A bureaucracy allows an organization to perform

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A bureaucracy allows an organization to perform standardized activities in a highly efficient manner. Since decision making is centralized, management requires less decision- making ability and therefore the company can get by with less talent, which reduces salary costs. Unfortunately, there is no room for modification in a bureaucracy. “Bureaucracy is efficient only as long as employees confront problems that they have previously encountered 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 and product. The concept behind this design is to place like specialist together. This allows for the exchange of ideas and sharing of resources. This disadvantage of the matrix structure is that is lacks coordination, which hinders productivity, delays deadlines and fluctuates the budget. Organizational Culture “Organizational Culture refers to a system of shared meaning held by members that distinguishes the organization from other organizations” (Judge & Robbins, 2007, p.573). It is a common perception that is shared amongst an organization’s employees. A strong organizational culture provides both the company and its employees with direction and stability. The culture within an organization can be powerful enough to effect employee attitude and behavior as well as performance and turnover ratio. According to many scientific studies, there are seven primary characteristics used to define the culture of an organization: innovation and risk taking, outcome orientation, people orientation, team orientation, aggressiveness and stability. What Do Cultures Do? An organization’s culture shapes the attitudes and behaviors of its employees by defining boundaries, providing a sense of identity and stability. It also establishes a standard in 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 seen as a control mechanism, which businesses use to manipulate internal and external perception. Every organization has a set of assumed understandings that must be adopted and implemented by new employees in order for them to be accepted. Conformity to the culture becomes the primary basis for reward by the organization. “The role of culture in 22
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 strong culture ensures that everyone is pointed in the same direction” (Judge & Robbins, 2007, p.579).

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