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Functions Of Organizational Culture Essay

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Nature And Functions Of Organizational Culture Management Essay

Nature And Functions Of Organizational Culture Management Essay

Published: 23rd March, 2015 Last Edited: 23rd March, 2015

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Culture is a term originated from anthropology which points to the fundamental values, beliefs, ethics and the way of doing things in a particular community which differentiates it from the others. Culture is mightily subjective and it reverberate the meanings and reasoning that we usually attribute to solutions. the understanding and the method of finding a solution for a problem differs in each culture. Likewise each organization has their own culture which might be different from others. It reflects the personality of an organization. An organizational culture is the totality of its values, artefacts and the norms followed by the people within the organization. Organizational culture is the single most factors which plays a pivotal role in any organization'4es failure or success, (Deal and Kennedy 1982). They have singled out four cultural dimensions which are:

Values - the underlying belief which is the essence of the organizational culture,

Heroes- the employees who exemplify values

Rites and rituals- the day to day interactions within the organization which projects mighty symbolic attributes.

The culture network - the grapevine in the organization

In the case of Asda they uphold some organizational values such as teamwork, respect for one another. As operating in the retail sector one major focus of Asda is customer satisfaction which is the base of all its operations. If a store is taken into consideration the store manager is the one who leads the colleagues with the following of the norms. There is a good relationship between the management and the colleagues.

Nature of Organizational Culture

The behaviour and the mode of decisions taken in an organization is significantly linked to its organizational culture. In Most of the organization its culture and the way of working have a major impact on the employee's behaviour like the companies encouragement on innovative ideas (Flamholtz 1995). As in the case of 3m one of the most innovative company in the world innovation is the part of its organizational culture

Functions of Organizational culture

Organizational culture helps to inculcate a clear distinction between the organization and the others in the industry. The mode of working in the organization will be different that to its rivals. The culture provides a sense o unity among the employees; it spreads a sense of identity to the organization and its members. The employees might be coming from different social and ethnic backgrounds and the ideas and the ideologies of these individuals will be sea apart but when it comes to the functioning of the organization the organizational culture binds them together and motivates them to provide better commitment to the organization sacrificing the individuals interest. The culture is the factor which binds its employees together providing them an identity. The two important parts played by culture in an organization are the synchronization of the inner systems and the processes of the organization and the in-depth understanding of the firms external environment.(Schein 1992;Trice and Beyer, 1993)

Organizational culture and performance

It's a widely spread belief that an organization with strong organizational culture outperform firms with weak organizational culture. The studies conducted by researchers like Peters and Waterman (1985), Kotter and Hesket (1992) have concentrated on the fact that the positivities of the organizational culture motivates the employees and they have proved this by usind the Denison Model (1996). Many researchers have come to these understanding based on the intuition that good organizational cultures motivates employees to work together to achieve the company goals thereby enhancing the firms performance ( O'Reilly and Chatman,1996. 166). The better performance is regarded as a result of the companies norms and values which provide better coordination between the employees which enhance the goal setting and goal sharing capabilities which in turn result in better employee effort. Many Quantitative analyses done on the performance of the firm have thrown light on the fact that organizations with weaker culture are outperformed by the firms which inculcate strong culture. (Burt et al.,1992). Strong organizational culture will not only benefit the organization in the long run but also in identifying the factors for success or failure of the company. (Kotter and Heskett 1992).

Measurement of corporate culture

The in depth understanding of the current corporate culture of an organization is vital in developing strategies in the organization. The best way to get an in depth idea is measuring the corporate culture. Many of the studies conducted to measure culture were qualitative. (Siehl and Martin 1988) The corporate culture is mostly based on the conscious elements such as norms and values and the ways of doing things in the firm. The more accurate way of measuring culture is the mixed method which is the mixture of quantitative and qualitative methods that includes tools like structured or unstructured observation, interviews and questionnaire. (Rosseau 1990).In the "organizational culture inventory" (Cooke and Lafferty's 1989) have developed a questionnaire and another researcher (O Reilly et all, 1991) have developed an" organizational culture Profile". Researcher's Denison and William Neale had developed a tool to quantitatively analyse the impact of corporate culture on the monetary performance of the organization. The" Denison Organizational culture survey" analyses the link between the financial indicators such as company growth, Market share and the satisfactory level of the employees and the customers.

Organizational culture and change

2.2 Research Methodology

2.3 Research Philosophy

2.4 Research Approach

2.5 Research Strategy

2.6 Time Horizon

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The Functions Of Organizational Culture Commerce Essay

The Functions Of Organizational Culture Commerce Essay

Published: 23rd March, 2015 Last Edited: 23rd March, 2015

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Culture is the soul to an enterprise, it is the essence of a successful business. So far, as the organizational culture develops, everyone has been universally recognized that it's way of thinking and behaving shared by all members of the organization. Successful experience tells us, organizational culture is immortal pillars for the development of the organization, cultural development also has the potential force of cohesion, it brought not only a spirit to employees, but also inspire them a sense of pride and responsibility, cultivating the team work spirit of the organization, thus, to improve the overall effectiveness of the enterprise.(Pumpin, 1987)

What is organizational culture

Organizational culture is the sum of reflects that gradually formed in the production and management practices, agreed and complied with all staff, with the characteristics of the Organization's mission, vision, purpose, spirit, values and business philosophy, and the ideas in the production and management practices, management system, the behavior of employees with the external image. (Pumpin, 1987) In essence, organizational culture is a cultural phenomenon among the enterprises, its appearance is inseparable from the development of the theory and practice of modern enterprise, from the management perspective, organizational culture are the application management tools to achieve management objectives, therefore, organizational culture are not only a cultural phenomenon, but also has a connotation as a management tool. First, the organizational culture is led by a sense of enterprise management, the cultural patterns of pursuit and realization in a certain corporate purposes, from a certain sense, the organizational culture is a culture of enterprise management. Second, the organizational culture is a culture that have a common goal, group consciousness, and the suitable organizations and institutions. Third, the organizational culture is an "economic culture". It is gradually formed in the operation of the production process and management activities by the enterprises and enterprise employees, leaving the economic activities of enterprises, it is impossible to have a organizational culture formation, not to mention a good one.(Miles and Snow, 1978)

2. The functions of organizational culture 2.1 The guiding function.

Organizational culture can play a guiding role of value orientation and behavior orientation in enterprises and each member of them. This orientation is different from a traditional management which simply focus on the rigid discipline or system, it emphasizes to guide the behavior of members of the enterprise from the shaping organizational culture, to make people accept the common values in a cultural imperceptibly.(Barney, 1986)

2.2 The incentive function.

Positive ideas and code of conduct can form a strong sense of mission and a sustained driving force. Positive organizational culture is a ruler of self-motivation to the employees, the ruler that they can contrast their own behavior, identify gaps, can generate the driving force for improving. In the same time, enterprises with shared values, beliefs and codes of conduct which can be a powerful spiritual pillar, can make a person generate a sense of identity, a sense of belonging and a sense of security, until play the role of mutual encouragement.(Deal and Kennedy, 1982)

2.3 The cohesion function

The collective strength depends on the cohesion of the organization, the coordination of the organization's internal condition and ability to control. The cohesion of the organization, coordination and control can be generated by "rigid connections" like the system of discipline, but not as good as more effective by "internal binder" like shared values, beliefs, and codes of conduct.(Schwartz, and Davis, 1981)

2.4 The constraint function

Excellent organizational culture have the binding effect on the thinking and behavior of each employee. After a long period of construction of organizational culture, formed written or convention rules and regulations, ethics and codes of conduct to regulate the behavior of employees, by this measure, it achieve the controling of thinking and behave of workers.(Cooke, 1987)

Take the McDonald for example, McDonald's Quality, Service, Cleanliness, Value, it formed from the top to bottom of a company-wide to a high-spirited, energetic and promising enterprises mental outlook, the concept of health inspire and guide workers keep making progress. McDonald focus on meticulous management, cultivate awareness of staff to establish "the details determine success or failure ", to improve management efficiency through good detail, to build a strong team through good detail, use good details to regulate employee behavior, good restraints of organizational culture in the system can be fully demonstrated. McDonald also enhance their employees sense of belonging through methods such as uniform dress; strengthen employees collaborate awareness; care for each other, help each other; actively promote flexible management to encourages employees to breakthrough program of the work to form a flexible internal strengthen collaboration between employees. scientific management being taken to improve the sense of community of employees.

The functions of organizational culture impact on management

3.1 The organizational culture is the basis of the Strategic Management, Strategic management is to determine its mission, according to the external environment and internal conditions to set the strategic objectives of the enterprise, in order to ensure the correct implementation of the goals and progress plan, and rely on internal capabilities implemented this kind of planning and decision-making, constraints in the implementation process of a dynamic management process. The organizational culture is the value orientation of the enterprise for a variety of internal and external affairs and resources, enterprises in the long-term organizational values, under the guidance of shared values, guiding principles and select corporate behavior. Excellent organizational culture is an important condition for business strategy development and success. It can highlight the characteristics of enterprises, the formation of the common values of the members of the enterprise, also because of its distinctive personality, more conducive to enterprise to develop a distinctive strategy of defeating the enemy. Strategy formulation process of collective behavior, establish above the values and beliefs of the organization members.(Hampden-Turner, 1990) Based on the wishes of the members of organization, the guidance from particular culture, to develop corporate strategy around the organizational culture. Therefore, the organizational culture is the basis of corporate strategic planning, development and implementation.

3.2 The relevance of the organizational culture and strategic management

In order to maintain the organizational culture and strategic management of mutual synergy, the need for a comprehensive understanding of the positive and negative effect on the strategic management of cultural enterprises to analysis out how to change the organizational strategy culture. (Islam and Zyphur, 2009)

3.2.1 The positive role of the organizational culture on strategic management mission and values are important factors for an enterprise culture, so that employees can identify with the organization's business philosophy and creed.

The formulation of corporate strategy is bound to affected by a mission. The corporate mission defines the scope and level of the enterprises operating in the field of socio-economic activities, represents the corporate identity and role in the socio-economic activities.

The core corporate values of the organizational culture guide the enterprises own strategy development to built on the basis of the values required of following the market and the enterprise's own progress. When employees were able to agree with the company's values, you would think that the efforts they made for the enterprise role, valuable sense of collective identity value will give employees greater satisfaction, and this sense of satisfaction in turn will more promote the dedication of the staff of the enterprise.(Halpin& Croft, 1963) Culture played a stable role of organization in corporate strategy design, implementation. It guides and shapes the attitude and behavior of employees, make the employees to accept corporate norms and canonical role of restraint mechanisms, and the guidance play the role of restraint mechanisms to encourage their employees to achieve the behavior that enterprises expect. In the perspective of time corporate strategic constraints can be divided into prior constraints, afterwards constraints and any time constraints. Prior constraints requires to design a good valid strategic plan before the implementation of the it, however, it must be designed harmony with the organizational culture, if there is the deviation between the two, the organizational culture will play its regulatory role for the prior constraints goes smoothly. Organizational culture play its strategic constraintsis more significantly embodied in the adjustment of afterwards constraints. It is based on the spirit of enterprise, to fully exploit the employees of self-restraint and self-regulation, use of a humane way to adjust, thus it can greatly reducing friction and communication costs of personnel in the process of implementation of the strategy, in order to promote the implementation of the strategy within the enterprise. Organizational culture as a driving force of the strategy and continuously improve business performance, profitability and productivity, it become a powerful internal driving force. Culture enables members to understand the historical tradition and the present approach to business, provided to the staff a reasonable explanation for the events of the past of the enterprise, thus to facilitate the employees to understand their proper representation in the future in the similar incidents. This kind of non-institutional factors will enable more humane management to constrain the opportunistic behavior of managers and employees, thus promoting the effective implementation of the corporate strategy.(Hofstede, 1991)

3.2.2 The negative role of the organizational culture on strategic management Due to cultural difference between the various levels of the organization, when the overall strategy reached out the various departments, they have varying degrees of conflict and contradiction, the contradiction of this conflict will reduce the degree of integration of the entire department and hinder the corporate strategy implementation. However, due to the enterprise implement this kind of division of work, it will lead to a split and the formation of the sub-culture of organizational culture. Strategic management of the enterprise is to unify to form a unified concept of progress of the internal culture, it needs to coordinate the various departments grading, but this requires enterprises to pay the considerable cost, but also need to do ideological adjustment for the department have a propensity of conflict.(Kotter, 1992) The existing organizational culture has been difficult to adapt to the progress of modern society and the enterprise. In order to adapt better to the external environment, to implement the new strategy, many enterprises began to change the organizational culture that are existing. The original culture has been deeply rooted within the enterprise, with the sudden shift, there will be great progress resistance.(Kotter, 1992) People employed in the enterprise have the different cultural background, there is a significant difference between them. The companies believe that this can boost the organization to achieve enterprise multifaceted progress. Employees bear a strong organizational culture will naturally accept this culture, behavior consistent with its own characteristics will not be reflected in order to lead to the formation of a single environmental systems, lack of constructive sounds and opinion, the employees will not spend more time to update and improve the internal management of the enterprise, no innovative force at all.(RSA 1995)

Take Apple Inc. as the example, first, the business guiding ideology inadaptability lead to strategic mistakes. Apple does not like to hear someone accusations that he is wrong, and hope that regardless of their own employees, or the hot suitors of the outside world can stand together with his firmly. With the culture of "to go it alone" will inevitably lead to the company's operating guiding ideology to a product-oriented, which leads the direction of the company and the market demand is difficult to coordinate. Secondly, Lack of coordination within the organization, and inconsistent. Leadership is one thing to develop workflow and truthfully feedback process of the team is another matter entirely. Former Apple designer Andrew Poirot Minkowski, (Andrew Borovsky) said: "from the design, each of the underlying designers is extremely difficult to get direct feedback from the executives. Typically, if you are not receiving a positive reply, then it is told you to stop doing stupid things. " Third, over-reliance on individual heroes, serious personality cult. Apple has a unique program, that is to cultivate a person - whether he is competent, supervisor, or a common staff - on behalf of Steve Jobs eligibility. Steve Jobs is a dictator of the company, all of the key decision-making - as well as a lot of seemingly inconsequential decisions - are made by him. These decisions include how to design the route of shuttle for employees in San Francisco city, what kind of food served in cafeteria. However, as Jobs can insight into the company's all move, he has not see if he is not sitting in the CEO'chair, the situation will be very different.

3.3 Changes of organizational culture in the strategic management

Re-examine and make appropriate modifications and adjustment to the original values of the organization. Because strategic change and implementation will eventually be implemented into every employees' action, so to promote the people of organization to have the idea of change, innovation to the current values, in order to match the new framework for the implementation of the strategy is the value basis whether strategy can be implemented. Second, the culture of innovation concept, allow employees to take the initiative to participate in the innovation. And discuss with the staff of the strategic implementation plan, establish them a clear understanding of the external and internal environment changes, inform the role of that can be brought with the concept of change to the employees, and strengthen the implementation of the identity of the employees on the strategic management. Lastly, establish feedback and timely adjustment mechanism in the organization to allowed full communication of the cultural contradictions.(Schein, 1985) If there is no fast and efficient information system to accept and feedback, no effective coordination and monitoring system for the overall situation, then the implementation of strategic management of the enterprise is bound have actual deviation because of lack of timely and correct information feedback, making the entire implementation process cannot be constrained effectively, then, affect the final implementation, failed to achieve the established strategic objectives. Correctly understand and grasp the the complementary dialectical contact between corporate strategy and organizational culture can help to improve the overall quality and competitiveness of enterprises, promote enterprise taking quality, rapidly, sustained and healthy progress.


The role of the organizational culture in the corporate management is to manage strictly, focusing on the incentive to cultivate employees' sense of responsibility and solidarity, like the physical form of the product, as it is perceivable, organizational culture cohesive people internally, improve operations externally, also strengthen the management, make the vitality of enterprises to develop and create a strong competitive. Ancient and modern history shows that the closed culture inevitably lead to stagnation and degradation of the society, open culture will inevitably lead to the prosperity of society and evolution, it is the same for companies, so to strengthen the integration of the organizational culture is the right choice for corporate survival and sustainable development. In the management applications of the organizational culture, "people-oriented" is most able to attract talent, now, many businesses and entrepreneurs advertised himself as a "people-oriented". However, in the enterprise management system, the leadership style of the business owners in the allocation of the enterprise, the basic living and working conditions of the workers, and so on are not the slightest reflects of the attitude of true respect to talents, to employees, then "people-oriented" is illusory. In the market economy, if the businesses want to be invincible, business leaders must fully understand and know the advantages and shortcomings of the enterprise. To prevent and overcome their own shortcomings in order to cope in a market economy. Operations are art. management are science, and the system is the guarantee, talent is fundamental. Grasp a good business operation, management, system, talent, then the company could hopely have a healthy development, also could truly establish their own organizational culture.

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Organizational Culture Analysis by

Organizational Culture

In this essay I will discuss the pros and cons of different organizational structure for a US Plastic manufacturing company in Thailand based on the cultural dimensions affecting the organizational structure based on current theoretical framework and analysis and also on credible empirical evidence. In addition I will discuss the challenges

the company will face in developing a cross-cultural organization based on current cultural issues affecting organization on a theoretical and empirical basis. In addition I will discuss how cultural issues in Thailand will

affect the phase of change and how to overcome resistance to change using effective strategies in Thailand in a cross-cultural context and building an organizational culture. which is inclusive of diverse cultural perspectives and accepts diversity and minimize conflict and intolerance

Pros and cons of different organizational structure and the most suitable organizational structure given the cultural dimensions of Thailand

The organizational structure is the means to combine tasks. technology and human resources to achieve organizational objectives. There are two opposing forces in designing organizational structure. They are grouping similar tasks together to enable specialization so that people can focus on what they do best and the need to integrate functions so that they work as a system and not optimizing a sectional objectives. which is conflicting with the organizational objectives as different grouping may have different interests and values. That is in all organizations there is a need to balance these opposing forces so that it is suitable given the nature of technology. human resources. and products

The traditional organizational structure can be a hierarchical functional to be done centrally and line of communication are top down and there is upper level management middle level management and lower level management and the employees and they may have different functions like marketing. production. human resources. administration. finance information technology purchasing and stores etc. As well managers make decisions mostly individually or in a group regarding the operations of the organization and employees mostly do not participate in the decision-making process and they accept formal authority of the management and they like specific instructions in doing their tasks and the company produces less variety of different products. The advantages of this organizational structure is enhanced co-ordination and control efficient use of managerial and technical talent. improves organizational perspective within the organization. centralized decision making which enhances control of activities and reduce discretion of middle and lower level and employees to make decisions which is not compatible with organizational objectives as well it enables career paths in specialized areas. The disadvantages are as there are specialized units they may have different values and interests and pursue short-term goals and also reduce communication and co-ordination In addition it is difficult to establish uniform performance standards because sub unit objectives may differ and conflict with each other and there fore difficult to establish uniform performance standards

Another organizational structure also can be a matrix organizational structure where a combination of functional and divisional structures is used.

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