Impact Organizational Culture Have on Achievement of Performance Results - Essay Example

? Management May 4, Organizational Culture What impact does organizational culture have on achievement of performance results? Organizational culture has an impact on the achievement of performance because it is a shared vision and assumptions that the group possesses in solving internal and external problems pursuant to the goals of business. Thus, as a group continues to work together, they form a collective learning that creates shared assumptions and beliefs that becomes a culture. Therefore when one is in a group, leaders and members assess their own behavior and consider their own impact to the organization, and would then be motivated to perform better. Impact of organizational culture would show in both positive or negative response like there will be higher satisfaction among employees when there is recognition at work. There will be lesser employee turnover when retention programs are offered to employees or in reverse, loss of interest when there is no motivation at all. Overall, organizational culture motivates people to work and be aligned with the organization. 2. Can the culture of an organization be changed to increase performance? The culture of an organization can be changed to respond to internal and external pressures perceived by members of the organization like decline of sales. For example, the company has to set up a new department to cope up in new ways due to problems of consumer complaint. Thus a strategy of change is affected by the manager to respond to this problem. Change is also needed for cost cutting efficiencies, like top management may feel a department is too big to manage, and so it has to be split for efficiency purposes. External influences also encourage the organization to institute change. For instance, competition, government regulations, financial limitations, and suppliers and technological advances impact for change. Social and cultural factors such as lifestyles, values and beliefs also lead to culture changes in the organizations. Internet has made it possible for all companies to share all kinds of information, sell goods outside their geographic location. Technology also offered solutions to production problems such that companies are now able to outsource production and information abroad. As such, organizations need to adapt to changes in order to remain in the business. Change calls for a reorganization like change in roles and responsibilities as well as in the structure itself. Profit-oriented companies change because they are losing money or facing major changes in goal such as financial requirements or technology requirements. Non-profit organizations change when their goals or missions change, or when budgetary requirements need it; for instance, when government budgets are cut to support operations of welfare organizations. Culture change is also needed when there is merger or acquisition of companies because of structural changes and role assignments to obtain efficient operations. 3. As a senior leader in an organization what can you do to change the culture and in turn increase performance of the business? As a senior leader of the organization, it is my duty to appraise top management of the prevailing internal and external environments that affect operations and efficiency of the organization. It will be a top priority to convince management that change is urgently needed when adverse results are already showing in the performance of people and of the company results. So therefore, change will start from the top, that will then be transformed down to the level of employees. When discussing internal changes, generally, there is a perceived resistance to change, most specifically, when it affects personnel. Tensions and resistance are created that complicates the leader’s efforts and decisions. To minimize resistance to change, leaders have to exercise careful planning, proper timing of communications, adequate feedback from those affected, and to get the confidence of organization members for the necessity of changes. As a senior leader, I believe that process of changes should be gradually instituted because I think this should be less disturbing rather than a radical and a surprise decree from the top management. Changing culture has a process, and as a leader, there are steps to be followed. First is to make an assessment to know the existing core values and beliefs. Leader should acknowledge and respect the differences between the core values of the organizations and the sub-cultures within the organization. He should look for the source of the differences and should commit the one that is consistent with new core values. This process will then establish a new norm of culture within the organization and should be repeated over time. In some instances, there is a need reinforce desirable behavior. 4. As an HR leader in an organization what can you do to change the culture and in turn increase performance of the business? Along with the culture change of the organization, the roles of the HR leader will also change. So the role of the HR leader is closely related to the goals of the organization, and it will align with the change needed. Therefore, an HR leader becomes a mentor in the change, but still manages other responsibilities for employee benefits, attending to payrolls and employee paperwork. Under the change process, an HR leader becomes a strategic partner of the organization as he/she renders the recruitment, hiring, training, organizational development, communication, performance management, policy recommendations, salary and benefits, team building, employee relations and leadership. This is a big responsibility as the company depends on the HR for the development and accomplishment of the organization’s business plan and objectives. Heathen (2011) says the HR can help change the culture of the organization because he/she is an advocate or sponsor of the employees. His/her knowledge about employee can facilitate creation of a working environment where everyone is motivated, contributing and happy. HR leader helps in establishing organizational culture by building a climate in which people have the competency, concern, and commitment to deliver the ultimate goal of the organization. As Heathen (2011) suggested, the HR leader can introduce employee development opportunities, assistance program, gain sharing and profit sharing strategies, organizational development interventions, due process approaches to employee complaints and problem solving, and constant communication. The problems that I feel HR leader would encounter in the culture change are the vested interests, rigidities, habits and preferences of employees that bind them with the existing organizational change. Change therefore introduces the members of the organization to their own insecurities and therefore may resist to changes in all aspect and would create an impact on the way they work and behave. Therefore, under these circumstances, the HR leader should give more importance to the human factors and the underlying problems of change to minimize resistance. 5. What impact on performance can a coaching culture have on an organization? A coaching culture can have an impact on an organization because according to BCI, an institute that espouses coaching culture, companies that have successful coaching culture, have reported significant reduced staff turnover, increased productivity, greater happiness and satisfaction at work. As figured out, a coaching culture in an organization is present when you see that members are fearless but respectful in coaching conversations, they are not restricted by their positions and relationships. It can improve performance because they are concerned on getting better work relationship and collective work efforts. The impact of coaching culture on performance is the productive changes, passion and inspired actions of the members of the organization. Everyone understands their responsibility in the organization and works collectively in the performance of set objectives. In coaching culture, understanding among different sections in the organization prevails because of up and down communications and is an important component of feedback. A passionate and energized team is created by the coaching culture because of the relationships created. On this, everybody feels accountable for their team’s success and they are focused on creating connection and high trust. Trust brings together collectively to work for better performance. 6. What will you do to drive a significant culture shift and in turn increase performance? • What evidence do you have that such a shift in culture will have any impact on performance? • How will you gain alignment across the organization to make such a change? • How will you measure the performance results of your change?   As there are already pressures from the Board of Directors and Senior Staff Members to increase performance, the traditional view of management is now ready for a significant change of organizational culture. As a senior line leader, it is my duty to create a sense of urgency for change and drive my point as to the potential loss of markets, loss of profits, competitive advantage, defective products and others relating to work performance. Evidence to be used is loss of confidence of stakeholders, decline of growth, frequent employee turnover and other negative performances. For example, the board of directors wants change because of decline of performance, comparison of sales performances, and feedback from customers could well serve as evidences to convince management that a shift of culture is needed. The leader needs to employ strategies in order to align the needed change across the organization but he needs to gain the trust and confidence of the employees. First the senior line leader should create a vision and strategy wherein everyone is involved. Second is to inform all those concerned as often as possible about the change so they will understand and commit their efforts to the objective. Then, leader should empower the people by giving them support, resources and tools to accomplish the change. For instance, training and manpower development are needed by people in the new settings. Further, recognition, rewards, celebrations may be provided to recognize overall efforts. To measure results, leader should develop proto-type measures to gauge feedback such as satisfaction scale in customers, productivity performance ratio in employees and growth performance indicators in finance. This way, success can be measured by consolidating accomplished gains in terms of productivity, sales, and customers’ satisfactions. Works Cited BCI – Behavioral Coaching Institute. Viewed 02 May 2011 Heathfield, Susan. What Does a Human Resources Manager, Generalist, or Director Do? Viewed 02 May 2011 Read More