The concept of organizational culture (OC) has been linked to strategy development methods used by the management in different circumstances. However, assessing the effectiveness of OC requires an evaluation of different company dynamics and the effects it has on the various stakeholders. Understandably, Organizational Culture represents the internal environment of the firm including the policies, belief, and values of the institution. Essentially, these aspects are developed not only to increase the performance of the entity but also to increase the effectiveness of employees and the management. This research therefore, will illuminate on the concept of organizational culture and its benefits to the business and how it can be managed to improve its effectiveness to both the internal and external environments of an entity.
Reasons for Choosing Organization Culture
That application of organizational culture has widely been discussed over the years thus increasing the ambiguity in assessing the effectiveness of the variables affecting businesses. Additionally, over the last two decades, most practitioners and academicians have explained that OC helps in defining how companies develop policies to help in growing their productivity and eliminating any internal challenges that may limit their competitive levels. Essentially, Szczepańska-Woszczyna argues that OC involves practices and climates that enable companies to handle major stakeholders in any entity (31).
Ahmed and Saima on the other hand, provide that the concept of organizational culture include the principles that differentiate both administrative and operational methods of an entity (23). Considering the various definitions of the OC, it can be described as an essential aspect that helps in transforming an entity that explains the directions taken by an enterprise in achieving its objectives. However, it is important to understand the role of managers in initiating, shaping and implementing organization culture. The cultural differences between organizations have often been considered as the main contributing factors to different the success and growth rates (Ahmed and Saima 27). Therefore, through investigating several factors of OC, one can identify how its implementation is essential in increasing the performance and operation of an institution.
In most cases, managers have used organizational culture to promote unique business methods including developing brand image, advocating for health competitions and motivating employees. Considerably, each institution has its methods of approaching challenging situations and are determined by the ideologies, principles, beliefs and the values adopted by the firm. Thus understanding the concept of OC provides an increased overview of how policies and strategies used in the modern businesses and how it helps companies to gain a competitive advantage in their respective industries.
Application to the Organizational Behavior
In the establishment of any organization, specific cultures are always developed to improve the cohesion and the solidarity of internal stakeholders including the managers and employees. Moreover, it increases the creativity and enthusiasm of workers thus improving the overall efficiency of the institution. Culture determines the methods used by businesses determining the overall objective and principles to be applied in achieving these aspects. Eventually, a continued practice of specific norms develops particular behaviors.
The actions developed by a successful business may be as a result of cultures adopted by the firm and may be different from those used by other companies in the same industry (Frederick 564). Notably, organizational behavior (OB) involves a systematic application of knowledge of either individuals or groups in any work setting. OB plays different roles in any institution including relationship building, goal setting and the management of the diverse workforce. These aspects are not only essential in reducing the challenges of an enterprise but it also helps managers to appreciate the level of diversity in the institution. Therefore, in order to improve the effectiveness of management, one has to understand the culture and the behaviors adopted in the institution so as to develop proper strategies. In order to establish how culture affects the study of OB Geert Hofstede developed a framework that helps in assessing how the values of an institution helped in determining the culture (Aithal & Kumar 131). He concluded that there are four aspects of culture that affect the general behaviors of an institution that include individualism, masculinity, power distance and uncertainty avoidance
Power distance depicts the level of inequality in the society and the level of interaction of the existing classes. In an organizational setting, this concept can be used in explaining the relationship between the management and their subordinates. Individualism, on the other hand, explains the importance of aligning personal and corporate goals to enable achievement of the set goals. Notably, employees with individualist culture develop selfish behaviors that limit the performance (Frederick 564). Masculinity and femininity describe power relations and gender roles in the organization. Thus through the understanding of organizational culture, an individual can be able to understand the behaviors adopted by both the employees and the management of an institution.
Important of Culture to OB Study
Organization behavior (OB) helps in understanding the influence that different factors such as culture, structure, and groups have on the behaviors of an institution and their influence on improving company effectiveness. In essence, the study of OB is an important element in understanding management science and enables managers to know the dynamics of their firms (Kelepile 29). Considerably, evaluating OB needs the understanding of the four essential elements including change, motivation, culture and the system.
Employees behave differently when subjected to different motivational factors thus understanding of the various performance boosting aspects; one will be able to examine their behaviors. Additionally, culture helps in evaluating the beliefs and values advocated by the institution. Strong philosophies help in aligning the objectives of a business by the policies set. With the increase in the amount of change in the corporate world, many businesses are constantly developing methods that may help them accommodate these advances. Through this many entities are likely to adopt new methods of operation to increase their level of competitiveness in the market (Aithal & Kumar 126). Culture defines how an institution relates to both the internal and external stakeholder. For instance, if an enterprise has developed a norm of respecting the opinions of their customers, it is more likely to develop mechanisms that enable increased interaction between the two parties and involving them in decision-making.
Relation to Organization Performance
Organization culture is a broad concept and covers different areas of an institution including the human resource and the research and development departments. This research provides an increased understanding of both OB and OC, therefore, enabling the management to understand the relationship between the two fields. Therefore, it enables comprehension of the complex nature of human beings in an organization setting and the causes of their behavior (Kelepile 35). Additionally, it enables the examination of methods that can help in improving OB in both internal and external perspectives and methods that can be utilized in enhancing productive relationships between workers and their supervisors.
The research will also help managers to develop mechanisms that will help them utilize the human resource available. This includes identifying methods of motivating and inspiring employees to promote unique and admirable behaviors that will help in marketing the firm in distinct dimensions. Similarly, by learning these principles, the management would be able to implement a framework that would enable controlling and predicting of the conducts of their staff. Equally, the paper advocates for the concept of change in monitoring and reporting in approaching the concept of diversity and good ethics in business.
Other Thoughts and Ideas Related to OB
The success of any firm largely depends on the behaviors adopted by both the management and employees. These actions are usually determined by the operations, ideas, and feelings developed from the internal and external sources. Notably, for effective management of workers, it is important for the management to understand the cultural practices of the institution and how it can be changed to promote the achievement of the firm’s objectives. Essentially, since OB is an interdisciplinary field, it links other fields such as psychology, economics, political science and sociology thus provides a wide understanding of other factors that could have direct and indirect impacts to the stakeholders.
The development of desirable organization behaviors requires the assessment of other different factors of an enterprise including culture, structure, personality and values, communication and leadership concepts that equally play important roles in defining policies formulated by the entity. It is, therefore, the duty of the management of any business to ensure that the developed framework not only supports the practice of desirable cultures but also promote effective behaviors among all the stakeholders of the firm.
Ahmed, Mashal, and Saima Shafiq. “The impact of organizational culture on organizational performance: a case study on telecom sector.” Global journal of management and business research (2014): 21-28
Aithal, P. Sreeramana, and P. M. Kumar. “Organizational Behaviour in 21st Century–’Theory A’for Managing People for Performance.” (2016): 126-134.
Frederick, Prabha Renuka Horo. “Organisational Behaviour and its Role in Management of Business.” Global Journal of Finance and Management 6.6 (2014): 563-568.
Kelepile, Kabelo. “Impact of organizational culture on productivity and quality management: a case study in diamond operations unit, dtc Botswana.” International Journal 35 (2015): 35-43
Szczepańska-Woszczyna, Katarzyna. “The importance of organizational culture for innovation in the company.” Forum Scientiae Oeconomia. Vol. 2. No. 3. (2014): 27-43