Role of Culture in Organizational Effectiveness
Role of Culture in Organizational Effectiveness
Role of Culture in Organizational Effectiveness
ORGANIZATIONAL
EFFECTIVENESS
DETERMINANTS OF ORGANIZATIONAL EFFECTIVENESS
What factors most influence company performance and what can managers do to ensure the
effectiveness of their companies? The answers to these questions are, in reality, complex
because of the vast number of factors that may influence company performance. These
include external factors such as market share and market environment, as well as internal
company factors including organizational culture, management styles and human resource
management practices. Recently, the increasing level of competition worldwide has led
managers and researchers to focus even more sharply on these questions. Reducing labor
costs in some countries, particularly in countries in the process of industrialization, has raised
the level of competitive threat for countries which have been industrialized for some time.The
CULTURE-STRUCTURE EFFECTIVENESS
Culture, in organizational context, may be broadly defined as a group’s or nation’s way of
thinking, believing, feeling, and responding. Culture is the way of life of a group of people.
More formally culture is defined as the complex whole which includes knowledge, belief, art,
morals, customs and any other capabilities and habits adopted by members of a society. A
cultural syndromes.” [ CITATION Nat83 \l 1033 ] Often, it is observed that the ‘Actual
Culture’ is quite different from ‘Official Culture’ with respect to participation in decision
standardization, formalization, and centralization) and culture is also defined also by four
between organizational structure and culture. Based on such assumptions we can deduce that
employee attitudes, then managers are likely to take considerable interest in the factors that
influence employee attitudes. On the other hand, if there is no link between employee
attitudes and organizational performance, then those charged with running organizations may
well argue that concerns about job satisfaction, for example, are moral and ideological rather
any other organizational form, is the function of the actions of people in the organization,
Rather than concentrating upon the culture of the organization, the performance of the
management depends on the mind-set of the employees. Here the argument arises that any
organizational form must comprise of such an environment that contributes to the optimum
performance of the organization. Here the attitudes of the employees play an important role;
they are responsive to the factors that exist internally as well as externally in the organization.
Managers are required to make an effort through which organizational form integrates with
the attitude of the sub-ordinates. Being contradictory to the proposition above still it can
aspects of the organization, for example, quality of communication, support for innovation,
level of supervisory support and so on. However, the evidence for the influence of culture
identification with the humanistic mission were seen by the organization's members (and the
early stages.”[ CITATION Den95 \l 1033 ] Organizational culture is the set of values, norms
and beliefs shared by member of organization. Organization develop a unique culture and
employees share common values and beliefs about work-related issues. Organizational
culture also can support company mission and strategy. Even companies in the same industry
tend to have entirely different cultures based to their own mission and goals. This helps in
providing the organization a clear direction to work towards. Ultimately when the
organizational culture starts to support company strategy, mission, and policies; indirectly the
employees will be redirect towards a collective motive. The strength of the culture depends
underlying dimensions of their corporate culture and its impact on employee-related variables
others. One consistent theme in the culture literature concerns the impact of a strong culture
shared meaning, a common vision, a “clan-like” attitude toward members, and a high level of
Some authors have argued that this theory has universal application, while others have argued
that the culture of an organization, in addition to having these characteristics, must also fit the
business environment. “The multicultural organization is characterized by pluralism, full
prejudice and discrimination, and low levels of inter-group conflict; all of which should
powerful means for gaining competitive advantage and industry or sector leadership.
Organizations that seek leadership and sustainability make the choice for culture by design,
not default.
and a climate that regularly considers how the organizational environment influences
employee attitude, productivity, well-being and loyalty. In any organizational structure there
are some regular official activities in which participation is required by every employee. But
the extent to which the participation is mandatory is the question to ask. The engagement of
the employees in the organizational structure is the primary cause of their involvement in
these activities. “The seemingly common structure of rituals, i.e., meetings, training
programs, and formal sessions for information exchange, they serve contrasting functions in
high and low innovation-supportive cultures.”[ CITATION Jas02 \l 1033 ] Here it can be
proposed that cultures of different variation of notions can have a major impact on the
We see organizational culture as the critical foundation which shapes the way that the work
of the organization gets done (established through goals, plans, measures, and rewards) and
satisfaction with the organization’s strategy and contribution requirements. And, realistically,
if employees themselves aren’t clear on what they do well and what matters most to them, it’s
cannot be ignored. The question arises ‘how to manage it?’ When a manager focuses
corporate culture could provide immense benefits to the organization, and thereby a leading
competitive edge over other firms in the industry. However, a negative culture could have a
negative impact on the organizational performance as it could deter firms from adopting the
required strategic or tactical changes. Such type of culture could inhibit future changes in an
performance. While more research remains to be done in this area, this term paper has
organization’s operation and management decision. In the same time, organizational culture
also supports organization’s strategy, mission and policies to achieve their goal. This term
paper also showed that organizational culture is associated with attitudes toward