1: How Does the Organizational Culture Fit the Organizational Structure?
2: How to Create, Change, and Align Culture to the Structure and Vision.
Organizational Structure
Preface:
A leader's job is to create the direction for the company to move forward. The leader does this in steps. Here are the steps of the process:
First, the leader designs the vision and mission for the company and
Second, the leader must establish an organizational structure which promotes the vision, mission and empowers the employees to keep the forward movement in the organization.
In creating the structure various factors must be considered.
- First and foremost is the purpose of the company or organization. What type of structure will best accomplish that goal? Certainly a company like UPS needs a somewhat rigid structure that is set up to focus on procedure and time sensitivity. Since UPS has as its goal to get the correct parcels to the right customers in the fastest way possible, variance in procedures or ways of accomplishing the tasks would never work. A tight delineated structure is imperative.
- Along with the purpose the leader must look at the vision of the organization. Where does the leader want the organization to go? How best can the structure provide for the future? Will the vision call for expansion into other countries or simply call for product development changes? Do you plan a structure that can easily grow in size without harming its integrity or one whose focus is in the best way to make new products? Vision must be built into the organizational structure.
- The people who make up the organization their jobs and their decision making authority should be considered. The authority must flow and make the organization respond favorable to the decisions and changes that are needed to move the organization forward toward the vision while making sure that stability continues to keep tasks on tract. This is tricky because the leader's job here is not to tell the manager what procedures to use or make but rather to set up a structure and authority to make it possible for them to make those procedures etc.
- The structure must be people centric it must focus on how the people will best work together to get their jobs done and still focus on the vision and the necessary change that is inevitable to keep the business alive in the 21st century. Change be the operant word.
- Budget considerations now and in the future.
- Finally, external environment factors like sustainability and knowledge management may want to be considered in developing the structure. These factors are something that would have to be evaluated on a case by case basis.
It is time now to try your hand at creating a culture to fit an organizational structure. To do this you must choose assess the current culture in the organization and then align the culture with the structure.
Here are the facts:
Richard Purvis has created the Jordan shoe company. It is known for its great specialty tennis shoes at moderate prices. The company is making fun shoes for young children mostly girls. Catering to the age group of 1-12, the shoes are popular in Colorado. The shoes are growing in popularity and Richard is thinking of expanding into other states. Business has grown steadily in the last seven years and its future looks bright. If Richard expands the company he would have to set up two other plants in other states. If he does he will have to reorganize the Colorado plant. The staff has always gotten along because Richard has been able to keep things on an even keel with his personality and concern for their personal welfare. He would have to find someone to take his place and run the plant in Colorado. He wants to set in place a structure which will continue to grow the business while maintaining its quality, reputation, and the happiness of its employees.
Purvis has set up his factory with a horizontal collaborative structure. He has four departments; design, the production department, sales and marketing, and administration. Each department has a manager that acts as team head. Purvis meets weekly with all the heads together and individually off and on during the week.
Purvis currently employs a plant manager who heads the production department which has 12 factory workers, two salesmen one of whom is the team head they also handle the marketing aspect of the business, the administrative head is the general manager, there are two office workers, and a bookkeeper. Finally, the design team has three employees one of whom is the head designer who leads the team.
The cost of expansion could be done effectively if the current profit level remains and that can only be done if the Colorado plant remains running smoothly.
The vision for the company is: to produce the best children's specialty shoes in the mid-west.
The mission is produce shoes quality shoes which are known for their durability, style, and contemporary kid fashion. The "kid" must be in every shoe.
Purvis believes strongly that his employees must be free to create the best shoes they can. He wants them to work together happily and with a commitment to the development of the vision. He also wants them to work together as they do now and to encourage creativity among them all not just with the design department.
Activity
Establish a culture that will make the structure you have created for Purvis flow and work towards the vision. Remember in creating a culture where the business is already functioning you want to make sure to start with an OCIA assessment. This will show you how and what needs to be addressed in the structure and the environment of the organization to move toward the values, culture, and environment that is best for Purvis and his company.
Like the structure you have to start with the various models, select one which works for the purpose of your company, structure, and people. You should evaluate the purpose of your business and how it operates best first, then how you want the people, their personalities and their skills to flow through the structure. What values and environment will make the work best and happily. Be sure to explain why you chose the culture you did including why you threw out the others. Remember a hybrid culture is always and option.
Create a new mission and vision statement for Purvis' organization; ensure that this mission and vision statement fit well with the organization's goals, structure, and organizational culture.