The impact of organizational structure and culture on management and business performance at Paramount Pictures Corporation and Burger King.
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The impact of organizational structure and culture on management and business performance As for identifying the influence of organizational structure and culture to the company's business management and performance, there are two organizations are selected for such propose. These two chosen organizations are in two different industries of business. One of them is a United States based film company, Paramount Pictures Corporation and another is Burger King, a global chain of hamburger food restaurants, also headquartered in the U.S. Because of the business industry for both of them are in differ, one is in film industry whilst another is running fast food business, their organizational culture and structure, as a result, are different. Therefore, the following assignment is to clarify the organizational structure and culture of these two corporations and, consequently, make an analysis on their impact to management and performance of these two organizations separately and specifically. 1. Comparison of organizational structure and culture of the selected two organizations. * Organizational structure: The definition of organizational structure - it is a formal system of task and reporting relationships that cooperates employees to achieve the organization's goals by controlling, coordination and motivation. (images.marniekathleen.multiply.multiplycontent.com) - Paramount Pictures Corporation is an American film production and distribution company which is currently one of the Hollywood's major film studios which in a dominant position within the film industry. The organizational structure of Paramount Pictures Corporation can be roughly illustrated by the figure as follows. Organizational chart of Paramount Pictures Corporation As it has been shown in the figure, the organizational structure is formulated by different functions of each department.
As a result, the final products could be added some features full of new ideas within it. The culture applies within all other departments and, therefore, from the efficient organizational structure in Paramount Pictures, the organizational culture will be strong. * Burger King: There was a change of the organizational culture in Burger King. Originally, Burger King was under the role culture which is "formal, hierarchical and command-and-control oriented." (www.holmesreport.com) However, it turns out to be a lot of obstacles for the company. The employees are not empowered and a series failed relationships within the company caused confusion from customers that they do not even know what Burger King is stood for. Because of it, the company then has changed its culture to a new one. The new and improved corporate culture is about "open communication, limited bureaucracy and creative decision-making." (www.holmesreport.com) Even without enough formal research on the impact of the new culture to the loyalty, motivation and performance of the employees, it is still being considered as a beneficial change that, from the new culture, there are new ways of doing things everyday within the organizational structure. In conclusion, it can be clarified that the organizational structure and the organizational culture are not separated. In reality, they are connected in the way that the organizational structure is consisted in an organizational culture. Allegorically, it can be illustrated as if the organizational culture is a military squad which had many successes on its missions, and then the organizational structure is the commander and soldiers in that squad.
Moreover, its subordinates are under the administration of the regional officer. * The human relations approach: This approach is evolved from its pioneer - Elton Mayo which is emphasized on "the importance of human attitudes, values and relationships for the efficient and effective functioning of work organizations." (Organization and Behavior 2004: 37) As Paramount Pictures Corporation's organizational culture is focused on individuals, this approach has been adapted. 6. Comparison of the theories and approaches to management of the two organizations. Showoff of their effectiveness and ineffectiveness in efficiently achieving their goals. Approaches of the two chosen organizations can be described as follows: * Paramount Pictures Corporation: The organizational theory of human relations approach has been adapted by the Paramount Pictures Corporation. The human relations approach is emphasized on "the importance of human attitudes, values and relationships for the efficient and effective functioning of work organizations." (Organization and Behavior 2004: 37) * Burger King: Originally, Burger King was still held the organizational theory of the classical administration in which Weber's bureaucracy approach has been applied. The bureaucracy approach "regarded an organization as an authority structure." (Organization and Behavior 2004: 35) Anyhow, subsequently the company has undergone a change to an approach which is a partially bureaucratic and partially focused on human relations. In comparison, the bureaucracy approach which Burger King initially accepted is impersonal related to Paramount Pictures' human relations approach. However, Burger King has changed its approach to management from bureaucracy approach to human relations approach. Resulting from this, both of the companies, Paramount Pictures Corporation and Burger King, are currently focused on individuals that it is important to make the connection between the company and employees' attitudes, values and relationships.
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