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Organizational cultures correspond to a variety of idea types that might be the reflection of two or more variables and it is based on classification approach. Hofstede (1980) shown an study based on this approach which is known as the best study where he gathered data from the employees of IBM over 40 countries. The writer identified 4 different dimensions of an organizational culture and these are as follows:
He later described the culture of an organization in the following features and through a concept:
Historically determined that means the reflecting the history of the organization;
Holistic; which means describing a whole which is more than the sum of its parts;
Difficult to change;
Socially constructed; that means preserved and created by the group of people who together form an organization;
Related to the things that the anthropologists study such as rituals and symbols.
If the qualitative and the quantitative approaches are compared then they will generate a number of methods which are quantitative and that can be utilized to calculate the culture of a corporate business. The questionnaires that can be developed in many ways and that can be compared with the advantages which is qualitative and also covers the large samples at the lowest cost possible. (Sackman, 1991)
Organizational culture: assumptions
We can identify the numbers of assumptions about culture of an organization from the literature review. The most significant assumptions will be discussed and presented in the followings and those four important assumptions are as follows:
According to Ogbonna and Harris (2002), the change of cultureâ€™s literature review is analyzed by the authors and the process of the change of the organizational culture may be influenced and also the number of can be adopted through this perspective. These all are basically researches. This is the firs assumptions of organizational culture and even it could change with resistance but to some extends those are very much manageable. (Scott et al 2002 )
The second one is referring to the possibilities of identifying individual attributes and contents which may inhibit or facilitate better performances and through this help the mangers who usually design the strategic part for cultural changes may get the appropriate solutions.
The third assumption is about the performances with different cultures of an individual organization.
The last assumption is all about the advantages and benefits that are achieved from the changes and these will compensate any negative or unwanted situation. (Scott et al, 2003)
Organizational culture and sustained competitive advantage
Barney identified three different conditions that have to be together to get the sustained advantages for a company which are competitive. First of all, the value of a culture is very important because to get the highest profit the company needs to behave in such a manner that can lead them to their goal. If they are the winner then they can also lower their costs and expenses. Secondly, the culture must have different characteristics that can differentiate the firm from others where they have a large number of different cultures. In addition, a culture has to be imitable but imperfect. So the other companies may try to imitate them but it is sure that they will fail to mimic in a right way and If the other companies fail to do it then this will be better for that specific organization.
The impact of organizational culture on corporate performance
The imaginary tale on culture of an organization is very rich and diverse in nature and most of them are found on the claims which the cultures are linked to organizational performances. There are theorists who shown fingers to the link of a culture performance, enough confirmation suggested that the culture of an organization is associated with the performance of an organization. (Ogbonna et al 2000)
Denison (1984) conducted one of the earliest quantitative studies on the performance of a culture link and he used data from 34 American firms over five years period. This writer investigated characteristic of the culture of an organization of these firms and tracked their performances over time to time. To understand and measure these performances the author was using data that were achieved from sales and investments. To measure performance the author used data on returns on investment and sales. For organizational performance responses on a one time survey regarding the perceptions of work organization and participation in decision making were gathered. Although, the author found that organizational culture is correlated with financial performance and some of his measurement indicators differ in the strength of the relationship between culture and performance.
Work designs and decision makings were conducted long term financial performances where leadership or supervisory was done under short term performance. Although these have encouraged results and the studies are with limitations. The criticisms that are most important referred to the uses of employees perception whish suggests, the research has gained the measurement of the climate of an organization rather than getting the measurement of an organizational culture. (Lim 1995) An author called Rousseau (1990) has tried in the research for overcoming some of the limitation of the measurement of the culture of the organization. 32 voluntary services have been gathered from an organization using the performances measurements and some money that has been raised from the campaign which is completed recently. To measure organisational culture and the results gathered from it has shown that there are some positive correlations between culture and performances and it was conducted by Kotler and Heskett (1992) They used data gathered from 207 firms over a five year period. In this study they used various measures of culture and long term economic performance data. Their initial objective was to examine the relationship between strong cultures and long term performance. Even though they found only a minor correlation between strong culture and long term performance, subsequent investigations showed that firms with cultures suited to their market environment have better performance than those that are less fitted to their environment.
Marcoulides and Heck (1993) has examined the relationships in between the culture of an organization and performances using data achieved from 26 companies. The writers suggested a model where the culture of an organization has been measured using many concealed variables and the result has shown that all of these variables were used to measure the culture of an organization which had some effect on performances with the workersâ€™ attitudes and tasks and also organizational activities that being the most significant. Two authors Ogbonna and Harris (2002) has analyzed the relationship in between two things. One is culture of the organization and the other one is performance and thus including the leadership style as the third variable of the model and there a sample is used of 1000 units from the analysis which has to be financial. it has bees gathered from the database which is registered of British companies.To measure performance they used variables such as: customer satisfaction, sales growth, market share, competitive advantage and sales volume. For organizational culture they used measures such as: competitive culture, innovative culture, bureaucratic culture and community culture. The results showed that all four measures of organizational culture were associated in some way with corporate performance. More specifically, innovative and competitive cultures had a direct effect on performance and accounted for approximately 25 per cent of the variance in organizational performance. Both competitive and innovative cultures were 325 externally oriented in line with the assumption that organizational culture must be adaptable to external environment for a sustained competitive advantage. The bureaucratic and community cultures, which were internally oriented, were not directly related to performance.
The study has been expanded in 2002 and that time the writers analyzed the links in between the orientations of a market such as strategic human resource organizational culture, management and organizational performance. Writers also mentioned the measurements which were same as the previous ones for the performance and the culture of an organization. So the effect of an innovative culture is significant and effective also but the cultures which are bureaucratic are not related at all.