Groysberg, Lee, Price, and Cheng (2018) in there article “The Leader’s Guide to Corporate Culture” discuss the role of the organisational culture in the organisational performance and how the business can be improved by the business leaders by managing their organisational culture. In their article the authors have provided a way for managing and changing the organisational culture. According to the authors the organisations can have higher employee engagement and customer orientation if their organisational culture is aligned with their business environment and business strategy. The articles states that the culture is encouraged discouraged or rejected within an organisation, depending on the fact if it is aligned with the personal values and needs of the team members and encourages them to work towards achieving the common goals.
According to the article the culture is defined into two dimensions: how is the interaction between people and what is the response of their response to change. Based on these two dimensions, the article also discusses eight different cultural styles which fit into an organisation’s integrated cultural framework depending on their degree of interdependency or independency in communication, and flexibility or stability in reacting to the change. The eight different cultural styles are: caring, the organisation is observed to be warm, collaborating and welcoming; Purpose, organisation is observed to be driven towards greater good by favouring tolerance and compassion; learning, organisation is observed to move towards exploration and creativity; enjoyment, organisation create an environment which is playful and light hearted for maintaining and enhancing high morale, sense of engagement and creativity among the employees; result, organisations which are result oriented tend to be focused towards achievement of goals and competitive victories; authority, authoritative organisations are driven by confident, bold, competitive, and decisive leaders; safety, organisational strategy is based on cautious planning which ensures minimum risks to the organisations; and order, organisations function on rules, procedures and regulations and have structural work environment.
According to the authors organisation in different industries have different cultural styles. A lot of organisation across different industries tends to imbibe result and caring cultural styles. Industries in the consumer staples industry ranks authority and learning styles to be helpful and considers having purpose and order futile. Cultural style based on care and order is regarded highly by the financial and professional service industries. Health care industry regarded results and caring culture to be beneficial followed by purpose led culture. IT and Telecom industry regarded learning culture to best suit their needs. Michael Porter has also suggested that different organisational strategy may lead to varying cultures in different organisation (Smircich, 2017). For example, organisations which embraced differentiation prioritized learning, purpose, and enjoyment in the work place. According to the authors, organisation which valued employee engagement had a culture based on enjoyment style while organisations which focused on customers had a culture focused on learning. The articles also mentioned that the managers and leaders have the power to develop the organisational structure for improving the performance of the organisation.
Thus, according to the authors, the business strategy could be benefitted through the organisational structure. Organisational culture could be managed by the managers and the leaders for improving the performance and meeting the strategic goals. Hence, the organisational culture is considered to be a fundamental tool in management.
Organisational culture is a system of shared values, beliefs and assumptions which governs the behaviour of the organisation (Bryson, 2018). These shared values strongly influence the behaviour of the stakeholders of the organisation. An organisation with strong culture demonstrates respect, trust, adaptability to change, orientation towards achievement of goals and objectives, employee engagement, sense of responsibility and accountability in the employees, taking advantage of the learning opportunities, sense of purpose (Tang, Mo & Liu, 2018).
As the organisational culture is the common beliefs and values that is held by the people working in the organisation. Any change in the organisational culture is dependent on the leadership strategies of the organisation (Rothaermal, 2016). The behaviour, will, intent, attitude of the leaders is important when a cultural change is required in the organisation, because without the exemplification of the leaders the change will not be successful. The leaders and the managers are responsible for understanding the implications of the organisational culture and ensure that the organisational culture adopted is productive, efficient, and effective. The proposed implications of the organisational culture is increased employee motivation and satisfaction, increased quality of productivity, increased employee engagement in the activities of the organisation, and effective and efficient attainment of the organisation goals and objectives (Darna, Sule, Kusman & Yunizar, 2018).
Organisational culture has various implications on the functioning of the organisation (Adisa, Mordi & Osabutey, 2017). Implication of the organisational culture on the project which is lead by autarchic leader would be tightly monitored and the employees would follow a process, whereas, a democratic leader would foster a culture which is based on innovation and creativity in the solutions. Organisational culture may also impact the decision making capabilities of the employees, depending on the culture the employees may become efficient in taking important decisions or they may depend on the management to provide guidance for decisions. Organisational cultures which elicit the feelings of belongingness in the employees tend to result in better productivity and aster achievement of goals because the employees feel connected to the organisation (Ramli, 2019). Additionally organisation culture which promotes punctuality, integrity, and other ethical values tends to be more successful than the organisations which do not have strict adherence to the values.
The impact of the culture of the organisation can have varied effects on the performance of the employees and the organisation as a whole (Park & Kim, 2017). For example, if the culture ensures that the employees are successfully assimilated in the organisation, the employees would feel motivated to work to their best capabilities for achieving the organisational goals and objectives. Studies conducted by Ostroff (2019) found that the organisational performance or effectiveness is highly influenced by the organisational culture. Similarly, Patyal & Koilakuntla (2018) in his study said that the leaders and the mangers were responsible for maintaining the equilibrium and the efficiency in the organisation by making the environment a collaborative environment. Thus there is a strong link between the organisational culture and its business performance.
According to Mohammed (2017), the relationship between the organisational culture and economic performance is that the performance is a result of the managers sharing a common set of beliefs and values for doing their work. They also pointed out that the organisations whose leaders and managers placed a strong emphasis on the customers, shareholders, and employees performed better than the organisations which did not have such cultural traits. The researchers have been able to conclude that the performance of the organisation is highly dependent on the culture of the organisation such that if the organisation has a positive culture the outcome or the progress would be positive or else it would lead to a downfall of the organisation (Augustina, Worlu, Oluseye & Harriet, 2017).
Organisational culture is the key to success of the business operations (Crampton, 2014). Thus, some recommendations for the organisation to leverage on the organisational culture for progress:
1. Set ethical and moral standards which the employees have to comply so that the culture is based on ethics and ensure overall good of the organisation.
2. Communicate to the relevant stakeholders and include them for developing a culture which is inclusive and ensures that the stakeholders believe that they are important part of the organisation.
3. Regularly meeting with the relevant stakeholders for understanding the problems in achieving organisational goals and collaboratively finding solution for those problems.
4. Focus on innovation instead of focusing on the tested methods, because learning and innovation go together and major reason for success.
5. Ensure that the employees are socially engaged for developing an environment which leads to collaborative development instead of focusing on individual developments.
6. Ensure that the compensation package is similar for one and all, and performance linked bonus and perks are enjoyed by everyone who exceedingly performing well.
7. Ensure that the employees are always ready to adapt to the changing environments for growth and prosperity of the business.
It can be finally said, the authors of the article “A leader’s Guide to Corporate Culture” had correctly said that the success of the organisation is dependent on the organisational culture. Organisational culture should be a core organisational strategy which can be managed by the leaders and the managers of the organisation. A positive organisational culture positively impacts the business performance. Organisational culture is a powerful tool which impacts the organisation’s performance, customer service, productivity, product quality, marketing, and development. And finally, organisations should take productive steps in leveraging the positive outcomes of a positive organisational culture.
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Bryson, J. M. (2018). Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement. John Wiley & Sons.
Crampton, D. (2014). Leveraging Organisational Culture for Success. Retrieved from https://www.corevalues.com/leadership/leveraging-organizational-culture-for-success/.
Darna, N., Sule, E. T., Kusman, M., & Yunizar, Y. (2018). The Effect Of Organizational Environment On Knowledge Management And Organizational Culture And The Implications On Organizational Survival (A Survey Based On Leaders Perception At Private Higher Education In West Java Provience). Sustainable Collaboration in Business, Technology, Information and Innovation (SCBTII), 1(1).
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Park, J., & Kim, S. (2017). Pay dispersion and organizational performance in Korea: Curvilinearity and the moderating role of congruence with organizational culture. The International Journal of Human Resource Management, 28(9), 1291-1308.
Patyal, V. S., & Koilakuntla, M. (2018). Impact of organizational culture on quality management practices: an empirical investigation. Benchmarking: An International Journal.
Ramli, A. H. (2019). The Effect of Organizational Culture on Employee Performance Through Job Satisfaction. Business and Entrepreneurial Review, 19(2), 157-168.
Rothaermel, F. T. (2016). Strategic management: concepts (Vol. 2). McGraw-Hill Education.
Smircich, L. (2017). Concepts of culture and organizational analysis. In The Anthropology of Organisations (pp. 255-274). Routledge.
Tang, J., Mo, L., & Liu, W. B. (2018). The attributes of organizational change. Journal of Organizational Change Management.
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