The Importance Of Organizational Culture To Strategic Management Management Essay

This academic essay is sing to the importance of organisational civilization to an apprehension of strategic direction. Organizational civilization is one of the of import parts of the strategic thought and it can impact on company ‘s employees, clients, providers and other different marks. The proprietor of the company can make their ain scheme on the alliance of alone organisational civilization with a competitory infinite. It besides involves how organisational civilization affects its strategic determination, options and actions. The intent of this essay is to research the relationship between organisational civilization and concern scheme, and utilize alone organisational civilization to make powerful schemes and go its competitory advantages in current competitory environment, so do organisations and companies successful.

‘Culture of an organisation refers to the alone constellation of norms, beliefs, ways of behaving and so on that characterize the mode in which groups and persons combine to acquire things done ‘ ( Eldridge and Crombie, 1974 ) . It besides can specify that the set of of import premises that members of an organisation portion in common. There is other definition of the organisational civilization involves premises, versions, perceptual experiences and larning. Examples such as Walt Disney ‘s or Nokia ‘s, they have three beds. First bed includes artefacts and creative activities, such as one-year study, a newssheet, wall splitters between workers and trappingss. Second bed includes values, or the things that are of import to people. The 3rd bed is the basic premises that tell persons how to comprehend, believe about and experience about work, public presentation ends, human relationships and the public presentation of co-workers. This becomes the three bed theoretical account of organisational civilization.

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In nowadays world-wide, every organisation has its ain civilization. The organisational civilization merely like an person ‘s personality, can act upon sentiments, actions and strategic pick within the house ( Pears and Robinson, 1997 ) .

In recent old ages, the construct of strategic direction has increased attending bookmans and practicians. The taken-for-granted nature of civilization is what makes it centrally of import in relation to scheme and the direction of scheme. There are two chief grounds for this. First is managing civilization. Because it is hard to detect, place and command that which is taken for granted, it is hard to pull off. And the 2nd ground is the civilization as a driver of scheme ( Brown, 1998 ) . The civilization and scheme of the organisation is considered critical because in the world-wide, the broad scope of competitory challenges that presently face organisations. Having the unique and high quality organisational civilization can take the corporation doing suited schemes, so set up their ain competitory advantages and acquire success. There are few points to turn out that the organisational civilization is of import to the strategic direction.

Organizational civilization is really impacting. It can impact the success or failure of a company. One strong organisational civilization can go one of the most sustainable competitory advantages of a company or organisation, and this is hard to copy. There is the diagram ( 1 ) shows that the civilization ‘s influence on scheme development. First, there must hold civilizations in the organisation, and this type of civilization can take to the development of scheme. Next, the ideas or thoughts can go executions for the organisation. Finally, we can see the organisation ‘s public presentation or consequences from schemes ( Johnson and Scholes, 2008 ) . There is besides one illustration can explicate why the organisational civilization is of import can influent schemes. The Southwest Airlines is an organisation where the links between scheme and its executing are related to its civilization. The civilization is strong, because there is consistence in what people see, hear and feel about it, and employees are clear how things are done and are willing to assist the air hose achieve its ends. Therefore, the strong organisational civilization of the Southwest Airlines lead to stretching and addresses short-run and long-run ends for the company, and clearly articulated. In add-on, the organisational civilization of the Southwest Airlines is relaxed. The company encourages informality and wants employees to hold merriment with their occupations. The Southwest Airlines believes that employees are really valued, with CEO admiting births, matrimony and decease by notes and cards. Staffs are encouraged to flip in and assist out, particularly at check-in, giving Southwest turnaround times less than half the industry norm ( Southwest Airlines, 2012 ) . Therefore, harmonizing to the organisational civilization of the Southwest Airlines, it can seen easy that the positive organisational civilization is now a requirement for success instead than a competitory advantage, such as engaging top-quality employees and alone merchandises and service provide for clients all are important for the scheme direction of the company or organisation.

The good organisational civilization is one of the of import functions for schemes in organisation or company, and it can impact different marks of corporation. For case, if there is one group has really good quality client service and is of import in the civilization, so persons are willing to follow this behaviour. If, this civilization in the group is adhering to the set of processs in covering with clients is the norm, hence, this type of behaviour would be expected, recognized and rewarded ( Gibson and Ivancevich, 2003 ) .

First, organisational civilization can impact employees and employees ‘ public presentation of the company. Employees are one of the most of import determiners and taking factors that determine the success of an organisation in a competitory environment. This is particularly true for service organisations that rely to a great extent on their good behavioural employees to supply friendly and gracious service to their clients in this competitory environment. For case, Starbucks is more than merely java. They are in the people concern. The success of the Starbucks is depending on the people they hired, retain and develop. At Starbucks there is a small green brochure, called The Green Apron Book, which are the guiding rules for all the people who work at the company. It is a simple book, but no one of all time complaints about its simpleness. The 10 guiding rules include: ‘know who you are, know why you ‘re here, think independently, construct trust, listen for the truth, be accountable, take action, face challenge, pattern leading and daring to dream ‘ . It is easy can cognize they are the roots of Starbucks organisational civilization through these steering rules, and do every employees in the Starbucks can cognize clearly about company ‘s mission and vision, so demo their best public presentation to clients. Therefore, the employees ‘ turnover of Starbucks includes 20 % direction and 80 % lower grade. That means the Starbucks has its turnover rate of 120 % lower than the mean turnover and employees of Starbucks have 82 % of satisfaction rate ( Behar and Goldstein, 2007 ) .

Second, the organisational civilization can impact on clients or companies clients. For this point, organisational civilization can impact clients or clients ‘ attitude, behavior and even picks. Any companies ‘ civilization is connected really near with clients and clients of the company. From this point, the service civilization is of import portion of the whole organisation. For illustration, if you decide to remain at the Four Seasons Hotel, you will experience what an unbelievable experience is. Once you walk onto the hotel, you can non assist but detect that every individual individual working at that place — – the front deck staffs, the receptionists, the concierge, the eating house staff, everybody works in the Four Seasons, seems to stand out at service. It becomes a more singular experience for invitees. The ground why the Four Seasons got such first-class impact on invitees and clients is the Four Seasons learn the Golden Rule from the Sharp company ‘s organisational civilization and of its hereafter. This regulation interacts every employee in the Four Seasons provides excellence service experience for clients and construct client trueness. Therefore, the Four Season was the first company to set shampoo in bathrooms, to offer 24 hours room service, and to make floors where smoke was non permitted ( Parker, 2012 ) . For this sort of trueness and committedness to the Four Seasons trade name, and to its universe -renowned service civilization, assist the Four Seasons established the really strong client trueness and attract clients who come from all over the universe to experience and see the service civilization in the Four Seasons worldwide. The diagram ( 2 ) shows that the entire grosss that the Four Seasons Hotel in Thailand achieved from 2009 to 2011. The statistic nowadayss that the entire grosss increased every twelvemonth. This prove that clients willing to take luxury hotels and resorts to remain, they more focal point on how deserving after they pay the money.

Third, providers and spouses are of import functions that organisational civilization can impact on. Dell Computer is the good illustration to explicate this point. Michael Dell was the laminitis who founded Dell Computer with a simple vision and concern construct. Dell ‘s “ winning ” civilization is emphasized cost efficiency and fight and take the Dell got success ( Thompson and Strickland, 2005 ) . Dell direction believed it had the industry ‘s most efficient concern theoretical account. The company ‘s scheme was built around a figure of nucleus elements: build-to-order fabrication, partnerships with providers. Because Michael Dell believed that it made much better sense for Dell Computer to spouse with reputable providers of Personal Computer parts and constituents than to incorporate backward and acquire into parts and constituents fabricating on its ain. The wining civilization make Dell ever picked the best one or two as providers and so stuck with them every bit long as they maintained their leading in engineering, public presentation, quality and cost. Management besides believes that long-run partnership can profit Dell company, and can reputable and profit providers every bit good. For case, Dell ‘s long tally committedness to its providers made it executable for providers to turn up their workss or distribution centres within few stat mis of Dell. It can short distance and the bringing clip between Dell company and providers, so can salvage transit costs and other fees. It is a win-win state of affairs. Therefore, providers of Dell Company are non excessively much, but it makes Dell successful.

Another of import function is the corporate societal duties that organisational civilization can impact on. Corporate societal duty is portion of organisational civilization and a value in the organisational civilization. Different organisational civilizations have framed different definitions about the corporate societal duties. For illustration, Singapore air hoses took topographic point over seven old ages and examined the company ‘s scheme and fight, in peculiar its organisational civilization that support the bringing of first-class service, achieve sustainable competitory advantages. The strong corporate civilization of Singapore Airlines besides can strongly impact their corporate societal duties. Singapore Airlines believes that back uping the corporate societal duty can profit the communities that Singapore Airlines serve throughout the universe. It is an indispensable portion of being a good corporate citizen. Such as Singapore Airlines contributes to legion educational plans and events ; concentrating on national events, humanistic disciplines and heritage activities ; in add-on, cut down C footmark from aeroplanes is the of import portion of the duty that Singapore Airlines is able to take. That ‘s why the Singapore Airlines can acquire high degree awards each twelvemonth ( Singapore Airlines, 2012 ) .

Harmonizing to these four illustrations above, it can clearly shows that there are assortments of effects on organisational civilization. The effects of organisational civilization depend on whether the company has a strong civilization or a weak civilization. One the one manus, one strong organisational civilization can concentrate on the environment it creates for employees. Because this can promote and develop a really efficient and strategic competitory advantage for a company. A strong organisational civilization can concentrate on set uping and prolonging the direction of company, and do employees believe that they are one the really important parts of the company. For illustration, Nipponese houses such as Toyota is one of the organisations has really strong and influential civilizations. One the other manus, a company ‘s civilization can be weak. In weak civilization companies, there is small coherence and glue across organisation units and organisation members typically have no deeply felt sense of corporate individuality. Although they may hold bonds of designation and trueness toward their section, their co-workers, their brotherhood, or their foreman. The rules besides can be unclearly, it can do the bad effects on employees of the company, and all staffs of the company can non travel along with the same way.

Organizational civilization is the common regulations, the common beliefs and sharing the same aspiration that fostered by the organisation employees. It has immense exciting force, spirit personal appeal and energy temptingness, and it take all employees go along with the same way in the company. The organisational civilization is the motor power of the organisational sustainable strategic development. Compare with the cultural organisation, the economic type organisation merely chase the economic ends, but cultural organisation can develop for the life of the organisation and obtain the sustainable competitory advantages ( Davis, 1984 ) Therefore, the strong organisational civilization can strongly affect company ‘s strategic decision-making, strategic options and the action of schemes. And how organisational civilization can advance better schemes executing with those decision-making, options and actions of the company?

Decision devising is one of the of import parts of the organisational direction. During the direction processes, must do different decision-making continually. In add-on, the quality of decision-making is closely connected with direction public presentation and consequences, particularly the strategic decision-making. Organizational civilization can impact every decision-making procedure. For illustration, to different internal and external environment positions can impact organisational employees ‘ acknowledge to the job. The same job can be ignored in one of the organisational civilizations, but the serious of job can be focused on in the other type of organisational civilization. So, when believes of the serious jobs that do non at the same clip, it will impact the signifier of determination devising and procedure, besides affect the attacks of decision-making. If most members ‘ attitudes are negative, so the manner of decision-making is able to go the bad decision-making manner ( Breen, 1973 ) .

The good organisational civilization non merely can assist the company make suited and good determination, but besides can organize a good leading to take the development of the company. In the planetary concern universe, organisations face a turning demand to understand the leading as it is exercised in different civilizations ( Jeremy, 2012 ) . Nowadays, the concern is planetary, and each concern organisation has a civilization formed by the concern organisation. And how civilizations can come into drama and impact the leading of the organisation, there is one instance easy can conceive of. There is one British director who was trained at an American concern school and is asked to run the Argentine fabrication installation of a Nipponese house. So what leading should this British director works to develop. American? British? Nipponese? Or Agentine? From this instance, this director should understand the civilization within which he/she plants and how his/her employees perceive leading. And this director besides needs to develop made-to-order leading properties, tailored to the alone civilization within which he or she works.

Therefore, different organisational cultural groups may change in their constructs of the most of import features of magnetic or transformational leadings. In some civilizations, one might necessitate to take strong and decisive actions in order to be seen as a leader. That the leading behavior and attributes that are reported to be effectual or uneffective across civilizations, particularly where they are related to magnetic or transformational leading. For case, there are tonss of fortes related to charisma as lending to outstanding leading. There is concern in some civilizations that people tend to lose their balance and position as a consequence of an inordinate focal point on accomplishment created by magnetic leaders.

In decision, organisational civilization is of import for the strategic direction. And for the organisation, holding one suited and strong organisational civilization is really important. It is the waies and competitory advantages for the strategic direction. In add-on, making a strong tantrum between scheme and civilization is necessary. It is the scheme shaper ‘s duty to choose a scheme compatible with the “ sacred ” or unchangeable parts of predominating organisational civilization. It is besides the scheme implementer ‘s undertaking, one time scheme is chosen, to alter whatever aspects of the organisational civilization hinder effectual executing. Therefore, it is really of import to better company ‘s organisational civilization ( Thompson and Strickland, 2001 ) .

First, the company should alter a job civilization for their strategic direction. The of import measure is to name which aspects of the present civilization are strategy-supportive and which are non. Then, directors have to speak openly and squarely to all concerned about those facets of the civilization that have to be changed. Make certain everyone will understand are intended to set up a new civilization more in melody with the scheme. For case, when the old hotel demand renovate to one wholly new and luxury hotel, all physical equipments and direction constructions, vision and mission will be changed. For this period, directors should utilize right attitudes and communicating accomplishments to assist employees through the alteration of the hotel. Second, the company should symbolic culture-changing actions. The best companies and the best executives like an expert use symbols, function theoretical accounts, ceremonial occasions and group assemblages to fasten the strategy-culture tantrum. For illustration, low-priced leaders like Wal-Mart and Nucor are renowned for their Spartan installations, executive frugalness, intolerance of waste and control of costs. Finally, the company should construct ethic and spirit of high public presentation into the organisational civilization. Because a strong organisational civilization founded on ethical concern rules and moral values can go a critical drive force behind continued strategic success. And construct a spirit of high public presentation into the civilization can do civilization become results-oriented, and it uses people-management patterns that inspire workers to make their best.

Trough the analysis, it is easy can see that the organisational civilization is the symbol of the concern company, and it plays a function of driver to take the company go alone and form competitory advantages in this such competitory concern environment every bit good. In order to develop, better even protect this competitory advantage of the company, each function in the organisation should seek best to play, whoever directors, executives, captains and staffs. Developing and bettering one strong organisational civilization in order to help strategic direction and do organisation successful.


Appendix ( 1 )

Culture ‘s influence on scheme development

Corporate Performance


Development of scheme


If unsatisfactory

Measure 1

Tighter Control

Measure 2

Reconstruct or develop new scheme

Measure 3

Abandon paradigm and follow new one

Beginning: ( Managerial Recipes for Strategic Success, 1979 )

Appendix ( 2 )

Beginning: ( Four Seasons Thailand Annual Report, 2011 )

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