The paper 'Organisational Culture' 'is a great example of a Management Case Study. The global market level of competition has increased over the years. In this regard, the traditional organizational competitive edges, such as a strong financial base as well as developed infrastructure are becoming increasingly unsustainable. This has been characterized by the rise of alternative management and production technologies and techniques globally. To this effect, a majority of the global organizations have reversed the adoption of intangible assets as their main market competitive edges (Kelle and Price, 2011, p. 93). The use of intangible assets as a competitive edge is based on their sustainability in the long run period, as it is hard for the competition to copy and imitate them. Among the main intangible assets used in the modern market are organizational cultures.
Organizational culture is the approach, belief, and manner through which functions, duties, and relationships are developed, executed and maintained by an organization (Pareek, 2006, p. 101). This essay develops a thesis that in order for organizations to acquire and retain competitiveness in the highly competitive global market, they should strive to develop and retain a positive culture.
As such, the essay describes the various merits and gains of adopting a positive organizational culture. Employee Satisfaction The development of organizational positive culture has a direct impact on the level and nature of employee satisfaction in the respective organizations. In this regard, the development of a positive culture implicates the employee interest alignment with the organizational goals (Naranjo, Jimenez, and Sanz, 2011, p. 58). Under this approach, the development of culture involves increasing employee participation and empowerment in organizational decision making through decentralized decision making as well as enhanced efficiency of upward communication systems.
Thus, this has a ripple effect of increasing the employee needs and interest incorporation in the organizational strategies and policies. Consequently, the process enhances the development of supportive employee culture. Employee support of the organisational policy, through their participation and inclusion in the subsequent strategies, ownership reduces employee resistance of the policies and the resulting support and success of the respective policies (Naranjo, Jimenez, and Sanz, 2011, p. 63). Hence, the adoption of a positive culture encourages employee satisfaction in an organization, and the resulting high organization staff retention rates and reduced employee turnover.
This development has the resulting impact on the employee value proposition (EVP) rise. An EVP is the key motivation aspect that increases organizational attractiveness as an employer over peers in the market (Heger, 2007, p. 132). Thus, an increased EVP allows an organisation to advance and improve on its ability to recruit and acquire qualified and befitting employees over its peers in the market. This allows for the acquisition and development of a quality HR workforce, that facilitates increased organizational operations efficiency and increased market competitiveness in the long-run period. Similarly, an increased organizational retention rate, due to a positive culture that increases employee satisfaction and retention allows for reduced recruitment and selection costs (Salvendy, 2012, p. 484).
The HR recruitment and selection function incur huge management costs in a bid to acquire and train a new workforce on the organizational practices. Moreover, the recruitment process incurs the indirect cost on low employee productivity as they learn and adjust to the overall organizational working environment and conditions. Thus, through a positive organizational culture, organizations reduce the frequency of recruiting their employees, which reduced both the direct and indirect recruitment costs, resulting in reduced overall organizational operational and production costs.
Therefore, the above analysis evidence that through the development and adoption of a positive organizational culture, employee satisfaction, loyalty, and retention are facilitated (Lowe, Levitt and Wilson, 2008, p. 46). Consequently, this causes the indirect benefits of reduced recruitment and section costs, as well as increasing an organizational EVP, which is a critical component in attracting and recruiting qualified and suitable workforce for long term objectives realization needs.
Dahlen, M., & Lange, F. 2008, Marketing communications. Hoboken, N.J: Wiley.
Doole, I., & Lowe, R. 2005, Strategic marketing decisions in global markets, Thomson, Learning London.
Evans, J. R, Lindsay, W. M., & Evans, J. R. 2008, Managing for quality and performance excellence, Thomson/South-Western, Mason, OH.
Heger, B.K. 2007, "Linking the Employment Value Proposition (EVP) to Employee Engagement and Business Outcomes: Preliminary Findings from a Linkage Research Pilot Study", Organization Development Journal, vol. 25, no. 2, pp. P121-P132,P233
Jackson, S. E., Schuler, R. S., Werner, S., & Jackson, S. E. 2009, Managing human resources, South-Western Cengage Learning, Mason, OH:
Keller, S., & Price, C. 2011, Beyond performance: How great organizations build ultimate competitive advantage, Wiley, Hoboken, N.J.
Lowe, D., Levitt, K.J. & Wilson, T. 2008, "Solutions for Retaining Generation Y Employees in the Workplace", Business Renaissance Quarterly, vol. 3, no. 3, pp. 43-57.
Naranjo-Valencia, J. C., Jiménez-Jiménez, D., & Sanz-Valle, R. 2011, “Innovation or imitation? The role of organizational culture”, Management Decision, vol 49, no. 1, pp. 55-72.
Pareek, U. N. 2006, Organisational culture and climate, ICFAI University Press, Hyderabad, India.
Salvendy, G. 2012, Handbook of human factors and ergonomics, Wiley, Hoboken, NJ.