Project Management of People and Organizations

Along with the cultural environment and organizational knowledge, organizational memory is another important factor that influences consistently the performance of organizations and their structure. In this regard, it is possible to refer to the study conducted by M. Fiedler and I. Welpe, “How Do Organizations Remember? The Influence of Organizational Structure on Organizational Memory”, where the authors focus on organizational memory and they attempt to reveal its dependence on the organizational structure. The authors reveal the fact that the organizational structure has a considerable impact on organizational memory. Structural organizational factors, such as specialization and standardization, and organizational processes, such as codification and personalization of information and electronic communication influence organizational memory.

The codification of information mediates relationships between standardization and organizational memory. In such a way, the information accumulated within organizations is codified and, on the ground of norms codified within the organization, the organization sets standards, which are retained in the organizational memory. At the same time, electronic communication partially mediates the relationships between specialization and organizational memory. Therefore, electronic communication influences specialization and organizational memory. This means that electronic communication influences the specialization of the organization, which is retained in the organizational memory. The process of codification of information and electronic communication are conductive for formation of organizational memory. The authors conclude that organizational memory depends on the organizational structure factors.

Thus, organizational structure and organizational performance depend consistently on the cultural environment, in which organizations operate, organizational knowledge and memory as well as human resources and their cultural background. In such a way, contemporary organizations should pay a particular attention to their cultural environment and cultural background of employees, because it defines individual psychological contracts and, therefore, relationships within the organization. In addition, the complexity of organizational products and knowledge define the complexity of organizational structure.

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