Advantages Of Business Structure

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In this essay first will define the organizational structure and discuss some problems and challenges of keeping businesses structure less . Second, will explain the meaning of formal and informal structure and some advantages of formal business structure and will end the essay with the definition of the organizational culture and will discuss the relationship between structure and culture in organization.


Question 1,
This question is about organizational structure and discusses some of the problems/challenges of keeping and running businesses structure less. Firstly” organizational structure is a system used to define a hierarchy within an organization. It identifies each job, its function and where it
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Example explaining different jobs and roles in organization and not saying anything about the individual. However, informal structures typically develop around social or project groups. Because informal structures are based on camaraderie there is often a more immediate response from individuals”. Informal organizational structure does not follow any fixed path of flow of authority or communication. not written down on the organizational chart its more about the relationships of individual ,it is more difficult because human elements example respect , commitment , trust play a role . (Tichy, N. M. 1980,pp. 34-36) This saves people time and effort, thus making it easier to work with in informal structures. There are some of the advantages of a formal business structure which is easy to fix accountability .Since the authority and responsibility of all the employees have been already fixed, inefficient employees can easily be apprehended and in this way their accountability can be fixed. Also, no overlapping of work .Everything moves in an orderly manner. Therefore, there is no possibility of any work being left out or unnecessarily duplicated. Moreover, unity of command possible .It is possible to observe the principle of unity of command in view of the presence of scalar chain of authority. And easy to get goals . It is…show more content…
2006, pp.709–732 ). There is the relationship between organizational structure and culture would be highly beneficial, since both of them determine the behavior of organization members. However they do it in different ways. Organizational culture is an important factor of organizational behavior, as it directs the way people behave in an organization by operating from within, values, norms, and attitudes according to which organization members guide themselves in everyday actions in the organization. On the other hand, organizational structure is an important factor which influences people’s behavior from the outside, through formal limitations set by division of labor, authority distribution, grouping of units, and coordination. Therefore one’s behavior in an organization is the result of the impact of its culture and structure, as well as the influence of other factors. Therefore studying the mutual impact of organizational culture and structure is important for understanding of the behavior of an organization’s members.Toyota enacts its production system with the help of its human resource strategies, culture, and structure. From the human resource perspective, they have employment stability, high investment in training and development, and internal promotions, all promoting a sense of employee ownership of the
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