Mohammad T Islam (BSc, MBA, MEd)

Organisational culture, a central concept in the study of organisational behaviour (OB), refers to the shared values, beliefs, norms, and assumptions that shape how employees think, feel, and behave within the workplace (Robbins & Judge, 2021). It forms the social glue that binds members together, influencing not only employee conduct and motivation but also the strategic identity and long-term effectiveness of the organisation. Foundations of Organisational Culture The prominence of organisational culture emerged in the late 20th century, particularly after scholars sought to understand why some firms outperformed others despite having access to similar resources. Schein (2010) proposed a three-level model of culture: Artefacts – visible, tangible elements such as office design, rituals, dress codes, and language. Espoused values – articulated strategies, goals, and philosophies. Basic underlying assumptions – unconscious beliefs and values deeply embedded within the organisation. This model highlights that culture goes beyond surface practices; it reflects deep-rooted assumptions that guide day-to-day behaviours, shaping how employees interpret organisational realities. Influence on Employee Behaviour and Attitudes Culture serves as a behavioural compass, signalling to employees what is acceptable and what is not. For example, a culture that values innovation and risk-taking will reward creative initiatives, whereas a culture that emphasises stability and control may discourage experimentation. Cameron and Quinn (2011) developed the Competing Values Framework (CVF), identifying four culture types: Clan culture (collaboration, trust, commitment) Adhocracy culture (innovation, risk-taking) Market culture (competition, achievement) Hierarchy culture (control, structure) Each type has a distinct influence on employee attitudes, motivation, and satisfaction. For instance, clan cultures often foster belonging and loyalty, leading to higher employee retention. Research supports the notion that positive organisational culture improves outcomes. A study by Shahid and Khalid (2024) found that cultures emphasising trust and support correlated strongly with higher employee motivation and job satisfaction. Conversely, toxic cultures marked by internal rivalry and poor communication often increase stress, absenteeism, and turnover. Organisational Identity and Culture Culture also defines an organisation’s identity, shaping how members perceive themselves and how external stakeholders perceive the company. According to Barney (1986), a strong culture that is valuable, rare, and inimitable can serve as a source of sustained competitive advantage. For instance, Google’s culture of innovation fosters creativity and attracts top talent, while Toyota’s culture of continuous improvement (Kaizen) has been essential to its manufacturing excellence. These cultural identities not only differentiate organisations in the market but also act as strategic resources that competitors find difficult to replicate. Pandey (2025) illustrates how cultural collisions in cross-cultural workplaces may threaten organisational identity if values clash. This highlights the importance of cultural alignment in multinational corporations, where blending diverse cultural identities into a cohesive whole is crucial for effectiveness. Culture and Organisational Effectiveness Organisational effectiveness is often mediated by culture. Otasowie, Aigbavboa, and Oke (2025) argue that addressing cultural gaps in organisations enhances employee efficiency and strategic performance. Similarly, Islam, Hossain, and Cabral (2025) found that leadership motivation styles were effective only when aligned with cultural values, reinforcing the idea that culture is a context within which performance is shaped. Strong cultures can enhance coordination, decision-making, and goal alignment, allowing employees to act cohesively without extensive managerial oversight. However, overly strong cultures may lead to groupthink, reducing adaptability in volatile environments (Kotter, 1996). Managing and Changing Organisational Culture While culture can be an asset, it can also become a liability when it resists necessary change. Deeply ingrained assumptions may prevent organisations from adapting to technological disruption or global competition. According to Kotter (1996), leaders play a pivotal role in managing cultural change by: Establishing a sense of urgency for change. Building a guiding coalition of cultural champions. Aligning new practices with core values. Reinforcing desired behaviours through communication and recognition. Transformational leaders, in particular, are effective at reshaping culture. Degbey and Ding (2025) argue that strengths-based leadership fosters motivation and job satisfaction by aligning employee capabilities with cultural values. Moreover, informal culture—manifested in social networks and peer norms—can either reinforce or undermine formal efforts at change (Schein, 2010). Leaders must therefore engage with both formal structures and informal networks when cultivating or reshaping culture. Organisational Culture in the Modern Context In today’s globalised and digitalised work environment, organisational culture is even more critical. Virtual teams, hybrid work models, and multicultural collaboration demand cultures that are adaptive, inclusive, and innovative. Recent literature highlights that: Inclusive cultures improve employee engagement and creativity (Kazabeyeva, 2024). Learning-oriented cultures support continuous improvement and adaptability in dynamic industries (Shakki & Rad, 2024). Sustainability-focused cultures enhance corporate reputation and align with growing social expectations (Otasowie et al., 2025). Thus, culture has evolved from being viewed as a static internal phenomenon to a dynamic and strategic enabler of organisational survival and growth. Organisational culture is more than a background element of organisational life—it is a defining force that shapes identity, behaviour, and effectiveness. By guiding employee behaviour, reinforcing organisational identity, and influencing strategic outcomes, culture acts as both a performance driver and a competitive differentiator. A strong, positive culture enhances motivation, job satisfaction, and innovation, while toxic or misaligned cultures undermine effectiveness. However, because culture is deeply embedded, managing and reshaping it requires careful leadership, alignment with strategy, and recognition of both formal and informal dynamics. In an era of rapid change, organisations that cultivate adaptive, inclusive, and innovation-oriented cultures will be better positioned to thrive. Understanding and managing organisational culture is, therefore, not merely a managerial responsibility but a strategic imperative for success. References Barney, J. B. (1986) ‘Organizational Culture: Can It Be a Source of Sustained Competitive Advantage?’, Academy of Management Review, 11(3), pp. 656–665. Cameron, K. S. and Quinn, R. E. (2011) Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework. Jossey-Bass. Degbey, W. Y. and Ding, H. (2025) ‘Strengths-Based Leadership’, in Elgar Encyclopedia of Leadership. Edward Elgar. Islam, M. N., Hossain, S. F. A. and Cabral, P. M. F. (2025) ‘Motivation styles of leaders and organizational performance’, Frontiers in Organizational Psychology, 10, pp. 1–15. Kazabeyeva, V. (2024) ‘The essence and definition of corporate culture in modern … Read more

Organisational structure is a fundamental element of organisational behaviour (OB), influencing how people work, interact, and perform within organisations. It represents both the formal and informal frameworks that govern the coordination of activities, communication, authority, and decision-making processes. An effective organisational structure ensures that tasks are appropriately distributed, responsibilities are clearly defined, and resources are optimally utilised to achieve organisational objectives (Robbins & Judge, 2021). Moreover, the structure directly impacts employee motivation, performance, and satisfaction, while also shaping the organisation’s ability to innovate and adapt to environmental change (Daft, 2015). Formal and Informal Structures The formal structure refers to the official arrangement of roles, responsibilities, and authority in an organisation. This is typically represented through organisational charts and job descriptions, which clarify reporting lines and accountability (Daft, 2015). A clear formal structure facilitates efficiency by reducing ambiguity, ensuring accountability, and providing employees with a roadmap of authority and responsibility (Jones, 2013). Formalisation is especially vital in large organisations where complex coordination is required. Conversely, the informal structure emerges from social interactions, friendships, and shared norms that develop organically among employees. Informal networks often cut across hierarchical boundaries, enabling faster communication and creating an environment where employees can exchange knowledge and provide mutual support (Shagerdi, 2025). These networks can improve innovation, as employees feel more comfortable sharing ideas outside rigid formal channels (Mintzberg, 1979). However, informal structures may also create subcultures or resistance to change if misaligned with organisational goals. Hierarchy and Communication Channels Hierarchy establishes the chain of command within an organisation, clarifying who makes decisions and who executes them. A tall hierarchy provides close supervision and clear accountability but risks bureaucratic delays and reduced employee autonomy. In contrast, a flat structure promotes empowerment and faster decision-making but may create confusion about authority (Pearce & Robinson, 2011). Equally important are communication channels, which may be vertical (flowing up and down between superiors and subordinates) or horizontal (between peers at the same level). Vertical communication ensures control and direction, while horizontal communication promotes collaboration and problem-solving (Robbins & Judge, 2021). Effective communication systems reduce misunderstandings, promote coordination, and foster a culture of trust. Research shows that open communication climates positively affect both employee satisfaction and organisational performance (Hu et al., 2025). Decision-Making Processes The degree of centralisation in decision-making is a key characteristic of organisational structure. Centralised structures concentrate authority at the top, ensuring consistency and control but potentially limiting responsiveness. Conversely, decentralised structures distribute authority closer to the operational level, encouraging innovation, flexibility, and faster responses to challenges (Gulati, Mayo & Nohria, 2016). For example, start-ups often adopt decentralised structures to harness creativity and employee initiative, while large corporations may rely on centralised structures to maintain stability and risk management (Callari & Puppione, 2025). The effectiveness of decision-making structures often depends on industry dynamics, organisational size, and strategic goals. Impact on Employee Behaviour, Motivation, and Performance Organisational structure significantly shapes employee behaviour, motivation, and performance. A well-designed structure ensures alignment between individual roles and organisational objectives, thereby enhancing efficiency and reducing conflict (Robbins & Judge, 2021). When employees have clarity regarding their responsibilities and career progression, motivation and engagement increase. A flat organisational structure, for instance, promotes autonomy and empowerment, allowing employees to feel a sense of ownership over their work. This fosters job satisfaction and encourages employees to go beyond prescribed roles, boosting both innovation and performance (Pearce & Robinson, 2011). However, poorly structured organisations can create ambiguity, role conflict, and frustration, leading to reduced morale and turnover (Wickramasinghe & Balasooriya, 2025). Moreover, informal structures are particularly influential in shaping employee behaviour. Strong social networks improve trust, knowledge sharing, and team cohesion, thereby promoting higher levels of engagement and innovation (Dewi & Alviani, 2025). Informal mentoring relationships also provide career support, increasing employee satisfaction and commitment to the organisation. Organisational Structure and Innovation The design of organisational structures is critical for fostering innovation. Highly centralised and rigid structures may discourage experimentation, as employees have limited autonomy and fear punishment for mistakes. In contrast, flexible structures encourage creative problem-solving and enable faster implementation of new ideas (Sikalumbi & Abudetse, 2025). Cross-functional teams and network-based structures enhance innovation by integrating diverse perspectives and knowledge across departments (Albeshchenko et al., 2025). Research further suggests that a culture of collaboration, supported by flexible structures, enhances both innovation outputs and employee well-being (Torres, 2025). Organisational Structure and Employee Satisfaction Employee satisfaction is closely tied to how well organisational structures support employee needs for clarity, recognition, and growth. Structures that promote career development opportunities, participation in decision-making, and recognition of contributions enhance job satisfaction (Wickramasinghe & Balasooriya, 2025). Conversely, overly hierarchical structures may alienate employees, reducing motivation and increasing turnover. Studies show that employees in collaborative structures experience higher levels of satisfaction, as they feel valued for their contributions and enjoy a stronger sense of belonging (Cumar et al., 2025). In digital workplaces, flatter and more adaptive structures have been linked with greater engagement, creativity, and resilience (Dash et al., 2025). In summary, organisational structure is not merely an administrative arrangement but a critical determinant of efficiency, innovation, and employee satisfaction. Both formal and informal structures shape how employees interact, communicate, and make decisions. While hierarchy provides clarity and control, flexibility and decentralisation enhance responsiveness and creativity. Importantly, structures that balance efficiency with autonomy are most effective in motivating employees and fostering innovation. As workplaces become more dynamic, organisations must continually adapt their structures to ensure they align with strategic objectives and employee expectations. By carefully designing and managing organisational structures, leaders can create environments that enhance performance, stimulate innovation, and promote employee well-being. References Albeshchenko, O., Klochan, V. & Veits, A. (2025) Strategic imperatives of managing the development of tourism and hotel business in territorial communities of the southern region of Ukraine. International Scientific Journal of Management, Economics and Finance, 5(2), pp. 77–95. Callari, T.C. & Puppione, L. (2025) ‘Meaningful work as shaped by employee work practices in human-AI collaborative environments’, European Journal of Innovation Management. [Online]. Available at: https://www.emerald.com/ejim/article/doi/10.1108/EJIM-11-2024-1339/1275327. Cumar, M., Kidaneb, … Read more