The effect of structure on the culture of an organisation

The hierarchical structure is often taller and narrower than the entrepreneurial structure. Departments and individuals are assigned to specialist tasks and their roles are clearly defined. Although hierarchical structures have tighter control the communication may not be as good as for an entrepreneurial structure. Without effective management it can take a long time for information to pass up and down the chain of control.  Tasks can be delegated and passed down the chains but the manager still keeps control. Big businesses such as supermarket chains have a hierarchical structure because it allows there to be a head office but allows individual stores to listen to customers and allows each individual store to change according to the needs and wants of the populations. Tesco has a flat example of a hierarchical structure with only six levels between checkout staff and the chief executive.

The matrix structure allows fast decision making but are less popular in large businesses. The matrix structure can encourage creativity and can improve communication between departments. Matrix structures involve people from many departments working together as a team on specific tasks and projects. Syngenta, a world-leading plant science business, operates through a matrix structure. Syngenta employs more than 24000 people in over 90 countries. Working with a matrix structure requires people from many countries working together for specific research projects. Syngenta has many sections and departments such as ‘research and development’ and ‘sales and marketing’. These areas run independently as well as working together. By using people with scientific knowledge to lead people who specialise in areas such as marketing and production, increases the communication within the team. For Syngenta a matrix structure is more effective than a tall hierarchical structure with many layers. The matrix management structure is more effective as bringing people together with diverse skills into project teams.

Conclusion: There isn’t any particular structure which is the best for all organisations. It depends on many other factors such as the size of the organisation, the type of organisation and the employees. I think the matrix structure is the best for global companies and those which include a lot of project and research based work. The matrix structure allows everyone to work with their own skill and will improve the efficiency of the company. I think the communication is probably the best in the entrepreneurial structure but the control is probably tightest in the hierarchical structure.