Question: Explain the main points from this paragraph extensively? Deal (1999) defines organizational culture as values, beliefs and behaviors that differentiate one organization from another. Performance
Explain the main points from this paragraph extensively?
Deal (1999) defines organizational culture as values, beliefs and behaviors that differentiate one organization from another. Performance of any organization sets it apart from other organizations. The term performance is often used to describe everything from efficiency and effectiveness to improvement (Stannack, 1996) and previous literature studies obviously show evidence of positive relationship between organization culture and its performance. According to Hitt et al (2001), intangible resources are more likely than tangible resources to produce a competitive advantage. This theory was supported by Tecce (2000) that a firms superior performance depends on its ability to defend and use the intangible assets it creates.
Satisfaction and positive attitude can be achieved through maintaining a positive organizational environment, such as by providing good communication, autonomy, participation, and mutual trust resulting superior employee performance (Argyris, 1964). The satisfaction and attitudes of the employees are important factors in determining their behaviors and responses at work and through these behaviors and responses, organizational effectiveness can be achieved. Thus the satisfaction and well being of employees can result in organizational effectiveness through silent productivity related behaviors of employs (McGregor, 1960).
Loyalty and commitment both interpret an emotional bonding between the individual and his or her cultural group and, as such, imply a willingness to put forth exertion and make sacrifices on behalf of that group (Druckman, 1994). However, whether loyalty and commitment are positively correlated with performance craved by the organization or not may depend on what values and norms the target cultural group holds regarding performance. OReilly (1989) suggests that employees commitment to an organization will be more dedicated because they care about their organizations fate, and their caring heightens the power of organizational norms to control their behavior. From a different perspective culture shows its affect on performance by programming people to behave in such manners that more or less effective in terms of performance (Druckman, Singer and Cott, 1997).
Creativity and innovation also trigger the performance of employees and facilitated by organizational culture. Tushman and OReilly (1997) in this context stated that organizational culture lies at the heart of organizational norms that reflects the influence of organizational culture on creativity and innovation. Organizations Culture can play an important role in creating such an environment that enables learning and innovative response to challenges, competitive threats, or new opportunities. Thus, creating and influencing an adaptive culture is one of a managers most important jobs (Daft, 2010).
According to socio-technical school (Emery & Trist, 1960), organizational effectiveness depends on both the technical and social structure of the organization. Some social physiological structure may be superior to others for both employee satisfaction and productivity. Organizational effectiveness results when there is congruence between social and technical organizational dimension. Organizational productivity is achieved through employee satisfaction and attention to workers physical and emotional needs (Likert 1961). Akin and Hopelain have (1986) discussed about the crucial relationship between organizational culture, employee performance and productivity in their research on organizational culture and productivity; and introduced culture of productivity where they illustrate the components of a productive culture such as efficient people, job identification, teamwork, trust and support etc are determined by knowledge of job and the performance. Akin and Hopelain (1986) also argue that a culture of productivity is based on three basic structures and they are: legibility (clarity), coherence (integration of the elements of work) and open-endedness (adaptability to change).
Organizational culture is one of the most popular concepts in the field of management and organizational theory. This can be backed up by the abundance of theoretical concepts and perspective provided at current time (Martin, 1992) and organizational disciplines which utilize the concept (Harris and Ogbonna, 1999). Highly collective organizations emphasize group harmony, cooperation and reward for enhancing employee performance (Javidan & Dastmalchian 2009). At the more operational level, the higher performing organizations have a management style that includes giving more freedom to their managers to take independent actions rather than simply following orders, to take reasonable risks and to openly discuss conflicts and constructive criticisms. High humane oriented organizations reward people who are fair, altruistic, friendly, generous, kind (Javidan & Dastmalchian 2009). Managers get adequate information and support for decision making (decision-making structure) and they are given rewards and benefits based on performance that compare favorably to similar organizations (compensation). Finally, members of the higher performing organizations are well matched to their jobs and have sample opportunities for growth, development and career advancement within their organizations (human resource development).
Organizational culture is one of the very basic components of companys competitive advantage as well as to sustain performance. Northouse (2004) asserts that all the leaders have an agenda, a set of beliefs, proposals, issues, ideas and values which they wish to put in the table.
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