Organizational culture is defines the different type of place an organization, this organization is for people, they will be any type of stakeholder: general manager director, employee and customer. Organizational culture is the big part of values, rules, symbols, taboos and rituals that evolve over time. It is the common feel and thinking shared by members that identifies how is the things get done in the organization. Culture drives expected behaviors internal to the organization ads well and those engaged when interacting with its outside environment. Understanding an organization’s culture helps an employee learn the line and discover whether their personality is a good fit. The greater the acceptance of key values and norms, the stronger the culture. Strong cultures are associated with employee commitment and organizational performance. The strength of culture is determined by the size of the firm, how long it has been around, intensity and turnover rate.
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Organizational culture is reflected in the way that people in an organization perform tasks, set objectives and administer resources to achieve them. It affects the way that they make decision, think, feel and act in response to opportunities and threats. Culture also influences the selection of people for the particular jobs, which in turn affects the way that tasks are carried out and decisions are made. Culture is so fundamental that it affects behavior. Organizational Culture is not alone, the culture is in the people mind to lead the people behavior, to help the stuff come together with out money.
Organizational culture is also a linked with leadership. It is the leader or leader group that should set the tone and tasks for the organization. The organizational culture now in an organization is like a mirror, to show you how good with the leader personal ability, if the leader is strong enough, he or she will have a very clear future about what should be done and how to do it. If the leader ship is weak the culture may be always around on decision making to accomplish lower level objectives. The organizational culture is not only help the company grown, it is also a good test of the organizational viability. The organizational culture is reflected from six ways. There are vision, trust, self-knowledge, responsiveness to the situation and creativity. For vision, this is the point to give the confidence and positive feel to change the proposed. For communication, the blue print-need to be shared with every member. Passion for work need to be communicated with each other and groups inspired to meet the challenge of change. For trust, consistency and integrity need to be part of the leader’s approach if people are follow willingly. For self-knowledge, leader also need to know their strengths and weaknesses and be able to acknowledge these. No one is good at everything, nor needs to be. For responsiveness to the situation, leadership in strategy will occasionally require positive ‘championing’ of the new way forward. This may demand a degree of aggression to achieve the objective. At other times, leadership may need to be more participate and ‘listening’ in its style. For the last point, creativity, Strategy development needs innovation. The leader will not have all the answers but will know how to ask the right question. (Corporate strategy, 1997)
Why is it important¼Ÿ
Organizational culture in an organizational strategic management since the favored culture is a main part of the influence on current strategic change may require a change in the culture. Culture is consequently a vital element in both strategy creation and strategy implementation.
The organizational culture is so important to an organization. A dynamically View suggests that an organizational culture develops to help it face with its current environment. Now, an organizational leaders must deal with many complex issues during their attempts to generate organizational achievement in Vague, Unpredictable, Complex, Ambiguous environments. A leader being success will depend, mostly part of job, must understanding the real organizational culture. (Edgar Schein)
An organizational external environment is always changing, and the strategic is change is become often. The important things for an organization is therefore how to role the resource of all its people stuff to agree until business success. In most organizations, there will be a ‘organizational culture’ of agreement on the way forward, but there will also be some people disagree. This is a phenomenon of healthy good organization: informed debate should not be angrily. There real world will come a time, however, when strategy decisions must be come out. It will then be quite necessary to move the organization forward in a positive way. This is where the culture and style of the organization are important- to moves beyond the disagreements and relishes the positive strategic challenge.
Many of the problems confronting leaders can be traced to their inability to analyze and evaluate organizational cultures. They do not understand what is the organizational culture, they just manager as their thinking Many leaders, when trying to make and use the new strategies or a strategic plan leading to a new vision, will discover that their strategies will fail if they are inconsistent with the organization’s culture. A CEO, SES, political appointee, or flag officer who comes into an organization prepared to “shake the place up” and institute sweeping changes, often experiences resistance to changes and failure. Difficulties with organizational transformations arise from failures to analyze an organization’s existing culture. (Edgar Schein)
What is the organizational culture impact on employee?
As we know, every organization no matter big one or small one, all of them from the same way made by people. Organizational culture defines the way employees complete tasks and interact with each other in an organization. The cultural paradigm comprises various beliefs, values, rituals and symbols that govern the operating style of the people within a company. Corporate culture binds the workforce together and provides a direction for the company. In times of change, the biggest challenge for any organization may be to change its culture, as the employees are already accustomed to a certain way of doing things.
For example, all the people know that the United States produces “100-meter running champion” place, all employee Personal ability is very strong, they will make a big mark in a very short period of time. All of that is from The United States incentives system. When the new employees come to the organization and get the good result, the company will rewarded immediately, consider the pay raise as well. All of these things will give the new employees power stimulated the enthusiasm of the staff greatly. But in Japanese company, this is the place to make “marathon” player, the employees in Japanese are much more ‘endurance’. This is from the incentives system, but Japanese type. The new employees even make the great achievements, the company will not immediately rewarded. New employees into the company is not considered generally, some time seven years old employee is not considered, the eighth year just start to upgrade slowly by slowly, and reward systems is to help the employee belonging to the company.
What is the organizational culture impact on customer?
Customer needs excellent organizational culture. When the customers come into the store, they are here for products, they are here for service, and high quality service will give the feeling for customers to buy the product. The organization use the high quality service attracted the customer. The businessman use ‘service first’, ‘users first’ ‘the user is God’ as the organizational culture. The attitude of enthusiasm, operation correctly, business civilized, all of them are what the customer needs, it will give the customers deep impression, it will help the organization improve the competitive power and popularity. Secondly, organizational culture is the window of company product and the communication between customer and organization. Corporate culture make the formation characteristics of the organization, this one improve the visibility of the organization and competitive strength. This is based on customer trust. So the enterprise culture needs to be shown, the show will help enhance the visibility of the company and improve the company competition ability. The People make any social behavior all with the cultural meaning, is a cultural phenomenon. This is because the organizational culture has the orientation, constraint, incentive and function, these functions in the role, make organizational staff to show the culture characteristic behavior, the guest and the customer will feel their behavior and perception to recognize the organizational culture, this will make the communication of organizational culture come true.
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For example Wal-Mart is a famous super market, wal-mart has a very excellent organizational culture, the boss of WAL-MART is SAM. He rule the corporate headquarters senior can not driving luxury cars, expensive cars, because ‘if the customer think you are drive a car famous car, they will think, they will say that these people who from the Wal-Mart are making money from us take money from us, to enjoy like their life.’ The company earn money, that is not means everything is cheap. The key is to create WAL-MART a cheap in customers mind to knowledge the super market WAL-MART is super cheap than other. In fact, for some the product which customers to understand, WAL-MART’s pricing is quite cheap, for some products they don’t know the price will be like normal or even expensive, WAL-MART is not cheap. WAL-MART is a powerful low-cost publicity strategy show to the customer, the result in the customer minds of is: WAL-MART is the cheapest super market in the earth. So the customer did not care about the prices in Wal-Mart. But WAL-MART every day some sales and promotion product, do create people remember WAL-MART is super cheap, but also to attract customers, and the customer come to the WAL-MART they are not only buy several specials cheapest product, some normal product as well.
What is the organizational culture impact on partner.
Twenty-first Century is the age of organizational cultural management, organizational cultural can be make money. Organizational culture is the main force for competitive, this is the most important organizational management. “Fortune” magazine of the global top 500 companies all have the good culture, the rater also summed up the key to success is organizational culture. Culture is always can not instead of the competitive factors, the company depends on the talented person and organizational culture. At this point, many enterprises have become agree with it.
For example¼ŒIn year 1999, Haier company began the start international strategy, Haier want to join the 500 world strong company. Haier merger Red Star electric company is one of the most successful example, and Haier did not invest any money, just used his brand, management and enterprise culture as intangible assets, make Red Star profitability, and become the important part of the Department of Haier washing machine. Qingdao Star Electric plant has a staff of 3240 people in 1995, until June 1995, indebted rate of asset is as high as 143.65%, general debility 1.33 billion RMB. Red Star electric company has 30 years history, it is the first domestic largest washing machine company. In 1980s red star company is the forefront of the washing machine industry. However, red star company is poor of management. In 1995, the red star orgnaization is overstaffing, poor product quality, in fact, market sales position drop from the second to seventh place. More than 10 years never change, high risk, even change four general manager, but the business never change better, year by year badly. Until June 1995 the monthly loss around 7.5 million RMB. Haier brand is famous and the organizational culture is good, red star company have power is l00 million production ability. But there is no famous brand, the only way for red star development must use Haier brand and organizational culture. July 4, 1995, red star factory is belonging to Haier company, with all the debts as well. Haier give the plan to Red Star in two steps: firstly, the Haier company as a teacher to show the new employees to know the Haier organizational culture, the people who from the quality control center control the quality. The second step, improve work efficiency, Haier sent quality assurance system team to check all detail factory. Haier Group Executive Vice President Yang Mianmian to lead the Haier’s original Advisory Certification Center, explains the Haier organizational culture of the company: ‘follow excellence’all the product follow the market, not cheap goods, take care everything with customer, follow the Haier New organizational culture, the original red star electric company’s all work is around the market, in the China Consumer Association complaint rate survey, in 1996, Haier washing machine is the only one rate of zero complaints company. Until know, Haier Group has 8 types more than 50 kinds of specifications of the washing machine products, Haier become world’s production in Europe, Asia, America three style washing machine company. Haier use the organizational culture help the red star factory profitability, make himself has become a large international company.
What is the organizational culture impact on CSR
The sustainable development of organization needs ratification by the social, so the organization should put their own interests and social interests together. But when we balance the interests of stakeholders, we still have social responsibility, the social responsibility in organizational culture, we can find social responsibility from their own organizational culture, this is the current organization target of the social responsibility of organizational culture.
There are so many Internet Company, Alibaba in e-commerce, provides professional services for B2B. Although Alibaba is an Internet company quite far away with the social problem such as environmental pollution, but our service is basic on the production of trade company. Alibaba will try to advocate recycling economy, Alibaba care about our production, living environment, the company have to make clear a requirement, the secondary forest growth must be through by the FSC attestation. All of that is the organizational culture go through the CSR in environmental protection.
How has the culture affected its strategic decisions.
Any organization or individual exists in certain environment of culture and is affected by it inevitably. Strategic decision is the decision about the overall abd future situation of a corporation, which is also affected by environment of culture especially organizational culture. Organizational culture has the orientation effect on strategic decisions. Organizational culture influences the risk direction of strategic decisions. And organizational culture affects strategic decision’s implementation and evaluation.
How has the culture affected its strategic choices.
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