Organisational Culture and Decision Making
Introduction
Organisation culture is a significant element in today’s company. As we all know, every one has a unique personality. For an organization, it also has a personality which called organizational culture. All organisations have their own values and beliefs about the way the people should be controlled and organized. Organisation culture can help company to hire personnel, orient newcomers, encourage organisational changes and promote learning. Decision making is an important part of an organization. Because organization must make various decisions in the management processes everyday and the result of the decision making is relate to the performance and profits of the
…show more content…
“Decision making including all management function, such as hiring, controlling, production, marketing, finance and so on.” (Simon, 1992) So, the successful of organization is based on the decision making. There are many researches show that the most different thing between successful organization and failure organization is that successful organization pays more attention to the organization culture. As we know, organizational culture is a common idea of the environment from organization members and this idea affect the members to learn the environment of an organization. At the same time, the idea of environment can also impact the life attitudes and then impact their philosophy. So the organizational culture is the soul of an organization which lead and control behaves and attitudes of members. Besides, organizations have to face various of decision making.
“Decision making process including time cognition, set goals, data collection, develop feasibility programme, make the decision and take action.” (Simon,1960) All of these steps are affected by organizational culture. First of all, the idea of environment will influence organization members to solve problems. The same problems are treated by different ways in different culture and the degree of consider problems affect the forms and processes of decision making. At the same, how to set goals affect the way to
Organizational culture is the “values and beliefs that people have about an organization and provides expectations to people about the appropriate way to behave” (Kinicki, 2013, slide 3). Corporates can change Changing organizational culture can be a process using one or more of the eleven strategies, (1) formal statements, (2) slogans & sayings, (3) stories, legend, & myths, (4) leader reactions crises, (5) role modeling, training, & coaching, (6) physical design, (7) rewards, titles, promotions, & bonuses, (8) organizational goals & performance criteria, (9) measurable & controllable activities, (10) organizational structure, and (11) organizational systems & procedures (Kinicki & Williams, 2013, p. 236-137). Like stated before organizations
Organizational structure has been set up to facilitate all goal achievements. It is a way to motivate their employees and get them to work together. It also helps its employees to follow the organizations goals, and work together as a team. In order to do this, they need to have an organized structure to be able to run the company smoothly. A main foundation of every organization is to post their mission statement and goals everywhere so that their employees can see them. An organizational culture can consist of common shared beliefs and values that are established by the organization’s leader, and then communicated and reinforce through various methods, this helps shape employee perceptions, behaviors and understanding. Overall, organizational structure and culture can effect progress of many organizations in a positive and negative way.
The organization culture as a leadership concept has been identified as one of the many components that leaders can use to grow a dynamic organization. Leadership in organizations starts the culture formation process by imposing their assumptions and expectations on their followers. Once culture is established and accepted, they become a strong leadership tool to communicate the leader 's beliefs and values to organizational members, and especially new comers. When leaders promote ethical culture, they become successful in maintaining organizational growth, the good services demanded by the society, the ability to address problems before they become disasters and consequently are competitive against rivals. The leader 's success will depend to a large extent, on his knowledge and understanding of the organizational culture. The leader who understands his organizational culture and takes it seriously is capable of predicting the outcome of his decisions in preventing any anticipated consequences. What then is organizational culture? The concept of organizational culture has been defined from many perspectives in the literature. There is no one single definition for organizational culture. The topic of organizational culture has been studied from many perspectives and disciplines, such as anthropology, sociology, organizational behavior, and organizational leadership to name a few. Deal defines organizational culture as values,
Organisational culture describes the values, beliefs and behaviours which provide norms for the environment of an organisation (Anon., 2012). The culture of an organisation sets out to provide structure for employees within a business and often culture shows to be a strong factor in certain organisations. Edgar Schein, a culture theorist explains that the definition of organizational culture must be general otherwise factors may be eliminated which may contribute to culture within a business. (Anon., 2007). Culture impacts on the working procedures in which a business performs and effects the way in which the organisation is run on a daily basis.
The culture of an organization plays a major role when it becomes time for an organization to make changes or take any decisions; this is also one of the things that the American Red Cross faces on a constant basis. The effectiveness and efficiency by which an organization makes decisions may make the variance between accomplishment and failure. An organization culture plays a major role in the ethical decision making of the organization. When we are taking of about a small business entering the medical field the organization will focus more on the profit that the business should be making and in turn the
Organization culture is the matter that holds a company intact. This is what makes each
Organization culture is the matter that holds a company intact. This is what makes each
Organizational culture are the belief and values that gives away a company’s identity, and it can be spread to its employees by communicating with each other. There are four components on how an organizations culture is shaped founder’s value, business environment, national culture, and the senior leader’s vision (Zimmerman, 2015, CH 6 PPT, Slide 4). It is important to remember that an organizational culture sets its structure and how everything is conducted. Understanding the concept of an organizational culture is important when job hunting and trying to find a career. It is important that you know the organization you want to work for and understand its values and how the organization functions. I believe that by knowing this you will have a very easy time fitting into the organization.
The organizational culture can encourage or discourage effectiveness, depending on the nature of the values, beliefs, and norms” (Ivancevich, Konopaske, & Matteson, 2011). Organizational culture can be very friendly, very task oriented, competitive or driven to be highly productive or it can be disorganized and unproductive. The culture is based on the history of the company and the atmosphere that is created and nurtured over time. This culture guides the language the employees use their loyalty and many more areas. Organizational culture is an important social characteristic that influences organizations, group, and individual behavior with in a company (Hartnell, Ou, & Kinicki, 2011). The Culture of an organization affects the way people behave, how they address customers, the atmosphere, perception, values, and beliefs. Employee’s performance and effectiveness can also be determined by an organization’s culture. Every organization has its own culture based on shared expectations, values and attitudes and its influence on individuals and groups (Ivancevich et al., 2011). People inside of an organization have a big effect on the culture because of their values, beliefs, and ideology. Companies try to hire people who have the same values as the company so that they will fit into the organization. People stay with organizations that have a
Within the field of management, the success and failure of the modern business organisation has been largely depicted by the intricate concept of culture. Organisational culture, a concept borrowed from borrowed mostly from anthropology typically is defined as a complex set of values, beliefs, assumptions and symbols that define the way in which an organisation conducts and manages its business (Barney 1986). Management is not just an act of change, but the responsibility for and control of a company or similar organisation (Willmott 1983). It is the management of organisational culture that merely drives the
Organizational culture comprises the fundamental values, assumptions, and beliefs held in common by members of an organization (O’Hagan, & Persaud, 2009). What is known is that employees often impart the organizational culture to their colleagues whereupon the culture effects how employees relate to one another and their work environment. What can be said is that the development of an organization’s culture is dependent on elements such as structure, change and policies (Urrabazo, 2006). Furthermore, according to Griffin, Moorhead and Gregory (2009), it is recognized that employee’s behaviours and attitudes can be influenced in a
The single most critical problem that the managers are facing today is managing the people.This is the most challenging issues that every kind of organizations is dealing with now aday. Organizational behaviour is the study of individual, group and organization as a whole that examines the effect of organizational structure and culture on organizational performance. Therefore, it mostly tries to define the performance and efficiency factors of anorganization.Organizational structure and organizational culture are highly correlated performance factors.It basically defines the appropriate structure of an organization in order to get more thanaverage performance. Organizational culture is a primary factor for employee turnover and job satisfaction (Bolden, 2004). If an organization possesses a strong culture of self-respect and employee affiliation, it is no wonder that the employee retention rate would be very high(Tracy, 2013).In this report, the relationship between organizational culture and organizational structure will be pointed out. While doing so we
The decision is to select an action among a number of actions that solves a given problem, that prevents a problem from happening, or that forces to apply new ideas for development. The need for understanding decision making process is increasing because the complexity of modern organizations is increasing, and because the modern organizations' effectiveness depends on the decisions made by the managers. The question is how to select the most appropriate action to solve the problem satisfying all stakeholders.
Since organization culture is the combination of many factors there are several factors that could affect it. Among the internal factors to consider are the company’s approaches to their processes, is the company more into results and profits or product quality and employee’s safety. Management style is another important feature that affects corporate culture micromanage companies tend to have less motivated employees. Technology these days influence organizations at all levels as the company’s approach to technology will go hand on hand with bettering processes. New factor affecting corporate culture these days is the different work arrangements that are needed these days with the implementation of flexing time and tele-working had commuting acceptable. The management approach to work environment, communication style will definite affect organization culture.
Study in organizational culture began in the early 1980s. Organizational culture is “work group culture” and involves organization’s personality. Organizational culture includes shared philosophies, ideologies, beliefs, feelings, assumptions, expectations, attitudes, norms and values (Fred Lunenburg, Allan Ornstein, 2012, p. 55). Most organizational cultures include observed behavioral regularities, norms, dominant values, philosophy, rules, and feelings. Organizational cultures includes certain input such as the energy imported by organizations from the environment in the form of information, people, and materials (Fred Lunenburg, Allan Ornstein, 2012, p. 55). This input energy must guide organizational behavior toward shared goals and process. Organizations produce an output because of the input into the