Organizational Culture of the Company through Edgar Schein's Theory - Research Paper Example

Analysis of Organizational Culture of Oral Smooth Plc using Edgar Schiens Theory Contents Introduction 1 Objective of the study 1 Organizational culture of the company using Edgar Scheins theory 2 The plan 3 Research Methodology 9 Sample and Sampling Method 10 Data Collection Method 11 Conclusion 11 References 13 Appendix I 15 Appendix II 18 Introduction The term organizational culture has its own significance in the techno-savvy world of today. It is the process of establishing the empire of business by a series of strategies viz. executing the business concept, promotion, services, goods, pricing, equal and effective idea generation to generate healthy relationship to meet the organizational and personal objectives (Harris, 1994). We can analyse the situation by strategically approach to the business of Oral Smooth Plc. Oral Smooth Plc is based in London; an innovative company produces tooth pastes for smokers. In the past, Product Diversification and Customer Care do have due attention from the management experts. Today it has become a powerful tool for the consultants to enhance the managerial efficiency. Edgar Scheins theory also caters the same effect to better the performance of the organisations. Objective of the study Oral Smooth Plc is having its presence in every part of the UK. The product diversification always enables the company the market leader of the sector without any challenges. Here Oral Smooth Plc wants to put their business mark in UK as a part of diversification in the business. We would like to know the differences, similarities and the difference within the organization, how the organization manages his employees and the process to ensure successful service delivery and customer satisfaction. Organizational culture of the company using Edgar Scheins theory The particular theory focuses on an organisational culture ethics the system. Scheins says that culture is the basic factor for change in an establishment (Campbell, 2003). The thorough understanding about the organisational dynamics starts with this fact. In order to have a strong and dominant leadership Scheins suggests 3 levels of culture (Black, 2003). They are, 1. Artifacts (this can be very easily seen just like our outfits and not very easy to decipher) 2. Espoused values (Philosophies and targets) 3. Assumptions (unconscious beliefs) Scheins also suggest, group dynamics for a better leadership in organisational culture. He says that small groups function within a particular group culture in the similar way firms function within the culture of the firm. His model categorise informal groups into 3. 1. Vertical cliques containing different ranks in the same section/dept 2. Horizontal cliques containing similar ranks 3. Mixed cliques containing members of various depts. Here we can implement the Schein management theory for the better performance of the firm. To Biech, Elaine 1998, Culture envelops us in fully. They are, pervasive and complex. Hence as per Scheins we cannot understand Organizational development and planned change, if not we consider it as the main origin of resistance to change. Furthermore, Biswas & Twitchell (1999) remarks that if management consultants are not in a position to understand about culture, naturally they will handle the situation and such embedded culture will manage them .In fact cultural awareness is everything for a society to know but as far as leaders are concerned, they are the top-notch community to learn this properly as they are to lead the society. To Block (1999), with his Three categorisation of Culture, Edgard Schein has contributed much to make the management practitioners aware what culture is. The plan Oral Smooth intends to ensure its monopoly across the country by their corporate strategic management. So as a first and prime step they want to organise a good campaign to make the event more noticeable there in the country. They wish to make it reorganised their marketing presence within a short time period. A clear but brief background of the two markets, with a justification of their selection Oral Smooth, however, recently decided to focus its competitive positioning on enhancing the consumer's feel satisfaction experience by its latest series (Ashford, 1999). Their target market is the upscale families and business men, who have the following shopping priorities: 1. Luxurious. The facility is in fact a mark of self esteem and proud, with these items well displayed and good access. 2. Availability. The selection of items is broad, and the customer has several choices for any one item. 3. Timely Service. The show room is open at convenient times, and customers do not have to wait in long checkout lines. Performance enhancement through the Scheins management theory in Oral Smooth Plc The Regional Marketing Manager says that they have good contacts with business world. Self generated export business and hence firsthand knowledge of the buyers and the markets. A very close and harmonious social relationship among partners is seen. It is an indicative of a similar social status of all the partners. However from the both questionnaire we can analyse the answers and conclude the general idea as follows: Performance management system is a strategic Human Resource tool for improving the performance of the employees of an organization. In order to evaluate the employee performance, a HR manager should design the system accordingly. A well defined performance management system should give their employees with these four fundamental privileges. 1. The employee should benefited by the job expectations 2. Adequate performance appraisal and motivation for the employees 3. The management should give proper guidance and techniques for improvisation of his job 4. Continuous and regular feedback about his own performance In fact all these vital aspects formulate the real strategy for a performance management system which setting up positively to develop a culture to improvise the performance all the time. The employer has to appreciate them and conduct employee performance appraisal and reviews every year. In order to ensure excellent performance of the employees and to make the m more productive, the following steps can be used so effectively: 1. Prepare well in advance: 2. You should be consistent regularly 3. Don’t let it one-way traffic 4. Balance life with work 5. Do recognize and value employee’s reasonable opinion 6. Set by positive example: 7. In general terms, it’s also important not to criticize the employee. 8. Try to understand that the employee is also a human being 9. Do show your concern for the employee’s work/life balance and to it is also a good time to create a plan for the employee’s career advancement. 10. Lend your ear. If you are an efficient employer, your key strategy would be to hear the employees regularly. As an efficient employer, one should review the matter regularly. Proactive reviews should be done methodically. Individual and team competencies Individual and team competencies are the vital aspect of an organization. Without individual competencies, team competency cannot be achieved effectively Reviewing Performance As an efficient employer, one should review the matter regularly. Learning and Development As the performance management system is concerned, one should be a constant learner by all means. Rewarding Performance Rewarding performance must be motivated by giving proper appreciation, awards etc. Employment Activity Motivation process --- behavioral change Thus Performance management system is a strategic Human Resource tool for improving the performance of the employees of an organization. By putting time, money, and all energy, the employer is trying to build his company and to take it for a higher level. If the Performance management system is not efficient and productive, it is very difficult to take it properly up to the expectation (Cohen, 2001). You have to have proper performance management system to make the all round development for your organization. In addition the following aspects also are influencing the performance significantly. Market: While considering the market we have not only to assess the existing segment and the region but also the potential growth, newer regions and the location of competitors (Bellman, 1990). If our products are fragile and susceptible to spoilage proximity to market gets added weightage. Similarly if the transportation costs add substantially to bear product costs, then also a location close to the market becomes all the more essential. If the market is widely dispersed, it is possible to statistically find out the point which will provide the lowest cost of distribution. In case of goods for export, processing facilities gains importance (Biech, 1998). Raw Materials and Supplies being near to raw materials allowed us to get better supplier service and to save on incoming freight. Other supplies include tools, equipment, ancillaries, vendor supplies etc. Here we look for promptness and regularity of deliveries. If the raw materials are bulky low in cost or perishable and to be consumed as such locate the plant near to raw materials source (Biswas & Twitchell, 1999). Power Water and Other Infrastructural Facilities: Depending upon the industry these could assume disproportionate priorities. We could improve Power, situation .With reference to its reliability, adequacy, rates of own requirements, subsidy for standby arrangements etc.could be managed (Block, 1999). If power contributes substantially to where inputs cost and it is difficult to break even partly using our own standby source, we may essentially have to locate our enterprise in lower surplus areas. Similarly adequate water supply at low cost may become a dominant decisional factor in case of other industries (Cavusgil et al., 2008). Transportation: Movements of materials involved huge costs. Packaging in case of delicate products adds considerably to the transportation charges. The cost of moving material per kilometer tapers off as the length increases. A break even analysis can be made to decide about the selection of the most economical media. Linear programming is commonly adopted for tackling transportation problems (Block & Markowitz, 2001). Even a mix of two or, three media may prove more cost effective. Labor and Wages: Availability of sufficient labor skilled in the required trades and category is yet another factor for enterprise location. We can study labor relations though turnover rates, asterism and liveliness of trade unionism. Such information should be available from existing industries of the area. Whether the labor is rural based or urban; is also a point to consider (Bligh, 2006) Wage levels prevalent in the area also have an important bearing on location decision. Higher regional norms are supposed to be compensated by increased output levels of traditionally industrial labor. While we may get cheaper labor in industrial backward areas, cost of their training and fall in efficiency may not allow us to take this course. Laws and Taxation: Laws prohibit putting up polluting industries in prone areas. In order to control industrial growth laws are enforced to decongest some areas while simultaneously encourage certain other areas (Cameron & Quinn, 2005). Taxation is a centre as well as State Subject. In some highly competitive consumer products, its quantum may turn out to be the negative factor while its relief may become the final deciding factor. Cummings, Thomas G. & Worley, Christopher G. (2005) Incentive: For balanced economic growth of the firm, very lucrative backward area concessions such as subsidies, tax holidays for number of years, assured and cheaper power supply price concessions for state purchases etc. have been made available. Land also is available at a very much cheaper rate. A large number of entrepreneur have benefited from these incentives. Other factors being comparative this factor becomes the decision maker. Climate: affects human efficiency and behavior a great deal. Wild climate is conducive to higher productivity. Ecology and Environmental Factors: Manufacturing plants apart from producing solid waste can also pollute water and air. Stringent waste disposal laws, in case of certain industries, add to the manufacturing cost to exorbitant limits (Cockman et al., 1996). We as the society members at large have no alternative but to pay this price for maintenance of our ecological balance in the long run. Political Conditions: Political stability is essential for industrial growth. Community attitudes such as the "Sons of the Soil Theory" may not be viable in every case. We have also to look into the availability of community services such as housing, schools & colleges, recreational facilities and municipal services (Connor & Davidson, 1990). There are many qualitative and quantitative techniques adopted to interpolate the above factors to arrive at a logical decision. Research Methodology The present study is conclusive research, intends 3 data collection relating to the marketing strategies from the Marketing associate and the Regional Marketing Manager and the customer attitudes towards them, a representative sample of the population will be taken for the study from the London market using simple random sampling. Sample and Sampling Method Self administering type of questionnaires used for the collection of data. Data analysis was done using statistical methods like correlation in order to find out organisational culture and the enhancement through Scheins management theory.Percentage analysis was done on each item of the questionnaire, to find out the most relevant marketing strategies for the customers of Oral smooth Plc Simple Random sampling used for the present study. The sample of the study was from five tooth pastes of UK market that are selected using simple random sampling (Block & Markowitz, 2001). The customers were taken for the studies are from different market areas of UK. First the five products were pinpointed. As it is very fit to tap the secrecy of their marketing strategies, the investigator can study only a limited number of market areas. The Marketing associate and the Regional marketing manager of the company were interviewed and they were also given a questionnaire to collect the marketing practices of the company. This helped in collecting the secondary data also. Alone with this a sample of 9 customers from each market of UK, taken using random sampling by using the random table, were also given a questionnaire containing items pertaining to the general climate and their attitude towards the company's marketing practices. The sample size from each market including the marketing manager will be 10, thus the total size being 50. Data Collection Method Questionnaire method is used for data collection. The instruments used for data collection are two questionnaires. The first questionnaire is intended to collect information from the marketing associate about the marketing practices of the company. The second questionnaire is for the RMM to understand their perception of the company's marketing practices towards the customers to attract them. Both the questionnaires were prepared after a literature survey and with due consultation with the guide and experts in the field of oral care products. Primary data was thus collected using these questionnaires. Secondary data was collected from the marketing managers of other products and the web sites which will give the company's marketing strategies and organizational culture a new momentum. Conclusion We can understand the systematic approach of the company will make a mark in the market from the very beginning itself. Here we can implement the Schein management theory for the better performance of the firm. Hence as per Scheins we cannot understand Organizational development and planned change, if not we consider it as the main origin of resistance to change. Furthermore, the experts say that if management consultants are not in a position to understand about culture, naturally they will handle the situation and such embedded culture will manage them .In fact cultural awareness is everything for a society to know but as far as leaders are concerned, they are the top-notch community to learn this properly as they are to lead the society Here Scheins management theory is able to do the same with utmost success. We know Product Diversification and Customer Care are strategic tools employed by today’s business to efficiently integrate manufacturers, warehouses, suppliers, , and customers. As a result of that they can satisfy service level requirements by producing apt quantities of product, distributing at the right time to the right destinations, at the right products in quantities, So that it can cut down costs while satisfying service-level needs .The company Oral Smooth can execute the strategies well, and they will become a top notch firm within a short span of time there in the country. References Ashford, M. (1999). The Shadowy World of Management Consultancy and How to Make it Work for You. UK: Simon & Schuster International. Barcus, S.W. (1995). Handbook of management consulting services. NY: McGraw-Hill, Bellman, G.F. (2002). The consultant's calling: bringing who you are to what you do. NY: Jossey-Bass Biech, E. (2007). The business of consulting: the basics and beyond. NY: John Wiley and Sons. Biswas, S. & Twitchell, D. (2002). Management consulting: a complete guide to the industry. NY: John Wiley Block, P. (2000). Flawless consulting: a guide to getting your expertise used. NY: Jossey-Bass Black, R.J, (2003). Organisational Culture: Creating the Influence Needed for Strategic Success. US: Universal-Publishers, Bligh, M.C. (2006). “Surviving post-merger culture clash: Can cultural leadership lessen the casualties”, Leadership, 2 (4): 395–426 Block, P. & Markowitz, A. (2001). The flawless consulting fieldbook & companion: a guide to understanding your expertise. NY: Jossey-Bass Carucci, R.A. & Tetenbaum, T.J. (2000). The value-creating consultant: how to build and sustain lasting client relationships. NY: AMACOM. Cameron, K.S. & Quinn, R.E. (2006). Diagnosing and changing organizational culture: based on the competing values framework. NY: John Wiley and Sons, Campbell, S. (2003). Quick Guide to the Four Temperaments and Peak Performance: How to Unlock Your Talents to Excel at Work. CA: Telos Publications Cavusgil, S.T., Knight, G. & Riesenberger, J.R. (2008). International business: strategy, management, and the new realities. NJ: Pearson Prentice Hall. Cohen, W. A. (2001). How to make it big as a consultant. NY: AMACOM Cockman, P. Evans, B. Reynolds, P. (1996). Client-Centered Consulting: Gettingyour Expertise Used When You’re Not in Charge. NY: McGraw-Hill Connor, D. & Davidson, J.P. (1997). Marketing your consulting and professional services. NY: John Wiley and Sons Cosentino, M. (2010). Case in point: complete case interview preparation. MA: Burgee Press. Cummings, T.G. & Worley, C.G. (2008). Organization development & change. OH: Cengage Learning Harris, S.G. (1994) "Organizational Culture and Individual Sensemaking: A Schema-Based Perspective," Organization Science 5.. 309-21 Appendix I Questionnaire for the Marketing Associate 1. Are you satisfied with your sales performance? 2. How does the products’ performance reflect in the market? 3. Do the raw materials and proper supplies readily available as per the marketing needs? 4. Do the infra structural facilities cater the needs of the organization? Do you feel any challenges there? 5. Can you always meet the sales targets? 6. Are your products competitive? 7. Do you get support from your superiors? 8. Are you confident at the end of your sales cycles? 9. Can you meet the needs of the customers? 10. Does your organization provide adequate promotional material? 11. Do you feel comfortable to meet sales calls? 12. Are you confident in your products and services? 13. Is your front line and up line are capable to work together as a single unit? If not where do you find the problem? Questionnaire for the regional Marketing Manager 1. Does your organization provide adequate promotional material? 2. Does the transportation of goods adequately serve the demands of the products? 3. Does the organization provide good wages per the minimum wages act? 4. Is this the company is able to provide comparable incentives to the employees? 5. How does the laws and taxation of the company directly affect the business? 6. Do you have a belief that your products are competitive? 7. Do the ecological and environmental factors affect the business adversely? 8. What effect the political conditions cater to the normal business of the company? 9. Do you get support from your superiors? 10. Are you satisfied with your sales performance of your sales team? If not why so? 11. Is your front line and up line are capable to work together as a single unit? If not where do you find the problem? 12. Can your team always meet the sales targets? Do you help them in achieving it? 13. Are you confident at the end of your sales meetings? What do you feel for that? 14. Can your products meet the needs of the customers? 15. Are you confident in your products and services? If not where do you find fault with? Appendix II EXISTING BUSINESS MODEL AND A NEW PROPOSED IN ORAL SMOOTH Plc Needed Existing in other area Oral Smooths’ Locations of supplies Centralized at BSB and well structured Partially distributed—some part types are carried on board Oral Smooths’ Supply network Top-down hierarchy Flexible Oral Smooths’ Method of distribution Well structured and speedy Flexible- Oral Smooths’ Decision cycle 24 hours minimum Oral Smooths’ Decision criteria First-come first-served and direct to the customer. Mathematical optimization used to maximize vehicle availability Product Diversification Well defined minimal Customer Care 100% customer satisfaction needed Very Good Market Analysis Constant and round the year Very Good Product Liquidation in the market Speedy and timely Very Good Read More