The Way That Corporate Culture Can Impact Positively on the Performance of an Organisation - Essay Example

Critically discuss the proposal that the way that corporate culture is managed can impact positively on the performance of an organisation. What are the arguments for and against this proposal? What is the evidence? Introduction Any organized human activity, which is done in-group, will be most times constituted into structure called organization. So, Organization is a ‘structure’ with a ‘collage’ of workers doing their allocated work under the supervision of a leader, for the benefit of the organization as well as them. This team of workers like the five different fingers in one’s hand will be different from one another having different characters, attitudes, education, background etc, etc…and the unison of these different humans under a single organization to reach a target is, and will always be a difficult proposition. As these different humans could only create a different working culture, the success rate will be minimal. And, if a common working culture, if correctly said, the perfect, feasible and winnable working culture is ‘operationalised’, through out the organization, the organization will be a success story. And, the script for this success story can only be scripted, by an effective leader. Role of Leader in Culture Creation One of the important first tasks of a leader in an organization (both in a new organization and in an existing organization) is the creation of a Culture. That is, the task of the leader is to create a working culture, embed the working culture in the working group and environment, sustain it and also rectify it, when faults occur. According to Edgar Schein (2004, p.17), “The culture of a group can now be defined as a pattern of shared basic assumptions that was learned by a group as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems”. So, apart from policy formulation and decision-making, it becomes all more important to look at the other side of the leader, in culture creation. The leader, who as a founder of an organization need to create a culture, then as a managing director or CEO of an organization need to manage and implement the culture, and then as a wise creator of a culture tune it, according to the needs of the situation. A vital element one needs to understand is that, culture “coevolves” with the organization as success brings growth as well as ‘aging’. Normally, Culture is created by shared experience of the group working, but it is the leader who initiates this process by imposing his or her beliefs, values, and assumptions at the outset. That is, instead of restating the existing organizational culture or modifying the existing culture or copying another organizational culture, it would be better and optimum if the leader creates, his/her own according to the needs of the organization and importantly employees. “Organizational cultural interventions involve more than simply restating values, beliefs, or norms and communicating them to individuals. Cultural changes involve a complex process of replacing an existing paradigm or way of thinking with another.” (DeSimone, Werner & Harris, 2002, p. 594). So, this paper critically discuss how the created organizational culture if effectively managed by the leader can impact positively on the performance of an organisation, focusing on the challenges as well. Imposition of Leader’s assumptions as form of healthy culture As leaders are the man in lead, they usually have a major impact on how the group initially defines and sets into an organization. Typically, the leaders have strong assumptions about the nature of the world, the role that organizations play in that world, the characteristics that make up human nature and relationships, how truth is arrived at, and how to manage time and space. They will, therefore, be quite comfortable in imposing those views and personal cultures, on their partners and employees as the fledgling organization copes with challenges and targets in the initial stages. This initial stage imposition of founder’s assumptions, as a form of good culture is one of the good leadership traits, because as the workers mind will be fresh in their new organizational setup and also as their mind will be willing to make a good beginning, the new culture could be easily adopted. But, in certain organizations, the challenge (or arguments against proposal) will come in the form of experienced workers who will be slugging out in the same job in the same environment, importantly in the same mindset for years and changing them to accept the new effective assumptions and work culture will be difficult. But, the leader is only responsible for making them fall in line. There are many leaders who have successfully imposed their ideas, assumptions and practices in their organization. Each of these practices later became a set working culture for the whole organization. So, this process of great working culture will always or should always ‘seeded’ by the leader. Embedding of the Culture When the organization attains some success or great success as it accomplishes its primary task, the leader’s assumptions or his/ hers work culture will become shared, and the embedding of those assumptions, can, then be thought of more as a process of socializing new members or acculturating them to the group. This embedding of culture cannot be done in a single day, it is a slow process with each value and rules taking their own time to be absorbed. But the process can be quickened when there is success. That is, the success that results due to a certain culture will strengthen that culture in the organization. So, the role of the leader is to hold on to the culture and make it work, so the workers have no other choice but to follow it . “He had to seduce the employees into a situation in which they had no choice but to rethink their identity” (Schein, 2004, p.306). Getting involved in all the process Another effective leadership trait that leader should show is, getting involved in all the processes that will take place in the organization. That apart from creating a organizational culture by restating the old culture or creating a new one, the leader should become an integral part of all the processes that takes place in the organization. His / hers ‘touch’ both mental wise and physical wise should be found in all aspects of an organization. He/she should not shy away from his responsibility because apart from having a negative connotation on the subordinates, it would also be a sure recipe for the failure of the company and would form an challenge to the actualization of the organizational culture . The role of the leader is to motivate his/ her subordinates through his/ her action, and not de-motivate them. So, if the leader involves himself/herself and ‘pushes’ himself/herself and importantly workers towards the target, the organization can push the competition away and that culture will get strengthened as more success ‘pours’ in Leader should lead by example An effective leadership trait, that, should be exhibited in the initial stages is, the leader should live and work as an example for others to follow. That is, after creating the culture, he/she should be the strongest follower of that culture and the leaders should not waver from it themselves. This trait, one of the important for the leader to imbue, will motivate the workers to give cent percent and make the organization score heavily. Also, setting personal examples only can allow the leader to point out the faults in his workers and correct them, thereby integrating them to the organizational culture in a more effective manner. Many business leaders have formulated many strategies for the implementation of these traits. And the important thing they will do is that, they will not centralize their powers but ask their subordinates; you could be superiors to somebody, to lead by example. That is, apart from setting personal examples they should also encourage leaders in other supervisory positions to perform effectively and set personal examples for their subordinates. This strategy only stipulates that a good leader always has to be around to set a good example and to teach subordinates the right way to do things. Setting targets to form a healthy culture The trait of merging different humans and focusing all of them on a single target is the one trait, the leader should importantly have. Because as any organization will be a hotbed of human activity, it could give rise to groups and subgroups, which will eventually share enough experience to create subcultures based on occupational, national, and uniquely historic experiences. When workers from these different states or provinces work in an organization, they will segregate and create different working culture, thus working as a grave challenge for the implementation of a common organizational culture. Once such differentiation has taken place, the leader’s task is to find ways of coordinating, aligning, or integrating the different subcultures. So, building an effective organization is ultimately a matter of meshing the different subcultures and the leader should do this job, by encouraging the evolution of common goals, common language, and common procedures for solving problems. Once the common goals or targets are formed and the workers work optimally in achieving those targets, a healthy work culture will automatically get actualized. This established work culture can be made more healthier if the workers are involved in the decision making process Providing a perfect and comfortable working environment Another approach, a leader could practice and which could be a considered an effective leadership skill and which will aid in the formation of an optimum organizational culture, is providing a perfect and comfortable working environment for his workers. For that, the best option the leader will have is going for an open-office layout. That is, cubicles should be preferred instead of offices with doors because, in an office set up where team work will have prominent place, face to face interaction would bring in more ideas, than one calling other into a closed room and having a closed discussion. Also minimization of the use of status symbols such as private offices, special dining rooms for executives, and personal parking spaces should also be curbed down. This is one of the important needs because it will give even the lower staff, the feeling that all are treated equal, irrespective of the salary, experience, etc. So, instead of special rooms, many conference rooms and attached kitchens should be setup to encourage people and interact comfortably. This environment will make the workers stay, at office, an enjoyable experience at the same time encouraging experience. Also, in the above discussed physical environment, the workers’ mental thought process will function effectively and thereby increase the motivational level of the workers. If the employees function at high motivational levels, it will translate into high productivity and that high productivity and profits will accentuate the formation of an effective organizational culture Decision-making process After the leader creates the culture, follows that culture himself/herself, sets targets and provides the perfect working environment, the workers will start do their work by following the set organizational culture. The workers can also be made to follow the organizational culture in an even stronger way, if they are made part of the decision making process by the leader. That is, during the process of decision-making, one of the approaches the leader could try is, putting for discussion his/ hers thoughts among the workers, and involving them productively. This part of organizational culture is visible in many organizations as their leaders try to build an image of cooperative leadership, without any superiority. This strategy will have unexpected at the same time favorable results, because one may never know from where, when and importantly from whom a great idea could come. So, involving and allowing co-workers to play a part in the decision-making as a team, but at the same time being the final authority is a good leadership trait, leader should cultivate, which will ultimately lead to a healthy organizational culture. “A shared and cohesive culture, rather than a clear, well defined structure, was the real invisible force that gave the team its drive” (Bolman and Deal 2003, 289) Rewards as a confidence booster Allocating Rewards and Status to the deserving and apt candidates or workers is an important trait the leader should have to integrate the organizational culture. In any organization, the workers will do their duties for personal motivations like money, looking after their family, etc, but their motivation level will get a great boost if they receive rewards and promotions. Rewards and promotions to deserving and ‘success achieved’ workers will motivate them to give better results and motivate others also, to reach that status. So, leaders can quickly get across their own priorities, values, assumption, etc and importantly organization’s goals and culture by consistently linking rewards and punishments to the activities of the candidate. Another key leadership trait which is inter linked to the above trait is filling key positions with people who have the beliefs, values, and assumptions that are viewed by senior leaders as the necessary ones for the future growth and survival of the organization. “The best executive is the one who has sense enough to pick good men to do what he wants done, and self-restraint to keep from meddling with them while they do it.” (Roosevelt) But, at the same time, the organizational culture will negatively impact the organizational performance, if the leader promotes or rewards individuals who do not deserve it. If any organization overriding tried and trusted individuals; give important posts, promotions and recognitions along with other rewards and incentives to individuals who might be family members, friends, and persons with negative influence on the leader etc, it will create negative effects and will not lead to the formation of optimal organizational culture. For example, if least experienced or least qualified persons are promoted and rewarded, it will lead to a lot of problems within the workforce, leading to loss of motivation and excellence. If this practice is followed, it will create de-motivation and de-excellence among workers and will show the organization in poor light. So, to keep the core group of good workers in a motivated state and importantly to actualize an optimal organizational culture, the leader should recognize, reward and promote right individuals. Discipline should be integrated as form of culture Effective and successful leaders will always recognize the fact that excess freedom would be a bane to the organization, so discipline will be implemented thoroughly. And, it is one of the important leadership traits because in some situations and in some sectors, discipline was essential to getting things, done. So, the common acknowledged concept is, the leader should function as a brilliant, demanding, but supportive and charismatic father figure. That is, the workers should be given the space and freedom to think and act in a way that could benefit the company, but at the same time should be controlled and disciplined by the leader, if that thought process and action is detrimental to the organization. Some of the mechanisms that leaders use to communicate their beliefs, values, and assumptions are conscious, deliberate actions. Conclusion Any organization and also its leader should not stagnate and saturate, and should continue to develop further. Schein (2004, p.418) pushes forward this idea by stating “that the leader of the future must be a perpetual learner”. Perpetual learner in the sense, the leader should learn new levels of perception and acquire lot of insights for running an organization. Unison of workers into teams, with an urge to usher an organization into top echelons will be successful, if the leader creates a perfect organizational culture. And, if a perfect organizational culture is created, the performance of the organization can be optimized manifold and the organization would have a ubiquitous presence all over the world. References Bolman, L. G and Deal, T. E. (2003). Reframing Organizations: Artistry, Choice, and Leadership. Wiley_Default DeSimone, R.L., Werner, J. H., &Harris, D. M. (2002). Human resource development. Orlando: Harcourt College Publishers. Drucker, P. Inspirational Business Quotes. Retrieved November 27, 2008 from http://www.woopidoo.com/business_quotes/leadership-quotes.htm Roosevelt, T. Be A Well Organized And Capable Leader. Retrieved November 27, 2008 from http://www.managershipatwork.co.za/Articles/be_a_well.htm Schein, E. H. (2004). Organizational Culture and Leadership, 3rd. ed. Jossey-Bass. Read More