The paper “ Organizational Culture as a Source of the Company’ s Competitive Advantage ” is an outstanding variant of essay on human resources. Organizational culture is a basic tool for any organization to control its employee’ s behavior in order to have a coordinated and effective way of accomplishing or achieving its goals. In this regard, organizational culture defines values and norms that members of an organization must adhere to; for instance, it defines how the firm understands the nature of human behavior particularly in social groups thus providing the basis on which this behavior can be controlled (Martin, 20020).
Organizational culture is described as having a massive influence on the organization and management which is a result of its nature and content. According to Jani (2011, 70), organizational culture is referred to as a system of assumptions, values, norms, and attitudes that are manifested through symbols which members of a given organization have developed and adopted through shared experience and which is essential in determining the meaning of the world around them and how to behave in it (Martin, 20020). Competitive advantage, on the other hand, is the advantage that a firm or organization has over its competitors that empowers it to generate greater sales, acquire and maintain a larger customer base than its competitors.
The competitive advantage grants a company an edge over its rivals as well as gives it the ability to generate greater value for the organization together with its shareholders (Coffey, 2010). The above discussion has established that organizational culture is a system of assumptions, values, norms, and attitudes that are manifested through symbols which members of a given organization have developed and adapted based on shared experience that helps them determine the meaning of the world around them and how they should behave in it (Schein, 2010).
The shared values, assumptions, attitudes and norms help the organization’ s members to shape their interpretive schemes; these interpretive schemes are significantly important for members of an organization to assign meaning to occurrences within and outside the organization together with understanding the reality that surrounds them (Deal & Kennedy, 2011). For this matter, employees’ behavior, actions, and interactions emerge from the meaning that the reality of the company has for them.
In other words, organizational culture is defined as a form of collective interpretive scheme shared by employees of an organization due to which they assign meaning to occurrences, people and events in and outside of the organization in a similar way and treat them similarly (Schein, 2004)Organizational culture due to its influence on the interpretive schemes and behavior of employees participates in shaping other organizational components and management (Gottschalk, 2007). These components include organizational strategy, system rewards, leadership style, organization structure, and organizational learning.
It is vitally important to note that, these components are a result of the way the management and employees as a whole understand organizational reality and how to behave in it (Deal & Kennedy, 2011). Accordingly, with regard to the values and norms stated within the organizational culture, the firm’ s top management use or selects the strategy which helps in designing the organizational structure, shape their leadership style, employees understand their motives and needs while the human resource management develops the compensation system for the organization.