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"Every company has two organizational structures: The formal one is written on the charts; The other is the everyday relationship of the men and women in the organization." What does this quote mean? Give an example.

User Benigno
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Final answer:

The quote highlights the existence of two organizational structures in every company: the formal structure depicted on charts and the everyday informal relationships among employees. An example is the shift towards flat organizational structures and open communication, where feedback is valued across all levels of hierarchy.

Step-by-step explanation:

The quote suggests that every company possesses two types of organizational structures: a formal one, which is represented by organizational charts and hierarchies, and an informal one, which consists of the daily interactions and relationships among employees. While organizational charts provide a visual representation of the official structure, actual working relationships often deviate from these formalities.

For example, a company's chart may show a strict hierarchy, but in practice, a flat organizational structure has become more common, emphasizing teamwork and open communication across levels. It's now not unusual for a director to seek feedback from an entry-level employee, reflecting the importance of these collegial relationships in modern organizational life.

Even though formal organizations like schools and hospitals are designed as bureaucracies with specific organizational norms, employees develop their own networks and dynamics that can influence decision-making and productivity. Understanding both the formal and informal structures is key to navigating a workplace effectively.

User Jeffrey Kern
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