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The organizational culture is refers to under certain social and economic conditions which is formed through social practice and to all members to follow the common sense, concept of value, occupation morality, behavior standard and criterion of the sum of.
The organizational culture is an intangible assets of a company, someone also call it as the spirit of a company. The organizational culture is not just copy others' actions or just for showing off. Organizational culture represents the developing direction of a company and the final goal of the company approaching to. Organizational culture is a flag of a company to external environment and to internal it is a centripetal force. So an enterprise truly valuable, attractive, got things can spread down, it is the enterprise culture.
Organizational culture is essential to a company .one company without organizational culture seems like the religion without faith. In this modern and filled with competition society, companies' competition are equal to the companies' culture competition. Whatever we do not grasp the building of organizational culture, enterprise culture is really exists in the enterprise. The behavior of people thinking habit, if not serious efforts to catch, they form the unhealthy culture it will have negative impacts on the company in a short time.
The article below is devoted to expound organizational culture in the strategic management process. On the basis of theoretical analysis of the organizational culture's function elements and influence. The organizational plays an important role in a company, it influence the strategy of a company. On the contrary, the organizational culture needs to adapt the modern market and strategy. Only the organizational culture and strategy have a good combination then can contribute a lot to the company.( ideas.repec.2009)
Definition of organizational culture.
Kotter's said: "the corporate culture is usually mean values and practices that shared across all groups in a firm, at least within senior management." (Kotter 2007)
Still can understand from Heerden's article: : "Culture has been referred to as a system of values and norms that are shared among a group of people that when taken together constitute a design for living." (Heerden 2008).
Can see from the theory that organizational culture for is significant for each company; the organizational culturecan determine the organization success or failure. If the organization has the adaptive company culture, which is correspond to their developments. It will generate positive impacts in their daily operation; can help the company earn more benefits and effectiveness. A company's culture is composed of its traditions and customs. The organizational culture is a set of symbols, rituals and myths, they put the company's values and beliefs are transmitted to the enterprise staff. These give was scarce and abstract concept put on flesh, endowing them with life. The company organizational culture can understand as a rule that the company will follow whatever they do. The producer and the management have in common ideals and beliefs, values and norms of behavior, all the employees may work to achieve it try to be fitted with their company culture.
In 2008 China, most of the factory for producing the milk or milchigs was exposed to add the illegal additive--- Melamine in their products to improve protein content. There was a company named 'WeiGang' which was a dairy company. Quality Supervision Group didn't find the additive among all batches of their products. when the journalist interview the manager of this company and ask why too many factories were found using the additive and your company didn't follow the latent rules?' the manager replied: " in our company we believe food industry is the heart industry, we never use any illegal additive to improve the quality of the products, we need to be responsible for our customers. From this interview of this dairy company manager we can see WeiGang strengthen its company norm, they regard it as a heart industry, all employees always bear in mind the enterprise standards whatever they do they do remember they are responsible for their customers. That is why they didn't use Melamine into their products. (Nanjing Morning Post 2008)
What is strategic management?
Strategic management is understood as a process of information and decision-making, which is supported by the management functions of planning, organization, motivation and control. It is intend to impact on key business issues, company's survival and development. Select the appropriate business areas and products according to changes in the environment, resources and strength to form their own core competitiveness. During daily business activities integrate the current resources and advantages to establish a suitable developing direction for the company.( Mfiles. 2012)
As far as I am concerned, strategic management is focused on the one hand to global operations, particularly sensitive spheres of activity, which due to its uniqueness is crucial for the whole company. In terms of the whole company. Once the company needs to get the competitive advantages, they should determine the scope of the company's development. Only by fully understanding the company can work out a favorable strategy for the development of the company
Relationship between organizational culture and strategic management
Martensen's article said that: "If the company does not have the needed supporting culture to carry out the activities connected to strategies and plans, they will seldom be successfully implemented."(Martensen 1999)
If a company without organizational culture will not achieve a big success. Just assuming that, all the staff just works and gets the salary. They don't care about what is going on to the company. They lack of a team spirit. And the management always changing the developing directions has no goals to achieve. This kind of company will not achieve a big success because they do not have a organizational culture and team spirit. If the leader of the company know the organizational culture very well and make some strategy which is correspond to the organizational culture then most likely that the company will be successful because they find a right direction to develop the company.
Organizational culture reflects on strategic management, and strategic management depends the Organizational culture, they have a interactive relationship, influence; restrict and promote each other. Need to take actions and make some corrections in different times and different developmental stages. Once the company determines the strategy they need to check whether it is match with the current organizational cultureand cultural tendency, make them Mutual tolerance, mutual coordination. Only in this way the company can have a sustainable development (Csustan.2012)
Why organizational culture is important?
Organizational culture is one necessary part of a company. The excellent organizational culture can create a good business environment which improving their cultural accomplishment and the moral standards. It can form cohesion, centripetal force and binding, the formation of enterprise to develop indispensable spiritual power and moral norms, so that enterprises can produce positive effect, make the enterprise resources reasonable configuration, thereby enhancing the competitiveness of enterprises, to specifically about the function of enterprise culture.
Organizational culture is possibly the key factor determining an organization's capacity, effectiveness, and longevity. It also contributes significantly to the organization's brand image and brand promise.
Organizational Culture creates energy and momentum. The organization will benefit from the energy and create a new momentum for success. The chart below is the analysis of the function of the organizational culture to a company.
Importance of organizational culture
Cohesive: Enterprise culture cohesion comes from the ultimate goal of a company. If the target of the enterprise is in line with the interests of enterprises, and with the vast majority of individual interests, which is a collective and individual win-win goal, Enterprise culture can put employees tightly together, to create a strong centripetal force, make the staff unite as one, in step, to achieve the goal and work hard
Attractive: Excellent enterprise culture, not only to staff has strong attraction, as well as partners , such as customers, suppliers, customers and social public have very big gravity; Excellent enterprise culture can help the company to let the current talents work stable, Meanwhile, attract more talents to work in the company
Guiding: The enterprise culture is like an invisible baton, let employee consciousness according to the requirements of enterprises to do, this is the corporate culture oriented effect. The enterprise's core values and spirit of enterprise, to exert an invisible guide function, to provide enterprises and employees to provide direction and method, make employee to follow, so that enterprises and individuals will and vision to unite, promote enterprise development and growth.
Encouraging: Excellent enterprise culture can inspire and motivate employees. A good working atmosphere can let the employees work attentively and efficiency. The enterprise culture formed by the cultural atmosphere and value orientation is a kind of spiritual motivation, to mobilize and arouse the worker's enthusiasm, initiative and creativity of the people, the potential intelligence evoked out, make the staff's ability to get full-scale development, enhance the overall execution(Wisegeek.2012)
Restrain¼šCorporate culture itself has a normative role, enterprise cultural norms including ethics, code of conduct and a norm. When the corporate culture to rise a certain height when the specification into intangible binding. It let the staff understand what they need to do or not to do. Through these soft constraints to improve employee's initiative, enthusiasm, initiative and self restraint, so that employees work clearly significance and methods of work, so as to improve employees' sense of responsibility and sense of mission.
Competitive: A good enterprise culture, can promote the healthy development of the enterprise, employee positive performance of mobility, work more enthusiasm, at the same time, improves the production efficiency, to the enterprise benefit rise, infuse new power, the construction of enterprise culture to enterprise benefits it is self-evident, the competitiveness of enterprises is not only in technology, also reflected in the enterprise culture.( Chinavigor.2010)
The above analysis is the function of organizational culture. The 6 points can promote the implementation of the corporate strategy. Organizational culture is an assignable factor to corporate strategy. Good organizational culture have an positive impact on the developments of a company, conversely it becomes the shortcomings of the company.
Different cultures influence on different strategic management
National and culture are inseparable, certain culture is the national culture. Enterprise culture is a country microcosmic organization culture, it is the country's national culture constituent, so a national enterprise culture characteristic is actually represent the national culture characteristics.
America is a country which combined many nations, it determines United States national culture more likely individualism characteristics.
America: Individualism is the core of the organizational culture of American companies. but this doesn't mean selfish, it emphasizes individual Independence, initiative, personality and personal achievements the American companies encourage the employees to struggle ,responsible and determine themselves. In most companies in the enterprise personal heroism is prominent; many enterprises often put enterprise entrepreneurs or to enterprise made great contribution to the personal recommended as a hero. If companies want to evaluate their staff the personal ability is they factor they are looking at. And according this to decide whether raise pays and promotion. Regardless the ages, qualification or education background.
We take the 'Google" company as an example. Google is a high technology company which good at the cloud computing, emails, maps and even the headphone system. in this company the employees can take the free transportations to company, having the meal from breakfast to dinner. They have a segway in the office .there are having the dentist and family doctor as well in the company. When you have a baby you can swim and play volleyball down there. And you can decorate your personal office .They use the free and flexible policy to take place the strict rules. Google pay more respect to their staff and care the personal ability, encourage staff to create some new concept in the IT area.
European culture is affected by the influence of Christian, Christian formed Europe moral model. The Christian belief in God, that God is merciful, God teach people should love each other. Affected by this concept Europeans focus the Rational and scientific, emphasizing logical reference and rational analysis.
Although the European enterprise culture foundation is the same, but each country because the differences of national culture, European each country enterprise culture also exists difference.
Britain: since the background of culture, hereditary concept has strong impacts on their thoughts. The landlord nobles regarded as social upper, the enterprise operator in low social rank, So British entrepreneur values more exquisite and social status and level difference, not valued by excellent management performance, you join the upper society, the entrepreneur eager to join the upper class, therefore in the enterprise operation always follow the previous steps , Stick in the mud, lack of adventure.
France: France's most prominent feature is the nationalism, pride, snobbish and sense of superiority, therefore the French enterprise management a bit conservative compared to other countries.
Germany: German bureaucratic awareness is relatively concentrated, self-discipline, and diligent. Therefore, the German business management, decision-making mechanism, making large collectivize, guarantee workers' participation in management, tend to spend more time arguments, but the decision is quality.
Japan: Japan is a single nation, social structure, long-term stability and unity, ideology has strong commonality. At the same time, the Japanese nation affected by Chinese Confucianism. Japanese companies. Japan attaches great importance to deal with interpersonal relationship. It determines the organizational culture of Japanese companies focus on team spirit, and devote to the enterprises on the consistent maintenance of harmony, mutual humility, emphasizing cooperation. They are against internal competition. The enterprise is a community of interests; common values so that enterprise and individual goal has consistency .You may find they stay like a family in the family and fight for a common purpose. Superiors care about their subordinates, make a discussion before deterring some big issues. Once causing some problems the company would not blame personally but most of the staff may self-accusation. Although Japan is a single nation and a island. They are not conservative; they absorb a lot from western cultures which attention to the importance of science and technology. They combined it with their own traditional culture to form huge productivity. In business activities they learn from their partners or their competitors to make up their disadvantages. (Asia.2010)
SONY is a global manufacturer of audio, video, communications and information technology products for consumer and professional markets, its products range from laptop earphones to tv, phones. Sony pays attention to their employees and democracy. Emphasize the middle managers influences. They spend money on decoration of employees' workshop, make the employees feel relax when they working there. Highlight the importance of team work. Sony never content with the current situation they are full of hunger to advanced technology since they scare to be caught up by other companies. Because of this SONY keep learning advanced things and combined with their own technology to create some new product, appeal to the market and gain the reputation as well. (Sony.2012)
Analysis of Shangri-La
Shangri-La Hotel Group is headquartered in Hong Kong, Asia's largest luxury hotel group, was founded in 1971, Singapore. During the last 30 years developments, Shangri-La devoted to the continuous experience of the market. Now it has branches in Bangkok, Beijing, Hong Kong Seoul .It gradually formed international business network, and earn numerous honors around the world. It was regarded as one of the world's best hotel management company. Shangri-La Hotels and Resorts have achieved a good reputation and it was considerate as one of the most appreciable brands in the international hotel industry. In Shangri-La, Employ staff that has good work attitude then sends them to be trained to reach Shangri-La standard. The employees are encouraged to make personal contributions and they are treated with dignity. Everyone has basic rights and needs. To customers they have strived to provide them unique Asian service, and through their service let them feel the hospitality from Asia. Be honest to business partners and active to the social service.
Organizational culture of Shangri-La:
Business ideas: hospitality, feel like at home
Future Objectives: be the first choice of colleagues, shareholders, and business partner.
Mission statement: Heartfelt Hospitality, create unforgettable experience, delighting customs always. (Allfreepapers.2011)
Strategy of Shangri-La
General Strategy: Shangri-La's senior managers must clear strategic goals and objectives of the Shangri-La Hotel, make sure Shangri-La has clear objectives when developing.
Division strategy: Consolidate Asian market; meanwhile expand the European and American markets. Location determines the survival and development of a business so the proper location has positive effects on the business. Departments perform their duties and do their best, can not have the slightest slack, with the work of other departments in a timely manner, and to adhere to the principle of service by the Shangri-La attentive staff Asian reception
Functional strategy: In the marketing aspects of the implementation of the three-dimensional marketing in order to expand its market network, build brand. Group jointly launched with numerous airlines "frequent flyer "plan. In addition to the traditional means of marketing, Shangri-La Hotels and Resorts also pay attention to the use of the Internet to promote the hotel product and brand.
Human Resource Strategy¼šA full range of training. Shangri-La Hotels and Resorts for each employee-round, multi-level training opportunities, to promote long-term development of the individual employees.(Shangri-la.2012)
Shangri-La focus on the importance to relations with customers, employees, shareholders, and people oriented. Formulate the strategy that based on its organizational culture. Making your guests feel satisfaction, employees work at ease, rest assured shareholders' investment. Shangri-La's success has given us a prompt: The correct combination of corporate culture and strategy can generate tremendous amounts of energy, and allow enterprises to benefit
From the analysis we can see that the organizational culture play an important role in affecting the organization's strategy. The organizational culture is a guide organizational strategy development, and corporate strategy rooted in corporate culture.
There is an interactive relationship between the organizational culture and strategy. Different capacity of the organization, different stages of its developments different economic environment to the organization, whatever the objective conditions they need adopt a different strategy. Enterprises to formulate development strategies should give full consideration to the existing cultural conditions as well as cultural trends, strategy and culture of mutual tolerance, mutual coordination, to be able to favor the long-term development of the enterprise. The choice of corporate culture and strategic posture is a dynamic equilibrium process, the building of enterprise culture cannot be separated from the business development strategy, companies have chosen, the implementation strategy will inevitably have to consider the impact of corporate culture, and between them is mutual influence mutual promotion.( Igi-global.2012)
To sum up, organizational culture and strategic management have a tight relation, on the basic of fully understanding to organizational culture can make the proper strategy to allow the organization remain unbeaten status.