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Contrary to popular belief culture within a company has a huge impact on the decison making process.
Companies and cultures are of two basic types without getting into too much complications.
1) Top down- the heirarchy of the company makes the decisions and these decisions are rolled down or mandated to all levels within the company. This is archaic and usually destined for failure either because the CEO or board can't make all the right decisions all the time and as the company grows the decision making process bogs down and no major decisions are made because every one is waiting for the decision from above. There is little responsibility or acountibilty within the ranks and soon things come to a grinding halt as the company grows.
Bottom up - Decision making and empowerment to the lower levels of the organization only when within their scope to do so.
There needs to be good systems in place to keep things in check and often for large expenditures and decisions the approval process can seem beurocratic but necessary. When people are empowered and are allowed to make decsions brain power is strong and people are invigorated. New ideas are generated and a company normally becomes progressive because it harnesses the power of many.
Top down, either CEO ran or entrepeneurial companies tend to fall apart at the demise of the CEO or owner. Often with much admiration but the future of the company was never really taken into consideration.
Your question was somewhat vague as every company is different and the governance that rules those companies sometimes dictate top down style in unison with bottom up input.
Hope this helped a bit.
taketwo
it depends on the culture, all companies have different cultures to create wealth
keypointist
Damn where's my textbook? It's in my Dad's house. Ummm I don't know if structure can be called culture but clearly the more layers of management there are the less scope there is for initiative taking at a lower level. Descision making is slow in such organisations.
This is because a suggested action is escalated up many levels to receive an executive approval. In a de-layered organisation executive approval is found more quickly because executive management is closer to operational management.
Nitha
The organisation(s) follows a system/procedure to approve the decisions taken at any level.
The organisational culture impacts decision making within company by recognising it and introducing innovative measures to strenghthen the positive outcome.
emanuelschwartz
That depends on what culture exists in the organization and who is making the decisions. For example, if organization "A" has a very strict, male oriented culture and the company works for only the shareholders then that would suck for the employees. Furthermore, if the all decisions were made by one control freak sitting as CEO then everyone would be in trouble.
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