Organizational Structure, Organizational Dynamics, and Organizational Culture: A Research from Croatian Enterprises

This paper is based on a recent empiric research carried on a sample of 73 large enterprises in Croatia. Different aspects of organizational culture, organizational structure and organizational dynamics have been examined through a survey, and the results of that survey are used in this research as a basis for deeper longitudinal analysis. The analysis has tried to find out correlation between characteristics of organizational culture, organizational structure and organizational dynamics. Basic results show that the organizational culture in Croatian enterprises is not very developed – with an average mark of 3,17 (only slightly above the middle value on the scale from 1 to 5). Apparently, the 'soft' elements of organization have not been recognized (yet) in Croatian enterprises, leaving to the 'hard' elements of organization (primarily organizational structure) the position of decisive factor of organizational performance and success. Although statistical significance has not be found, there are some indications that in enterprises that use more developed forms of organizational structure exist also more developed and stronger organizational culture. On the other hand, very clear and strong correlation has been found between organizational culture and dynamics of organizational change – indicating that enterprises whose employees show stronger adherence to organizational values have been more successful in business processes restructuring and improving. The third researched aspect – relationship between (the strength of) organizational culture and organizational (business) performance did not produce any significant indicator of correlation between those variables. However, these results should not be interpreted in the way that good and strong organizational structure does not contribute to the enterprise results. On the contrary, results of this research confirm, directly and indirectly, the need and reason for continuous efforts on building and improving organizational culture in enterprises. Strong and proactive organizational culture, accepted by all employees, is an important precondition of successful functioning and good business results of an enterprise.