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Organizational Architecture and Corporate Culture

on November 24 at 10:09 PM

In a well-structured business setup, there is always a constitution or form on which the whole business operational procedure is based. The system should clearly outline the institutional policies, rules, responsibilities and how they are coordinated, controlled and delegated. That is what will determine the organizational architecture. On the other hand, there should be a well-controlled behavior and credibility of the company’s employees and management that reflect how an institution should handle its business transactions. The corporate culture regulates this. Therefore, where there is a vague organizational architecture, an obvious contention will occur when dealing with the issues of corporate culture. When the roles are not well defined, an employee might misbehave or just waste the time because he/she is not occupied or does not know what is to be done. AECOM based in Los Angeles, CA is an example of a firm with a well-defined organizational structure and corporate culture.

The latter enables the employees to create a conducive environment for their operation as they follow the rules provided in the structure. When the whole process of the organizational structuring is entrusted to one person, it will breach the intention of the corporate culture because only one worker will determine all the activities and transactions at the expense of the other employees. For instance, Billy Riggan who in charge of all technical developments at Always Round Tire will apparently find it tiresome to control the activities and make prudent choices concerning the product innovation in this company. While his colleagues are just playing tennis because the work to curb the controversies, which will taint the corporate culture has not been assigned to them. Explicit delegation and supervision should be employed for fairness and smooth operation of the institution.

Organizational architecture is not only a form and a structure where the business operates but it also involves the concept of customers, distributors, and suppliers. When Round Tire tries to base its promotion on seniority, the system can work with shop floor supervisors and team managers because they take most of the decisions. Thus, this approach can break down for the level of position because of the lack of experience. The high-level operators require much knowledge because they do not spend most of the time interacting with team managers and floor supervisors. All the structures of the organization are equal and should be considered for the success of the company.

The structure of the organization can solve the free rider problem, which is an instance where people use the resources they do not pay for. Hence, this can be controlled when there are well-organized supervisors and team managers who should be concerned in the distribution. They will get reimbursement , and, therefore, control the free ride. It can also be reduced by imposing taxation on individuals or by means of the legislation.

For the effectiveness of the performance of the employee regarding the corporate culture, 360-degree feedback is to be used. The information should be collected from friends, customers, supervisor the employee is close to. Such data will enable the company to describe abilities and interests of its workers. The feedback will also help the business to determine the areas of improvement of employees and develop a strategy to delegate activities and duties.

Organizational form may not work well for the small business enterprises, but it fits well in a well-structured firm with numerous substations and vast amount of employees. It helps in the streamlining of operation, and this reduces the number of the similar processes undertaken. Organizational structures also help in improving decision-making and can enhance multiple operation locations. The improved performance of the worker is also realized when organizational structure is used. The idea of responsible stewardship is ideal when it comes to planning and management of resources. To make this prosperous, the structure will play a significant role because employees at different levels will be responsible for the tasks at their disposal thus an economic analysis will be successful.

In conclusion, the organizational structure and corporate culture in a company should continually be reviewed and improved to bring smooth delegation, monitoring and controlling of the activities of the business. Consequently, this will result in the robust success of an institution.

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