Comprehensive Report: Organizational Structure and Culture Analysis

This report delves into the complexities of organizational structure and culture, examining various organizational charts, including the functional top-down model. It explores the roles of different personnel within a company's hierarchy, from C-suite executives to departmental managers. The report differentiates between mechanistic and organic systems, highlighting the characteristics of each. Furthermore, it analyzes the significance of informal organizational structures, differentiation, and integration within companies, discussing their respective advantages and disadvantages. The report concludes with suggestions for improvement, referencing relevant academic sources to support its findings. This comprehensive analysis provides a detailed understanding of how organizational structure and culture influence a company's operations and success. This report is contributed by a student to be published on the website Desklib, a platform which provides all the necessary AI based study tools for students.

Running head: ORGANIZATIONAL STRUCTURE AND CULTURE
ORGANIZATIONAL STRUCTURE AND CULTURE
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Table of Contents
Organization Diagram.........................................................................................................3
Informal Structure of Organization.....................................................................................4
Differentiation and Integration in Companies.....................................................................5
Advantages and Disadvantages of Differentiation and integration of Organization...........6
Suggestion for Improvement...............................................................................................7
References............................................................................................................................8

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Organization Diagram
Organizational structure is one of the important factors which determines the company’s
hierarchical structure. There are four types of organizational structure which includes functional
top-down, divisional structure, matrix organizational chart and flat organization chart. In this
report the functional top-down chart has been taken. In case of the functional top-down chart it is
observed that C-suite personnel are at the pinnacle of the hierarchical structure. These are
followed by the senior managers, and then it comes middle managers and then comes all the
executives. In the C-suite posts includes some of the important personnel like Chief Executive
Officer, Chief Financial officer and Chief Operational Officer. These C-suite personnel are
reported by senior manager from different departments like IT department, finance department
and also the sales department. These senior managers are reported by the executives and
different heads of the management.

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If the company went in any kind of project then the decision making process are being
decided by the C-suite personnel of the company which involves CEO, CFO and COO of the
company. Then the project are being divided into fragmented part and assigned to respective
departments (Winnubst, 2017). The senior managers of different departments further assign the
work into their respective managers and the managers of the different departments distribute it to
their teams.
There are two types of system of organization. This includes the mechanistic system and
organic system. In case of mechanistic system the organization chart which is more bureaucratic
in nature and are more hierarchical in nature. The function top down chart is the hierarchical in
nature and also promotes the idea of bureaucracy which includes the control lead by the main
managers of the company.

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Informal Structure of Organization
Informal organizational structure is the type of structure which are more focused on the
personal relations and depends on the interactions of people in organizations. Unlike
organizational structure this informal group is created naturally. These formations of the group
are mostly taken outside the formal organizational structure. In case of the informal
organizational structure is being crosses it horizontally and vertically. In informal organizational
structure the employees are often have very powerful communication system which helps to
resolve any kind of issues in a very quick moment. The main advantage of the informal
organizational structure is that it can change easily and a very adaptable to the changing
situations (Winnubst, 2017). If there any change in the organization in terms of the shift then it
can easily be changed easily with the help of the informal group as it is more liquid and fluid in
nature. The change which is done through informal organizational structure are more efficient
and more acceptable. The only disadvantage which the informal organizational structure holds
that it is sometimes becomes reorganized and hence a serious issue may rise which may lead to
demise of the company.
Differentiation and Integration in Companies
In the big organization differentiation takes place. Differentiation is a kind of situation
where different departments, branches ort different offices follow their own culture. The
differentiation of the company also includes different approach which leads to conducting a work
in their unique way (Winnubst, 2017). The differentiation also occurs in terms of the production
line of the company. The different production line with the finance, accounting and marketing
follows different approach for conducting the job. These all are done under the same
organization. The differentiation may lead to the rise in the using different technology and also

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using different types of model rather than using the same model which are common in the
organization.
Integration is also one of the important factor which leads to use of the same type of
model in different departments of the organization. The large companies which are integrated
with high factors lead to the strong connections between the departments and also same found in
the case of the product lines. Integration is used mainly in the top down chart organization. These
are also seen as the increase in the productivity and unity of the company which helps the
company to move forward. These are also directed with the financial structure of the
organization.
Advantages and Disadvantages of Differentiation and integration of Organization
There are many advantages of the differentiation strategy of the organization of the
company. The advantages of the differentiation of the organization are as follows:
The multinational companies are working in different market around the world. So
differentiation helps the company to cop up with that market and hence it becomes fruitful for
the company.
The organization can successfully solve the problem of the client easily if the organization is
using the differentiation system. This will help to satisfy the customer more and able to increase
the brand value for the customer.
The differentiation system also helps to keep the unity in the specific branch of the company.
These help to increase the productivity of the employees of the company as they have some
suitable working environment for the employees.

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The disadvantages of the differentiation system of the company are as follows:
The main issue arises when there is an exchange of employees happens. It takes considerable
period of time for adopting with the working environment.
This also excludes some buyers when the organization follows the differentiation system.
It causes some of the biggest problem for the management of the company as it cause some of
the problem in the decision making (Zaridis & Mousiolis, 2014).
The advantages of the integration are as follows:
The integration has provided greater advantage over competitors as it helps the company to
invest and also to develop the products during their offering.
The integration helps the management of the company to have better control over the company.
The cost for transactions is said to be much lower as the branches of the company has same kind
of rules and regulations.
The disadvantages of integration are as follows:
When the company is having vertical merger then the company has to face some serious
problem.
It also decreases the flexibility of the company.
It also creates some of the barriers for the market intervention.

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Suggestion for Improvement
The hierarchical structure needs to improve in regards to the burecarcy of the company.
The structure needs to be more flexible which will help to adapt the change in the society.

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References
Bustinza, O. F., Bigdeli, A. Z., Baines, T., & Elliot, C. (2015). Servitization and competitive
advantage: the importance of organizational structure and value chain position. Research-
Technology Management, 58(5), 53-60.
Neubert, M. J., Hunter, E. M., & Tolentino, R. C. (2016). A servant leader and their
stakeholders: When does organizational structure enhance a leader's influence?. The
Leadership Quarterly, 27(6), 896-910.
Van der Voet, J. (2014). The effectiveness and specificity of change management in a public
organization: Transformational leadership and a bureaucratic organizational
structure. European Management Journal, 32(3), 373-382.
Winnubst, J. (2017). Organizational structure, social support, and burnout. In Professional
burnout (pp. 151-162). Routledge.
Zaridis, A. D., & Mousiolis, D. T. (2014). Entrepreneurship and SME's organizational structure.
Elements of a successful business. Procedia-Social and Behavioral Sciences, 148, 463-
467.