Managing Organizational Culture for Improved Performance - Essay Example

?Literature Review 0 Definitions 1 Definition of Culture Deal and Kennedy (2000) defines culture as ‘the way things get done around here.’ However, there are many other definitions which points to culture as established patterns of behaviour and belief (Willcoxson and Millet 2000, p. 92). Established patterns of behaviour are norms. These two definitions are those which a number of people can identify with. 1.2 Definition of Organisational Culture Willcoxson and Millet (2000) indicate that defining organisational culture is a challenge because even though there have been agreement about its components ‘as a broad construct’, there are significant disagreements on a number matters including: What constitutes organisational culture Whether a particular organisation culture can be fully described Whether the management of culture can be effective, and if so Which management strategies are likely to succeed However, W Willcoxson and Millett (2000, p. 93) indicates that organisational culture has been described as a set of norms, beliefs, principles and ways of behaving that gives organisations a distinctive character. This is the same definition that many writers have used and so there is a general understanding of what it means. Norms are established patterns of behaviour which most writers agree to. 1.3 Culture Management Culture management refers to the refreshment of the existing culture within an organisation or the change of a culture that has become obsolete (Grigoruta et al 2005). 2.0 Culture and organisational performance According to Deal and Kennedy (2000) every business has a culture.’ However, sometimes it is reduced to bits and pieces and is therefore difficult to read from the outside. Some employees are loyal to their bosses while some are loyal to the union and still there are others who only care about their fellow employees. Even though there are those who only work because they need money there are times when the culture of an organisation is strong and cohesive with everyone having knowledge of the goals and therefore working towards it. Deal and Kennedy (2000) further points out that culture has a very powerful influence whether it is weak or strong. It affects almost everything including who gets promoted, how employees dress and the spots they play. This impact suggests that ‘culture has a major impact on the success of the business.’ Deal and Kennedy (2000) provides examples of early leaders of American businesses including Harley Procter of Procter & Gamble and Thomas Watson of IBM who believed that strong culture played a role in the success of their organisations. These leaders believed that the organisation in which persons were employed helped to shape their lives and productivity. They saw their role as creating an environment which was effectively a culture within their organisations; one in which employees felt secure and thereby carry out the work necessary to make the organisation successful. They had no magical formula but through trial and error. The cultures that these leaders built and nourished have helped to sustain their organisations through very difficult times. The organisations that they led continue to be successful as they still have strong cultures and still continue to be leaders in their industry. What Deal and Kennedy (2000) suggests is that there is no formula – they just did it by trial and error which is much like trying something until it works. This cannot be a prescription for organisations that want to improve their performance and is far from the truth. It is clear that these leaders of whom Deal and Kennedy (2000) spoke used various means which resulted in highly motivated employees who were willing to go the extra mile to ensure that these organisations achieved there goals. Motivating people and letting them feel as if they are a very important part of the organisation is an important aspect of leadership. It is the things that are done to motivate employees that have led to successful companies. Deal and Kennedy (2000) indicate that ‘the practical payoffs of “Attaboy” plaques and other forms of play, ritual, and ceremony are obvious culture builders. This is how they created an environment that was conducive to the growth and success of their business. These are things that help to bond people together and help to reduce stress and prevent conflicts as they rightly suggests. These however do not take place by accident they are carefully planned strategies. The ceremonies or rituals are ways in which organisations seek to impact the beliefs and values of employees. As Deal and Kennedy (2000) rightly point out, ‘without these events culture will die.’ 3.0 Importance of Culture The neglect of organisation culture has been cited as the reason for the failure of companies despite their implementation of various strategies for improving performance including strategic planning, reengineering and TQM (Cameron and Quinn 2011). Successful organisations have developed something special that far outweighs corporate strategy, market presence, and technological advantages. They capitalised on the development of a unique organisational culture. This power Cameron and Quinn (2011) indicate rests on the ability of a strong and distinctive culture to do the following: reduce uncertainties among employees as a group, create a level of social order by making it clear what is expected; create continuity by perpetuating key values and norms across generations of members; create a collective identity and commitment that will bind members together; and elucidate a vision of the future in order to energise forward movement. Organisational culture is seen as the key ingredient in success. Success is seen as being more dependent on company values rather than on market forces; personal beliefs rather than competitive positioning; and vision rather than resource advantages. Cameron and Quinn (2011) indicate that it would be very difficult to find a company that is a leader in its industry that does not have a distinctive culture. Successful firms like Toyota and General Electric all have an identifiable organisational culture. 4.0 Culture and organisational effectiveness Fincham and Rhodes (2005) have indicated that in order to change to be successful it has to happen at the level of culture and this has been made clear in a number of instances in various studies. The change needs to be understood by those who are involved in the process - those who are leading the change and those who will be affected significantly by the change. The way in which the people involved think is very important and this can only be achieved by a change in culture since it is people’s beliefs and values that determine how change is viewed. 5.0 Managing Organisation Culture Willcoxson and Millett (2000) indicate that there are two basic approaches to culture and by extension - strategy. They are maintaining order and continuity – conforming; and changing and breaking existing patterns – transformation. The effectiveness of the approach that is chosen to manage organisational culture and strategy is very much dependent on internal and external contextual factors. Therefore, the context will be the determinant of whether a culture needs to be changed or kept the way it is. However, the manager’s idea will determine the strategies that are adopted. Willcoxson and Willett (2000) indicate that in dealing with the management of organisational culture it is important to first identify as much as possible. It is difficult to see how an established pattern of behaviour can change. Changes sometimes lead to conflicts which negatively affect organisational performance. It is therefore important that it is managed in a professional way. Thus requires leadership that will motivate employees by providing them with rewards and other forms of encouragement. 6.0 Approaches to Managing Culture According to (Grigoruta et al 2005) culture varies in how it manifests itself in different organisations. There is no universal recipe for managing culture in any organisation. However, there are certain approaches that are used to manage culture. This approach is normally characterised by certain conditions including social norms, values and attitudes; religions; holidays, practices and belief structures; and education. Grigoruta et al (2005) suggests that one or more of the following approaches can be used by in order to support the management of organisation culture: i. Ensuring that the mission is in agreement with the ‘values that explicitly state the direction of the organisation; ii. Hold workshops that encourage the involvement of employees in discussing new values and behaviours and how they can be practised in the organisation; iii. The implementation of educational programmes aimed at improving the knowledge and abilities of employees; iv. Instituting performance management programmes which encourage an objective performance appraisal system, and that the standards of behaviour developed by culture change programmes are put into practice and becomes a natural component of the management process; v. Instituting reward management where employees who exhibit a certain type of behaviour that is in accordance with the values outlined in the programme of organisational culture change. The points made by Grigoruta et al (2005) are all part of TQM which is the ultimate in the evolution of quality management. It involves all the approaches outlined in Grigoruta et al (2005) approaches to culture management. If this aspect of the organisation does not change then TQM has not been fully implemented. TQM is not just about conformity with customer requirements its about transformational leadership that will enable the involvement of people in the decision making process. Once they become involved they will be willing to work towards the achievements of organisational goals. 7.0 Industry as a determinant of organisation culture Gordon (1991) indicates that organisations are founded on assumptions that are based on industry about customers, competitors, and the society which forms a basis for an organisations culture. Certain values naturally develop in relation to what is considered as the ‘right things to do’. Management then develop certain strategies and processes that are consistent with these values which are fundamental to the conduct of the organisations business. Survival of an organisation is therefore dependent on the development of culture, strategies, structures and processes that are appropriate to the imperatives of the industry. Gordon (1991) makes no mention about employees who are the root of culture in the organisation. Additionally, organisations are unique and have their own values and beliefs entrenched in them. This is not to say that there is not something unique in the way that things are done in different industries. It still remains that the culture of each organisation is unique. It is ‘the way things get done around here.’ Reference Cameron, K. and Quinn, R. E. (2011). Diagnosing and Changing Organisational Culture Based on the Competing values Framework. 3rd ed. USA: Jossey-Bass Deal, T.E and Kennedy, A.A. (2000). Corporate Cultures: The Rites and Rituals of Corporate Life. USA: Perseus Books Publishing Fincham, R and Rhodes, P. (2005). Principles of Organizational Behaviour. 4th ed. Oxford: Oxford University Press Gordon, G.G (1991). Industry Determinants of Organisational Culture. The Academy of Management Review: 16(2), p. 396 – 415 Grigoruta, M.V., Corodeanu, D.T. and Cuza, A.I. (2005) “Managing Organizational Culture in a Global Organisation: The Case of Romania in the Process of Integration in the European Union’, in Proceedings of the 6th International Conference of the Faculty of Management, Koper Congress Centre Bernardin Slovenia, November 2005 Willcoxson, L and Millet, B. (2000). The Management of Organisational Culture. Australian Journal of Management & Organisational Behaviour: 3(2), p. 91 - 99 Read More