Strong Organizational Culture

How does Organizational Structure and Culture Impact Business Performance?

Strong Organizational Culture

Organizational culture and structure are significantly related to each other and impact the performance of a business on a higher level. To understand the mutual impact of organizational culture and structure on business performance, it is imperative to understand what is organizational culture, structure, and business performance.

Organizational structure is said to be a formal system of work roles & authorities relations that determine how managers and associates work together. It is nothing but a pattern of relationships that exists between different organizational positions. And with the help of an organizational structure, the process of management can be easily defined.

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It also helps in a framework of command & order that directs managers in organizing, planning, controlling, and directing various organizational activities.

Organizational culture refers to the values which are shared by the organization associates & managers. Some of the organizational culture examples include beliefs, norms, values, assumptions, and language patterns. In addition to culture & structure, business performance is said to be the ability of an organization to attain its goals by effectively making use of its resources.

So all these aspects are entirely interrelated to each other and include multiple factors that influence individual performance in an organization. Organizational structure functions within an organization’s culture. Both are said to be interrelated. Organizational culture refers to a broader view that comprises small organizational issues & aspects.

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Organizational culture and structure are the key elements in the success of an organization. If a business operates concentrating on these aspects, it will become easy to attract more customers and beat the competition. Whether a firm is large or small, its effectiveness entirely depends on the organizational structure. And this structure gets built under the influence of the culture that influences the organization’s ability to implement changes effectively.

If an organization can effectively maintain its strong organizational culture, it becomes easy to develop a well-planned structure that enables managers to implement any required changes and attain success. Also, organizational culture and leadership are interlinked and play a vital role in influencing the performance of a business. Leaders are considered to be the acting forces of the development of organizational culture.

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Leaders are the ones who define the values; they decide the beliefs & ethics that will drive the organization.

In the modern era, an organization is evaluated based on its structure & culture; thereby, it has to be managed critically. Organizational culture motivates employees to work efficiently and also walk together in the direction of the organizational goals. If a firm is unable to integrate both its structure & culture then it will not be able to encourage its employees to successfully implement changes or take any initiatives that are considered to be critical for the effective performance of a business.

Organizational culture may involve various issues like how management works, how issues or complaints are being passed through different organizational levels, obligations of supervisors, etc., All these are directly related to how an organizational structure works.

Also, there are other several issues that are associated with culture that can be resolved only through an effective structure. This explains how organizational structure impacts organizational culture. To sum up, it is highly significant to resolve all these issues for the effective performance of the business and attain determined objectives & profit goals.

What is Corporate Culture and Why It Being Important?

The corporate culture is all about how the employees of the company feel, act, and think. It is also the psychological and social environment of the organization.

It denotes the unique personality of the company and refers to the core values, behaviors, ethics, and beliefs of an organization. It is important as it attracts more employees and also boosts the performance of the employees.


1.     How Organizational structure and culture can influence organizational performance?

With proper framework, structure, and values, the performance of a business can be highly influenced.

2.     How does organizational culture affect business performance?

An organizational culture like beliefs, norms, values, assumptions, and language patterns will help the business employees to function in a better way leading to business growth.

3.     What is the impact of organizational structure?

An organizational structure determines the roles of the employees. It also determines how managers and other workers should work together.


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