Organizational Culture and Structure: Driving Performance Improvement

This essay examines the crucial role of organizational culture and structure in enhancing business performance, emphasizing the interconnectedness of these elements within an organization. It highlights the necessity of effective management skills and leadership qualities to properly manage business functions. The discussion encompasses the Denison model, used by Facebook to cultivate its organizational culture, focusing on involvement, adaptability, consistency, and mission. The essay further elaborates on how a positive working culture can motivate employees and improve their performance, contributing to the achievement of organizational goals. Additionally, the significance of organizational structures in streamlining operations, improving decision-making processes, and motivating employees is explored, referencing Facebook's hybrid hierarchical and divisional structure. The analysis concludes that a well-defined organizational structure and a positive organizational culture are vital for maximizing employee engagement and achieving positive revenue in the marketplace.

Business Management
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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................4
Conclusion................................................................................................................................10
Reference list............................................................................................................................11
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Introduction
In this modern era, all the business organizations are booming up their business models
rapidly through using proper managing tools and process. Managing the all the business
functions properly is not an easy thing. In order to manage all the business activities properly,
good quality of managing skills along with proper leadership quality is mandatory. In
addition, both of the structure and culture of an organization are intrinsic factors and co-
related with each other that really have great importance on improving the performance of an
organization. Most of the successful business organization such as Facebook always
maintains balance between the organizational structure and culture in an effective manner.
Thus, they are successfully managing all the business activities without any difficulty. This
assignment will outline the importance of organizational structures and cultures in improving
the performance level of the overall organization. In addition, the techniques to ensure
advancement of the organizational performance level will also be included in this assignment.
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Critical Discussion
Organizational culture
In this modern era, all the business organizations are improving their business models rapidly
through using proper managing tools and process. It is not easy for any organization to
manage all the organizational functions. In order to manage all the business activities
properly, good quality of managing skills along with proper leadership quality is mandatory.
In addition, both of the structure and culture of an organization are intrinsic factors and co-
related with each other that really have great importance on improving the performance of an
organization. In this context, the case study of Facebook is evaluated to gain an
understanding on the importance of organisational structure and culture on improving overall
performance. Most of the successful business organization such as Facebook always
maintains balance between the organizational structure and culture in an effective manner.
This assignment will outline the importance of organizational structures and cultures in
improving the performance level of the overall organization.
In order to develop the organization culture of Facebook, the management department uses
Denison model of organizational culture instead of using other models.
The relationship to employee performance
In addition, it is also possible to enhance the performance level of the employees through
maintaining the positive working culture within the organization. Employees feel connected
with the organization while employees feel that managers and bosses care about them
(Harper, 2015). Actually, positive working culture provides motivation and encouragement to
the employees to improve their organizational activities in a significant way that it can assist
the organization in accomplishing the business goals and objectives. Building a positive
working culture is not an easy thing.
The culture of Facebook and Denison model
Facebook is one of the leading business organizations that have millions of global users.
Millions of people daily access Facebook in order to connect with social media. Therefore,
Facebook needs to focus on creating and maintaining proper working culture within the
organization for offering the users as much facilities as much possible.
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In order to develop the organizational culture of Facebook, the company has used the
Denison Model that is considered as one of the most useful model for improving the working
culture within the firm. Mainly, this theory, describes the theory over the organizational
behaviour, which emphasises a strong link between the organizational performance and the
organizational culture. The American professor named Denison has separated the model in
few dimensions that are involvement, adaptability, consistency and mission created this
useful model (Chang, 2016). All of these dimensions are crucial for maintaining a positive
working culture within the organization. Thus, Faceebook has used this useful model in their
organization for maintaining the leading role in the industry.
Involvement
Effective organizations such as Facebook empower employees for involving in all
organizational activities within the firm. Enhancing teamwork quality along with human
resource skills are included in this dimension of the model. In all the successful business
organizations, top managers, executives and the entire employees are needed to be involved
in all the organizational work (Matas, 2016). Thus, they will feel that they are the part of the
organization. Alternatively, it focuses on maintaining the proper relationship among the
employees that employees can feel that are the part of the firm.
Consistency
Consistency is crucial for any organization that can form the basis of a strong type
organizational culture in an effective manner. In the Denison Model, consistency is separated
in three parts that are core values, consensus and coordination and integration. According to
the Denison, the behaviour of the employees is based on a set of values that are well defined
as well as the leader has the skills that are necessary for reaching an agreement. The core
values are the existence of the common set of the values. In reality, consistency is considered
as the powerful source of internal integration as well as stability. It also includes coordination
and integration that assist an organization to work as a team and in addition, it enhances the
relationship among the employees in a more significant way.
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Figure 1: Denison model
Source: (Brügger, 2015)
Mission
Mission refers to the significant long-term target or goal for an organization. As per the
developer of this model, mission is one of the most crucial factors in organization functions
that really influences accomplishing the business goals and achievements in an effective way
(Ahmady et al., 2016). In addition, strategic direction, aims and objectives and vision are
included in this dimension to support the dimension from all the ways. All of the successful
organizations such as Facebook have a well defined direction and purpose for the firm.
Adaptability
It transforms the internal business environment’s needs into action. Organizations, ironically
are considered as well integrated and often the most difficult for changing. On the other hand,
adaptable firms are those which take risks, learn and gather knowledge form mistakes and
have the experience as well as ability for creating change within the organization. All those
are based on the continuous change of system that is leading to improve team skills in place
to offer value to consumers (O'Neill et al., 2016). Creating change, customer orientation and
organizational learning are all included in this dimension.
This useful model is used by the Facebook for managing the organization culture of the
company in a more significant way that it can assist the organization for making growth.
Comparing to other models of organization culture such as The Human Synergistic Model,
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The Focus Model and others, Denison model is considered as more useful model to create a
more healthy working culture within the organization.
The structure of an organization
The structure of a business organization is considered as the key determinant of the financial
success. It refers to the typically hierarchical arrangement of lines of communications,
authority, duties and rights of an organization. The structure of an organization directs all the
employees to perform in a significant way that it can assist the organization to accomplish the
business achievements and goals. Task allocation, supervision and coordination are included
in this in structures that are directed towards the achievement of the aims of the organization.
According to the market researchers, structure is considered as the starting point to organise
that include positions and roles, spans of accountability and hierarchical levels as well as
mechanism to solve problem and integration (Anitha, 2014). Actually, structure refers to the
patterning and internal differentiation of relationships. It is the task’s formal system as well
as reporting relationships, which coordinates, controls and encourages employees through
which they corporate for achieving the goals or achievements of business organization.
Nevertheless, most of the successful business organization s such as Facebook has also
focused on creating an accurate structure of business to improve all the factions and
accomplish competitive advantages in the marketplace.
Significance of organizational structures
The structure of an organization defines as the informal and formal policies as well as
procedures organizations to govern all business operations in an effective manner. Small to
large business organization such as Facebook needs to use an accurate structure based on
their business for achieving a revolutionary success in the industry.
Improve decision-making
Decision-making process is crucial for every organization as it allows making right decision
at the right time. Business organizations can use the organizational structure for improving
decision-making process in business. The structure of an organization can be designed for
promoting information flow from the frontline operations to managers those who are
responsible for making quality decisions (Cummings and Worley, 2014). In addition, the
executive level management also can use organizational structure channels in order to send
information to the mangers or to the employees for completing all the business functions in a
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more significant way. Alternatively, by improving decision-making process, a company can
easily improve its employee engagement as well as relationship among the employees. Due to
this reason, most of the successful business organizations such as Facebook also use an
effective organizational structure to continue its flow of success in business.
Streamline operations
The structure of a business organization can help business organizations in doing streamline
business operation (Rahim, 2017). By organizing all the business functions into departments,
a business organization ensures that all the business operations are completed in n effective
manner. Additionally, business organizations can save money through reducing down the
similar business function’s number that are completed through multiple numbers of
departments. Managers, business owners and directors those who are responsible for
organizing all the business functions into several departments, can easily give focus on
improving the employee performance in all the organizational activities within the firm.
Motivation and encouragement
Motivating and encouraging all the employees are very crucial for improving their
performance level in an effective way (Goetsch and Davis, 2014). In addition, employees
need to feel that they are connected with the organization. Thus, employees can perform and
contribute in a better manner. Most of the successful business organizations such as Facebook
use an accurate structure of business organization for ensuring all the employees are
motivated within the organization.
The present organization structure of Facebook
Keeping this on mind, Facebook has used hybrid of Hierarchical and divisional
organizational structures. Facebook has more than 12600 numbers of employees those who
contribute for the growth of the organization. Therefore, the company has to use an accurate
structure for their organization. The organizational structure of Facebook Inc. is considered as
hybrid as well as combined certain elements of the divisional and hierarchical organizational
structures. The CEO and Founder MR. Mark Zuckerberg maintain the hierarchical
organizational structure of Facebook through integrating multiple levels of commands to
ordinary designer and programmer. Facebook Inc has divided their hierarchical and
organizational structure into different parts such as explicit structure, functional structure and
product divisional structure. The Founder and CEO of the company, Mr. Zuckerberg has
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made all the segmentations for maintaining and improving their organizational performance
in a more significant way. Although, the management authority of Facebook Inc is
responsible for managing all the business activities properly, but they are helped by the
effective organizational structure that hierarchical and divisional structure. In addition, this
effective structure has contributed a lot engaging more employees in the work as well as in
increasing the performance level of the employees. Empowering the employees is done by
the effective structure. Small business organization’s owner and CEO of multinational
company, empowers their employees for taking initiative as well as making decisions on their
own. Facebook Inc use hierarchy and divisional organizational structure for empowering their
employees in empowering them.
Additionally, this has influenced employee engagement in a significant way. The present
structure of Facebook has also helped the company to maintain resource and decision making
process through which company is maintaining his reputations. Furthermore, this structure
has really influenced organization to improve the performance level of the entire employees
to the maximum level. This has really helped the organization to gain positive revenue in the
market place. As a result, the structure has allowed the organization to introduce in the
market place as a successful business organization. CEO and Management team is trying to
reach the maximum level of success through using the effective hierarchical and divisional
organizational structure. Additionally, the company for ensuring the profits of the company
uses this structure. By implementing this structure, the company has really increased his
market shares and revenue also that can influence for the growth of the overall organization.
Thus, this hierarchical and divisional structure has played a crucial role in making Facebook
Inc as a successful business organization around the world.
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Figure 2: Board of Directors of Facebook Inc.
Source: (Newsroom.fb.com, 2018)
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Conclusion
This can be concluded that organizational structures and culture can really influences the
performance level of an organization in an effective manner. However, the culture and
structure of the Facebook Company is well developed and maintained by professionals, the
company still needs improvements for accomplishing their business achievements in a more
significant way. Alternatively, this can be observed that both of the factors, organizational
structures and cultures are crucial in order to make a revolutionary success in the
organization. The performance level of the overall organization including the entire
employees can be enhanced through offering the employees proper organizational structure
and healthy organizational culture.
In addition, Denison model along with role and significance of the model in increasing the
culture of an organization has also been included in this assignment. Keeping this on mind,
almost every successful business organization including Facebook has tried and implemented
several models and theories along with new systems to manage and balance the relationship
between the organizational culture and structure. The role and impact of organizational
structure and culture in improving the organizational performance of business organizations
such as Facebook has been provided in this assignment for offering a clear idea to the
learners.
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Reference list
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