The Literature Review On Culture Concepts Commerce Essay

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According to Schein (1992) examine of organizational culture is basic to understand what goes on in organizations, how to improve the performance and what require to run them. The organizational culture can be defined as collective hypothesis, viewpoints, thinking and rules (norms) present in an organization. All the researchers identifies that organizational culture plays a vital role in the performance and the success of an organization in long term. According to Cameron and Quinn (1999) the difference between the successful organization and the other organization is the organizational culture.

There are so many definitions present for organizational culture. Few are: 

A set of understandings or meanings shared by a group of people that are largely tacit among members and are clearly relevant and distinctive to the particular group which are also passed on to new members (Louis 1980).

The deeper level of basic assumptions and beliefs that are: learned responses to the group's problems of survival in its external environment and its problems of internal integration; are shared by members of an organization; that operate unconsciously; and that define in a basic "taken -for-granted" fashion in an organization's view of itself and its environment (Schein 1988).

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Any social system arising from a network of shared ideologies consisting of two components: substance-the networks of meaning associated with ideologies, norms, and values; and forms-the practices whereby the meanings are expressed, affirmed, and communicated to members (Trice and Beyer 1984).

These three definitions show the organizational culture in different ways. The first definition analyze it as a culture as implied in community. According to this group Culture comes out naturally all persons alter each of them into group, society, ethnic group and in nations. The other two definitions shows that the culture comes out as a product from social interfacing either deliberately or accidently in result of behavior. According to Wuthnow and Witten (1988) differently it can be said that, organizational culture consist of separate obvious structure like communication, civilization, technology and work environment that people in organization form during communication and by working together in good social environment.

According to Schein (1985) levels of culture are:

Corporate culture and Behavior: this level of culture covers both objectives i.e. physical and shared level of organization. It contains privacy of individual, attitude and conducts. It also contains behavior prototype which are important for organization and observable and reachable feature.

Value: It links to the first one. This is the level by which an individual can be reviewed regarding behavioral approach. This level distinguishes the successful organization from the other ones and it consist of communal, ethical and religious facts. It place fare regulation for all individuals who worked as employees and all these regulation operate as rules for each individuals. All these regulations or values are initiated by management of the organization which work as culture hauler or answer to past troubles. All these values are visible in the process of the organization.

Basic Assumption: This level is basically for checking regularly that if there is any alteration in the culture of the organization during a proper time period.

There are some sorts of pressure also present which affect the Organization Culture:

External pressures on Organizational culture

Reputation: The organization may go into a given location for commercial advantage with preconceived ideas and they also bring with it a particular reputation. There may be wider questions of prejudice, fear and anxiety to be overcome as the organization tries to live up to its reputation.

Legal: All organizations have to work within the laws of their locations. These exert pressure on production methods, waste disposal, health and safety, marketing and selling, contractual arrangements, staff management, human resources, industrial relations and equality of opportunity and access, community relations, organizational and professional insurance and the reporting of results.

Ethical: Ethical pressures arise from the nature of work carried out and from the standards and customs of the communities in which the organizations operates. Some ethical pressures are waste disposal, result reporting, equal opportunities, staff management, industrial relations and health and safety.

Internal Pressure on the Organization culture

The interaction between the desired culture and the organizational structure and system.

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The expectations and aspirations of staff, the extent to which these are realistic and can be satisfied within the organization.

Management and supervisory style

Technology and the extent to which it impacts on the ways in which work is designed, structured and carried out.

Internal approaches and the attitudes to the legal and ethical issues indicated.

The presence of pride and commitment in the organization, its work and its reputation

Handy and Harrison's model to Organizational Culture:

The organizational culture has been studied by different researchers and they come up with different models, which offer suitable structure to the executive of the organization.

Harrison in 1987 gave a model of organizational culture which consisted of four types of culture: role culture, power culture, task culture, and support culture.

Role culture:

According to Handy (1987), In this type of culture the employee understand their accountability and trustworthiness towards the organization and towards the work. All employees work sincerely in this type of culture because of value for work and organization. (Pheysey, 1993). They don't hesitate to do other work apart from their own. In this sort of culture the leadership model proposed by Quinn and Mcgrath i.e. empirical expert model works perfectly. According to Cameron and Quinn (1999) any job linked to management, certification, and information are agreed by expertise. The example for this sort of culture is Laissez- Faire where each individual is accountable of his work and shows respect for their work.

Power Culture:

According to Handy (1985) in this type of culture work depends on some measures like rewards, penalty and fright. All employees work sincerely in this type of culture because of value for work and organization. They don't hesitate to do other work apart from their own. In this sort of culture the leadership model proposed by Quinn and Mcgrath i.e. empirical expert model works perfectly. According to Cameron, any job linked to management, certification, and information are agreed by expertise. The example for this sort of culture is Laissez- Faire where each individual is accountable of his work and shows respect for their work.

Achievement Culture or Task Culture:

In this type of culture the work based on satisfaction an individual obtain on completing the task successfully. All employees work sincerely in this type of culture because of value for work and organization. They don't hesitate to do other work apart from their own. In this sort of culture the leadership model proposed by Quinn and Mcgrath i.e. empirical expert model works perfectly. According to Cameron, any job linked to management, certification, and information are agreed by expertise. The example for this sort of culture is Laissez- Faire where each individual is accountable of his work and shows respect for their work.

Support Culture:

According to Handy (1985) in this sort of culture the work is measured as fun and it is being done primarily for personal satisfaction and also for the respect of the other associates involved. All employees work sincerely in this type of culture because of value for work and organization. They don't hesitate to do other work apart from their own. In this sort of culture the leadership model proposed by Quinn and Mcgrath i.e. empirical expert model works perfectly. According to Cameron, any job linked to management, certification, and information are agreed by expertise. The example for this sort of culture is Laissez- Faire where each individual is accountable of his work and shows respect for their work.

Case of Ritz-Carlton Hotel

Ritz-Carlton Hotel Company operates 5 star resorts and luxury hotels worldwide. The motto, credo, three steps of service, service values, the 6th diamond and the employee promise (Gold Standards) are the foundations of Ritz-Carlton Hotel. (Ritz-Carlton, n.d.) What sets Ritz-Carlton apart is its service. They fully understand and are committed to the culture of service. Even in times of financial crisis, its service quality didn't fall; it was recognized for its continuous excellence. In past several years, sales revenues have increased from $1.2 billion in 1998 to $3 billion in 2007. (Michelli, 2008)

Power culture

Ritz-Carlton Hotel has hired leaders with determination and supportive line managers. Daily for every department, there is a line-up to talk about one of the twelve service value. Weekly, President and Senior Executives meet to review measures of product and service quality. Ritz-Carlton approach to quality management is characterized by detailed planning. (Jones et al., 2008). Once a month, the General Manager has informal meeting with some employees from different department to know what can be improved. The Ladies and Gentleman are recognized and rewarded for their outstanding customer service both financially and non-financially. A 5 star Award is awarded every quarter. Hard working and committed ladies and gentleman receive day one benefits such as complimentary meals, post-eligibility benefits such as life insurance and addition benefits such as dental insurance. (Ritz-Carlton, n.d.)

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Role culture

Ritz-Carlton Hotel has its standards and job descriptions. It begins training at the values and goal levels in order to instill the philosophy of service and dealing with customers. (Donaldson and O'Toole, 2007) The behavior towards the guest had been detailed and scripted. But now it has changed and one of their services basic is 'When a guest has a problem . . . break away from your regular duties to address and resolve the issue.' (Grönfeldt and Strother, 2006)

Task culture

Ritz-Carlton carefully selects only those candidates with appropriate caring attitude, one who has right attributes to do the job. There is a 2 day orientation to learn about the Ritz-Carlton culture which is followed by extensive on the job training. (Jones et al., 2008)

The first and the most important duty of the employee are to address and resolve the customer problem. Employee can spend as much as $2000 without management approval to resolve the guest problem. This has helped employee feel valuable and lead to higher job satisfaction. (McDonald, 2004; Grönfeldt and Strother, 2006) The executive team effectively communicates with the employees when any issue arises, whether small or big and they work together to solve them.

Support culture

The motto of the organization is self explanatory about people being their greatest assets. From The credo, it can be derived that the organization empower their employees, giving them respect, trusting them and wanting them to create pride and joy where they are working. When Simon C. Cooper took the job of president of Ritz-Carlton Hotel, his first priority was to reach out and personally thank employees who were washing the laundry, who delivered the room service and cleaned the guest room. (Michelli, 2008) Now the employees are not told how to make the guest happy, but still they have been figuring out and have been able to deliver the highest customer service. Mark DeCocinis, Regional Vice President says that the priority is to take care of the employees, to trust and develop them and to provide a working environment in which they are happy.

Disadvantages of the model:

The model of "Organizational Culture" by Harrison and Handy also has a few disadvantages. To mention a few:

The model was much focused on the two criteria's of task and people. But no where it describes which of the four would be better with any organization.

The model is not analytical. It only provides the type of culture but gives no judgment to describe it further.

It compares each culture with a Greek god; Apollo, Zeus, Athena and Dionysus, to the style and structure of management within an organization.

It seems unrealistic when such comparison is provided.

The diversity and depth of culture cannot be clearly analysed.

CONCLUSION

The culture of the organisation is based on the attitude towards there change in the organisation. Every organisation has difference in the level of change. According to handy and Harrison's model there are four different types of culture ;Role Culture ,Power Culture, Support Culture and achievement Culture and Different type of organisation follow different types of culture. At time we find different culture within the same organisation and the type of an organizational culture portray the attitude towards the cultural change in terms of development. A decision making is here that whatever change to be made in the organization needs to be taken consideration that what type of culture organization is follows. For example an organization follows power culture or achievement culture in its organization may not be same to an organization which follows support culture. Here the management or the designated person needs to analysis the culture of the organization thoroughly and then try to implement or adopt any approach to handle the management style.