Culture and Social Structure of an Organization - Essay Example

Paper #2—the Culture and Social Structure of an Organization Culture: Culture in business affects the operation, focus and the hierarchy of leadership. The company of focus for the analysis for cultural analysis is the Parisian couturier Gabrielle "Coco" Chanel. The company will simply referred to as Chanel during the analysis. The company operates in France but has plans to expand to other countries. The essay is going to address the cultural issues affecting businesses including socialization, culture and operation management. The role of culture in business has been massive because they determine the mode of operation and facilitates the development of the operational culture. Culture defines the development of relationships between suppliers and customers as well the development of a marketing plan and objectives. Organizational culture: The definition of organizational culture is diverse but the focus of the whole organization. Organization culture is defined as “the values and behaviors that influence the unique social and psychological environment of the organization”. Most organizations operate in a known and established pattern that is known to the long serving workers. Chanel 5 is product from Parisian couturier Gabrielle "Coco" Chanel. It is a French company with global reputation. The company has managed to develop its organization structure and culture over the years of operation leading to creation of organization culture and tradition. The company will be described simply as Chanel as it is widely known. The organization structure of the company has evolved changing its culture and traditions. The success in the development of a unique social and psychological environment is tied to the guiding principles developed by the management. Organizational culture depends on both the past, current assumptions, philosophy, experience and values. The culture is expressed in its inner image, inner workings, interaction with the outside environment, and future expectation. The basics of the culture are dependent on the beliefs customs attitudes, express and implied contracts, written and unwritten rules that the organization develops over time. It is the way the organization conducts business, treats employees, clients and the community. For Chanel, the culture and focus of the company was determined by traditional market which targeted the women in the society. Fragrance worn by women had two basic categories which have been entrenched into the company culture namely respectable women and sexually provocative fragrance for prostitute. This culture of production via values has been entrenched into Chanel products creating a clear distinction between the two brands. The societal values are reflected in the production and categorization of products. Additionally is a covers issue of power and information flow within the hierarchy. The strength of the operation is dependent on the commitment of the employees towards collective objectives. Organizational culture extends to production methods, marketing and promotional practices and development of new products. Several organizations have managed to maintain the culture even in new product creation through conservation of the trends set in the manufacturing principal and operations over the years. The company has maintained the initial approach of the founder with the difference being on the improvement of the new products but with the same basic operation. The approach creates a feeling of originality with the employees as well as the customers. The maintenance of the Chanel perfumes is an example of the maintenance of culture with the target of depicting the company as dedicated to maintaining originality and conservatism. The initial production was based on the classification of women into two groups based on societal values. The morality upright women and the prostitute both are offered products that suit their espoused values. Socialization of new employees The socialization process for the new employees is simple but comprehensive. It involves the assigning of the new member a mentor to orientate and teach the new member into the cultural set up of the company. The Chanel system of operation borrows from the industrial revolution concepts that led to restructuring of the human resource. The initiation and training of the new employees is simple through association building and training. Levels of culture and importance in organization performance: Level of organizational culture is divided into three main categories namely; Artifacts, Espoused values and Basic assumptions and values. Artifacts are visible on surface value with minimal evaluation; they include issues such as dressing. They can be easily discerned but cannot be understood easily. The development of this level of culture is largely dependent on the organizational policy. Espoused values are located below the artifacts and are conscious strategies, philosophies and goals. The basic assumptions and values are the core of the culture, and are represented by the basic assumption and values that cannot be discerned because they exist at a largely unconscious level. Despite existing at the unconscious level, they are vital in understanding how things happen. For any Company, the conserving of the initial image is the value that affects the operation in the company. Most of the perfumes are manufactured with the initial touch and perception maintained. It is the basic production culture maintained by the company. Products such as Chanel No. 5 was developed and maintained without serious changes in the composition because originality and conservation was the main focus of the company. Chanel has maintained its espoused values through manufacture of perfumes for specific target community. The company operations have been based on values both surface value and espoused values, which in turn affect the leadership and organization culture. Leadership style and organization culture: Major decisions of the organization are done through consultation of the highest-ranking managers of the organization. The development of an organization structure with a delegation of roles and responsibilities must be conducted in a way promoting the development of group cohesiveness and unity. The decision-making and leadership style exhibited by the leader’s especially the managing directors depicts an existence of autocratic style of leadership. The three crucial decisions taken by the different managers over the years of administration clearly indicate individualistic approach. Some decisions have been successful while others fail because of lack of support. The success of the decisions is highly linked with the culture because the employees have adopted the mode of operation of the company’s management team. National culture and its impact on organizational culture: The French approach is individualistic as witnessed by French structure, which uses a prize system. Chanel Company operates in the same system because it operates in France. In Brazil emphasis is on the group contribution to the decision making process is rife making it essential for all employees to be told the essence of the takeover. For the team to reach an agreement there must be buy-ins from all members of the negotiating team. Therefore, in the Latin America it is natural to have several members at the negotiation table. Additionally role orderliness and conformity is a cultural factor affecting business operations. In cultures that practice orderliness, emphasis is vested on the structure or form of behavior than on content. The way activities are done is paramount. The Brazil culture emphasizes the need for developing a relationship with the counterpart so as to facilitate orderliness and predictability during the negotiation process. The Patterns of communication are a factor affecting the business operations in France. The variation in the encoding and decoding of message across different culture may affect the negotiating process by either weakening of emphasis points or highlight of minor points in the business management. The difference in perception between the sender and receiver results in variation of information. These variations may be so immense that there is a serious breakdown in communication. This problem is common during international negotiation creating a need for the use of middlemen in the negotiation process. The use of middlemen will facilitate easier communication between the negotiating parties thereby faster conclusion of the process. Etiquette in diversity is not easily maintained without knowledge of the customs and etiquette of the negotiator. It is necessary for managers to know what is expected as part of etiquette during the business operation process. For example, Brazilian social etiquette is remarkably different to the westerners. Physical contact in Brazil is minimal; therefore, body language and movements should be controlled. The manager must appear calm, formal, attentive, and portray self-control and respectability. For Chanel to operate in Brazil the set culture would be changed because the French culture is different from Brazil which is reflected in the organizations. The etiquette in gift giving must also be understood. In Brazil, accepting gifts from people the first meeting is improper. Therefore, accepting a gift the first time indicates haste and makes a person appear aggressive. Understanding the etiquette of dining is crucial to avoid problems in case of meal sharing during the business process. The style of serving and orderliness is maintained. The Brazilians practice self-service, which follows the level of seniority, as such, the process must be observed to ensure the creation of trust and friendliness, during the process thereby facilitating the negotiation process. The practice of delegation and responsibility allocation facilitate the development of innovation and facilitates the development of new ideas and approach in business management. The transparency in recruitment and duties of employees facilitates the development of necessary personal skills and experience. The success of the whole culture of French is based on the success of the Chanel Company in integrating the various cultural issues, as well as the development of harmony within the working environment through value creation. In conclusion, cultural differences affect the performance of business while also influencing the organization structure of the company. The Asian cultures practice different levels of organization with the focus being on the impact of religion. The Islamic religion has affected the reasoning and the development business deals. These deals may influence the outcome and success of the company operations. These cultures affect to the development of organizational culture, which is common in all business environments. Organization culture is managed and developed by the company through the development of structure and leadership styles. Organization culture is easily attained by organizations without any legal or structural designs and rule. However, culture is developed over a long period of organization and work. It involves the development of the standard operational procedures that in time becomes a set known culture of operation called the organizational culture. Organizational culture is a product of consistency in operation style and structure. Organizational culture is a product of standardized operation and business practice. Works Cited Mayo, Marjorie. Cultures, Communities, Identities: Cultural Strategies for Participation and Empowerment. New York: Palgrave Macmillan, 2001. Print McCarty, Philip. Introduction to Global History, Culture, and Ideology. Michigan: University Readers, 2011. Print Read More