Critically evaluate the contention that organisational culture is something that managers can control and manipulate in ways that will improve organisational performance
In this essay we will discuss on how managers control and manipulate corporate culture in ways that will improve the organizational performance.
Organizations have their own unique culture or value set, based on the values of the top management or the founders, and formed over years of interaction between the participants in the organization. Although, there is no common definition of organizational culture in management, Dessler (2004) defines culture as “the characteristic set of values and ways of behaving that employees in an organization share”. Also, Johnson and Scholes (1994) defined organizational culture using a cultural web; the cultural web comprises of ‘hard’ structural systems characteristics of organizations together with ‘soft’ symbolic features. It is all about continually agreeing (sometimes explicitly, usually tacitly) about the ‘proper’ way to do things and how to make meanings about the events of the world around them (Seel, R 2000). It also involves learning and transmitting of knowledge, beliefs and patterns of behaviors over a period of time. However organizational culture is a strong force within a company which appears to play an important role in the organization performance. According to Koontz and Weihrich (1998, p.205) ‘’the effectiveness of an organization is influenced by the organizational culture which affects the way managerial functions of planning, organizing, staffing, leading and controlling are carried out’’. The extraordinarily success of companies like Southwest Airlines, Wal-Mart, MacDonald’s is gained over other competitors in the market by the proper tune of their organizational culture. Organizational culture has a major impact on mid-term and long-term performance, and the capacity of manager to control and rule it, is the essential way to organization success. (Cameroon and Quinn, 1999).
From a management perspective, organizational culture can be
influenced and used and is therefore applicable as a tool to control the workforce
(Wilson and Rosenfeld, 1990). In fact, there are a number of significant
factors in companies operating culture (the way things are done around) that
can significantly influence the effectiveness of an organization. So how do we
explain the extraordinarily successful of some companies from others? Why some
companies prospered when their competitors failed or have gone out of business
rapidly? Is simply because, these successful companies have developed and
managed something special that supersedes corporate strategy, market presence or
technological advantages: and that success is the organizational culture.
Nowadays, in this global world, it is a challenge for managers,
to influence and energize others within the organization to follow a shared corporate
culture; to use culture in the way to increase the organizational performance.
However, the success of the manager to maintain, change, or repair an
organizational culture depends to a large degree on an accurate reading and
understanding of the corporate culture and the ability to polish and shape it
to fit the shifting needs of the marketplace. (Robbins, S.P and Coulter, M
2002)
In addition to that,
Managers have the challenge of making sure they maintain
corporate culture observed at all time during working operations, they can
achieve this by rewarding and promoting employee whose behavior is consistent
with the existing culture and by articulating culture through slogans and
ceremonies. For instance, in Kellogg Company they established ‘K Values’ which is ‘shape our culture and guide the way we run our business’.
In 2005, the company instituted the W.K. Kellogg Values Award, which is given
annually to one individual and one team of employees who best exhibit the K
Values in their work. (Kellogg Co, 2007).
It is well-known that, rewards and recognition system send
signal about what is right and wrong and influence how the employee behaves.
When people are motivated, they are more likely to achieve their objective and
do so with great ease. Schachter Debbie (2005) stated that, ‘’by empowering
staff to provide suggestions and to help them to implement their new ideas and
make more decisions for their own areas of expertise, are important for a
company’s success’’. In fact, employees are not motivated only by money; they
have many personal needs and goals that they are hoping to be satisfied through
their job and the offer of various types of rewards. Also, many companies like,
ASDA, McDonald’s, use plaques hanging in prominent places that features the
“crew member of the month” for example, they offer them rewards which motivate
them. Nowadays, managers decentralizing
decision making by encouraging employees to be more responsible and act and
think like owners, they design culture which allows all employees to take part
in problem analyzing and solving in the organization by making appropriate
decisions. In exchange for more flexible work schedules, employees are expected
to always be "on-call" and give their loyalty to the organization.
But also, ‘’managers must walk a fine line between
maintaining a culture that still works effectively and changing culture that
has been dysfunctional’’ Griffin (2005). In this global world, if the organization
is not able to adapt its culture to the changing environment, it will not
survive. Growing from that evidence, some successful companies do not remain
excellent for long, also suggesting that culture may need to be replaced with
the more discerning understanding of the types and roles of culture and the
needs to change culture over the life cycle of the organization. Many managers
recognize that and try to manipulate corporate culture in a manner that will
lead to organizational success. This is the reason why, the culture in many
successful organization is characterized by agility, alignment with external
environment factors. In this way, Kotter and Heskett (1992) stated that, ‘’in
organizational cultures that promotes useful change; managers pay close
attention to relevant changes in a firm’s context and then initiate incremental
changes in strategies and practices to keep firms and cultures in line with
environmental realities’’. By encouraging constantly the employees to look
ahead, to anticipate change, so that they can position themselves and the
company to slip ahead when there is a curve in the road, when there is a
challenge, managers involve people to perpetuate change of culture in the
company.
In fact, to change culture, managers must have a
clear idea of what they want to create. Modifying organizational culture is the
key to the successful implementation of major improvement strategies as well as
adaptation to the increasing turbulent environment faced by modern
organizations. By changing training programs and new selection criteria,
managers can influence the culture and thereby, changing the attitude and behaviors
within the organization. A good example is
Furthermore, employing people and encourage them to know the corporate culture and embrace it in their day to day activities is through training and recycling, which are the best ways in which employees can contribute to continuous improvement by eliminating errors and waste. Siemens is an example of company in which development is concerned with encouraging employees to identify ways in which they want to improve their career and other aspects of their working lives, they have a phrase that says A ‘high performance culture’ exists when everyone in the organization shares the same vision and where they trust and value each other's contribution. (The times newspaper, 2008).
What is important for a long-term organization performance
is the ability of the manager to effectively manage and change culture over
time to adjust, to change in the situation understanding of culture and the
role of manager in ensuring that, this culture contributes both to the organization’s
current and future success. For instance, Ford Company, when it started
in 1911 in the UK the manager could not monitor the problem of cultural
diversity since the employees came from different cultural backgrounds,
therefore, failure of managers to manipulate the organizational culture by
changing it to fit the multi cultural society of employees, the company’s
performance fall.
To sum up, it appears that, organizational culture can be
manipulated in the way to increase organizational performance and this can be
done if the manager understands the organizational culture properly and, by
maintaining the culture or by changing it and adapt it to the changing
environment. In fact, Assessing and improving organizational culture are
necessarily for a long term organization’s success.
REFERENCES:
Charles W.L. (2000). Disney
in
http://www.thetimes100.co.uk/case-study--creating-high-performance-culture--89-256-1.phpth June 2008)
http://www.kelloggcompany.com/company.aspx?id=35
(Accessed: 20th June 2008)
(Accessed: 20
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