The Impact of the Organisation Structure and Culture on Employee’s Performance

The Impact of the Organisation Structure and Culture on Employee’s Performance

Table of Contents

1.0 Introduction. 3

2.0 Overview of Organisation Structure. 3

2.1 Definition of Organisational Structure. 3

2.2 Theories of Organisational Structure. 3

2.2.1 Classical Organisational Theory. 3

2.2.2 Neoclassical Organisation Theory. 4

3.0 Overview of Organisation Culture. 4

3.1 Definition of Organisation Culture. 4

3.2 Theories of Organisation Culture. 4

3.2.1 Edgar Schein’s Theory. 4

3.2.2 Handy’s Four Types of Organisation Culture Theory. 6

4.0 Overview of Productivity. 7

4.1 Definition of Productivity. 7

4.2 Theories of Productivity. 7

4.2.1 Goal setting Theory. 7

4.2.2 Systems Theory. 7

4.3 Traditional Ways of Improving Productivity and efficiency. 8

5.0 Changes in Structure Improve Employee Performance. 8

6.0 Changes in Structure improving Employee Performance. 9

7.0 Conclusion and Recommendations. 10

References. 11

1.0 Introduction

In the contemporary business environment, organisation culture is critical for organisations success. According to Khan et al. (2020) the scope of success is evidenced by organisation culture leading to establishment of a positive influence which leads to employees increased motivation, mindfulness and satisfaction in workplace. Additionally, through an embrace of an appropriate and strong organisation culture, they are in a position of harnessing consistency and common direction, guiding decisions and actions, fuelling workforce and assisting to attain their optimum potential. To achieve a strong organisation culture, Alzoubi and Ahmed (2019) noted that organisations in the highly competitive market environments had been with consistent been monitoring and improving performance. This is with an intention of achieving the ever-increasing expectations of investors, employees and clients. To achieve this, it becomes possible for leaders to evaluate the best practice of improving their productivity which scope beyond time management capacity development offered by HR department. In line with this background information, this report intend to evaluate the impact of organisation structure and culture on employee performance.

2.0 Overview of Organisation Structure

2.1 Definition of Organisational Structure

Adopting the definition of Li et al. (2019) the organisation structure is the approach in which work flows through an organisation. This is for allowing groups in working collaboratively within their individual functions and tasks management. Further, Ebert and Duarte (2018) argued that the main components of the organisational structure include the work designs, departmentalisation, delegation of roles, hierarchy and management ratio. This is with other structures including the hierarchical, flat, flatarchy, functional, divisional and matrix.

2.2 Theories of Organisational Structure

2.2.1 Classical Organisational Theory

As evidenced in Paais and Pattiruhu (2020), the classical organisation theory had been established in first half of 20th Century. This is as an approach of integrating scientific management, bureaucratic theory and administrative theory. Further, Prasad (2020) argued that the scientific management prioritise on ensuring that the most appropriate individuals and equipment are used and scrutiny of every production task. This is similarly supported by Bureaucratic theory which is anchored on describing division of labor in an organisation and recognition of relevance of specialisation. Further, administrative theory is identified in González-Valiente et al. (2019)) as establishing various management principles used in entire entities.

2.2.2 Neoclassical Organisation Theory

Adopting the definition of Gaeta et al. (2021) the neoclassical theory puts into account of the work environment in establishing the organisation structure. It identify productivity as improving environment coherently with values and purpose set. Entities are successful with a cohesive environment in place with subordinates accepting managerial authority. According to Günbayi and Sorm (2018) the primary requirement of this theory is development of an equilibrium.

3.0 Overview of Organisation Culture

3.1 Definition of Organisation Culture

Adopting the definition in Deliamiezade (2019) organisation culture identify all the organisation beliefs, values and atttudes and their scope of influence on employees behaviours. Further, in defining organisation culture, Tran (2020) noted that it can either be a clan culture, adhocracy culture, market culture and hierarchy culture. In broader terms, these types of cultures are characterised by values, sociology, and psychology of an organisation. The examples relevant for this entail the philosophy, values, expectations and experiences. Further, by linking the definition of organisation culture with employee performance, Roscoe et al. (2019) argued that one of the most significant way organisation culture influence performance is by having a clear illustration of organisation believes in and stands for. This is through such an organisation embracing a strong recognition for their staff input and making them feel being part of something bigger and better.

3.2 Theories of Organisation Culture

 3.2.1 Edgar Schein’s Theory

The core assumption of this theory is that organisation culture is comprised of three different levels. According to Serra et al. (2019) these levels include artifacts, values and assumptions (see figure 1).

What is Schein's Model of Organizational Culture? The Schein's Model of Organizational  Culture In A Nutshell - FourWeekMBA

Figure 1: Edgar Schein Organisation culture theory

Artifacts– For this first level of organisation culture, it is characterised by things which could be easily viewed, heard and felt by people which are cumulatively identified as artefacts. While offering examples, ŚCIGAŁA (2020) noted that this include their dressing code of staff, office furniture used, facilities, behaviours of employees, mission and vision of the organisation.

Values– For this level, it is identified as defining the scope of individuals reacting to situations and problems shaping their culture. According to Duerr et al. (2018) the thought of people have a significant impact to their organisation. This is by influencing specific organisation mindset and practice.

Underlying believes- These cannot be measured and stay hidden but impact the organisation culture. It entails the inner human nature which characterise an organisation culture. For all organisations, they pursue varying initiatives which are not evaluated often but independently recognised.

The impact of organisation structure is also identified by this theory as informing the basic assumptions which a group has focused on inventing, discovering/developing while prioritising on managing their issues of external adaptation and internal organisation integration.

3.2.2 Handy’s Four Types of Organisation Culture Theory

The relevance of this theory on organisation culture is informed by the basic assumption that all people take accountability for something or the other for their assigned roles. In such a type of workforce, power is sourced from responsibility. It is in this regard that the author of the theory identified culture as being characterised by aspects of culture, role culture, task culture and person culture (Janićijević et al.,2018). This is as illustrated in figure 2;

Figure 2: Handy’s 4 Types of Organisation Culture Theory

Hence, this theory directly links the organisation structure to the culture. In particular, the source of the power in hierarchically structure of an organisation demonstrate where power is radiating from several individuals and scope of their influence.

4.0 Overview of Productivity

4.1 Definition of Productivity

Adopting the definition of Dastane (2020), organisation productivity identify the capacity of an organisation to develop expected outcomes with minimum expenditure of resources. Further, Krekel et al. (2019) identified the productivity as a process in which organisations use less resources and time and money for achieving a similar goal. For profit-based organisations, an increased organisation productivity is defined by the capacity of achieving an increased profitability and market dominance. Hence, productivity is core fort modern organisations individuals (workers and consumers), business leadership and analysts (including policymakers and government statisticians).

4.2 Theories of Productivity

4.2.1 Goal setting Theory….

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