Caterpillar's Organizational Structure and Culture Essay

Caterpillar's Organizational Structure and Culture - Essay Example For this reason, organizational environment has been divided into three sections: general environment, task environment and internal environment. The first of them refers to factors that are likely to impact the organization as a market’s unit, as for instance technological and socio-cultural factors. Task environment refers to factors influencing the organization’s daily operations; customers and suppliers are factors of such type. As for the organization’s internal environment, this refers to factors, which are related to the organization’s internal boundaries, meaning factors such as employees and culture (Caterpillar, case study). Changing organizational structure can be a challenging task mostly because all parts of organizational structure need to be transformed. If a change successfully occurs, this fact can be made known to the management in the following way: no problems appear in the organization’s daily operations, especially in regard to the areas where change was promoted. The organizational culture can include a series of elements, such as symbols, ceremonies and stories; in Caterpillar, the above elements have been set as value hallmarks (Caterpillar, case study). Moreover, organizational culture can set the rules on which organization’s plans are based; reference is made particularly to the plans that regulate employee relations across the organization. In Caterpillar, organizational culture also refers to understandings, beliefs and norms; the above elements are characterized as shared values and define the cultural framework of Caterpillar (Caterpillar, case study). In accordance with the case study, adaptability and involvement are key characteristics of Caterpillar’s culture, ensuring flexibility and employee participation in organizational plans. In Caterpillar corporate culture is of critical value; teaching