Organizational Structure, Culture and Knowledge Essay

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In this study, the researchers explored the concept of "psychological contract" and how it applies to and potentially determines cultures and sub-cultures that would emerge in organizations. Defining it as "individual beliefs or perceptions concerning the terms of…relationship between the individual and the organization," psychological contracts are identified into the following dimensions: (1) vertical or horizontal, referring to social status and power in "exchange relationships" and (2) individualism and collectivism, reflecting people's self-concept, based from themselves and other people's perceptions (p. 1440). Results of the study showed that indeed, different countries manifested different kinds of psychological contracts from its employees. The Chinese tend to be more "custodial" in their approach, which is best described as a 'vertical-collectivist,' a highly cooperative relationship with also high regard to social status. The French have an "exploitive" employer-employee relationship (vertical-individualist), Canadians as "instrumental" (horizontal-individualist), and the Norwegians "communitarian" (horizontal-collectivist) (p. 1442). The study demonstrated the role that knowledge about cultures play in determining the best organizational strategy and structure that an organization should adapt given its nature or identity/character.

Lastly, Fiedler and Welpe's (2010) exploration of the relationship between organizational memory and structure uncovered findings that highlighted the role that information or knowledge played in enhancing or improving organizational memory among its members/employees.

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Critical factors uncovered were codification of information (frequency of documenting information and results during professional and personal interactions among members/employees) and electronic communication (transfer of information/knowledge using computer and Internet technologies) (pp. 392-3). High usage of these factors were found to increase members'/employees' "memory" of their organization -- its nature, dynamics, and identity.

These studies by Ozman, Thomas et al., and Fiedler and Welpe have demonstrated the role that knowledge/information has in shaping the culture and structure of contemporary organizations. In an information-driven society, organizations are indeed becoming increasingly dependent on their knowledge base to ensure continuous growth and maintain their competencies vis-a-vis other organizations. While the researcher acknowledges that other variables or factors could come into play that also helps share organizational culture and structure, but these articles reinforce and emphasize the idea that current realities in organizations highlight the criticality of knowledge base or information in the very existence of organizations today......

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