Organizational Culture and Performance - Coursework Example

Name of Student: Institutional Affiliation: Instructor’s Name: Date: Abstract Organizational culture can simply be defined as the set of shared values, norms and beliefs that persuade the way the members of a given organization behave, think and feel. According to (Parker, 2000), culture is created by means of instrumental and terminal values, rituals, rights heroes and communication networks. The main way of keeping a high-level organisational culture is through the socialization process, whereby the workers within the organisation learn the expected behaviors, the values of the organisation as well as the social skills required to assume their roles in the organisation. At times, an organisation may modify it’s to fit its changing role in the competitive environment. Some of the main factors that must be considered when making such a change include: internal and external permitting conditions, the cultural visioning, competition, precipitating pressures, strategy implementation and reformulation of culture. A leader who understands the organizational culture usually delivers positive results because every organisation has a culture that has an essential influence on attitudes and behaviour of its members (Bunker et al, 2010). The success of an organization depends greatly on the competencies of both leaders and employees. Organizational Culture and Performance Organizational culture can be defined as the feelings, beliefs, symbols and behaviors that are distinctiveness of an organization (Schein, 1997). Specifically, organizational culture can be defined as shared ideologies, philosophies, feelings, beliefs, expectations, norms, attitudes, assumptions and values (Dalglish & Miller, 2010). While there is considerable variations in definitions of the organizational culture, most definitions have the following characteristics: Norms. Certain specific behaviours emerge within a working group in an organisation that is considered acceptable or typical of the majority of its members. Yardsticks and standards are outcomes of developed work-group behaviours, which are normally sanctioned by the group norms (DeVito, 2013). Observed behavioral regularities. During interaction, the organisational members use common language, rituals, terminologies and ceremonies related to demeanour. Philosophy. The established policies guide an organisation on how their employees and customers are to be treated. Dominant values. Organizations expect certain primary values to be shared by its members. A good example is schools, whereby high performance and low absence rates are the main values. Every organisation also establishes rules, which new comers are expected to follow. Climate is the overall atmosphere conveyed by an organisation, and the way in which customers, employees and outsiders interact plays a significant role (Bunker et al, 2010). No single characteristic can represent the essence of the whole organization, though all the characteristics taken collectively gives meaning to the concept of the organizational culture. The key elements for creating organisational culture include rites, rituals, heroes, values and communication networks. Values, which are the general criteria, principles and standards that guide the behaviour of all members of the organisation, are important during the development of the organisational culture. Two kinds of values exist: terminal and instrumental (Parker, 2000). Terminal values are the desired outcomes the organisational members seek to achieve. In most cases, excellence and quality are among these terminal values. Instrumental values, on the other hand, are the desired modes of behaviour. Many organisations adopt teamwork, high standards, maintenance and diversity as instrumental values (Cameron & Quinn, 2011). Organisations are able to reach their targets and achieve success when shared values exist among their team members. It is through those shared values that organisations develop identity, provide a balanced social system, enhance collective commitment and minimise the need for bureaucratic controls (DeVito, 2013). The shared values of an organisation are based on a wide understanding of what the organisation stands for, which is rooted in its slogans, its logos and its concern for individuals over procedures, policies and rules (Robbins & Barnwell, 2006). Most of the successful organisations have heroes. Researchers argue whether heroes are born or created. Institution builders like Henry Ford of the Ford motor company who develops companies based o their visionary ideas are born heroes (Murray et al, 2006). On the other hand, created heroes are those celebrated by the organizations due to their memorable moments during their tenure in an organisation (DeVito, 2013). An example of created hero is Sir. Alex Ferguson the former coach of Manchester United. Heroes usually set the organisations underlying values, set performance standards, provide role models and motivate participant achievement. Rites and rituals are also essential for creating organisational cultures in that they entail the everyday activities and celebrations that characterise an organisation. Most organisational leaders feel that rituals and symbolic actions must be managed (Bunker et al., 2010). Achievements are often recognised through the performance of rituals and rites. A good example of this is the Employee of the Year award, where an individual’s performance is celebrated, thus motivating his or her colleagues (Herzog, 2011). Some successful organisations have even developed their own reward rituals. Rituals are used in an organization prior to important speeches and celebrations. The speeches made during rituals validate the workers and makes them feel part of the organisation (Dalglish & Miller, 2010). Moreover, the developed traditions lead to development of the professional culture and improve the performance of the employees and managing team. In the celebration of an organisation’s rituals, employees are able to meet and communicate about matters affecting the organisation and how they could improve their performance (Flamholtz & Randle, 2011). The exchange of ideas is essential for a company’s success; employees must work as a team to achieve the best results. The norms of the improvement and connection reinforce and symbolise what the organisation is all about. Communication networks are essential within established organisations. Stories about organisational heroes are transmitted through communication networks. There are individuals in organisations that characterise the existing network and the culture of the organisation (Cameron & Quinn, 2011). Most organisations have storytellers who follow and interpret what is going on within the organisation, and their interpretations influence the perceptions of the other employees. Cultural values are guarded by the priests in an organisation, who usually listen carefully to problems and provide timely solutions. The whisperers are always the powers behind the throne since they have the boss’s ear (Bunker et al., 2010). Individuals who have complaints or those who want to get something go to the whisperers. This internal gossip is essential in that it enables the company to understand workers’ complaints through the communication network. Heroes are also built and maintained by gossip. This is because the performance of heroes is exaggerated, inspiring those who hear the tales to work hard to meet the standards of the organisation (Dalglish & Miller, 2010). Spies, on the other hand, keep important individuals up to date by informing them what is going on within the organisation. All these individuals contribute to maintaining the culture of the organisation. Organisational culture not only refers to a company’s values and principles but also to its openness to the development of good communication between departments and employees, its acceptance of change, its ability to bring management down to the level of the employees and its willingness to create a suitable environment that enables and supports creativity and positive relations between employees (Herzog, 2011). A good organisational culture incorporates a positive attitude towards competition, risk, identity, clients and control, leading to proper staff ethics and a good management style. The management team should be aware that an effective organisational culture is necessary to bring about short- and long-term benefits to the organisation. According to (Dalglish & Miller, 2010), management leads culture and culture leads behaviour. It is the role of the leadership to guide the organisation’s direction, which is achieved through expression of the organisational culture. The staff will then follow the structure developed by the leaders to achieve the desired performance, and they will feel appreciated for their efforts (Parker, 2000). Implementation of an organisational culture is complex; hence, managers must be fully aware of the factors that could have negative influences if not controlled (Cameron & Quinn, 2011). Some developed cultures may result in quarrels among employees and departments or even lead to frustrations, which in turn could result in poor performance. Research indicates that the majority of employees are frustrated by the environment in which they carry out their duties, by their colleagues and managers and by the fact that they are not appreciated for the work they do (Robbins & Barnwell, 2006). Change is inevitable. Organisations are in a constant state of change, either growing or decreasing, which results in many varied situations (Murray et al., 2006). Most people are resistant to change and struggle with organisational changes, sometimes even fighting as a result. Research indicates that competition is another reason why employees quarrel within an organization. However, competition can be positive provided it stimulates cooperation and creativity. Internal competition should be transformed into teamwork (Bunker et al, 2010). Employees must learn to celebrate the good performance of the other colleagues within an organization since the situation can change at any time. Teamwork is essential within an organisation, and cooperation is necessary for effective performance. When members of a group are pulling in the same direction, the organisation achieves positive results, which is the main target of any visionary organisation (DeVito, 2013). Proper control is required because it can be the power that unites or divides individuals within an organisation. A certain level of authority is essential to an organisation’s success (Herzog, 2011). At times, employees require guidance and control over their actions, but research indicates that employees are more effective when they are able to think for themselves rather than waiting to be told what to do. It is vital for employees to clearly understand the organisational culture as it affects their work routines through the benefits they receive, the way they dress at work, how they socialise with colleagues and in most everything else related to their work environment. It is through individual experience that employees come to understand organisational rules and expectations. Psychologically, all humans crave high self-esteem. Organisational culture gives individuals both economic and spiritual security, which leads to recognition and higher self-esteem. Employees should feel that a job they receive is an added value, not an execution of duties. The attitude of employees should change from feeling that they work for their bosses to a belief that they work for the customer. A company’s human resources are viewed from the expression of organisational culture. The culture determines how the problems that arise during work are solved. The leadership within an organisation determines how effectively work is guided by the developed culture. Therefore, few organisations operate with similar cultures despite the market competition (Parker, 2000). The uniqueness of organisational cultures is due to a host of factors that influence each organisation to carry out activities in a specific way. Some of these factors include the founders of the organisation, the age and size of the organisation, the national culture within which the organisation operates and the organisation’s managers (Marković, 2012). These varied factors affect the perception of reality and the specific type of values adopted by a company. Leaders of any given organization are capable of influencing the culture of that organization. This is because the leaders have the main responsibility of generating and sustaining culture already developed in an organization and also communicating the core values as well as the beliefs within the organization and to the stakeholders of the organization (Bunker et al, 2010). The leaders working in an organization for a very long time may develop their own culture which in turn may be adopted by the organization in which they work due to their successful profession. The leaders in organizations act as a symbol of success and hence have a central role of ensuring success (Cameron & Quinn, 2011). Leaders of any organisation are capable of influencing the culture of that organisation. This is because they have the main responsibility for generating and sustaining the culture already developed in an organization and communicating the core values and beliefs within the organisation and to its stakeholders (Bunker et al., 2010). Leaders who have worked in an organisation for a long time could develop their own culture, which in turn may be adopted by the organisation due to their successful advocacy. In organisations, leaders act as a symbol of success and, hence, have a central role in ensuring it (Cameron & Quinn, 2011). Leaders can shape or even change the organisational culture by appointing new staff members who subscribe to the same values and beliefs as they do. This results in cultural consonance. The process of selecting a management team provides an opportunity to set out the values of the organisation and its leaders, with the hope that those who hold similar beliefs and values will be attracted to the managerial posts (Bunker et al., 2010). Over time, the culture of an organisation will shift to the direction sought by its leader. Research indicates that leaders are likely to change the culture of an organisation when they are confident, based on experience, that those changes will improve the organisation’s performance. Maintaining an organisation’s culture is a central feature of an effective leader. In conclusion, organisational culture is the set of shared beliefs, norms and values that influence the way employees behave, think and feel. Culture in an organisation is developed by means of both terminal and instrumental values, rituals and rites, heroes and communication networks. The socialisation process is the main method for sustaining organisational culture in that employees use it to learn about expected behaviours and values. Most organisations change their cultures to meet the standards needed for organisational success. Finally, the leaders within an organisation play a significant role in creating and maintaining its culture. References Bunker, K. A., Hall, D. T., & Kram, K. E. (2010). Extraordinary leadership: Addressing the gaps in senior executive development. San Francisco: Jossey-Bass. Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and changing organizational culture: Based on the competing values framework. San Francisco, CA: Jossey-Bass. Dalglish, C., & Miller, P. (2010). Leadership: Understanding its global impact (1st ed.). Tilde University Press. DeVito, J. A. (2013). The interpersonal communication book. Boston: Pearson. Flamholtz, E., & Randle, Y. (2011). Corporate Culture: The Ultimate Strategic Asset. Palo Alto: Stanford University Press. Herzog, P. (2011). Open and closed innovation: Different cultures for different strategies. Wiesbaden: Gabler. Marković, M. R. (2012). Impact of globalization on organizational culture, behavior and gender roles. Charlotte: Information Age Pub. Murray, P.,Poole, D., & Jones, G. (2006). Contemporary issues in management and organisational behaviour. South Melbourne, Vic: Thomson Learning. Parker, M. (2000). Organizational culture and identity: Unity and division at work. London: SAGE. Robbins, S. P., & Barnwell, N. (2006). Organisation theory: Concepts and cases. Frenchs Forest, NSW: Pearson Education Australia. Schein E. (1997). Organizational culture and leadership. San Francisco, CA: Jossey-Bass. Read More