Organizational Culture as a Fundamental Source of Competitive Advantage in an Organization - Example

Organizational culture Name of the Student: Name of the Instructor: Name of the course: Code of the course: Submission date: Organizational culture Introduction The concept of organizational culture can be perceived to be derived from two world, organization and culture. Lim (1995, p. 16) determined that the concept of culture basically refers to sets of values, beliefs and behaviours commonly held by a society which are relatively stable. O’Donnel and Boyle (2008, p. 8) determined that organizational culture is a term which has seen extensive utility but one which has generated ambiguities in the recent decades. This is in regard to evaluating its level of effectiveness on the change variables at the organizational level. In a rudimentary sense, organizational culture can be perceived as a set of norms, principles, beliefs and behavioral manner at the organizational level, a combination of which give an organization a distinct character (Willcoxson & Millet, 2000, p. 93). Different researchers in business strategy have determined that organizational culture is a fundamental source of competitive advantage in an organization as well as promoting the long-term performance of an organization with extensive evidence from both the private and public sector to support this inference being apparent. It is imperative to note that the field of organizational behavior as well as the related realm of management science instigated their examination of organizations in terms of culture as early as 1930s (Tharp, 2009, p. 3). However, the concept of organizational culture was first used by Pettigrew (1979) in the academic literature of his study in the journal referred to as ‘Administrative Science Quarterly’. Based on the previous definition, it is required that the management structure of various institutions to engage in the process of identifying the values and norms of the organization. In addition, it is necessary for the culture at the organizational level to be established in a way that is geared towards enhancing the style of the performance of employees as well as continuously develop quality awareness in the organization (Shahzad & Luqman et. al, 2012, p. 976). However, it is imperative to be cognizant of the fact that some academicians in different realms of scholarship have argued that organizational culture is something that an organization ‘is’. On the other hand, other scholars have suggested that organizational culture is something that an organization ‘has’. Against this backdrop, this paper will be aimed at evaluating these two viewpoints as well as critically examining the implications of this in the course of managing organizational cultural change. The above fact is supported by Gray (1998, p. 3) who revealed that there are unresolved but paramount divergences of perspectives towards organizational culture in a wide alley of literature in this subject of study. These might be summed up in the questions into whether organizational culture is something that an organization has or if it expresses what an organization is. This can be found in works by Hofstede (1991) or Baron and Walters (1994). It is also noted that this issue has extensive implications on the sides of the organizations’ managers who are making profound efforts to change their organizations’ culture as well as for the researchers who seek to develop more comprehensive understanding in regard to human interactions in the working environs. Organizational culture is something that an organization has This viewpoint perceives organizational culture as just a singular entity which adds up to the composition and operations of an organization as a whole. In this regard, there is a possibility to alter and manipulate the culture at the institutional level which depends on the leadership as well as the membership of the organization. Therefore, this viewpoint believes in as robust organizational culture which everyone in the organization buys into. It is imperative to note that organizational culture is a concept which has been identified as one of the many components which can be used by the leadership in a given organization aimed at enhancing a highly dynamic organization. As a result, the leadership in different organizations instigates a culture formation process through the imposition of their expectations and assumptions on the followers (Madu, 2006, p. 2). This process entails developing diverse mechanisms which are key in supporting a robust culture in the organization. Firstly, the leaders make their expectations clear to the employees in regard to aspects like performance objectives and goals as well as code of conduct. This is paramount in ensuring that the employees have a clear understanding of what is expected of them by the leaders in the organization. As a result, the employees are bound to make extensive efforts towards fulfilling these expectations which culminates in the development of a robust organizational culture embedded on strong performance objectives as well as strict compliance with the set rules and regulations. On the other hand, some of these other entities which supplements organizational culture in summing up the composition and operations of an organization as a whole are best epitomized by innovation. In this regard, McLaughlin et. al. (2005, p. 1) determined that the theories which are existent in the realm of innovation management point to the fact that organizational culture is key in affecting the inclination of an organization to be innovative in their novel product development processes at the institutional level. As a result, the management structure of an organization makes extensive efforts to promote an organizational culture which cultivates increased innovation in the organization. This can be done through the development of profound programs which encourages innovation. These are best epitomized by ideal reward and recognition programs. As a result, employees who exhibit high levels of innovation are either rewarded or recognized in the institution aimed at encouraging them to take their innovation to greater heights. The development of these reward and recognition programs to enhance the level of creativity and innovation among the employees in the organization by the management structure is just one strand of the undertakings of an organization which fosters an innovative organizational culture. The success of these programs is key in developing a robust organizational culture. Subsequently, organizational culture becomes just a singular entity which adds up to the composition and operations of an organization as a whole and fortifies the assertion that organizational culture is something that an organization has. On the other hand, organization culture is still another variable which influences the level of motivation and commitment among the employees. Nongo and Ikyanyon (2012, p. 1) determined that organizational culture mostly at the corporate level exerts significant influence on the organizational behavior. This is especially in the realms of commitment, effectiveness and efficiency. This insinuates that the engagement of the management structure in the development of an appropriate organizational culture is key in influencing the success of the organization. As a result, it is extensively presumed that organizational culture in a given institution is integral in influencing the sense of commitment, motivation, belonging as well as engagement of the employees in the organization. This organizational culture of cultivating heightened motivation and commitment among the employees is embedded in the management structure of the organization. Thus, the extent to which the organizational managers positively impact on the commitment and motivation of the employees in key in determining the performance and eventual competitive advantage of the organization. As a result, this reality supports the assertion that organizational culture as just a singular entity which adds up to the composition and operations of an organization as a whole, with other operations including motivating the employees and generating increased commitment. Similarly, the evidence of organizational culture as something that an organization has is usually apparent when an organization is confronted by the possibility of organizational change. This latter phenomenon can be promoted by changing trends in the market, for instance, changes in consumer demand as well as national and international factors like economic slump. The way in which the organization reacts to these dynamics, who are involved in solving these challenges as well as what is done is often embedded in the organizational culture which the organization has. This fact is supported by Tierney (1988, p. 3) who determined that the organization culture in any given organization is reflected in what is done, who is doing it as well as how it is done when the organization is confronted by different impediments. The organizational culture is thus concerned with the decisions, communications as well as actions undertaken by the leaders of the organization in a given time as a response to different impediments facing the organization. Therefore, organizational culture as something that an organization has is exhibited by the response of the leaders at a given time to a specific challenge in a particular epoch. Therefore, the organizational culture in the organization, for instance, encouraging innovation is fundamental in confronting these challenges at the institutional level. Despite the central role of organizational culture in overcoming these challenges, it is just one of the entity which adds up to the composition and operations of an organization as a whole in their efforts to tackle these market dynamics which can be key in instigating organization change. Other components can include the knowledge and skills levels among the employees, the financial capital of the organization, the technological capacity at the organizational level among other components which are evident in the organization. All the above are facts which support the viewpoint that organizational culture is something that an organization has. Organizational culture is something that an organization is In this perspective, culture as a basic metaphor views organization as its culture. This is created through symbols and communications which have been passed down overtime. As a result, culture is a foundation based on personal experiences which generates a diversity of perspectives. Stoyko (2009, p. 1) determined that majority of the managers in diverse organizations often make extensive efforts aimed at acquiring knowledge in regard to how people come to share perceptions, attitudes as well as interpretations. In addition, these seek to know how the symbolism at the workplace molds the ways in which people act and feel. This objective might not necessarily be conformity. This is founded on the fact that there is a multitude of benefits which emanate from intellectual diversity in an organization. As a result, when a particular organizational culture ensures that there is increased conformity with the agreed upon norms and values, these become part of the organization and develop into becoming directly related with the organization and impacting on the both short and long-term performance of the organization. This is best epitomized in the study by Chatman et. al. (2011, p. 36) which revealed that organizations which are characterized by higher levels of consensus in many of the norms recognized therein, as well as an intensive emphasis on adaptability which enhance conformity performed in a better manner from a financial perspective. These norms and values becomes symbols and communications which have been passed down overtime within the organization and eventually perceived as representing the organization itself. The employees feel the mere existence of the organization as being founded on the norms and values which underpin the organizational set-up as being integral to the day to day operations of the organization. Subsequently, this organizational culture come to be identified as being synonymous with the existence of the organization. In this perspective, the organizational culture is something that an organization is. On the other hand, there is an organizational culture which is identified with the organization which has been developed overtime and associated directly with the organization. This is best epitomized whereby a culture of high quality goods and services from a given firm can be used synonymously with the organization itself. This can be viewed in terms of the close association of the high quality image that is associated with the organization and the general organizational culture which has been developed overtime in the organization. As a result, clients of the organization sometimes substitute the name of the organization with the name of the high quality product that they have purchased overtime. In this case, the organizational culture (based on production of high quality goods) becomes something an organization is. Consequently, Mary et. al. (1967, p. 356) argued that modern organizations ought to define their corporate image and identity which is key in becoming a bridge between the external niche of the institution in the marketplace and the internal meanings molded within the organizational culture. Critical examination of the implication of this in managing organizational cultural change Both of the viewpoints explored in the preceding sections have implications in the management of organizational culture change. Nonetheless, it is prudent to note that organizational cultural change is often an immensely difficult and problematic objective to achieve. This is founded on the fact that culture is extensively unrecognizable and also once it is instituted, the commonly shared interpretations, symbolic meanings, patterns and values are difficult to modify (Cameron, 2004, p. 7). Therefore in case there is immediate change which alters the symbols and values in an institution which forms the basis of organizational culture, there is bound to be some implication, mostly when the organizational culture is something that an organization is. This is best epitomized in an organization whereby the managers run the institution from a centralized place, using a top-down approach. This exercise of power and authority is bound to develop and evolve into becoming an organizational culture and embedded in the values and symbols of the organization and the leaders use these values and symbols to manage the organization. This fact is supported by Gagliardi (1986, p. 118) who cited that it is integral to note that any leader uses values and symbols to manage a regime. In case of changes which necessitate increased empowerment of the employees and decentralization of power, this is bound to have implications on the organizational culture. Subsequently, there is a necessity of instituting a mechanism whereby there will be a gradual transition in terms of perspectives in order to accumulate the new changes. Failure to do so results to increased disconnect among the employees as well as conflicts between the leaders and the employees. However, the organizational culture changes in organizations where organizational culture is something that the organization has, has minimal implications. This is founded on the fact that there are other components in daily operations of the organization which can supplement or substitute the present organizations culture, for instance, creativity and innovation. These can be put into utility in managing organizational culture change in a given time and to serve a particular purpose. Recommendation and conclusion It is recommended that organizations ought to make increased efforts to mold organizational culture into something that the organization has as opposed to something it is. This is key in confronting the diverse dynamics which confront contemporary organization, a fact which was revealed by Olarewaju and Folarin (2012, p. 195) who determined that contemporary business managers operate in more dynamic environments with changes being uncertain and rapid. In conclusion, the preceding analysis has revealed that organizational culture is a fundamental source of competitive advantage in an organization as well as promoting the long-term performance of an organization. Two viewpoints as well as their implications have been explored and a feasible recommendation given. References Cameron, K., 2004, ‘A Process for Changing Organizational Culture’, retrieved 6th March, 2013, < http://competingvalues.com/competingvalues.com/wp-content/uploads/2009/07/A-Process-for-Changing-Organizational-Culture.pdf>. Chatman, JA, et. al., 2011, ‘Organizational culture and performance in high-technology firms: the effects of culture content and strength’, retrieved 6th March, 2013, < http://haas.berkeley.edu/faculty/papers/chatman_culture.pdf>. Gagliardi, P., 1986, ‘The creation and change of Organizational cultures: A conceptual framework’, Organizational studies, Vol. 7, No. 2, pp. 117-134. 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