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By "Organizational Culture" we mean that it is the idea of organization, which describe the main experiences, nature, behavior, experimentation and the values of organization. It is further defined that it is the idea and experiences of different people of the organization. Different economist and author explain the organizational culture according to there own point of view. According to Ravisi and Schultz states that organizational culture is collection of shared mental assumptions that leads to interpretation and action inside organization by explaining relational behaviors for various situations.
This explanation continues to describe the organizational aspects, which states "beliefs and ideas about that what sort of goals employee of an organization that should peruse and ideas regarding the appropriate kinds or quality of organizational members should use to retain these objectives.
It has been explained that particular collection of ideas and norms shared by member or group of members inside organization and that ménage the way they interact with each other and with their business partner outside the organization. Although it is difficult to get consensus about the explanations of organizational culture, different constructs are collectively agreed upon the organizational culture is holistic, historically explained, related to anthropological concepts, socially constructed, soft and difficult to change.
From above explanations and definitions it is concluded that organizational culture is the collection of facts and figure, ideas, beliefs, psychology, attitude and values of members of an organization.
ROLE OF ORGANANIAZATIONAL CULTURE IN BUSINESS:
Organizational culture plays very important role in development of business. From different research and experimentation it has been came to know that organizational culture tremendously improve the organization and business activities which helps the organization up to large extent to increase and robust the business. There are mangers who creates an organization and developed an organization culture by using such personal characteristics as charisma.(Sechein,2004,p.245) Some of the importances of organizational culture are mentioned below.
Competency of the edge extracted from designing and innovation and customer services.
Consistent, effectiveness of employee proficiency.
Team and group cohesiveness.
Bold and high employee attitude and morale.
Strong and competitive alignment and cohesiveness towards the achievement of targets and goals.
Increase in the courage and income of business organization.
Helps in survival of business organization in economical crises.
Decreasing in downsizing of organization members in unfavorable economic condition.
Helps in the recruitment and retention of members and employee.
Build the concert relation between customer and origination.
Although empirical research, which exists to support the linkage between organizational culture and business, there, is abet doubly among experts that this relationship exists. Organizational culture oriented business have been shown to the process statistically tremendous economical growth. Such organizational culture organization posse's high employee involvement, high internal communications and encouragement of a healthy level of risk taking in order to achievement in design and innovation. Individuals to be attracted to and remain interact with business organization that they may perceive to be compatible. In addition to, high turnover might be mediated factor in the relationship between organizational culture and business organization performance. Deteriorating company performance and unhealthy work environment are the main signs of an overdue cultural assessment.
FACTORS INVOLVE IN ORGANZATIONAL CULTURE:
Organizational culture has great influnce in the organization member's life in addition, it also provide help to gain positive economical results. Organizational culture has very important role in achieving internal integration and implementation of strategy of adopting the external environment. Hence many companies are they're which search for there organizational culture and leaders, if required, seek consciously to form, develop and change organizational culture. The analysis of different sources of scientific literature suggests that the factors which effect the organizational culture are divided into three groups(Schein,2004,Driskill and others,2005,p,53,Schabracq,2007,p.31-37)
Factor indirectly influencing organizational culture (macro-environment of organization)
Factor directly influencing organizational culture (micro-environment of organization)
Factor of leader's impact.
FACTOR INVOLVE IN STRUCTURING AN ORGANIZATION:
There are different factor, which involve while structuring an organization, but few of them are as fallows;
Larger the size of the organization, there will be more complication while structuring the organization. When the size of the organization is small just like retailer store, a two persons consulting firm or hotel or restaurant, its structure will much easier and sample.
If the size of the organization is small, so may be has formal structure. The owner of the organization is all and all in there authority and he can plan for their organization without taking any decisions from other people or partner.
But when the size of the organization grows bigger and bigger so it becomes more difficult to mange the organization so that should take help of following the formal wok assignment. That's why the large organization is usually mechanistic, which are designed to maximize specialization and improve efficiency.
ORGANIZATION LIFE CYCLE:
Organization tends to progress through different stages like humans, are called life cycle. This life cycle of organization includes four stages: birth, youth, midlife, and maturity.
BIRTH: In birth stage the firm is just beginning. Organization, yet not have formal structure. In this newborn organization have not much delegation authority. Usually the founder "calls the shots"
YOUTH: In this the organization tries to grow. The emphasis in this period becomes larger. The company shifts its attention fro the wishes of the founder to the desire of their customer. In this phase of life cycle of organization have delegation authority and have well organic structure. The formal structure of the organization takes place in this phase.
MIDLIFE: When the organization achieves high level of success then that phase is called midlife. With more complex and increasingly formal structure, the midlife of the organization become larger. There is series of command; the head of the organization may have hurdles while handling the organization. As the organization become larger it become out of control of founder and lot of mechanistic is involve.
MATURITY: Once the organization reaches its high level success then it tries to not expend, less innovative, and more interested in maintaining itself in stable and secure environment. It tries to improve its efficiency. As long as, in an attempting to improve its proficiency and probability, the organization tries to become less innovative.
As the life cycle concept implies, a relation exist between an organization size and age. As time passes, the organization become larger and larger, its requirement and needs increase, this may include infrastructure, staff, logistics, furniture, technology and mechanistic. And the organic structure turns
over to mechanistic structure.
"STRATEGY: How an organization is going to position itself in the market in term of its product is considered its strategy. The organization tries to maintain it product on the top of market so it adopts different strategy such as cost effective strategy, quality effect strategy, new product strategy etc. Each strategy requires a structure, which leads the organization to achieve its goal in the market.
ENVIRONMENT: The environment is the place where the organization operates, it also include the condition that influences the organization such as economic, social-cultural, legal-political, technological and natural environment condition. Environment are often describe as "Stable environment" or "Dynamic"
STABLE ENVIRONMENT: In stable environment the customer desires are well understood and remain consistent for long time."
"DYNAMIC ENVIRONMENT: In dynamic environment the customer desire is changing. This condition is often thought of as turbulent.
TECHNOLOGY: Advance in technology is the most frequent cause of change in organization since they result in greater efficiency and lower cost for the firm. Technology is the way tasks are accomplished using tools, equipments, techniques, and human know -how. Joan Woodward classified the manufacturing firm into group of three core-manufacturing technology;
SMALL BATCH PRODUCTION: This is use used to manufacture a variety of custom made to order goods. A print shop is an example of a business that uses small-batch production.
MASS PRODUCTION: This type is used for large scale of uniform goods in an assembly -line system. Workers are greatly dependent on one another as product passes from stage to stage until completion. One of mysterious aspects of the organization is that two manufacturing company operating in same environment having same technology so there faction will be quite different in long term (Scheian, 2004, p. 225). A company of bottles soda is an example of an organization that utilizes mass production.
CONTINUOUS-PROCESS PRODUCTION: Organization using process creates the good with continuous feeding of raw material through high automatic system. Such types of systems are equipments intensive and require small number of labor to operate. Classic example is automated chemical plants and oil refineries."
"Based on all the characteristic of each dimension, organizational culture, we can describe as a humanist organization. A humanist organization is the combination of result-oriented culture, employee-oriented culture, opened culture, the control towards the employees is loose, and it is pragmatics.The funcation and unitarist views of organzational culture put forward by mainstream management thinkers. While that is not necessarily denying that organizations are cultural phenomena, they might be stress the ways in which cultural assumptions can stifle dissent and reproduce management propaganda and ideology. After all, it would be naive to believe that a single culture exists in all organizations, or that organizationalcultural will reflect the interests of all partner within an organization. Authers have suggested that many of the assumptions of those putting forward theories of organizational culture are not new. They reflect a long-term tension between cultural and structural (or informal and formal) versions of what organizations are. In addition to, it is perfectly reasonable to suggest that compliicated organizations might have many cultures, and that such sub-cultures might overlap and relate each other. The clear typologies of cultural forms found in litrature rarely acknowledge such complexities, or the various finenical contradictions that appears in capitalist organization."
INTRNAL UNITE ABSTARCT DATA MODLE:
"As a defense against rapidly fluctuation business law greatly affected the chemistry of the organization flow chart, designer began to propose a more sample model to help their enterprise's organization structure
Likewise, the model can easily accommodate changing the names of unit categories, in addition of new ones, or reevaluate the business rules that define the limits among the unit categories. Each functional area can explain the organizational structure meaningful to it. With this model, Bank of Whatever's data management unit can assemble itself into teams rather than branches."
Barney, J. B. (1986). Organizational Culture: Can It Be a Source of Sustained Competitive Advantage?. Academy of Management Review, 11(3), 656-665.
Black, Richard J. (2003) Organizational Culture: Creating the Influence Needed for Strategic Success, London UK, ISBN 1-58112-211-X
Scheian, 2004, p. 225
Schein, 2004, Driskill and others, 2005, p, 53,Schabracq, 2007,p.31-37