How Culture Is Expressed in Organisations and How This Helps Organisations Effectiveness - Case Study Example

How culture is expressed in organisations and how this helps or hinders the organisations’ effectiveness Name: Course: Introduction Organisational culture is a term used to refer to the values and beliefs that have existed in an organisation for a long time. The term also refers to the beliefs of the employees and the unforeseen value of their work that will affect their behaviour and attitudes (Tsai, 2011). Culture can be viewed as the operating system of an organisation because it guides how employees think, feel, act and value. This is because the employees’ attributes are guided by ideas, meanings, and beliefs of a cultural or socially shared nature. For instance, managers usually adjust their leadership behaviour to realise the mission of the organisation, and this could affect the employees’ satisfaction. In turn depending, on how satisfied or dissatisfied the employees are, this will be reflected in the organisation’s performance. Against this backdrop, this paper discusses how culture is expressed in organisations and how the expression affects the effectiveness of organisations by either helping or hindering their performance. How culture is expressed in organisations Since organisational culture refers to the beliefs and values that an organisation holds over time, it can be said that an organisation expresses its culture in its day-to-day operations. According to Curran (2005, p. 28), culture is a communication process that facilitates creating, conveying, storing and processing information that can be perceived in three viewpoints: words, behaviour and material things. This means that an organisation shows its culture through the behaviour and interaction of its employees, its objectives or mission, and the material things that it possesses. However, Alvesson and Sveningsson (2007, p. 36) are more specific in view of culture as they note that culture does not refer to social structures and behaviour but rather to mental phenomena such as members of a given group think about and value the reality in comparable ways and how this perception and valuing is distinct from that of people in different groups. The above description of culture means that different organisations will have different ways of thinking, interacting, acting, feeling and so on. These differences are what Shahzad et al (2010) refer to as elements of culture by which organisations express themselves and differentiate themselves from one another. For instance, aspects such as the timing, presentation and methods of communication in an organisation are often specific to each organisation. Shahzad et al (2010) argue that cultures of organisation premised on cognitive systems help employees to think and make decisions. According to the same authors, there are different levels of culture based on a wide array of beliefs, values and attitudes that determine the ways in which organisations conduct business. Further, organisational culture can be viewed as a normative glue that holds an entire organisation together. How culture affects an organisation’s effectiveness A notable aspect of culture is that it is very important for organisations. The culture that an organisation adopts can determine whether or not the organisation fosters a healthy environment in which to work. This in turn will determine whether or not the organisation’s effectiveness is enhanced. Overall, when an organisation communicates and promotes organisational ethos to employees, the employees’ acknowledgement and acceptance of the culture can determine their work attitudes and behaviour. When the relationship between the leadership and employees is amiable, the latter will strive to be more involved in team communication and collaboration. The members of the organisation will also be encouraged to accomplish the objectives and mission assigned by the organisation, thereby promoting job satisfaction (Tsai, 2011). There a number of important aspects of organisational culture which influence an organisation’s effectiveness. First is how long it takes individuals or groups in the organisation to make decisions and whether the decisions are inclusive, efficient, ethical, and whether they contribute to the forward movement of the organisation (Curran, 2005, p. 29). If an organisation always lags behind in making decisions, its leaders make decisions while excluding other employees or make decisions that are unethical, there will be discontent both within and outside the organisation and hence the firm will lose its competitiveness. On the other hand, an organisation that has a culture of making timely decisions while involving everyone is likely to be very competitive since it creates the right ambience for competitiveness. Another aspect is whether an organisation creates and environment that is open to learning and encourages new ideas (Curran, 2005, p. 29). If an organisation’s culture does not promote learning, the organisation will remain stuck in the old ways of doing things. In contrast, an organisation that promotes learning is more likely to come up with new ideas that solidify its presence in the market. This is because by being a learning organisation, the organisation is able to act on the ideas that it generates and to assess its ideas, thereby rejecting those that are unsuitable. Such an organisation must be outward looking and willing to change its employees’ behaviour (John, 2002, p. 16). For instance, a study of long-established Japanese firms such as Canon and Honda that have been successful in breakthrough innovations revealed that these firms use an ambidextrous approach. In this regard, the companies develop new ideas by assigning teams of young staff members who are not entrenched in the ‘old way of doing things’ to work on certain projects. The teams are headed by a respected elder in the company and are charged with doing whatever is required to develop new ideas and products, even if it means going against the normal rules of the organisation as regards implementing new ideas (Daft, 2009, p. 419). Another key aspect of organisational culture is whether an organisation treats its staff as well as the customers, whether people are treated as friends or intruders, and whether the organisation creates a sense of community (Curran, 2005, p. 29). This point is linked to both decision making and the organisational environment as discussed above. An organisation that values its employees is likely to involve them in decision making and in addressing matters that affect them such as the workplace environment. For instance, the leaders will be eager to motivate their staff by addressing their workplace concerns such as remuneration, training and development, workplace learning and so forth. Such a healthy working environment will translate to better services from the employees. Along the same line, creating a sense of community in an organisation is crucial in ensuring that employees are free to express themselves, make decisions and come up with new ideas that are critical to the organisation’s advancement. Notably, organisations that have flatter organisational structures imply that employees of different ranks are more likely to interact and hence make collective decisions, as opposed to organisations with bureaucratic structures in which the decision making process is left to only certain individuals in the high ranks. In such cultures, the employees who are not involved in the decision making process of their organisations not only feel alienated but they may also be demoralised since they may have a feeling that their input in the organisation is not appreciated. A good discussion of how culture affects an organisation’s performance is given by (Che Rose et al, 2008). According to Che Rose et al (2008, p. 47), a high degree of organisation performance is associated with an organisation that has a strong culture with well articulated and effective values, behaviours and beliefs. However, the same authors emphasise that culture would remain connected with better performance only if the culture is capable of adapting to shifts in environmental conditions. Che Rose et al (2008, p. 48) also present a review of a number of research studies which show that an organisation’s cultural strength is correlated with short-term-performance, and that organisations which focus clearly on culture are more successful since they record a higher return on investment, enhanced return on equity, and a higher return on assets. To visualise how an organisation’s effectiveness is likely to be enhanced with a good culture, this paper reviews the culture at Nestlé. Case study: Nestlé’s culture Nestlé is a company that operates in many countries across the world including Australia, the United States, and Switzerland – where it is headquartered. Apart from its commitment to safety and quality as well as its respect for diversity, the company is committed to a number of cultural values. The company notes that the values come partly from its Swiss origin and that they have been developed during its history. Nestlé’s cultural values are also evolving in order to support the permanent reshaping of the firm (Nestlé, 2009). This reaffirms the point that was mentioned in the introduction of this paper that culture refers to the beliefs and values that an organisation holds over a long time, as well as the beliefs and attitudes that will influence the organisation in future. Nestlé describes it cultural values using a number of statements. First is dedication to a strong work ethic, integrity, honesty and quality. The second point is that the organisation’s personal relations must be premised on trust and mutual respect. This connotes a sociable attitude towards others in the organisation, coupled with an ability to convey messages openly and frankly. Third, Nestlé aspires to have a personalised and direct way members dealing with each other. This means that the company creates an environment for a high level of tolerance for other people’s ideas and opinions, and is relentlessly committed to encouraging proactive cooperation among its employees (Nestlé, 2009). Nestlé also fosters a more pragmatic approach rather than dogmatic approach to business. This means that the company prefers to be more realistic and to make decisions based on facts. Another aspect of Nestlé’s culture is openness and inquisitiveness for vibrant and future trends in technology, change in consumer behaviour, new business opportunities and ideas and upholding respect for fundamental human values, behaviour and attitudes. Nestlé also encourages its employees to pride themselves in contributing to the status and the performance of the company. This means that the company’s employees are encouraged to nurture a sense of quality and long-term achievement in their daily duties beyond fashion or short-sighted gain. Finally, Nestlé’s culture promotes loyalty to and identification with the organisation (Nestlé, 2009). There is no gainsaying the fact that Nestlé’s culture is focused on enhancing employee engagement and participation. It clearly focuses on commitment, personal relations, pragmatism, openness, loyalty and pride in achieving the organisation’s objectives. With such a culture, there is little chance that conflict will arise in the workplace since there is an environment of openness and good personal relations. Since there is a high tolerance for other people’s opinions and ideas, the company promotes an attitude for innovativeness and thinking outside the box – which increases effectiveness. It is indubitable that the opposite is true if there is no room for divergent opinions and decisions are made only by certain individuals. In such an environment, the organisation lacks the drive to innovate and is likely to experience disquiet from some employees. This in turn translates to ineffectiveness. A review of Nestlé’s culture is presented by Hooijberg et al (2007) through their analysis of Nestlé’s “Leadership Programme” and the “Develop People Initiative”. The Nestlé Leadership Programme was premised on the realisation that the company needed managers and leaders, rather than leaders instead of managers. The company noted that leadership is not an end in itself, but it is a means to improving alignment, gaining insights, getting cooperation and stimulating initiative. Thus, by 2006, the company had remodelled its management to have top line management and decentralised programmes, which were regarded very successful. According to Hooijberg et al (2007, p. 60), the programme has undoubtedly improved Nestlé’s management style. This is reflected in the company’s common objective of enhancing and inspiring management and making better use of available resources. Similarly, the Develop People Initiative was aimed at enhancing personal development as well as sharing of knowledge and cooperation in the company (Hooijberg et al, 2007, p. 61). The company noted the significance of assessing its people rather than rating them to determine their strengths and weaknesses. The assessment concept was reinforced by sharing of knowledge and cooperation to ensure that everyone was able to deliver what was expected of them. Another consideration was development and the manager’s role in developing his or her people. The Develop People Initiative was aimed at making managers accountable for the development of their staff and reversing their task from that of an inactive judge to a committed developer (Hooijberg et al, 2007, p. 61). This is where a sense of community comes in as the employees certainly felt included in matters involving their development and hence role in the company. Highlights from Nestlé’s culture The case study Nestlé shows that culture within an organisation is very important, and plays a major role in whether or not the organisation’s environment is a happy and healthy workplace. It is evident that over time, Nestlé has attempted to assign more decision making roles to lower rank employees rather than managers only, and this culture has promoted the aspect of sharing of knowledge. As Tsai (2011) points out, through communicating and advancing the organisational vision to junior employees, and in making them identify with the vision, it is possible to influence their work attitudes and behaviour. The opposite is likely to be true where an organisation lacks a culture that aims to attain its mission as everyone will be divided on what they are required to do. Tsai (2011) also emphasises that when there is a cordial relationship between the leader and the junior employees, there will be more contributions to team collaboration and communication, as well as empowerment of the subordinates to accomplish the objectives and mission of the organisation, which leads to enhanced job satisfaction. This is clearly highlighted in Nestlé’s cultural values. Conclusion In summary, an organisation’s culture is reflected in its day-to-day operations and is guided by what the organisation aspires to achieve over a long time. The objectives and mission of an organisation help to shape the attitudes, behaviour and beliefs of employees and this determines the effectiveness of the organisation. If an organisation communicates and promotes a culture of employee engagement, the employees appreciate the ethos and become more involved in team communication and collaboration, which is critical to enhancing the organisation’s performance. An organisation that fails in this aspect is likely to be inconvenienced by anxiety from the employees who feel left out in matters that affect them and the organisation, and is likely to be ineffective. As shown in the case of Nestlé, the company has cultural values that aim to encourage commitment, good personal relations, pragmatism, tolerance for new ideas and opinions, openness, and loyalty to the company, and passion in contributing to the company’s achievement of goals. Such ethos leads to employee satisfaction since they promote participation and contribution towards the company’s goals. The company also promotes training and development, which is essential for developing employees’ skills and increasing their career satisfaction. There is no doubt that a company that fails to have a desirable set of cultural values will lag behind as it will be plagued by the silo mentality. References Alvesson, M. & Sveningsson, S. (2007). Changing organisational culture: Cultural change work in progress. New York: Taylor & Francis. Che Rose, R., Kumar, N., Abdullah, H. & Yeng Ling, G. (2008). Organisational culture as a root of performance improvement: Research and recommendations. Contemporary Management Research. 4(1): pp. 43-56. Retrieved 27 July 2012, from http://laofutze.files.wordpress.com/2010/04/corpcultmyus.pdf Curran, C. J. (2005). Organisational culture: The path to better organizations. Journal for Nonprofit Management. pp. 28-40. Retrieved 26 July 2012, from http://carolynjcurran.com/pdf/ORGCULTURE.pdf Daft, R.L. (2009). Organisation theory and design (10th edition). Cengage Learning. Hooijberg, R., Hunt, J. G. Antonakis, J., Boal, K. B. & Lane, N. (2007). Being there even when you are not. London: Emerald Group Publishing. John, D. (2002). Organisational learning and effectiveness. New York: Routledge. Nestlé (2009). The Nestlé management and leadership principles. Retrieved 26 July 2012, from http://www.nestle.com/Common/NestleDocuments/Documents/Library/Documents/People/Management-Leadership-Principles-EN.pdf Shahzad, F., Luqman, R. A., Khan, A. R. & Shabbir, L. (2012). Impact of organisational culture on organizational performance: An overview. Interdisciplinary Journal of Contemporary Research in Business. 3(9): 9075-985. Retrieved 26 July 2012, from http://www.journal-archieves14.webs.com/975-985.pdf Tsai, Y. (2011). Relationship between organisational culture, leadership behaviour and job satisfaction. BMC Health Services Research 2011, 11:98. Retrieved 26 July 2012, from http://www.biomedcentral.com/1472-6963/11/98 Read More