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Drive Performance.

The significance of organizational culture emerges from the fact that, by imposing a set of assumptions and values, it creates a frame of reference for the perceptions, interpretations, and actions of the organization’s members In this way it influences all the processes that take place in an organization, and even its performance. Through managers’ and employees’ mental maps, organizational culture influences the dominant leadership style, organizational learning and knowledge management, company strategy, and also the preferred style of changing the management, employee reward system, commitment, and other aspects of connections between individuals and the organization. It would, therefore, be rational to assume, as this paper initially postulates, that organizational culture impacts on a company’s organizational structure. With its assumptions, values, and norms, the culture influences top management’s frame of reference that shapes organizational structure. Organizational structure is, therefore, a sort of cultural symbol and it mirrors key assumptions and values dominant in an organization. Organizational structure is defined as a relatively stable, either planned or spontaneous, pattern of actions and interactions that organization members undertake for the purpose of achieving the organization’s goals. This understanding of organizational structure is based on a fundamental assumption of it being purposeful, i.e., on the idea that organizational structure has its purposePurposefulness of structure implies that it is a rational instrument in the hands of those governing the organization, used for directing the course of activities in the organization towards realizing its objectives. Rationality of the organizational structure is ensured by its differentiation and integration of organization members’ individual and collective activitie