Importance of Understanding Organisational Culture - Literature review Example

Running Head: ORGANIZATIONAL CULTURE Name Course Instructor Date Organizational Culture Within all organization it is quite evident that organizational culture is what characterizes any working environment. Bloor and Dawson (1994) maintain that, an organizational culture widely refers to various specific activities or emphasis to which values and behavioral norms are directed or, which norm and values emerge within any given organization. In addition, organizational culture can be defined as a set of operating principles that widely determine how individuals behave within an organizational context. Further, culture is that environment which surrounds an employee at workplaces all the time(Bloor and Dawson, 1994). Within organizations, culture is an important element in shaping up working environment, relationships and all working processes. Normally, organizational culture is made up of values, attitudes, behaviors and beliefs shared by individuals within an organization. Within a company, organizational culture is largely made up of the different life experiences brought by each employee and management to the organization and is widely fueled by companies’ founders, managerial staff and other executive since their play a crucial role in decision making (Cameron and Robert, 1999). According to Cameron and Robert (1999), organizational culture is not a mere single new variable that describes organizations it should be coupled with other variable which widely affects organizational activities such as market orientation, structure, strategies and technology used by the organization. Based on a scientific concept, organizational culture largely strives to explain and describe activities within an organization as whole. An integrated organization culture reduces ambiguity and uncertainty experienced within a working environment and effectively maintains organization operating capacity (Cameron and Robert, 1999). Organizational culture can be viewed on different levels. The first process comprises of various artifacts and visible organizational processes. For instance, dress codes and general tidiness of a company are artifacts that tell something which entails organization culture. The second level of organizational culture mainly consists of organization espoused values. For instance, these values are apparent in organization official objectives operating philosophies and norms. Finally, underlying assumptions relates on to groups learned solutions to various problems relating to internal integration and external adaptation (Cha and Edmondson, 2001). Today, with increased technology, competition, globalization, acquisitions and workforce development, companies have realized the importance of organizational culture. Flynn and Chatman (2001) maintain that, organizational culture assists in the integration and coordination across various organizational units in order to increase efficiencies, speed and quality of manufacturing, designing and delivering of services and products. Further, organizational culture ensures that a company is able to engage in product, strategy and process innovation as well as successfully adapt new technology. Jones (2000) asserts that, with today’s globalization, cross cultural management which are widely fueled by organizational culture creates efficient global and multi-national partnerships. In addition, organizational culture is significantly important for a company adaptation of internal and external changes. This implies that for most corporations intellectual as opposed to material assert constitute largely as the main source of value. Evidently, maximizing the value defined by employees as intellectual assets requires the adaptation of an organizational culture that highly promotes intellectual participation as well as facilitation of both organizational and individual learning, knowledge creation and willingness of employees to share knowledge (Jones, 2000). Therefore, it is important for organizational culture to promote creativity, leadership, participative management and knowledge management. According to Koene et al (1997), organizational culture is formed in various ways. Generally culture is learned. Within an organization, culture is usually taught to new employee through various training programs but generally it can be learned through informal program such as shared behaviors, rituals, stories and myths. Organizational culture is mainly formed in three main area namely; how an organization engages in using its resources, organizational structure, people within a given organization and process involved in completing work within an organization. The goals and mission statement of an organization are described within these four areas (Koene et al 1997). It is evident that when one of these areas fall out or becomes outdated, organizational culture as well as working environment can rapidly deteriorate in terms of performance. Organization can be learned through constant interactions with employees. It is quite evident that employees tend to learn culture by constantly interacting with other employees. Clearly, most of behaviors and rewards within organization usually revolve on other employees. One employee experiences a sense of your culture or fit one culture through constant interaction (Parker, 2000). Parker (2000) maintains that, within an organization culture consist of two main areas. Firstly, there can be sociability. A working environment which is sociable creates a pleasant work place which highly fosters creativity where employees go extra mile to complete their designed duties. However, organizational culture which is formed on too much sociability can result to poor performance since informal or cliques are formed. Secondly, organizational culture is formed through cooperate and collaboration of employees which is also known as solidarity. When an organization is perceived to have high solidarity among employee, employees are able to achieve common goals and objectives (Sackmann 1992.). It is quite evident that with too much solidarity, organizational culture can turn out to be oppressive for those employees who stray from a particular designed norm. With less solidarity, collaboration among employees becomes impossible where members within an organization only care about their duties and performances. According to Schein (1999a), there are several factors that determine formation of organizational culture. Employees are considered as the main factor toward the formation of organizational culture since they display themselves in different ways. Working force is established by a formal authority where the organization is a network of various working groups. Variables that form employees are personal characteristic such as attitudes, situational variables such as a variable space. The nature of employees and numbers of these employees largely affect perception in regard to nature displayed in organizational culture. Each and every employee brings different behavior, attitude, assumption where intertwining of these characteristics results to organizational culture (Schein, 1999a). The implication obtained from mission of employees’ influences various cultural perceptions where relationships within employees are decisive when focus is placed of organizational culture creation. Another factor which affects the formation of organizational style is style of leadership. When a manager decided on an autocratic leadership it can negatively affect organizational culture. Managers contribute largely in the formation of organizational culture since they have a wider influence where their influence is proportional to the designed hierarchical level (Schein, 1999a). Organizational characteristics affect the formation of organizational culture. It is quite evident that between the size of an organization and the complexity in organizational culture there is a definable direct proportional report. Normally, small companies’ culture is more homogenous whereas for bigger companies they are shaped in sub cultures (Schein, 1999b). Histories defined by a particular organization widely represent a factor with profound influence which upon the organizational culture tradition. Further, it is observable that economic situation displayed by an organization largely influences organizational culture through its restrictions and economic facilities. Schein (1999b) maintain that, employees are seen to have different needs and wants. Within organizations, employees’ value rewards which are not usually desired by managers thus leads to the formation of subculture. These subcultures are formed as individuals get various social rewards from coworkers or due to loose of essential needs met within their project teams and departments. It is important that each and every manager understand the culture of the organization he or she is managing for a smooth running of the organization. Through understanding organizational culture, managers are able to analyses existing culture and largely evaluates it against various cultural attributes that are needed to achieve stipulated strategic objectives. In addition, organizational culture enable managers to establish a clear understanding among employees on various strategic objectives as well as identification of action need to achieve such objectives within their organization. This in turn enable managers to actively work in ensuring that existing organizational culture is relevant both to the present and future while at the same time maintaining some sense of continuity with its past. According to Schein (1999b), one of the chief responsibilities of managers is largely to create and maintain company’s characteristic that normally rewards and widely encourage collective effort. Perhaps, the most fundamental characteristic is organizational culture. Leaders need to understand that embracing organizational culture is very important while implementing organization-wide change (Schein, 1999b). For instance, with today increase in globalization and improved technology many organizations are grappling up to keep up with new initiatives onto various work processes. In my workplace I come to realize that organizational culture can either be a barrier or facilitator of new initiative or changes. It is quite evident that large scale changes need to widely be supported by various complementary changes within organizational culture. Managers need to ensure that change plans should largely address current and desired cultural elements. It is important that managers engages in playing key role in facilitating change through aligning various projects as well as developing certain efforts as a way of reinforcing desired culture. Sherriton and James (1997) maintain that, to every manager, matching employees to organization is an important part for ant company success. It is quite evident that the match between companies and employees is largely determined by the kind of organizational culture that exists. Organizational culture enables managers to understand the degree to which various organizational values match with employee values thus enabling him to determine whether a particular person is a good match for a particular organization. In addition, managers need to have an accurate understanding of their organizational culture so as to largely direct company activities in a manner which is productive as well as avoiding destructive influences of possessing employees who are not commitment in any way to companies’ goals(Sherriton and James, 1997). Managers are required to continually transmit various values of culture through significant efforts such as firm sponsored social events and consistent positive feedback which usually gives each employee a sense of organizational importance. Further, it is quite evident that management tends to largely focus on a dominant source of motivation such as opportunity for personal growth, status and pay. The accessibility of management as well as various ways in which decision are made is considered to be reflection of a good organizational culture(Sherriton and James, 1997). Bloor and Dawson (1994) maintains that, understanding organizational culture is an important role in the roles of managers. Usually, senior executives and top managers set tone within the organization by way of exerting core values which form the general dominant culture that is widely shared by majority of organizational employees. So, it is quite evident that if managers do not the responsibility of understanding his organizational culture which usually motivate its performance and success then, problems within this same organization become inevitable. New activities and procedure within a company will be difficult to implement if managers do not understand their company’s culture. Hiring process is the start of ensuring that employees are responsive to goals and various operating procedures within an organization (Sherriton and James, 1997). Therefore, managers can be able to foster great development of a positive culture through employing individuals who share same visions and values that are represented by the organization. Once new employees are indoctrinated with their organizational values they form an objective perception of the workplace which will solidify organizational culture. in order to hire people who will fit in a particular organization, it is important for managers to have a wide understanding of various dynamics of culture and how this organizational culture can be transformed so as to be able to direct activities in a manner that yield positive results(Sherriton and James, 1997). Schein (1999b) maintain that, it is quite evident that importance of understanding organizational culture cannot at any time be overlooked. The bottom line for every manager that wants to establish a culture of success is to begin with creating an environment that is favorable to each individual. Bringing in individual that are constantly in line with one organizational culture allows employees to enjoy working as well as meeting desired company goals (Schein, 1999b). In conclusion, it is important to understand that organizational culture is a powerful force that acts as a driver of company performance and success. All business either large or small has its own culture which consists of shared behaviors, assumptions, symbols and values. Every aspect of organizational development requires great understanding of the general culture of all organization activities. References Bloor, G and Dawson, P. (1994). Understanding professional culture in organizational context. Organization Studies, 15: 275-295. Cameron, S., and Robert, E. (1999). Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework. Reading, MA: Addison-Wesley Publishing Co. Cha, S. and Edmondson, A. (2001). How strong organizational values can inhibit learning. Working paper, Harvard University, Cambridge, MA. Flynn, F and Chatman, J. (2001). Strong cultures and innovation: Oxymoron or opportunity? In Cartwright, S., Cooper, C., Earley, C., Chatman, J., Cummings, T., Holden, N., Sparrow, P. & Starbuck, W. et al., (Eds.), International handbook of organizational culture and climate: 263-287. Sussex: John Wiley & Sons. Jones, O. (2000). Scientific management, culture and control: A first-hand account of Taylorism in practice. Human Relations, 53: 631-653. Koene, B., Boone, C., & Soeters, J. (1997). Organizational factors influencing homogeneity and heterogeneity of organizational cultures. In Sackmann, S. (Ed.), Cultural complexity in organizations: 273-294. Thousand Oaks, CA: Sage Publications. Parker, M. (2000). Organizational Culture and Identity. London: Sage. Sackmann, S. (1992). Culture and subcultures: An analysis of organizational knowledge. Administrative Science Quarterly, 37: 140-161. Schein, E.H. (1999). The Corporate Culture Survival Guide: Sense and Nonsense about Culture Change. San Francisco: Jossey-Bass. Schein, H. (1999). The Corporate Culture Survival Guide: Sense and Nonsense about Cultural Change. San Francisco: Jossey-Bass Publishers. Sherriton, J and James, S. (1997). Corporate Culture/Team Culture: Removing the Hidden Barriers to Team Success. New York: American Management Association. Read More