Organisational Structure

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Organizational Structure Every organization has its own chain of command. Roles, power and responsibilities assigned, control and coordination, and information flows between the different levels of management are determined by organizational structure. Organizational structures are of two types:

  1. Formal Structure
  2. Informal Structure

Formal Structure A formal organisation is one which is intentionally constructed to fulfill specific goals. It is characterized by planned division of responsibility and a well defined structure of authority and communication. The organization structure provides for consistent functions and roles, irrespective of changes in individual membership. Informal Structure An informal organization is one which is loosely structured, flexible and spontaneous, fluctuating with its individual membership. Organizational Culture Organizational culture is basically how an organization presents itself. Organizational culture includes expectations, experiences, philosophy, etc. There are several types of organizational culture. They are:

  1. Power Culture
  2. Role Culture
  3. Task Culture
  4. Person Culture

Power Culture This kind of culture exist where a single person or a small number of individuals are dominant within an organisation. They make all the important decisions for the organization. This kind of culture may exist in a small business or part of a larger business. Role Culture This kind of culture exists in large hierarchical organisations in which individuals have clear roles (jobs) to perform which are highly specified. Individuals tend to work according to their job description, and tend to follow the rules rather than being creative. Task Culture This kind of culture exists when teams are formed to complete particular tasks. A distinct team culture develops, and because the team is empowered to make decisions, task cultures can be creative. Person Culture It is the most individualistic form of culture and exists when individuals are fully allowed to express themselves and make decisions for themselves. A person culture can only exist in a very loose form of organization. For this reason I have selected 2 organizations to compare their organizational structure and culture.

  1. Mohammadi Homes Ltd.
  2. Bhai Bhai General Store

Mohammadi Homes Ltd. Mohammadi Homes Ltd. is one of the subsidiary company of the parent company Mohammadi Group of companies. Mohammadi Homes Ltd. is a real estate business which emerged in 1978. While they ensure standard construction quality as per the A.C.I. code, the company appears with different commitment by applying update techniques of modern architecture. Mohammadi Homes Ltd. assures living in a modern house with a good environment at an affordable price. The Organizational Culture of Mohammadi Homes Ltd. Mohammadi Homes Ltd. follows the power culture. The decision is made by the main director due to it being a subsidiary of Mohammadi Group of Company. The Structure of Mohammadi Homes Ltd. Every large company follows formal structure.

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