and cultures in comparative
perspective (Vol. 42). Walter de Gruyter.
Obeidat, B.Y. And et. al, 2012. Toward better understanding for Arabian culture: Implications based on
Hofstede’s cultural model. European Journal of Social Sciences.28(4). pp.512-522.
Sanchez de Pablo Gonzalez del Campo, J.D. and Škerlavaj, M., 2011. The organisational learning
process as facilitator of innovativeness. International Journal of Innovation and Learning. 9(4).
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Watson, T., 2011. Sociology, work and organisation. Routledge.