• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Organizational culture can be one of the most important means of improving organizational,performance
 

Organizational culture can be one of the most important means of improving organizational,performance

on

  • 622 views

Organizational culture can be one of the most important means of improving organisational performance”

Organizational culture can be one of the most important means of improving organisational performance”

Statistics

Views

Total Views
622
Views on SlideShare
622
Embed Views
0

Actions

Likes
0
Downloads
18
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Organizational culture can be one of the most important means of improving organizational,performance Organizational culture can be one of the most important means of improving organizational,performance Document Transcript

    • ! ! Introduction to Business and Management ! ! ! Topic'! “Organizational,culture,can,be,one,of,the, most,important,means,of,improving, organizational,performance”,, ! , ! Name: Akta Gupta Course: BBA Business studies Module Code: MNGT120 Module Coordinator: Dr. Seema Bhatt GDGWI ID: 100100 Batch: 2010-2013 Section: A Word Count: 1182 words ! !
    • ! ! ! ! 2! MNGT120!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!GDGWI!ID!100100!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! “Culture!is!the!soul!of!the!organization!—!the!beliefs!and!values,!and!how!they! are!manifested.!I!think!of!the!structure!as!the!skeleton,!and!as!the!flesh!and! blood.!And!culture!is!the!soul!that!holds!the!thing!together!and!gives!it!life!force.” ! 'Henry!Mintzberg! These! lines! by! Henry! Mintzberg,! an! internationally! renowned! author! on! Business! and! Management,! portray! how! critical! is! a! culture! in! an! organization.! Organizational!culture!is!the!combination!of!the!values,!norms,!and!behavior!of! all!the!people!working!in!an!organization,!which!creates!the!physical!and!social! artefacts!of!any!organization.! The!culture!of!the!organization!is!derived!from!the!founder’s!philosophy.!Over!a! period! of! time,! the! values! and! beliefs! of! the! founders! are! presented! in! the! functioning!of!the!company,!which!later!becomes!its!culture.!!! The! question! is,! what! are! the! values,! norms! and! behaviors! in! an! organization! that!form!its!culture.!Researches!have!suggested!that!the!organizational!culture! has!seven!distinct!values,!which!forms!the!organizational!culture!profile!(OCP).! These!values!are:! • • • • ! ! ! Detail'Orientation! This! deals! with! the! degree! of! importance! given! to! the! details! of! any! activity! by! the! employees.! This! becomes! a! competitive! advantage! to! the! organization! in! differentiating! its! company.! McDonald’s! Corporation! is! a! company!that!follows!this.!Every!employee!is!instructed!how!the!task!is!to! be!performed!and!detail!is!given!from!the!start!of!processing!the!product! until!served.! ! Result'Orientation! This! deals! with! the! people! focusing! on! achieving! the! end! result! rather! than! on! the! processes! used! to! attain! the! results.! Many! companies! implement! the! Results! Oriented! Work! Environment! (ROWE)! that! allows! employees!to!work!flexibly!until!and!unless!the!work!is!completed.! ! People'Orientation!! It!is!a!value!where!the!organization!focuses!on!its!people!during!decisionV making.!It!values!the!individualism!and!rights!of!the!employees.!Starbucks! Corporation! is! one! such! company! that! follows! this! culture.! It! pays! its! employees!above!minimum!wage;!provide!health!care!and!creative!perks.! Infosys!is!another!company!that!treats!employees!as!assets.! ! Team'Orientation! It! is! the! degree! of! emphasizing! on! working! in! teams! instead! as! individuals.! Southwest! Airlines! company! facilities! a! team! oriented! environment,! which! builds! a! cooperative! environment! among! the! employees.!
    • ! ! ! ! 3! MNGT120!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!GDGWI!ID!100100!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! • • • Aggressiveness! Companies!that!have!an!aggressive!culture,!work!towards!competiveness! to!reduce!competition!to!be!the!dominant!company.!Bill!Gates,!coVfounder! of! Microsoft! Corporation! emphasizes! on! having! an! aggressive! work! environment.! Every! employee! works! towards! killing! the! competition! in! the! market.! This! culture! at! times! may! fall! short! on! the! corporate! social! responsibility!as!it!works!solely!on!the!vision!of!the!company!unless!and! until! the! company! is! a! NGO! like! Greenpeace! that! also! follows! an! aggressive!culture.! ! Stability! This!culture!is!highly!formal!with!high!levels!of!bureaucracy.!Activities!are! predictable! in! nature.! Though! such! a! culture! may! result! in! increasing! efficiency! in! a! stable! environment,! it! may! tend! to! fall! in! a! dynamic! environment,!due!to!inability!to!adapt!new!environments.!Kraft!Foods!Inc.! has! a! stable! culture! and! follows! a! very! bureaucratic! method! of! functioning.!! ! Innovation!and!Risk'Taking! Contrasting! to! the! stable! culture,! companies! with! an! innovative! culture! support! employees! towards! flexibility! at! work.! The! working! style! is! less! bureaucratic! with! a! flat! organizational! hierarchy.! Google! provides! this! environment! to! its! employees.! It! allows! them! to! spend! 20%! of! their! working!hours!on!projects!of!choice.! These!shared!values!vary!in!organizations!between!continuums!of!high!and!low.! It!is!considered!that!if!a!company!has!a!high!degree!of!acceptance!and!sharing!for! the!cultures,!it!has!a!strong!culture.!People!have!the!same!belief!and!culture!due! to!which!the!organization!works!smoothly,!increasingly!efficiency.!If!it!has!a!low! degree,!the!people!in!the!company!do!not!share!the!same!values,!thus!contradict! each!other,!resulting!in!conflict.!The!culture!is!perceived!as!a!weak!that!reduces! the!efficiency!levels!and!performance!of!the!company.! Roger!Harrison!in!1972!developed!a!systematic!analytical!method!of!comparing! cultures.!He!defined!a!theoretical!framework!of!culture!types,!which!are,!! VPower&cultureVThe!power!is!concentrated!to!a!few!people,!which!then!radiates! outward.!Companies!with!centralized!decisionVmaking!fall!under!this!category.! VRole& cultureVThis! culture! has! defined! authority! in! highly! bureaucratic! and! structured! organization.! The! people! rely! on! scope! to! higher! position! and! have! little!scope!for!power.! VTask& cultureVIn! this! culture,! teams! are! formed! which! results! in! a! network! forming!a!matrix!organization.!Power!and!authority!of!task!is!distributed!to!the! right! person! with! the! right! expertise.! This! culture! is! highly! performance! orientated!where!the!personal!goals!tend!to!synchronize!with!the!organizational! goals.! !
    • ! ! ! ! 4! MNGT120!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!GDGWI!ID!100100!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! VPersonal&cultureVIn!this!culture,!the!individual!person!is!considered!superior!to! the! organization! as! the! organization! exists! only! if! the! individuals! share! a! likeV minded! goal! and! come! together! as! one! for! a! purpose.! ! Example:! Volunteers! coming!together!to!support!a!rally.! Researchers! have! shown! a! link! between! the! organizational! culture! and! how! it! affects!the!organizational!performance.!! If! the! people! in! the! organization! follow! the! same! culture! uniformly! and! accept! the! cultures! as! well,! there! would! be! unity! formed! within! the! organization! that! would!lead!to!high!levels!of!efficiency!thus!resulting!in!an!increase!in!the!levels!of! performance.! A! common! culture! results! in! having! a! common! goal! that! helps! in! makes!decision!making!easier.!People!would!agree!to!the!decisions!made!more! easily!and!be!motivated!to!work,!as!the!decisions!made!are!the!same!as!the!goal! of!the!people.! A! reverse! relationship! between! organizational! culture! and! performance! is! also! shown.!It!is!known!that!an!increase!in!performance!can!lead!to!a!development!of! a!culture,!which!could!lead!to!culture!homogeneity!in!the!way!the!organization! works.! Thus,! the! culture! in! the! business! can! just! be! a! byVproduct! of! the! performance.!! Culture!is!considered!as!a!regulatory!mechanism!to!regulate!complex!situations,! resulting! higher! efficiency! thus! has! a! high! level! of! performance.! If! an! organization!has!the!ability!to!adapt!to!various!cultures,!depending!on!the!task,!it! would!lead!to!high!levels!of!efficiency!as!the!chaos!and!confusion!created!within! an! organization! due! to! change! in! the! environment! and! work! type! would! be! minimized,!thus!increasing!performance!and!motivation!levels.! This!culture!could!also!result!in!being!a!limitation!to!the!company,!which!recruits! new!people!who!belong!to!a!different!culture!and!ideas.!It!is!very!important!for! the!employees!to!adapt!to!the!new!culture,!which!may!consume!a!lot!of!time!in! the! beginning.! Also,! recent! studies! have! shown! that,! companies! are! moving! towards! concentrating! on! merging! or! acquiring! companies! that! share! a! similar! culture! because! the! major! issue! that! arises! after! a! merger! or! acquisition! is! incompatibility!of!workers!with!the!new!environment!resulting!in!diseconomies! of!scale.! Thus,! an! organization! with! a! strong! culture,! which! may! vary! depending! on! the! industry! the! company! is! in,! not! just! helps! in! increasing! the! organization! performance!levels,!but!also!increases!the!opportunities!available!to!the!company! and!developing!a!competitive!advantage!over!the!other!companies!which!in!the! long!run!becomes!a!company’s!identity.! ! ! ! ! !
    • ! ! ! ! 5! MNGT120!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!GDGWI!ID!100100!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Bibliography Books: André, R.,2008. Organizational Behavior an Introduction to Your Life in Organizations. Upper Saddle River, NJ: Pearson Education. Ch.17. Coulter, M. Robbins, Stephen P. & Vohra, N.,2010. Management. 10th ed. New Delhi: Pearson Education. Ch.3. Judge, Timothy A & Robbins, Stephen P.,2009. Organizational Behavior. 13th ed. New Delhi: PHI Learning. Ch.17. Moshal, B. S.,2009. Organisational Theory and Behavior Text and Cases. 2nd ed. New Delhi: Ane Pvt. Ch.13. Sinha, Jai B. P.,2008. Culture and Organizational Behaviour. 1st ed. Los Angeles: SAGE. Ch.12. Internet: Anonymous. Corporate Culture. [Online] Available at:http://www.slideshare.net/Yuvarajah/corporate-culture-5344549. [Accessed 04 December 2010] Anonymous. ORGANIZATIONAL CULTURE. [Online] Available at: http://fds.oup.com/www.oup.co.uk/pdf/bt/fincham/Chapter15.pdf. [Accessed 04 December 2010] Anonymous. Organizational Culture and Performance. [Online] Available at: http://www.sagepub.com/upm-data/9432_010384ch3.pdf. [Accessed 04 December 2010] Anonymous. TYPOLOGY,FUNCTIONS AND EVOLUTION OF ORGANISATIONAL CULTURE. [Online] Available at: http://managementconsultingcourses.com/Lesson36TypologyFunctions&EvolutionOf OrganisationalCulture.pdf. [Accessed 04 December 2010] Bauer, T. & Erdogan, B. Characteristics of Organizational Culture [Online] Available at: http://www.flatworldknowledge.com/node/28971#web-28971. [Accessed 04 December 2010] El-Nadi, Fathi. Examples Of Strong Corporate Cultures. [Online] Available at: http://www.evancarmichael.com/Human-Resources/840/Examples-OfStrong-Corporate-Cultures.html. [Accessed 04 December 2010]. Scribd. Organizational Culture. [Online] Available at: http://www.scribd.com/doc/37268845/Organizational-Culture [Accessed 04 December 2010]. !