Organizational Culture and Its Relevance to an Organization

Introduction

Organizational culture refers to the beliefs and values inherent in the company. The attitudes and actions of an autonomous business contribute to the construction of the firm’s unique environment, which includes the social and psychological characteristics of that particular firm. The culture of any organization clarifies the value system, beliefs, and shared ideas that the people of that organization are said to have (Hatch, 2019). Most of the time, organizational culture should center on the workers of a particular business environment, the general job of the company, and the clients of that specific organization. Organizational culture leads to brand improvement and goal focus, which eventually leads to the attainment of the firm’s short and long-term objectives (Burke, 2017). Business culture creates a company, and once developed, it may persist for so long that changing the culture becomes difficult. An organization’s corporate culture influences employee attitudes and actions, and weak cultures frequently lead to more unsatisfied workers.

In contrast, excellent organizational cultures lead to empowerment and, as a result, happier and more content employees. For a successful corporation, the present corporate culture must consistently support employee pleasure, customer needs, and significance to the working environment (Shanker et al., 2017). This research aims to gain a deeper understanding of the concept of organizational culture and understand its relevance in the setting of the corporate world.

Background

Organizational culture is frequently thought to be a common set of assumptions that guide the conduct of any given organization. All organizations are recognized to have a distinct culture that aids in giving standards and limits for the individuals that deal with the company, whether they be members, consumers, or other essential parties (Warrick, 2017). The organizational culture comprises numerous traits that are prioritized in the hierarchy of establishing the culture’s significance.

Companies and organizations that value innovation usually push their employees to attempt new approaches when defining and solving day-to-day work problems. Companies that place a low value on innovation, on the other hand, encourage their employees to complete the assigned duties as instructed while learning nothing new (Warrick, 2017). Moreover, another element of corporate culture is the emphasis on results. Organizations that emphasize the production output rather than how the production is done are said to prioritize outcomes. Organizations that provide instructions on the outcome of any product accomplishment without defining the procedure to be followed for the attainment are considered to place a high value on outcome priority.

Teamwork is essential for businesses or organizations. Organizations that promote cooperation as part of their corporate culture are known to value teamwork over individualism. Employees in this organization are said to have greater coordination with managers and supervisors because they have stronger relationships with colleagues and other key actors. Finally, aggressiveness or competitive orientation is a business culture organizational trait that specifies the aggressiveness or assertiveness toward the company’s rivals in the macro-environment (Pathiranage, 2019). Aggressive organizational culture frequently results in rivalry to surpass competitors’ competing enterprises; this occurs at whatever cost to the corporation. The qualities listed above represent the difficulties and challenges that the organization should address to develop an ethical organizational culture with the attainment of business goals as the primary emphasis.

Literature Review

Mahindru et al., (2020) state that corporate culture is the distinctive identity of each business. This means that a lack of a unique company culture leads to a loss of distinction and, more importantly, identity. A well-developed company culture aids in the visibility and distinctiveness of a business entity from other organizations. This may be a valuable tool for attracting stakeholders to join a particular firm. Great corporate cultures attract partners, which leads to organizational success. Understanding the corporate culture frequently leads to understanding the whole firm, including its values, belief systems, collaborations, and admiration for teamwork or creativity (Aboramadan et al., 2019). Strong cultures almost always result in high productivity and output for that specific organization, which is visible in the outputs and performance of that specific company.

Strong cultures are widely recognized as an essential predictor tool for any firm. Employee involvement may aid in forecasting organizational performance over the next several years based on the organization’s existing patterns. Organizations are quickly evolving and changing to adapt to technology, and no meaningful change can occur in the company without adequate culture. Performance and effectiveness are essential determinants of organizational change powered by organizational culture (Tenkasi, 2018). Strong cultures frequently result in shared missions throughout enterprises, with people encouraged and empowered to strive toward the specified common goals.

Developing an organization’s culture is becoming increasingly crucial, particularly in today’s market. The period of good-looking but inefficient company culture is long gone since the outcomes of business culture are more focused on the results in the current day rather than a theoretical component of the business culture. To get outcomes, one must be able to create, construct, and develop a company culture that is distinctive and appropriate for one’s firm, rather than a tailor-made culture that merely functions as a “to-be” culture.

In developing a winning culture, distinctiveness and integrity in beliefs are extremely important. Companies should stick to a culture that they feel will succeed rather than focusing on inclusion for all business members (Tenkasi, 2018). Winning cultures are believed to have no preferential treatment for any groups within the given firm, thus even top executives within the corporation should conform to the business cultures placed in place.

Analysis

A company’s culture may be one of its most valuable assets or its largest burden. Indeed, it has been acclaimed that firms with an exceptional and difficult-to-copy culture have a competitive edge. As per a 2007 poll performed by the managing consulting firm Bain & Company, business culture is as critical to a firm’s success as corporate policy (Mohammed, 2017). This comes as no surprise to profitable business executives, who are eager to credit their company’s success to their firm’s culture.

Organizational culture is a powerful control mechanism that influences employee behavior. Corporate laws and regulations are ineffective at controlling and managing employee behavior. For example, when a corporation is trying to improve the quality of its consumer service, rules may be unproductive, particularly when the difficulties presented by clients are unique. Building a customer service culture, on the other hand, may provide more remarkable outcomes by encouraging staff to think like customers, knowing that the corporate priorities in this scenario are clear. Keeping the client contented is more imperative than other concerns, such as avoiding the expense of a return. As a result, comprehending and prompting organizational culture is a crucial tool for administrators to have in their toolbox when performing their controlling and organizing functions.

Solid organizational cultures frequently result in high levels of talent inside the organization. Firms with well-established cultures will usually attract the most brilliant people since most people want to be connected with organizations that can bring out the best in them while furthering their abilities (Palmer et al., 2017). Organizations that lack suitable culture, on the other side, may attract poor talent and, as a result, low production. Additionally, strong organizational cultures help foster motivating elements and a sense of belonging. A well-established corporate culture develops and maintains momentum, allowing employees to express themselves freely and feel valued in the firm. The generated sense of belonging influences and motivates that specific business’s employees.

Organizational cultures aid in changing workers’ perspectives on work. Strong cultures change people’s perceptions of work from uninteresting or stressful to loving their professions and using their abilities to help society (Dubey et al., 2017). On the other hand, weak cultures may lead to a more unfavorable perspective of work and, more often than not, a reluctance to work smarter or improve one’s talents. Moreover, strong organizational cultures are associated with effectiveness and performance. A positive culture will frequently result in the success of every member of that particular organization, from the bottom to the top of the organizational hierarchy. Organizational cultures are recognized to affect workplaces and persons in their daily activities and life in general (Palmer et al., 2017). On the other hand, poor organizational culture may have no impact on the business’s profitability or greater efficiency and may eventually result in no automation and efficacy of the operations.

Increased performance may be related to administrative culture or shared views. Researchers revealed an association between organizational cultures and corporate performance in terms of key success metrics like sales, revenue volume, and stock prices (Dubey et al., 2017). Altogether, it is important to create a culture that is compatible with the needs of the firm’s setting. Culture may support corporate performance to the extent that common values are suitable for the organization in the issue. If an organization is in a high-technical area, for instance, having a culture that promotes novelty and adaptation would aid its success. Nevertheless, if a company in the same business has a culture marked by firmness and a strong propensity for obeying regulations and procedures, the corporation may suffer as a result of its culture. In other words, although having the “correct” culture may provide a competitive edge for a firm, having the “wrong” culture can cause performance issues, lead to organizational failure, and function as a barrier preventing the organization from changing and taking risks.

Conclusion

In conclusion, organizational culture is unquestionably defining; nevertheless, building and refining the culture is the most challenging, and ensuring that the culture is preserved is much more difficult. On the other hand, organizational cultures must be maintained at all costs since they are critical to the success of any firm. The success of company culture is the ultimate success of the entire organization, and its failure falls through the same lens. Business cultures are tough to implement and should not be centered on the individualistic views of a specific set of people rather than the overall performance of the organizational unit. To ensure its success, all members of an organization should own and support the company culture, whether it favors their ideological convictions. Therefore, the lack of business culture is a total failure of a goal and long-term plan for the development of any corporation.

References

Aboramadan, M., Albashiti, B., Alharazin, H., & Zaidoune, S. (2019). Organizational culture, innovation and performance: A study from a non-western context. Journal of Management Development, 39(4), 437-451.

Burke, W. W. (2017). Organization change: Theory and practice (5th ed.). Sage Publications.

Dubey, R., Gunasekaran, A., Childe, S. J., Papadopoulos, T., Hazen, B., Giannakis, M., & Roubaud, D. (2017). Examining the effect of external pressures and organizational culture on shaping performance measurement systems (PMS) for sustainability benchmarking: Some empirical findings. International Journal of Production Economics, 193, 63-76.

Hatch, M. J. (2019). Organization theory: Modern, symbolic, and postmodern perspectives. South Asian Journal of Management, 26(4), 215-218.

Mohammed, J. I. (2017). An assessment of the impact of organizational culture on employee performance. International Journal of Development and Management Review, 12(1), 178-183.

Mahindru, R., Sharma, A., Chopra, S., & Bhatia, S. (2018). A study of Fayol’s Principles: Applicability in today’s organization. Management Today, 8(3), 213-220.

Pathiranage, J. (2019). Organizational culture and business performance: An empirical study. International Journal of Economics and Management, 24(2), 264-278.

Palmer, I., Dunford, R., & Buchanan, D. A. (2017). Managing organizational change: A multiple perspectives approach (3rd ed.). McGraw-Hill Education.

Shanker, R., Bhanugopan, R., Van der Heijden, B. I., & Farrell, M. (2017). Organizational climate for innovation and organizational performance: The mediating effect of innovative work behavior. Journal of Vocational Behavior, 100, 67-77.

Tenkasi, R. R. V. (2018). Re-visiting the past to re-imagine the future of organization development and change. Organization Development Journal, 36(4), 61-75.

Warrick, D. D. (2017). What leaders need to know about organizational culture. Business Horizons, 60(3), 395-404.

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