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ORGANISATIONAL
STRUCTURE
LECTURE 6
ORGANISATIONAL STRUCTURE AND CULTURE

UKAM4023 & UKAM4024

INTEGRATED CASE STUDY
 ORGANISATIONAL
STRUCTURE
Organisational structure is a pattern of responsibilities
showing the formal connections between the individuals
engaged in the collective activity and the responsibilities of
each of them.

However, there is the existence of the

informal organisation which depends on
the personalities of the people occupying
the various positions in the organisational
structure.

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MINTZBERG THEORY
5 BASIC PARTS OF
ORGANISATIONS
● Organisational ideology divided into 5
organisational configurations
● Help in understanding better how an
organisation should be structured

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MINTZBERG THEORY
SIX CONFIGURATIONS

Machine Professional
Simple structure
Bureaucracy Bureaucracy

Divisionalised Adhocracy Missionary

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ORGANISATIONAL
STRUCTURE
Every organisation exists for the purpose of carrying out
certain predetermined objectives and its structure must be
necessarily to promote these objectives.

It is also important to note that in different

organisations one might find different
organisational structures whilst one may also find
different structures in the same organisation.
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1HEIRARCHICAL
STRUCTURE
● Pyramid-shaped organizational chart
● It’s the most common type of
organizational structure
● The chain of command goes from the
top (e.g., the CEO or manager) down
(e.g., entry-level and low-level
employees) and each employee has a
supervisor.

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2 FUNCTIONAL STRUCTURE
● Starts with positions with the highest levels
of responsibility at the top and goes down
from there.
● Employees are organized according to their
specific skills and their corresponding
function in the company.
● Each separate department is managed
independently

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3 FLAT STRUCTURE
● Fits companies with few levels between
upper management and staff-level
employees.
● Many start-up businesses use this structure
before they grow large enough to build out
different departments
● Some maintain this structure since it
encourages less supervision and more
involvement from all employees.

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4 DIVISIONAL STRUCTURE
● A company’s divisions have control over Market-
their own resources, essentially operating based
like their own company within the larger divisional
organization
● Each division can have its own marketing Product-
team, sales team, IT team, etc. based
● Works well for large companies as it divisional
empowers the various divisions to make
decisions without everyone having to Geographic
report to just a few executives  divisional
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5 MATRIX STRUCTURE
● Looks like a grid and shows cross-
functional teams that form for
special projects
● The matrix chart accounts for both
of these roles and reporting
relationships
● Three types:
○ Weak
○ Strong
○ Balance
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6 NETWORK STRUCTURE
● Few businesses have all their services
under 1 roof, they juggle the multitudes of
vendors, subcontractors, freelancers,
offsite locations, and satellite offices
● A network organizational structure makes
sense of the spread of resources
● It describes an internal structure that
focuses more on open communication and
relationships rather than hierarchy

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7 CENTRALISED/DECENTRALIS
ED
Centralisation
● Centralisation implies that there exists more than one level within
an organisation and that decisions are made only by the highest
level.  
● Therefore, one may say that a centralised organisation has a central
authority and no decisions are made at lower levels.
Decentralisation
● Decentralisation encourages the existence of more than one centre
of decision-making.  
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 FRANCHISE
STRUCTURE
Franchising is acquiring the right to use the name of a well-
established brand to sell products and services.

Franchise means a contract or an agreement, either expressed

or implied, whether oral or written.

Franchise consists of:

• Franchisor, Franchisee, Franchising agreement

Business Product
TYPES OF format distribution
Management
FRANCHISE franchise
franchise franchise
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FRANCHISE ACT 1988
• The franchisor grants to the franchisee the right to operate a
business according to the franchise system as determined by
the franchisor during a term to be determined by the
franchisor

• The franchisor grants to the franchisee the right to use a

mark, or a trade secret, or any confidential information or
intellectual property, owned by the franchisor or relating to
the franchisor

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FRANCHISE ACT 1988
• The franchisor possesses the right to administer continuous
control during the franchise term over the franchisee’s
business operations in accordance with the franchise system

• In return for the grant of rights, the franchisee may be

required to pay a fee or other form of consideration.

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 02
ORGANISATIONAL
CULTURE
LECTURE 6
ORGANISATIONAL STRUCTURE AND CULTURE

UKAM4023 & UKAM4024

INTEGRATED CASE STUDY
CULTURE
A pattern of shared basic assumptions
invented, discovered or developed by a given group
as they learn to cope with problems of external adaptatio
and internal integration

It is the way we do things.

It is the sum total of the beliefs,
knowledge, attitudes, norms and
customs that prevail.

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ORGANISATIONAL
CULTURE
● A blend of different approaches, attitudes, mentalities,
convictions, policies, strategies, values, and
psychological considerations
● Organizational culture is an assortment of standards
that individuals in an organization withstand
● The inclusion of standards, morals, and ethics can be
called the organizational culture base

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INFLUENCES of CULTURE
An organisation's culture may be influenced by a number of factors:

The History of
The National
The Founders the
Culture
Organisation

Industry or
Leadership Organisational
Organisational
Style Structure
Field

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DIMENSIONS of CULTURE
LOW HIGH
embraces
egalitarian POWER DISTANCE hierarchy

collectivist COLLECTIVSM vs INDIVIDUALISM individualism

risk-taker UNCERTAINTY AVOIDANCE INDEX avoid uncertainty

nurturing FEMININITY vs MASCULINITY masculinity

traditional & futuristic &

short-term
SHORT-TERM vs LONG-TERM
long-term
ORIENTATION value
suppresses RESTRAINT VS INDULGENCE
gratification satisfaction

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CULTURAL WEB
Map the culture of an organisation and is a
way of seeing and understating the different
influences that affect organisational culture
● Identify what changes need to be made
to the current paradigm
● Map out an organisation’s position on
the various aspects outlined in the web
● Set out a strategy to change the various
elements in the cultural web

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THREE LEVELS of CULTURE

01 1 Artifacts

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2 Values
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3 Assumptions

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IDEOLOGIES of
CULTURE

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 TYPES of CULTURE
risk it to get get it done
it right
ADHOCRACY HIERARCHY

CLAN MARKET
doing getting job
things done..
together “in it to
win it”
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