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In the process of developing, every organization will strive to build a value system for employees to accept, create harmony within the organization, a cultural atmosphere to promote positive strength of the collective culture, internal resources and enhance the strength of the organization. Organizational culture is a development stage of thought in modern organization management, reflecting the shifting strategic technology development to create products that contain high levels of culture. Therefore, culture can be regarded as critical elements of contemporary organization practices.
In my opinion, organizational culture plays a great role to employing and development. Corporate culture is full of cultural values should be build during the existence and development of a organization, become the values, concepts and practices, rooted in traditional activities enterprise's dominant and thinking style and behavior of all enterprise's members in the pursuit and implementation purposes. Corporate culture keeps an important position and a very important role in the development of the companies, because of any business if lack of cultural elements, language, materials, information generally known as knowledge, enterprises can hardly stand and survive. Therefore, creating and managing organization culture is a special and important task of the organizations.
What is organization culture?
"Organizational culture is the set of shared values and norms that controls organizational members' interactions with each other and suppliers, customers, and other people outside the organization" (Jones, 2010, p.201).
Organization culture is the concept of values which integrate ethical standards into business philosophy; business ideas with management methods and rules and were accepted of all organization's members. Organization culture takes the comprehensive development of human being as the terminal objective. The core of organizations culture is the spirit of enterprise and views of the organizations value. The organizations if want to stand steady on the violent market competition is necessary building it culture. We can say that culture is a source of competitive advantage and it can be used to increase organizational effectiveness.
However, corporate culture of enterprise must develop as a basis of country's culture. A country's culture can affect the values and norms of a company or a company's culture. Corporate culture must stick into the national culture to promote maximum efficiency. The nature of corporate culture is, inside, it have to strengthen internal resources, bringing together the creativity of workers and employees, encouraging them to create more profit for the enterprise and the outside it must be approved by native society. Both aspects are related to local ethnic culture, related to concepts of values, behavioral characteristics of that nation. The differences in the way of communication, the way to making decision or attitude toward the task at the national's culture will influence to the company's culture Therefore, the managers who working abroad need to sensitive to both national culture and corporate culture, building company's culture associatively with national culture. If they built corporate culture based on ethnic and cultural identity where they live, they will be successful.
How is an Organization's Culture Transmitted to Its Members?
The employees when join to the organization will have to learn about organizational cultures and the most effective way for it are through socialization. They must learn about cultural values of organization, its rules and norms; identify it and learn how to fit with the norms and culture. In the work place, they are taught to respond to the work environment new context by the way all members of organization have to follow at present which adopt organization philosophy and behavior rules. That is the characteristic way called role orientation.
We have some sets of socialization tactics which impact on newcomer's role orientation. Socialization tactics is the method which is embedding newcomers in an organization. It refer to the methods organizations use to assist newcomers who stay at the beginning adapt to organizations, provide useful information about difficulty which exist in a job, help them decrease uncertainty and anxiety so they can be desirable or necessary attitudes, behaviors, and knowledge. Some tactics which organizations combine to socialize newcomers can effect to individual's role orientation. For example, collective tactics give common learning experiences while individual tactics provide a set unique of learning experiences to each newcomer in order to learn new, adequate response for the situation. Fixed tactics give newcomers precise knowledge of the timetable associated with completing each stage in the learning process when variable tactics provide no information about when newcomers will reach a certain stage in the learning process. The content of socialization process may also differ in the chain of learning activities and experiences is sequential versus random. Sequential tactics provide newcomers with explicit information about the sequence in which they will perform new activities or occupy new roles as they advance in an organization while training base on the interests and needs of each newcomers, no set sequence to them is random process. The content tactics such as sequential and fixed tactics always provide information to help the newcomers reduce anxiety and uncertainty. It also provides knowledge for them to know how to fit to the organization.
Where does Organizational Culture come from?
When study about organizational culture, we have to find out what factors can contribute developing organization's culture. According to Gareth Jones, characteristics of people within the organization, organizational ethics, property rights and organizational structure are four factors which interaction to develop the organizational culture. These factors have differing interaction to the organizational culture.
The characteristics of people within the organization such as experiences and personalities will create and have effect to the culture of organization. Culture of an organization is made up of all the life experiences each individual brings to the organization. It creates difference between organizations. For example, the culture of an organization will be open and sociable if the people in it are very outgoing. People who have difference personalities, ethics or values will be match with suitable organizations which have similarity values with them. Organization's culture is particularly influenced by the founder, chief executive of the organization, and other managers because of their role in decision making. Their values and beliefs, attitude or behavior will make up the foundations of organization's culture. The directors of enterprises tend to recruit people who have the same style of cultures with them. Culture is behavior that results when those groups get a set of rules to work together. Company culture is similar as cultural regions. People in different organizations, or in different parts of the same organization, will behave in different ways.
An organization need control member's behavior by ethical value system. Beliefs, moral values, and rules can be set up the appropriate way for the members in organization to wok with another and with the environment. That is organization ethics. Organization need to ensure that ethics will become a part of culture in the organization. Organization ethics springs from the personality and beliefs of the founder and top management and all staffs have to involve with. It can be consider as the law that every members have to obey as commandment. In order to specify the implementation of ethical issues, every business should develop and apply a set of ethics rules. It express ethical norms and values, including some important things such as the support and performance requirements of ethical business leaders; Commitments and responsibilities of businesses to employees; the moral values and responsibilities that employees must comply towards colleagues, leaders, customers, governments and communities; and the mode of information and how to solve problems related to ethics. This code of ethics are very clear, easy to remember and unambiguous such as honest, fairness, respect, ability to adapt to change, protect the environment ect. It demonstrates the organization's interest in business ethics and communicates core beliefs to employees and the boards of managers have to make sure that all members of organizations obey the law. Besides playing an important role in made up ethical and values of organization, the founders and managers have to be a typical example ethics for anyone to follow. From the leader, cultural background and will spread and share to other staff. The new members must learn and follow this culture if they want to survive and develop in the work environment. If your company has good cultural background, people will identify themselves with company in a long time. The relationship between employees is also improved. They feel so proud and will devote their best. This is contributing the motivation and improves performance.
The values in culture of an organization also derive from the way distribution of organization, the property rights. That an organization gives to members to receive and use organizational resources. "Property rights define the rights and responsibility of each inside stakeholder group in the organization" (Jones, 2010, p.216). It is very difference from each group. Shareholders and the managers have strong property rights because of the contribution of them to the development of organization and the strong attachment to organization through creation of profits and share it. Shareholders can share more profit because they own the resources of the company while managers are enjoy large resources as high income, stock option ectâ€¦that rights are motivations to encourage them making a contribution for organization. Besides, managers are the persons who decide which property rights could be dispense for the one who have been received. In the other hand, most workers have simply property rights such as wages, health care and pension benefit which reflect their responsibility and their task in the organization. Therefore, the distribution of property rights has a direct influence to employee behavior and become a motivation of organization's member. Property rights also make distribution to different stakeholders and it can be determines as how it effect to an organization and the culture that come up in the organization. The culture of organization can develop or destroy by the power of property rights. The difference way organizations treat to its member will determine the difference culture. An open working environment where employees can share information and knowledge freely comfortable likely to create good conditions for a company can achieve their goals.
Organizational structure is the fourth factor which can promote cultural values of the organization. Organizational structure is the way organizations devise of task and authority to control its activities. It is the arrangement; arrange everyone in the company in the role and the specific job. In other words, organizational structure is the responsibility or role to be distributed to many different people to achieve common goals and tasks. Therefore, difference structure will bring difference culture. The design of organization can direct effect to the behavior of its members. For example, in decentralized structure, employees may make decision and freely to choose and act outside their authority while formalization structural give the control by rules, routines and procedures. Organizational structure and culture have interaction relationship. Structure influence culture values by guiding the perform activities of members in organization whereas culture may improvement the structure coordinate way and manage organization resources to help achieve organization's goals. People can design organization structure and manage its culture become a source of competitive advantage.
Can Organizational Culture be managed?
When companies have many years of operating experience and their staff are too accustomed to working conditions in the stage of economic development but can not adapt to the challenges caused by economic crisis or when people in an organization realize that their organizational culture at present needs to modify in order to support the organization's success and progress, they can manage to change organizational culture. But changing organizational culture is the very difficult task because it was formed over years and need to change organization's values of interaction between the participants in the organization. Before changing the cultural, it needs to identify the deficiencies in the current culture of the organization. New enterprise culture must support the implementation of successful development strategies. Enterprises should set out a vision, mission and need to adjust any culture how to successfully implement for it. There are two important elements to create a corporate culture change is the support of all members and how to train a new cultural style of the CEO. The directors just have taken the initiative in adjusting their behavior and are consistent in the change. When an organization culture change, it must be change the people in it. The staff members need to understand what is expected from them and must know how to express these behaviors in reality. The individuals in the organization must have unanimity to change their behavior to create a corporate culture environment as desired. This is the most difficult step in the process of changing corporate culture. The role of company leaders who not only outlined the strategic plan but also be exposed to exchange with their employees and change their thinking in order to carry out its commitments towards new development of company. The approach of the leaders who make all these changes is what makes employees feel that they are part of the company. For example, if employees know they can walk into a room of the boss, the president and be greeted with the attention and respect, they will work harder. This step can help save a lot of money, because employees feel more comfortable in making suggestions on their level and it can be tested.
Organization in the development process must strengthen the moral sense of common interest in social security. Social responsibility is understood as the commitment of organizations to contribute to the sustainable economic development through improving the quality of workers life and their family members, manner that is beneficial to business, as well as the general development of society. Organizations which always want sustainable development must comply with the standards of environmental protection, gender equality, occupational safety, training and employee development, community development.
We have some kinds of decision signal of organization's committal to social responsibility from low to high, from obstructionist, defensive, accommodative to proactive approach. These approaches interpret the way how managers of organizations behave to social responsibility from the unethically and illegally to willing to promote the responsibility to the society. However, corporate social responsibility now is being considered as a way of marketing and become the knowledge which the managers have to study. It will help providing more benefits to their companies by enhancing image and contribute to building corporate brand equity
A modern enterprise can only be viewed as social responsibility if they ensure their activities do not cause harm to the environment, which means to demonstrate environmental friendly in production process. They have to interest in not only materially but also spiritually of employees, with solutions that help them recreate their strength. The enterprise must respect the rights of equality, without discrimination in terms of gender in labor recruitment and wages payment base on equality of each person's capabilities. The enterprise must also provide well quality products, not harm to the health of consumers and set aside part of their profit to contribute for the aid community. An enterprise must not only consider their products as part makes the process of human development but also to consider the construction of their corporate culture is an integral part of human culture
Enterprises developed rapidly but the consequences of the development were also severe, the most obvious manifestation is the environmental pollution and waste of resources. In order to remedy that, we should adopt corporate culture aims to develop long-term, sustainable development avoid the immediate benefit but forget the benefits of other people. We should orientate of development as a way to combine organic growth with the advancement of enterprises to ensure the continuity, stability, harmony development.
At present, more and more consumers around the world suppose that the company must take responsibility for their employees in particular and society in general. Besides the important criteria of quality, hygiene, safety and environment, social issues increasingly higher significance. Consumers eventually considered "business ethics" as a criterion for selection. This arises partly because the mass media and group activities for the benefit of consumers are demanding multi-national companies are responsible towards society, respect for human rights and the environment. Therefore, organizations have to pay more attention to social responsibility because it brings a lot of benefits to them. A modern, clean technology came with the input low price. A system of effective personnel management can also help cut costs and increase labor productivity significantly. A company which has certificate are friendly to the environment can help improve the reputation and brand value of companies. The companies which pay adequate and fair, creating opportunities for staff training, health insurance and a good working environment can also have ability to attract and retain good staffs.
Organizational culture is countless forms of expression, organizational culture but not done in a day or two, it could take over times. The construction of organizational culture is not a slogan; it must be nurtured in their individual businesses. Building culture is the key for organization survival and firm foundation development. Clearly, corporate culture is the foundation to create business value, is a vital element of business. Leadership will be very difficult to build a culture of enterprise if it does not convey the cultural benefits to the staffs.
The biggest benefit of corporate culture is capable of creating a cohesive enterprise members, creating a high uniformity, towards the consolidation objectives by voluntary action, as a rhythmic own internal resources of the enterprise. It creates unique in the way of business and ways to respond customer's corporate, including the creation of individual chances of a smooth embossed joint to creative space of the collective enterprise.
We can say, organizational culture is to create a code of conduct for enterprise but not having to create direct effects. Building culture synonymous with making the capability development product and capacity to unite agreement of the collective enterprise becomes prosperity; increase the employee's attachment to the enterprise, improving organizations efficiency.