Organisational Structure of Company or Corporation

Table of Content

Organizational Structure

Every organisation has its ain concatenation of bid. Roles, power and duties assigned, control and coordination, and information flows between the different degrees of direction are determined by organisational construction.

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Organizational constructions are of two types:

  1. Formal Structure
  2. Informal Structure

Formal Structure

A formal administration is one which is deliberately constructed to carry through specific ends. It is characterized by planned division of duty and a good defined construction of authorization and communicating. The organisation construction provides for consistent maps and functions, irrespective of alterations in single rank.

Informal Structure

An informal organisation is one which is slackly structured, flexible and self-generated, fluctuating with its single rank.

Organizational Culture

Organizational civilization is fundamentally how an organisation presents itself. Organizational civilization includes outlooks, experiences, doctrine, etc.

There are several types of organisational civilization. They are:

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

Power Culture

This sort of civilization exist where a individual individual or a little figure of persons are dominant within an administration. They make all the of import determinations for the organisation. This sort of civilization may be in a little concern or portion of a larger concern.

Role Culture

This sort of civilization exists in big hierarchal administrations in which persons have clear functions ( occupations ) to execute which are extremely specified. Persons tend to work harmonizing to their occupation description, and tend to follow the regulations instead than being originative.

Undertaking Culture

This sort of civilization exists when squads are formed to finish peculiar undertakings. A distinguishable squad civilization develops, and because the squad is empowered to do determinations, undertaking civilizations can be originative.

Person Culture

It is the most individualistic signifier of civilization and exists when persons are to the full allowed to show themselves and do determinations for themselves. A individual civilization can merely be in a really loose signifier of organisation.

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For this ground I have selected 2 organisations to compare their organisational construction and civilization.

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

Mohammadi Homes Ltd.

Mohammadi Homes Ltd. is one of the subordinate company of the parent company Mohammadi Group of companies. Mohammadi Homes Ltd. is a existent estate concern which emerged in 1978. While they guarantee standard building quality as per the A.C.I. codification, the company appears with different committedness by using update techniques of modern architecture.

Mohammadi Homes Ltd. assures populating in a modern house with a good environment at an low-cost monetary value.

The Organizational Culture of Mohammadi Homes Ltd.

Mohammadi Homes Ltd. follows the power civilization. The determination is made by the chief manager due to it being a subordinate of Mohammadi Group of Company.

The Structure of Mohammadi Homes Ltd.

Every big company follows formal construction. And so does Mohammadi Homes Ltd. They are a centralised organisation, the concentration of authorization for doing determinations at the top degree of the organisation.

Gross saless and Selling:

Gross saless chief work is that maintain or grip of gross revenues, how much gross revenues of merchandise and computation or steps of gross revenues unit and selling chiefly concentrate on the advertizement, hoarding, newspaper, etc


Histories chief occupation is to cipher budget for undertakings, etc and other fiscal issues


Technical chief occupation is to supply technological or IT support for the company. They are normally professionals who have extended cognition about the proficient facets of the company and excel at job resolution.

Figure: Structure of Mohammadi Homes Ltd.

The Organizational Culture of Bhai Bhai General Store

Bhai Bhai General shop follows the individual civilization. The determination is made by the proprietor and employees perform their responsibilities harmonizing to proprietor determination. Like, the proprietor wants to adorn the shop with our national flag during Independence Day so the employees decorate the shop with paper flags, etc.

The Structure of Bhai Bhai General Store

Due to it being a retail shop it follows informal construction. It is centralized, the proprietor makes all the determinations.

Figure: Structure of Bhai Bhai General Store

Compare and Contrast the Structure and Culture of the 2 organisations.

Both Mohammadi Homes Ltd. and Bhai Bhai General shop follows centralised construction. Mohammadi Homes Ltd. follows power civilization while Bhai Bhai General shop follows individual civilization. For both organisations determination are made by the caput of each several organisation chief manager, proprietor. For Mohammadi Homes Ltd. determination may take some clip to filtrate down while in Bhai Bhai General shop determination does take clip and can be implemented immediately. Communication with the employee is good for both due to cross of control is broad.

Relationship between an organization’s construction and civilization can impact on the public presentation of the concern

Organizational construction and civilization creates several constructs, schemes, and state of affairss which affect every degree of planning. Organizational construction and civilization has an impact on concern public presentation. The good point is that organisations construction and civilization creates a difference which makes it easy to separate different organisations and besides easy to understand occupation place of persons in the same organisation. Employees work good for accomplishing the organisational end when they are provided a sense of individualism.

Organizations construction and civilization can animate dedication within the employees towards the organisation. The norms and values of society can heighten the stableness of the societal system within the organisation. Having strong civilization means holding a good working environment where employees portions different norms and values. Organizational construction and civilization provides an appropriate ideal working environment. Organizational construction and civilization changes the point of view and idiosyncrasy of employees and it besides serves a agency of control and a sense of doing.

Every organisation has set of regulations and ordinances which everyone within the organisation must follow. Organizational construction and civilization signifiers an organisations unpleasant regulations and ordinances. Organizational construction reveals the duty of everyone within the organisation which reflects who will reply to whom. An organisation must do the right determinations at the right clip through strong organisational construction.

Organizational construction and civilization besides has bad impact on concern public presentation. Organizational civilization becomes a liability when people working for the organisations don’t agree on sharing their values with others which leads to internal struggles. Dynamic environment of an organisation affect concern effectivity. Complex organisational construction slows down determination devising procedure and besides when determination devising is centralized others in the structural hierarchy will be bored or detached.

Factors act uponing single behaviour at work

In Mohammadi Homes Ltd. everyone within the company must be polite and soft. They should non move impolitely towards their colleagues. For illustration, say one employee said something hurtful to his colleague that could make a unpleasant ambiance between other employees in the company. Have enjoyment and laughter with employees so that they can be harmonious during work. They play games like badminton, etc while they are off from the occupation for the twenty-four hours. And as for Bhai Bhai General shop proprietor must demo proper courtesy towards his employee. Like, demoing them proper regard, thankfulness for their day-to-day difficult work, etc. Basically both organisations must maintain their employee satisfied otherwise they won’t perform good, they would be demotivated, dissatisfied.


Rather than the chief manager or the proprietor make all the of import determination they should let the employees within the organisations to come up with their ain thoughts that will increase the creativeness of the employees and everyone else within the organisations and they will be interested, motivated, entertained and will be more eager, enthusiastic about making their occupation. This will besides take down the force per unit area, the emphasis from the chief manager or proprietor.

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Organisational Structure of Company or Corporation. (2017, Jul 21). Retrieved from

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