Importance of Building Positive Organizational Culture - Term Paper Example

Importance of Building Positive Organizational Culture Student’s Name Institutional Affiliation Introduction The business environment is becoming dynamic following globalization. This has heightened the level of competition between organizations, especially within the labour market. Organizations are therefore slowly restructuring and changing, opting for ways that are strategic at internal and external levels. Internally the organizations ensure the wellbeing of the employees while external the company ensures it has competitive edge in the industry. An organization’s organizational culture will either make it successful or a failure (Luthans, 2008). Most organizational studies have therefore given ascendancy to the topic of positive organizational practices attracting the interest of consultants and change agents who are the HR managers as well as other leaders in organizations (Luthans, 2008). In the study of positive organizational culture a small field called positive organizational scholarship is brought forth, setting basis for this paper. This aims to better make the notion of positive organizational culture being understood and clearing the aura of confusions that arise when people want to delineate positive from negative in the context of organizational culture. Definition of Positive Organizational Culture There is no distinct definition of positive organizational culture as it description varies from author to author (Walentynowicz, 2014). Positive organizational culture is an organizational culture that is geared towards effectiveness and productivity, as well as employee satisfaction in the organization. Walentynowicz (2014) asserts that positive organizational culture reinforces the core beliefs, values and behaviours that the leadership of an organization consider for while discarding those that are detrimental for the success of an organization. Positive organizational culture is nest looked at from the psychological point of view (Mazur, 2010). Positive organizational culture are positive values, competencies, beliefs and assumptions within an organization that guard how people relate to the organization in question. Positive organizational culture covers positive communication, positive relations, positive climate, positive energy and positive meaning within an organization (Mazur, 2010). This view bases its argument on the strengths and competencies within the organization as opposed to the problems and threats that are likely. Deeper view of this concept reveals a subfield of organizational studies; Positive Organizational Scholarship (POS) (Cameron et al., 2011). Positive Organizational Scholarship draws from social and organizational sciences and focuses on the dynamics within an organization that have the capability to develop resilience, restoration, vitality, and positive human energy as well as extraordinary workforce within each unit in an organization (Cameron et al., 2011). In this way, it enables an organization to unlock their potential and reveal some positive course of human organizational wellbeing as well as reveal the capabilities from within and outside (Cameron et al., 2011). The latter best describes positive organizational culture. POS studies positive organizational outcomes, positive practices, and positive attributes of a flourishing organization (Mazur, 2010). Some of the positive practices that are part of positive organizational culture include caring, forgiveness, inspiration, compassionate support, and meaning within the organization. Components of Positive Organizational Culture It takes a number of factors within an organization to build a positive organizational culture. It is worth noting that in some literature positive organizational culture has been referred to as positive culture, psychology or positive climate (Coleman, 2013). A strong vision or mission is a prerequisite for a positive organizational culture (Walentynowicz, 2014). The mission or vision is just a phrase that guides the values of the people within the organization and thus provides the organization with strategic direction and purpose (Coleman, 2013). The vision provide a basis upon which the management and the employee make sound decisions. The vision should be well communicated to all the stakeholders so that they are recognized and understood. The vision acts as the foundational component of the culture of any organization. The second component is organizational values which are the arsenal of the organizational culture (Coleman, 2013). Unlike vision that articulates the purpose of the organization, values offer a guideline on the mind sets, behaviour and practices that are core to the achievement of the vision and mission of an organization (Coleman, 2013). The values are communicated to the employees, right from the time of recruitment to orientation and even later in their life at work (Coleman, 2013). The values spell the terms and conditions of the organization when conducting business, how the company serves clients and how the employees are treated within the organization (Parker and Hyett, 2011). The values must be authentic to an organization and should not conflict with another’s as that would be a crime in itself guarded by the copyright laws. The third component of a positive organizational culture is happiness in the workplace. Happiness in this case is subjective and one of the most important examples of the psychological well-being factors of the employees (Parker and Hyett, 2011). There are a number of factors that can institute happiness including the values of mutual trust, respect, appreciation and good reward systems as well within an organization. The third component is the spirit if camaraderie that ensures that there is gratification of relationships between the employees in a manner that there is a psychological wellbeing (Parker and Hyett, 2011). Camaraderie assists in the creation of social links and thus security needs (Rego and Cunha, 2008). The employees must have channels that make them exist as a family and thus create organizational citizenship behaviours. Generally this is instilled with a friendly work environment within the organization where the management and the employees freely interact and exchange ideas. Generally, the organization must have channels where the wellbeing of other employees become the responsibility of other employees. The fourth component is positive management-employee or leader-follower relationships. To establish this important component there must be mutual trust and open communication systems within the organizations of either party to communicate (Rego and Cunha, 2008). The leaders must be credible enough to develop positive emotions for the employees so as to optimize their self-worth and realization. The nest component is justice within the organization. Positive justice aids in shaping the wellbeing of the employees and thus builds their coherence to the culture and values of the organization (Rego and Cunha, 2008). The management should ensure that there are systems laid down to handle any cases of injustice with no prejudice or discrimination of the employees. There should be a code of conduct that guards all the operations and stipulates corrigible measures for the organization. The next component of positive organizational culture is equal opportunity for personal development and learning (Rego and Cunha, 2008). An organization must have sessions where the employees and the leaders are taken through the process of understanding all that builds the organization ad what is required of them. There should be an organizational structure stipulating the flow of command as well as how duties are delegated (Rego and Cunha, 2008). The organization should encourage continuous learning and where possible coaching, mentorship or training. Through learning the organization should also create room for innovation and creativity so that the diverse ideas of the employees are incorporated. The most important component should be open communication channels. These channels offer room for the leaders and their followers to interact and thus share ideas. When there is a problem, there should be a hierarchy of how the problem will be handled. Benefits of Developing Positive Organizational Culture The benefits of positive organizational culture are far-reaching. Regardless of the level or the size of an organization, the development and corresponding maintenance of positive culture is a prerequisite for the long-term success of the organization and thus its sustainability. The first hand benefits in a nutshell include job satisfaction, optimized engagement, increased productivity and high performance standards, better talent retention, greater institution of change initiatives without resistance (Miller et al., 2008). With a positive organizational culture, an organization leverages on its people and the outcomes are always great (Ibitayo, Baxley and Bond, 2014). One eminent thing about positive culture in an organization is positive psychology. Positive psychology, despite being useful in the treatment of disorders, can as well be useful within an organizational context (Avey et al., 2010). In this case it is applied in instituting a strong foundation for building the strengths as well as competencies of the workforce of any organization (Avey et al., 2010). Positive psychology develops positive emotions on the employees of an organization (Miller et al., 2008). The employees are therefore bound to have high levels of pleasant emotions, high levels of satisfaction with life, and low levels of experiencing negative moods (Ibitayo, Baxley and Bond, 2014). Happy employees are able to achieve high levels of satisfaction with their jobs. When the workers are satisfied with their jobs, there is high levels of productivity and thus financial performance as well (Cameron et al., 2011). Within an organization with positive culture, the employees develop social, personal and emotional intelligence altogether. In this case, an individual is better placed in understanding the emotions of others at the workplace and using the information in aptly responding to different situations (Avey et al., 2010). This improves the interpersonal relationships and interactions within the organization (Cameron et al., 2011). Overall, the whole organization is likely to improve the experiences at the workplace and thus success in the achievement of a common goal (Miller et al., 2008). Emotional intelligence improves the personal experiences that altogether combine to improve the personality traits and thus the experiences at the workplace. It also results in higher levels of job satisfaction and performance. Miller et al. (2008) link positive culture with the satisfaction of school going children. Looked at the organizational level, positive culture contributes to higher levels of satisfaction among the customers who are the direct clients of the organization (Miller et al., 2008). Positive organizational culture also institutes a ground for the facilitation of teamwork among employees (Ibitayo, Baxley and Bond, 2014). Positive practices within an organization fosters mutual trust amongst the employees and the management (Miller et al., 2008). This leads to less resistance to change when there are new strategies to be employed so as to achieve a given objective (Ibitayo, Baxley and Bond, 2014). The employees are satisfied and thus loyal to the management in whichever case. When there is a problem within the organization, positive forms of communication, and the respect between the employees plays a critical role in solving conflicts and resulting reconciliation of the employees (Miller et al., 2008). On the same note, when there is positive culture, the employee are likely to communicate with the management or the employer about the awful conditions at the workplace that should be reviewed. The management is then able to adjust effectively to meet the objectives and the values stipulated in its vision and represented in its values as well (Hu and Kaplan, 2014). This creates a positive climate for the employees to perform as required and thus meet their targets. Overall, when the employees have the feeling of belonging they develop organizational citizenship and thus are loyal and stable to the organization (Hu and Kaplan, 2014). Generally, when the employees have positive organizational behaviour in place, the organization is able to reduce the employee turnover rates. A strong and well founded positive organizational culture also sets pace for work-life balance at the workplace. The employees are able to develop high sense of morale being that the resources allocated at the work place as well as the policies do not breach their private work (Cameron et al., 2011). The employees in this case remain committed to the mission of the company and are free from work related stress that often attracts low productivity of the employees (Cameron et al., 2011). With a committed workforce, an organization is assured of winning the war of talents and becoming an employer of choice. Due to the positive practices and the levels of outcomes, the clients are also able to trust the company with their goods, products and service delivery thus creating a good reputation for the organization. Research indicate that a good reputation can act as a source of competitive advantage for an organization giving it an edge over the others (Siu, Cheung and Lui, 2014). The organization is also likely to retain a large number of employees (Siu, Cheung and Lui, 2014). Ethics is a foundational ground of any successful organization (Cameron et al., 2011). When a company succeeds in instituting positive organizational culture, the basis of its ethical conduct is also born (Siu, Cheung and Lui, 2014). The employees are able to uphold high ethical standards so as to uphold the good reputation of the organization (Siu, Cheung and Lui, 2014). Positive organizational culture relieves employee stress, thus reducing theft and damage, sabotage, absenteeism, wasted time and low motivation amongst the employees. Challenges Faced when Developing Positive Organizational Culture There are myriad of challenges when developing a positive organizational culture in an organization. It is noteworthy that the challenges are similar to those faced when developing organizational or corporate culture (Williams, 2002). The first challenge is the maintenance of the culture itself within the organization. There are times when the employees feel left out, especially during crisis and how they are managed could reshape their view of the positive culture. When there is a gap between the satisfaction levels of the employees and the practices within an organization, instituting a positive culture becomes an uphill task (Williams, 2002). The second challenge is the training of the employees so that they are aware of the need to embrace the new positive culture. It is intuitive that any form of change within the organization will attract some resistance (Corral Verdugo, 2012). The level of communication will also determine the extent to which the positive culture will take effect (Corral Verdugo, 2012). The founders usually prefer a given culture over the other and could discard a positive culture for the old culture. The management has the challenge of ensuring that all the necessary channels of communication are in place so that the culture gets its roots in the organization (Williams, 2002). Williams (2002) opines that the other challenge in the development of positive organizational culture is the individual perceptions of the employees which should be reshaped. The management has to turn around the beliefs of an employee through leveraging on psychological capita to get the best, which at times is difficult. The process of developing and implementing factors that institute positive organizational culture is gradual and as time goes by, the management might decide to adopt another strategy therefore deviating the path of a particular culture (Williams, 2002). The other possible challenge is the leadership or management style used by the leaders, some cultural aspects may be unfit with a given form of leadership leading to poor development of a set of positive culture. Suggestions for Future Research in the Area of Positive Organizational Culture In the field of organizational studies there has been little research on positive organizational culture. A number of literature just mention it when discussing organizational development. There should be an elaboration on what positive organizational culture really means and the components that make a positive organizational culture. Most importantly, the founded link between positive organizational culture and positive emotions as well as psychological environment should be well elaborated (Ashkanasy, Wilderom and Peterson, 2011). This calls of systematic and explorative studies in the field to make even the challenges faced when developing organizational culture lucid. Conclusion Positive organizational culture is a concept that though not quite covered in organizational study literature, is important. Most organizations are in the dynamic market and are fighting to be the best. Therefore, embracing positive organizational culture sets pace for such organizations in winning the war of talents and becoming successful. There must be an integration of a conglomerate of the identified components of positive culture in an organization, so as to achieve the best for the organization as well as its people. The walk is not smooth in developing positive organizational culture. However, with the right components and strategic measures, the challenges discussed herein are bound to be history. References Ashkanasy, N., Wilderom, C. and Peterson, M. (2011). The handbook of organizational culture and climate. Thousand Oaks: SAGE Publications. Avey, J., Luthans, F., Smith, R. and Palmer, N. (2010). Impact of positive psychological capital on employee well-being over time. Journal of Occupational Health Psychology, 15(1), 17-28. Cameron, K., Mora, C., Leutscher, T. and Calarco, M. (2011). Effects of Positive Practices on Organizational Effectiveness. The Journal of Applied Behavioral Science, 47(3), 266- 308. Coleman, J. (2013). Six Components of a Great Corporate Culture. [online] Harvard Business Review. Available at: https://hbr.org/2013/05/six-components-of-culture/ [Accessed 18 Aug. 2015]. Corral Verdugo, V. (2012). The positive psychology of sustainability. Environ Dev Sustain, 14(5), pp.651-666. Hu, X. and Kaplan, S. (2014). Is “feeling good” good enough? Differentiating discrete positive emotions at work. Journal of Organizational Behavior, 36(1), 39-58. Ibitayo, K., Baxley, S. and Bond, M. (2014). A positive culture brings success. Nursing Management, 21(3), 13-13. Luthans, F. (2008). Organizational behavior. Boston, Mass.: McGraw-Hill/Irwin. Mazur, K. (2010). Positive Organizational Culture as a new trend in cross-cultural management. Basic concepts. Journal of Positive Management, 1(1). Miller, D., Nickerson, A., Chafouleas, S. and Osborne, K. (2008). Authentically happy school psychologists: Applications of positive psychology for enhancing professional satisfaction and fulfillment. Psychology in the Schools, 45(8), 679-692. Parker, G. and Hyett, M. (2011). Measurement of Well-Being in the Workplace. The Journal of Nervous and Mental Disease, 199(6), 394-397. Rego, A. and Cunha, M. (2008). Authentizotic climates and employee happiness: Pathways to individual performance? Journal of Business Research, 61(7), 739-752. Siu, O., Cheung, F. and Lui, S. (2014). Linking Positive Emotions to Work Well-Being and Turnover Intention among Hong Kong Police Officers: The Role of Psychological Capital. Journal of Happiness Studies, 16(2), 367-380. Walentynowicz, P. (2014). Lean Organizational Culture as an Example of a Positive Organizational Culture. Journal of Positive Management, 5(1), 67-75. Williams, H. (2002). Developing a positive organizational culture using a management development strategy. Aust. Health Review, 25(6), 190-211. Read More

In this way, it enables an organization to unlock their potential and reveal some positive course of human organizational wellbeing as well as reveal the capabilities from within and outside (Cameron et al., 2011). The latter best describes positive organizational culture. POS studies positive organizational outcomes, positive practices, and positive attributes of a flourishing organization (Mazur, 2010). Some of the positive practices that are part of positive organizational culture include caring, forgiveness, inspiration, compassionate support, and meaning within the organization.

Components of Positive Organizational Culture It takes a number of factors within an organization to build a positive organizational culture. It is worth noting that in some literature positive organizational culture has been referred to as positive culture, psychology or positive climate (Coleman, 2013). A strong vision or mission is a prerequisite for a positive organizational culture (Walentynowicz, 2014). The mission or vision is just a phrase that guides the values of the people within the organization and thus provides the organization with strategic direction and purpose (Coleman, 2013).

The vision provide a basis upon which the management and the employee make sound decisions. The vision should be well communicated to all the stakeholders so that they are recognized and understood. The vision acts as the foundational component of the culture of any organization. The second component is organizational values which are the arsenal of the organizational culture (Coleman, 2013). Unlike vision that articulates the purpose of the organization, values offer a guideline on the mind sets, behaviour and practices that are core to the achievement of the vision and mission of an organization (Coleman, 2013).

The values are communicated to the employees, right from the time of recruitment to orientation and even later in their life at work (Coleman, 2013). The values spell the terms and conditions of the organization when conducting business, how the company serves clients and how the employees are treated within the organization (Parker and Hyett, 2011). The values must be authentic to an organization and should not conflict with another’s as that would be a crime in itself guarded by the copyright laws.

The third component of a positive organizational culture is happiness in the workplace. Happiness in this case is subjective and one of the most important examples of the psychological well-being factors of the employees (Parker and Hyett, 2011). There are a number of factors that can institute happiness including the values of mutual trust, respect, appreciation and good reward systems as well within an organization. The third component is the spirit if camaraderie that ensures that there is gratification of relationships between the employees in a manner that there is a psychological wellbeing (Parker and Hyett, 2011).

Camaraderie assists in the creation of social links and thus security needs (Rego and Cunha, 2008). The employees must have channels that make them exist as a family and thus create organizational citizenship behaviours. Generally this is instilled with a friendly work environment within the organization where the management and the employees freely interact and exchange ideas. Generally, the organization must have channels where the wellbeing of other employees become the responsibility of other employees.

The fourth component is positive management-employee or leader-follower relationships. To establish this important component there must be mutual trust and open communication systems within the organizations of either party to communicate (Rego and Cunha, 2008). The leaders must be credible enough to develop positive emotions for the employees so as to optimize their self-worth and realization. The nest component is justice within the organization. Positive justice aids in shaping the wellbeing of the employees and thus builds their coherence to the culture and values of the organization (Rego and Cunha, 2008).

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