With reference to research findings, consider whether an Essay

With reference to research findings, consider whether an organisation's external environment has a direct causal influence on its internal structure or whether - Essay Example At the same time, the management of the organisation can fight against the pressures coming from the external forces and this process acts as a mediating influence. This can be shown to be true with practical examples of various companies as well as the research done by business analysts. The simplest example of the external forces which can influence the internal structure is the culture of the country where the business operates. For instance, a multi-national company can have a very different structure amongst its various branch offices depending on the cultural requirements of various locations where it operates. As discussed by Bartlett & Ghoshal (1998), the differences between national and corporate cultures can even lead to conflicts between the way things are structured at a local office and the management directives coming from the home office. The home office often wishes to recreate the corporate structure followed at their location in a country where the national culture can be significantly at odds with the way the corporation is structured. One such example is the case of GE’s position in Hungary where the local culture had structured the company based on the amount of time a person had served with the company. Since seniority became the basic premise of promotions, the Hungarian operation soon became bloated and could not match the expectations of GE’s head office in America (Welch, 2005). The external environment had affected the internal structure to the extent that operations managers from the home office had to step in and make changes to the present system in order to save the company’s base in Western Europe. GE’s culture is reportedly based on individuals and intrinsic motivation which helps its employees seek benefits for the company while they seek benefits for themselves. As outlined by Jack Welch in Winning (2005), GE rewards those employees who are instrumental in helping GE grow and achieve the corporate vision and