Organisational structure is the system of company’s department organisation that shows the departments relations, connections and hierarchy. Organisational structure is very important part of company management, as it shows how people from every department need to communicate and work with others, how is responsible for work, how decisions should be made. Simple structure is the one that is used in organisations who have low specialisation but high centralisation. Functional structure is the one that organised similar and related department specialisations in one group. Divisional structure is made of self-contained units/departments. Matrix structure is the one where departments divided into the groups and projects, and are leaded by two managers. The new tendency in organisational structure is cluster structure. It approves that people are not separated by ranks and job requirements, they are just working all together with shared responsibilities.
Leadership is the most ancient type of personal style of management concerning personnel, organisation, production, etc. Leadership is the ability to form a team and help them to set goals, in the same time supporting them on the basis of personal authority. There are different types of leadership styles, some of them are based on collaboration (visionary, coaching, affiliative, democratic), others – on authority (pacesetting, commanding). There is no most effective leadership style, because each of them is used in different situations and the best way to make leadership style effective is to adopt one to the environment, people, situation that is lead.
Knowledge management are systematic processes, which are created, stored, distributed and applied by the basic elements of the intellectual capital that is necessary for the building organisation’s success. It is needed for organisation because it is a strategy that transforms all kinds of intellectual assets turn into higher productivity, efficiency and cost minimisation. Effective knowledge management is a key driver in new organisational knowledge and new ideas development in order to innovate company, strategy, products or services.
Organisational culture is a set of behaviours that are formed by a process of adaptation to the external environment and internal integration of the organisation and its main aspects are shared by the majority of organisation’s members (personnel). Organisational culture can be also defined as the set of shared assumptions, truths, believes and values within the organisation. Organisational culture consists of leadership style and system, conflict solving strategies, communication system, personnel position in the company, adopted special organisational symbols: slogans, rituals and taboos of the organisation. It is very important to organise successful organisational culture, because it determines how people interact in day to day life, it impacts events, conflicts that can or cannot happen within the organisation.
Theory Z was developed by American professor U.Ouchi. It is based on Japanese management experience and complements of D. Macgregor’s theory “X” and “Y”. The main feature of this theory is specific principles of collective motivation. According to this theory, the motivation of employees should be influenced by the value of the organisation. These values should be developed among the staff and encourage devotion to common goals and collective, relations of solidarity and trust. Employee and companies goals and objectives should be the same.