‘Organizational Culture can be one of the most important means of improving organizational performance.’ Debate and discuss.
Every Organization has a culture that constitutes the expected, supported and accepted way of work and behaviour. These influence everyone 's perception of the business from the chief executive to the lowest rank.
Organisational culture can be described as the shared values, principles, traditions and ways of doing things that influence the way organizational members act. The definition of culture implies three things: first, culture is a perception. It cannot be physically touched or seen, but employees perceive it on the basis of what they experience within the organization. Second, Organisational culture is
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In a strong organizational culture, the shared values and norms are clear, consistent and comprehensive. Values are intensely held and widely shared.
Strong organisational cultures enhance individual performance by energizing employees with engaging ideals, providing identity and meaning, and shaping and coordinating employees’ behaviour. Strong cultures can also enhance corporate performance. There is a positive relationship between strength of corporate culture and companies’ long-term economic performance, but the relationship is modest, and some firms with weak cultures also have strong performance. When they are operating in relatively stable environments, firms with strong cultures exhibit superior and more reliable performance than firms with weak cultures. However, when the company’s environment becomes more volatile, this advantage is often lost.
Performance of different types of organizational culture: The organisational culture and performance examines different types of cultures and compares how they perform in different circumstances. This approach looks for a cultural fit i.e. the extent to which an organisational culture suits the organisation’s circumstances, and predicts how well an organization will perform under those circumstances. If one thinks of an organisational culture as a way of controlling and governing an organization, three distinct
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
All Organisations posses a distinct form of culture with some having more than a single culture. This culture is usually very difficult to measure, change and most especially change.
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,
Organizational culture refers to a system of shared assumptions, values, and beliefs that show employees what is appropriate and inappropriate behavior.[1]
Lesley Willcoxson & Bruce Millett ABSTRACT Culture is a term that is used regularly in workplace discussions. It is taken for granted that we understand what it means. The purpose of this paper is to identify and discuss some of the significant issues relating to the management of an organisation’s culture. As organisational cultures are born within the context of broader cultural contexts such as national or ethic groupings, the paper will commence by defining ‘culture’ in the wider social context. This definition will subsequently form the basis for discussion of definitions of organisational culture and the paradigms and perspectives that underpin these. The paper will then discuss the issue of
A strong organizational culture provides both the company and its employees with direction and stability. The culture within an organization can be powerful enough to effect employee attitude and behavior as well as performance and turnover ratio. According to many scientific studies, there are seven primary characteristics used to define the culture of an organization: innovation and risk taking, outcome orientation, people orientation, team orientation, aggressiveness and stability.
An organisation’s corporate culture would have a great influence on several of its managerial decisions. These include planning, organising, leading and controlling. Strong work place cultures serve as an asset to the organisation, providing them greater that will allow the firm to enhance its organisational performance. In contrast a weak culture serve as detrimental to organisational growth, depleting the level of organisational accomplishments. Cultures with elements such as widely shared values, employee awareness of the culture, strong relationship
Organizational Culture: An organization’s culture is as a rule at the foundation of achievement or failure. It underlies difficult individual’s related issues in interchanges, co-operation, strength, profit, motivation, morale, non-attendance, security, injuries and protection claims. It is exceptionally basic for the business to flourish in the business. Corporate culture assumes a critical part in the execution of strategy in regular operations of the business. The meshed beliefs, shared qualities, principals of business and traditions which were integrated into style of working, conduct standards, work environment, imbued mentality characterized the corporate culture. For the productive strategy execution and accomplishment for the
Organizational culture has been described as shared values and beliefs that underline a company’s identity. A strong culture that encourages employees from the top to the bottom in adaptation and change can increase organizational performance by energizing and motivating employees, shape behaviors, unify personnel in the goals / objectives and align employee’s actions with the priorities of the company (Daft, R., 2013). Creating a constructive culture should be a manager’s top priority because the right culture will propel a company into a top performer in its industry.
Organizational culture is a vital aspect of any successful business or organization. A positive culture can help attract and retain loyal and committed employees, which, in turn, can strengthen relationships with customers and other partners. Just like any other asset, organizational culture must be monitored and nurtured to ensure that it reflects the organization and its
Corporate or organisational culture that fits the business environment enables competitive advantage as an organization benefits from its culture. Corporate culture could also be related to increase organizational performance, and as a control mechanism for controlling and managing employees within an organisation. On the contrary, this view of culture could hold back an organization’s ability in responding to change (Kotter and Heskett, 1992).
Where does organizational culture begin or end? More specifically, where is this culture deriving from. In organizations, it is unclear where this culture is built from and who is responsible for it? Is it implemented by management, previous management or higher up? And the large ‘who’ question is asked, who determined these values, how are they regulated? Also, asking what is the role of communication in organizational culture?
The relationship between corporate/organizational culture and organizational performance/effectiveness has attracted the attention of numerous academic and business authors for many years. Some researchers have studied culture from a strategic perspective and argue that corporate culture can generate significant competitive advantages for a company (Barney 1986, Wilkins and Ouchi 1983). Other authors have developed explicit theories of corporate culture and organizational performance (Denison and Mishra 1995, Kotter and Heskett 1993).In addition, authors like Hofstede (1980), Trompenaars (1994, cited in Ghoshal and Bartlett 1998), and Adler (2002) who have conducted cross-cultural investigations on organizational culture, support that most management theories and practices should be modified in order to be adopted into different national contexts. The Corporate/Organizational Culture Academic research on the field of organizational culture and performance came on the surface over the year 1980. During the next years the concept attracted the immense interest of the business as well as the academic world and created a phenomenon known as the “culture revolution”.
Organizational culture helps to derive solutions to the problems of the employees . Employees learn the principles , expectations , behaviour, patterns and norms which promote high level of achievements through organizational culture. This study investigates the characteristics , dimensions , themes , necessity , importance and impact of organizational culture on the performance of the employees. This article also demonstrates the concepts and measurement of cultural impact.
There is a common consensus that employees behaviours are shaped by their culture (Denison, 1984, Furnham and Gunter, 1993). In an organisational context, management interest in a culture lies in what impact culture can have on the commercial or financial performance of a firm. Organisational performance (which is derived from employee performance) or success implies to the contributions or productivity of employees of an organisation. Research indicates that culture is a key factor in the performance of successful companies Peters and Waterman (1982); Goldsmith and Clutterbuck (1984). Denison (1990) contends that the performance of an organisation is determined by the extent to which the values of OC are comprehensively shared among its members. However, other studies suggest that there is little or no evidence that supports the correlation between culture and organisational performance Reynolds (1986), Hitt and Ireland (1987). Contrary to Waterman’s and Peters view, a number of organisations with appropriate cultural characteristics were found to be in financial problems let alone good performance (Carroll, 1983; Thompson and McHugh, 1990).