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Managerial Psychology

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 purpose (Dow, 1988). Purposefulness 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