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A bureaucracy allows an organization to perform standardized activities in a highlyefficient manner. Since decision making is centralized, management requires less decision-making ability and therefore the company can get by with less talent, which reduces salarycosts. Unfortunately, there is no room for modification in a bureaucracy. “Bureaucracy isefficient only as long as employees confront problems that they have previouslyencountered and for which programmed decision rules have already been established”(Judge & Robbins, 2007, p.546). Matrix Structure Matrix structure is a combination of two forms of departmentalization: functional andproduct. The concept behind this design is to place like specialist together. This allows forthe exchange of ideas and sharing of resources. This disadvantage of the matrix structure isthat is lacks coordination, which hinders productivity, delays deadlines and fluctuates thebudget. Organizational Culture “Organizational Culture refers to a system of shared meaning held by members thatdistinguishes the organization from other organizations” (Judge & Robbins, 2007, p.573). Itis a common perception that is shared amongst an organization’s employees. A strongorganizational culture provides both the company and its employees with direction andstability. The culture within an organization can be powerful enough to effect employeeattitude and behavior as well as performance and turnover ratio. According to manyscientific studies, there are seven primary characteristics used to define the culture of anorganization: innovation and risk taking, outcome orientation, people orientation, teamorientation, aggressiveness and stability. What Do Cultures Do? An organization’s culture shapes the attitudes and behaviors of its employees bydefining boundaries, providing a sense of identity and stability. It also establishes a standardin regards to what employees should say and do. Culture can be transmitted via stories,rituals, material symbols and language. Culture within an organization is no exception. An organization’s culture governs day to day behavior. This type of power may be seenas a control mechanism, which businesses use to manipulate internal and externalperception. Every organization has a set of assumed understandings that must be adoptedand implemented by new employees in order for them to be accepted. Conformity to theculture becomes the primary basis for reward by the organization. “The role of culture in22
influencing employee behavior appears to be increasingly important in today’s workplace,as organizations have widened spans of control, flattened structures, introduced teams,reduced formalization, and empowered employees, the shared meaning provided by a strongculture ensures that everyone is pointed in the same direction” (Judge & Robbins, 2007,p.579).