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Order Instructions: How would you describe the organizational culture of Healthdyne? Using Exhibit 11.1, identify specific forces and factors that Mr. Brice could manage to change the culture. NOTE: This case study must be submitted/attached in proper research paper format (template provided) as a Word document. Do not submit to the available text box associated with this assignment.
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Poor Work-Life Balance
Assessment 1: Report Overview For this assessment, write a 1000 word report on the issues below: Poor Work-Life Balance
Your report should be structured as follows:
1. Introduction (200 words): Define the issue and use Australian research and statistics to explain how common it is, and the likely impacts of this violence (for instance, mental or physical health impacts, number of hospitalisations, and other indications of impact).
2. Theoretical section (800 words): Select TWO theories from the following list, and apply them to the issue: Liberal feminism, Marxist/socialist feminism, radical feminism, critical masculinities theory. You need to pick the most appropriate theory to help you explain the issue. Think carefully about the theories you select.
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Write 400 words on EACH theory, in which you briefly define the theory, and then describe how that particular theory would explain the issue you have selected. For instance, if you select Marxist/socialist feminism for the issue of sexual assault, then your 400 word paragraph needs to explain what Marxist/socialist feminism is, and present a Marxist/socialist feminist explanation for sexual assault. Your bibliography should contain no fewer than EIGHT academic sources. Any media sources are additional to this.
Marking Criteria
1. Accurate and clear presentation
2. Further research and comprehensive understanding (AT LEAST 8 ACADEMIC SOURCES)
3. Logical and clear structure
4. Quality of written expression
5. Correctly formatted citations and bibliography.
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Workplace Bullying
Assessment 1: Report Overview For this assessment, write a 1000 word report on the issues below: Workplace Bullying
Your report should be structured as follows:
1. Introduction (200 words): Define the issue and use Australian research and statistics to explain how common it is, and the likely impacts of this violence (for instance, mental or physical health impacts, number of hospitalisations, and other indications of impact).
2. Theoretical section (800 words): Select TWO theories from the following list, and apply them to the issue: Liberal feminism, Marxist/socialist feminism, radical feminism, critical masculinities theory. You need to pick the most appropriate theory to help you explain the issue. Think carefully about the theories you select.
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Write 400 words on EACH theory, in which you briefly define the theory, and then describe how that particular theory would explain the issue you have selected. For instance, if you select Marxist/socialist feminism for the issue of sexual assault, then your 400 word paragraph needs to explain what Marxist/socialist feminism is, and present a Marxist/socialist feminist explanation for sexual assault. Your bibliography should contain no fewer than EIGHT academic sources. Any media sources are additional to this.
Marking Criteria
1. Accurate and clear presentation
2. Further research and comprehensive understanding (AT LEAST 8 ACADEMIC SOURCES)
3. Logical and clear structure
4. Quality of written expression
5. Correctly formatted citations and bibliography.
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Interpersonal Conflict
Assessment 1: Report Overview For this assessment, write a 1000 word report on the issues below: Interpersonal Conflict
Your report should be structured as follows:
1. Introduction (200 words): Define the issue and use Australian research and statistics to explain how common it is, and the likely impacts of this violence (for instance, mental or physical health impacts, number of hospitalisations, and other indications of impact).
2. Theoretical section (800 words): Select TWO theories from the following list, and apply them to the issue: Liberal feminism, Marxist/socialist feminism, radical feminism, critical masculinities theory. You need to pick the most appropriate theory to help you explain the issue. Think carefully about the theories you select.
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Write 400 words on EACH theory, in which you briefly define the theory, and then describe how that particular theory would explain the issue you have selected. For instance, if you select Marxist/socialist feminism for the issue of sexual assault, then your 400 word paragraph needs to explain what Marxist/socialist feminism is, and present a Marxist/socialist feminist explanation for sexual assault. Your bibliography should contain no fewer than EIGHT academic sources. Any media sources are additional to this.
Marking Criteria
1. Accurate and clear presentation
2. Further research and comprehensive understanding (AT LEAST 8 ACADEMIC SOURCES)
3. Logical and clear structure
4. Quality of written expression
5. Correctly formatted citations and bibliography.
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Individual Differences in the Workplace
These are my instructions and attachments for my case assignment. The 3 references are 2 movie clips from office Space & article attached which all are in email below.
In this first Case Assignment, you will be viewing two clips from the movie “Office Space.” These videos demonstrate work attitudes, factors that can shape those attitudes, and the end effect on work behavior. As you watch the clips, make some notes about examples you see that give you some clues about the different characters and: Job satisfaction Attitudes toward management Attitudes toward co-workers Organizational Commitment Work environment and conditions (such as physical surroundings)
View the following two movie clips from the movie Office Space:
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Read the following article from the Trident University Library: Attached to email
Riordan, C. (2013) The power of “thank you”: 3 steps to a culture of gratitude. HR Specialist, 11(17),7.
After reading the above article, background material, and reviewing your notes on the videos, consider the following questions: How would you characterize the general work environment at Initech? What are Peter’s attitudes about working at Initech? What are the likely causes of those attitudes? How does he feel about his supervisors? Do his co-workers show similar attitudes? What do you predict would be the effect of these attitudes on job commitment, absenteeism, and turnover? Why?
Now, write a 3- to 4-page paper discussing the film clips and the above questions. A good way to organize your paper would be to divide it into the following sections:
Introduction that briefly describes the situation at Initech. (one paragraph) The Environment at Initech (including supervision style and physical environment) The observed job attitudes of Peter and his co-workers The likely outcomes of those attitudes Conclusion that makes one recommendation for a change that Lumbergh could make that would improve job satisfaction among employees at Initech. Be sure to support your arguments with references to the background readings and use specific examples from the clips to illustrate your main points. Be sure to review your TurnItIn Originality report and score is less than 15%.
Individual Differences in the Workplace
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Assignment Expectations The Case papers in this course will be evaluated using the criteria as stated in the Case rubric. The following is a review of the rubric criteria:
Assignment-Driven: Does the paper fully address all aspects of the assignment? Is the assignment addressed accurately and precisely using sound logic? Does the paper meet minimum length requirements?
Critical Thinking: Does the paper demonstrate graduate-level analysis, in which information derived from multiple sources, expert opinions, and assumptions has been critically evaluated and synthesized in the formulation of a logical set of conclusions? Does the paper address the topic with sufficient depth of discussion and analysis?
Business Writing: Is the essay logical, well organized and well written? Are the grammar, spelling, and vocabulary appropriate for graduate-level work? Are section headings included? Are paraphrasing and synthesis of concepts the primary means of responding, or is justification/support instead conveyed through excessive use of direct quotations?
Effective Use of Information: Does the submission demonstrate that the student has read, understood, and can apply the background materials for the module? If required, has the student demonstrated effective research, as evidenced by student’s use of relevant and quality sources? Do additional sources used provide strong support for conclusions drawn, and do they help in shaping the overall paper?
Citing Sources: Does the student demonstrate understanding of APA Style of referencing, by inclusion of proper citations (for paraphrased text and direct quotations) as appropriate? Have all sources (e.g., references used from the Background page, the assignment readings, and outside research) been included, and are these properly cited? Have all sources cited in the paper been included on the References page?
Individual Differences in the Workplace
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Culture and Strategy
Abstract
The relationship of organizational culture and progression has been subject of different examinations over the span of the latest years. The colossal number of social variables under investigation has incited an isolated thought of society for development.
Further, managerial practice requires a concealed structure remembering the final objective to pick what society should be completed in order to improve and to study if a specific culture is a convincing and powerful coordination instruments. The motivation behind this paper is to inspect the idea of the hierarchical culture and give a brief discourse on the methodologies utilized for overseeing it in culture and strategy of organizations.
Introduction
Hierarchical culture emphatically influences organization and administration, which ascend out of its slant and its substance. Hierarchical society is described as a course of action of assumptions, qualities, norms, and perspectives, appeared through pictures which the people from an organization have made and gotten through basic experience and which offer them some help with deciding the essentialness of their general surroundings and how to absorb it. (Janićijević, 2011).
Presumptions, qualities and gages which the general population from a firm shares completely shape their interpretative game plans. Through interpretative courses of action, the general populations from an association assign repercussions to events inside and outside the association and comprehend reality that incorporates them (Janićijević, 2011). The conduct, activities and trades of the general population from an association rise out of the inducing that reality of that association has for them.
Various leveled society is a sort of aggregate interpretative course of action shared by the general population from an association, because of which they dole out proposals to events, individuals, and occasions inside and outside of the association correspondingly and treat them moreover (Janićijević, 2011). In this way, the lifestyle of an organization surmises that each one of the people from the organization likewise appreciate the organization.
The character of different parts of management and organization, for instance, methodology, structure, activity style, Organizational taking in, a game plan of prizes, and motivation, rises totally from the way in which delegates and administration understand authoritative reality and carry on in it (Janićijević, 2011). Thusly, Organizational society, through its effect on the interpretative plans and direct of the people from an organization, shares in framing distinctive portions of organization and administration.
Subordinate upon the qualities and measures contained by the Organizational society, top organization picks the technique and courses of action progressive structure, boss shape their drive style, delegates depict their behavior of intuition and needs, and the human asset executive plots the pay framework in an affiliation. A solid sort of the effect of Organizational society on an association and organization is found in the way that parts of an association and organization vary in various sorts or sorts of legitimate society. By the day’s end, specific sorts of society in association’s propose different techniques, legitimate structure models, pay frameworks, organization styles, and so forth (Janićijević, 2011).
One of the key parts of organization that are impacted by definitive society is the organization of progressive society. Definitive society impacts the choice of satisfactory Organizational culture organization correspondingly it impacts every single another bit of organization. Social suppositions and qualities shared by the general population from an association pick the path in which workers and executives will value the association itself, and thusly the satisfactory approach to manage transform it (Janićijević, 2011).
Culture and Strategy
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What will be resolved as a suitable, effective, or steady methodology for changing the association will rely on upon an exceptionally fundamental level on the common suppositions and estimations of operators and managers worked in their interpretative game plans. Whether the developments are incremental or radical, complete or deficient, encouraged starting from the top or from the base up, concentrated on the culture of the “hard” or of the “touchy” some segment of association, will all, metaphorically talking, rely on upon how the pioneer and the general population from the association see its working and a suitable, strong, or down to earth method for taking off improvements (Aguiree, Post, and Alpern, 2013).
This is the motivation driving why the strategy of legitimate culture organization will be all around assorted in various Organizational social requests. For instance, if various leveled society is told by the estimation of adaptability, this recommends the general population from the association will consider cultures to something unprecedented and obliging for the association and themselves.
For this situation, cultures are slanted to be reliable, and thusly additionally incremental in nature, in light of the way that there will be no need for radical cultures adequately by virtue of the way that they are consistent (Janićijević, 2011). Additionally, cultures will be driven with less resistance yet rather more eagerness by the agents. Then again, if Organizational society contains the estimations of predictable quality and conservatism, then the general population from the association will consider cultures as dangerous, both for themselves and the association.
Cultures will be phenomenal, yet when they do happen they will be radical and wide. They will be composed to a wonderful level of resistance from and an all around insignificant level of sponsorship by the general population from the association, who will be for the most part sit out of gear powers of progression (Janićijević, 2011).The degree of this paper is to appreciate and examine the legitimate society and organization philosophies to manage the troubles stood up to by the various affiliations.
Culture and Strategy
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Review of Strategies for Organizational Culture
In the extent of various leveled culture association, the considered scholastic specialists and honing boss has been basically focused on three central solicitation: what cultures, why it cultures, and when it cultures. Along these lines, the three key subjects in various leveled culture research have been causes or variables of legitimate culture, definitive culture content, and the character of the progressive culture process.
The conclusion came to has been that authoritative cultures are begun as a result of either internal or external causes. From this time forward, two sorts of hierarchical culture have been isolated by the measure of cause: authoritative headway and alteration (Aguiree, Post, and Alpern, 2013).
Concerning culture content, the survey of forming demonstrates that progressive cultures are segregated in two imperative courses: cultures of definitive statics (structure and framework) and cultures of legitimate segments (process), besides cultures of work structure (assignments) and cultures of social structure (relations)). At long last, research has displayed that, as showed by the character of the strategy, various leveled cultures can be tireless or sporadic.
Tenacious cultures are incremental (first request cultures), divided, and transformative while sporadic cultures are radical (second request cultures), complete, and dynamic. The part of the pioneer in the midst of the time spent culture has moreover been a fundamental issue in definitive culture research (McGuire, 2003; Madu, 2005).
Not at all like the issues of cause, substance, have process, and authoritative culture organization, hierarchical culture methods been less present in investigation. Authoritative culture framework joins the system, strategy, or route in which cultures are realized in an affiliation. This definition proposes that movements are continually orchestrated and that, at whatever point we examine culture execution method, we truly discuss masterminded hierarchical cultures (McGuire, 2003; Madu, 2005).
The way that the primary course of action of authoritative culture strategy oversees organized culture system in like manner adds to this impression. In any case, this does not for the most part should be the circumstance. Cultures can similarly be unconstrained or unconstrained, and their anticipated approach, strategy, or the best approach to constitute a culture framework. They can be a strategy for recognizing authoritative culture, regardless of the way that the movements are off the cuff (McGuire, 2003; Madu, 2005).
Culture and Strategy
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While most specialists while examining business or corporate approach truly mean adjusted, formalized, organized decisions, distinctive scientists point out that strategy, can rather be fathomed as a bona fide security partner particular business decisions and giving them consistency, which is new and just thusly legitimized as a framework, rather than a normal, orchestrated decision arranged early (McGuire, 2003).
Likewise, in the field of hierarchical culture, culture framework may be fathomed as a masterminded decision of the administrators of advancement, furthermore as a creating case of development through which cultures are recognized and which grabs its shape entirely when the movements have been made sense of it. Starting now and into the foreseeable future, the discernment of legitimate society structure in this paper is to some degree more wide than the one in the much grasped work by Chin and Benne, who were the first to accumulate progressive society frameworks (McGuire, 2003).
The judicious observational system is developed on the suspicion of the common sense of Organizations and the comprehensive group who constitute them (Sami, 2012). Affiliations are seen as a shrewd means for completing the common focuses of their kin through aggregate activity. Individuals are overseen as regular creatures lead with no other individual’s data interest.
Along these lines, societies are executed by demonstrating the general population from an association that they are reasonable, i.e., reinforced and critical from the viewpoint of accomplishing progressive objectives, furthermore obliging to the self-vitality of the general population from the alliance (Sami, 2012). The supposition is that the general population from the relationship in which the developments are performed will, as normal creatures, carry on as exhibited by their reasonable given side hobbies.
Therefore, in the event that they are given watch that a society is to their most essential purpose of inclination, they will remember it.Cultures are driven through the typical system of information party and utilization of learning in dealing with the issues that the affiliation faces. Essentially, cultures are driven through the methodology of utilization and testing of specific theories, which give off an impression of being adequate in a given setting (Long, 1997).
Culture and Strategy
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Authoritative cultures are driven in five stages: issue conspicuous verification, information get-together and examination, the time of alternative diagrams, determination of the perfect procedure, and execution of the game plan. In the adjusted framework, the key driver of societies is accurately the data with respect to the issue which should be taken care of and the conceivable fundamental reasoning strategies.
On the off chance that the data is instigating and clear, and on the off chance that it is decisively in all actuality, the general population from an association will, as shrewd creatures, perceive the execution of societies (Luthans, and Doh 2008; McGuire 2003). It is thusly vital that data gathering is driven purposefully and in a methodologically noteworthy way, ideally by an authority (it is as regularly as could reasonably be expected the case that advice are contracted in this way).
The strategy of granting information concerning the issue and with respect to the movements which will deal with the issue is uneven and beginning from the top. Correspondence includes top organization, or authorities picked by top organization, showing the “truths” of the bona fide condition, the theoretical model which enables the offered situation to be understood ‘legitimately’, and also the proposition for culture which really ascend out of this perception (Luthans, and Doh 2008; McGuire 2003).
No dialog or talk is joined into which the people from the affiliation would be allowed to test, address, or rename the “truths” or theoretical models showed to them (Luthans, and Doh 2008; McGuire 2003).
Culture and Strategy
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It is clear that the executives of headway in this system are the top association, and that the heading of progression is starting from the top. The part of the general population from the connection is sit without moving and is obliged to enduring the data and acting in like way. The level of support of the alliance individuals is low, and the response to this course of action of the people in the developments is, most perfect circumstance, assertion. As a last resort, the imperviousness to culture is high (Luthans, and Doh 2008; McGuire 2003).
Leadership/Management and Organizational Culture
Organizations are not any more liable to accomplish business objectives without a key business process that are associations liable to accomplish new social abilities without a key authority process. Whenever consolidated, the business methodology and authority system can work all the while to grow new center capacities essential for the association’s future.
We present the defense that it is administration, as a deliberate gathering of similarly invested individuals, which can exhibit and take part in the better approaches for doing and being that advances the way of life and empowers diverse business results (Dilobe &Haccoun, 2010; House, Javidan, Hanges, & Dorfman, 2002; Eromafuru 2013; Woszczyna , 2011; Salamzadeh, , Ahmadi & Akbari, 2012; Eromafuru, 2013).
Culture and Strategy
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It is an initiative that imagines future course, adjusts assets, and rouses the dedication of individuals toward this normal reason. A Leadership Strategy can control that basic procedure of the association’s advancement through initiative toward a typical reason for building the couple of, new capacities inside of the heart of the association – its way of life. Adjusting to culture recommends that associations need go to new center capabilities. The movement from an item prompted administrations drove IBM required that the way of life of this once ambling behemoth turn into a group based, the client engaged, elegant organization (McGuire, 2003).
Figure: Leadership Strategy McGuire (2003).
Figure: Leadership Strategy McGuire (2003).
According to Haccoun et.al, (2010); Dorfman et.al, (2002); Eromafuru (2013); Woszczyna , (2011); Akbari et. al, (2012); Eromafuru, (2013), the key mechanical assemblies for executing society in perceiving observational procedure are assignments, or work positions, and not the social structure of the affiliation and the relations within it. Consequent to the affiliation is appreciated as a prudent contraption for achieving shared targets, societies in it are recognized fundamentally through changing the formal, masterminded, “hard” parts: endeavors, structures, methods, methodologies, strategies, and the association with its environment.
Simply first demand societies can be instated and coordinated through the sound observational system since the method does not allow renaming of the assumptions of reality; this future a bit of second demand societies. As a rule, societies don’t require all that much time; beside when the information gathering technique is greatly mind boggling (McGuire, 2003).
Culture and Strategy
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A deterministic, as opposed to the voluntary supposition of human activity, underlines this technique. The procedure of progress does exclude the through and through freedom and decision of individuals from the association. The strategy, or of progress, is as of now dictated by the target way of the issue, and it is the undertaking of the individuals who settle on choices in the association simply to apply it to sufficient information and hypothesis (Dorfman et.al, 2002; Eromafuru, 2013).
Power coercive strategy translates that a connection is seen as a political structure in which the general population who have the force likewise have the advantage to deal with the association and along these lines change it. The man is not a run of the mill but rather a political being, who submits to the will of the all the more compelling. Along these lines in force coercive framework force is the key driver and contraption for society (Dorfman et.al, 2002; Eromafuru, 2013).
The general population who have the force; when in doubt the pioneer or top association, coordinate the developments and, by mauling the force they have, power these developments on interculture individuals from the connection. The general population from the alliance is relied on to obey and execute the developments unquestioningly. This strategy depends on upon the supposition that the advantage to urge the course of aggregate activity in one party in like way climbs up out of force. Along these lines, the sub-par individuals from a social event in like way anticipate that the pervasive individuals will set the course in which the developments will be executed (McGuire, 2003).
The correspondence is one-sided and coordinated starting from the top. It comprises of the pioneer or administration achieving a choice with respect to the tackling of an issue, and after that conveying to their devotees and association individuals how, when, where, and who will execute the progressions which will take care of the issue. The main operators of progress are the pioneer or administration of the association who has the ability to execute the progressions.
Culture and Strategy
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The interest of the individuals from the association in culture is low, and their part is uninvolved and boils down to minor dutifulness. In this methodology, the data stream course is starting from the top, in light of the fact that the specialists of progress just advises the association individuals from what is anticipated from them and does not get input. For the same reason, the culture exercises are one-sided (Dorfman et.al, 2002; Eromafuru, 2013; McGurie, 2005).
The power-coercive methodology can deliver just first request culture since it does exclude changing the suppositions, qualities, or states of mind of the individuals from an association. The pioneer who applies this culture system is not keen on changing the convictions and estimations of the individuals from the association so they acknowledge the progressions; rather, the pioneer, by the utilization of force, just drives them to consistence.
This is the reason the progressions will be conceivable just inside of the current worth structure, which prompts first request cultures. Of the considerable number of systems, force coercive procedure prompts the quickest results and this is its primary leverage and the motivation behind why it is utilized generally regularly. In any case, its inconveniences are exceptionally various; for instance, the decimation of inspiration and dedication, extremely solid imperviousness to cultures, and the absence of comprehension of cultures prompting their wasteful usage (Dorfman et.al, 2002; Eromafuru, 2013; McGurie, 2005).
They all Dorfman et.al, (2002); Eromafuru, (2013); McGurie, 2005) concur this society strategy is centered around relations and social structure, as opposed to on work structure and assignments. Since reliance relations are the establishment of this framework, it commonly relies on upon the relations between the effective overseers of societies and the humble individuals from the association. Therefore, control coercive strategy depends on upon relations and the social, nice, “delicate” segment of relationship as an instrument for society.
Power coercive strategy translates the viewpoint of human activity as unshakable, compelling a perspective of the world in which individuals are free directors who can independently pick their activities. In any case, this totally adaptability infers just to the capable pioneer or chief and not to the straggling remains of the alliance (Dorfman et.al, 2002; Eromafuru, 2013; McGurie, 2005)…
Culture and Strategy
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The developments are driven by first changing the suppositions, qualities, standards, and viewpoints shared by the association individuals, and after that besides changing their activities and correspondences, or relations. Along these lines, it is unequivocally these relations and social segments of the alliance that are the vital instruments of headway in regularizing re-educative framework, and not its “hard” parts, i.e. tries.
In this structure, societies happen at the level of relations between the connection individuals. Standardizing re-educative methodology merges the system of reframing, or changing, the socially-made picture of reality, from which societies of both aggregate suppositions and qualities rise (Dorfman et.al, 2002; Eromafuru, 2013; McGurie, 2005).
By researchers, Dorfman et.al, (2002); Eromafuru, (2013); McGurie, (2005); Akbari et. al, (2012); in this manner societies in this reasoning are created both starting from the top and from the base up, and the data stream is multilateral. In the standardizing re-educative structure, the managers of headway in a connection are both the association and the authorities. The alliance individuals are dynamic people in society with an irregular state of endeavor: from this time forward the solidness to culture is sensibly low.
Societies composed by regularizing re-educative philosophy assemble the dedication of the association individuals to the new picture of reality and new connection and is of a higher quality than the past two strategies which request the alliance individuals’ insistence and detached assent. The regularizing re-educative methodology might start and induce second request society since it determines changing the path in which the general population from an alliance handles their general surroundings. However the execution of this strategy takes longer, as creating suspicions, qualities, gages, and dispositions is not a quick technique.
Culture and Strategy
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Conclusion
The paper has demonstrated that there is a theoretical explanation behind the supposition that various leveled society is one of the variables in the determination of authentic society association systems. In a split second it is the key to correctly test this presumption by testing the speculations made in this paper. It is also fundamental to look at it and how the way of life impacts the ability of the way of life framework and its flourishing. From this paper, a supposition additionally develops that there might be a criticism impact of organization society strategy on various leveled society.
Inside and out that truly matters, this paper can be prescribed to affiliation association which is planning progressive societies, to help with picking the association strategy for society that is awesome with the way of life of their affiliation. This will add to the suitability and accomplishment of the way of life procedure. With the target this should be conceivable they should have an OK learning of the way of life of the connection they are changing, besides of the open organization society procedures.
Culture and Strategy
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References
Aguiree, D., Post, R. V., & Alpern, M. (2013). Culture’s role in enabling organizational culture. Booz & Company.
Dilobe, N., & Haccoun, R. (2010). Measuring Core Dimension of Organizational Culture: A Review of Research and Development of New Instrument. University De Catholique.
Divan, S. M. (2012). CHANGING “THE WAY WE DO THINS” (Unpublished doctoral dissertation). California State University, Sacramento, LA.
Donell, O., & Boyle, R. (2008). Understanding and Managing Organizational Culture. Dublin, Ireland: IPA.
Eromafuru, E. (2013). Building and Sustaining Organizational Culture through Innovative and Strategic Leadership. International Journal of Humanities and Social Sciences, 3(11).
Heracleous, L., & Langham, B. (1996). Strategic culture and organizational culture at hay management consultants. Long Range Planning, 29(4), 485-494. doi:10.1016/0024-6301(96)00040-4
House, R., Javidan, M., Hanges, P., & Dorfman, P. (2002). Understanding cultures and implicit leadership theories across the globe: an introduction to project GLOBE. Journal of World Business, 37(1), 3-10. doi:10.1016/s1090-9516(01)00069-4
Huiri, D. (2011). THE IMPORTANCE OF STRATEGIC MANAGEMENT. SAVONIA UNIVERSITY OF APPLIED SCIENCES.
Janićijević, N. (n.d.). THE INFLUENCE OF ORGANIZATIONAL CULTURE ON ORGANIZATIONAL PREFERENCES TOWARDS THE CHOICE OF ORGANIZATIONAL CULTURE STRATEGY. ECONOMIC ANNALS, 18(193).
Long, D. D. (1997). Building the Knowledge Based Organizations: How Culture Drives Knowledge Behaviors. Center for Business Innovation.
Luthans, F., & Doh, J. P. (2008). International Managment (9th ed.). McGraw Hill.
Madu, B. C. (2005). Organizational culture as a driver of competitive advanatage. Journal of Academic and Business Ethics, 3(2). Retrieved from http://www.aabri.com/manuscripts/11791.pdf
McGuire, J. (2003). Leadership Strategies for Culture Culture Developing Culture Leadership as an Organizational Core Capability. The Center for Creative Leadership – Friends of the Center Leadership Conference, Florida.
Pudelko, M., Reiche, B. S., & Carr, C. (2011). WHY INTERNATIONAL STRATEGY AND CROSS-CULTURAL MANAGEMENT MATTERS IN BUSINESS RESEARCH AND EDUCATION. Schmalenbach Business Review.
Salamzadeh, Y., Ahmadi, A. A., & Akbari, J. (2012). Relationship between Organizational Culture and Strategy Implementation: Typologies and Dimensions. Global Business and Management Research: An International Journal, 4(3).
Sami, W. (2012, November). Organizational Culture. Helbing and Associates, 2-8.
Sliwa, M. (2011). Strategies for Culture. Culture for Development (3). mik.
Trompenaars, F. (1996). Resolving International Conflict: Culture and Business Strategy.Business Strategy Review, 7(3), 51-68. doi:10.1111/j.1467-8616.1996.tb00132.x
Tsai, Y. (2011). Relationship between Organizational Culture, Leadership Behavior and Job Satisfaction. Retrieved from BMC Health Services Research website: http://download.springer.com/static/pdf/576/
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Influence of Culture on Accounting Procedures
Introduction
Culture can be defined in relation to accounting procedures as the communal encoding of mind which differentiates a group of people from another. Culture puts into consideration factors such as the groups beliefs, morals, their background knowledge, the groups laws and customs, and any other abilities and habits that individuals from that particular society posses. Some of these cultural elements have been known to have a great influence on the labor circumstances of many organizations and business institutions.
Accounting procedures are structured set of handbook and programmed accounting techniques, systems and control methods that are introduced to collect, record, analyze, and present financial information to guide in decision making processes. Several theories have been used to illustrate the relationship and interconnections between cultural values and accounting procedures.
The theories can be categorized into two large groups which are economical and sociological approaches. Economical theories includes; principle agent theory, transaction cost theory and managerial accounting system design approach. Accounting systems may include; internal and external tax accounting and expense accounting procedures. Cultural behaviors have influenced the operations of businesses globally.
Influence of Culture on Accounting Procedures
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Problem Statement
Cultural values have not been completely embraced by many organizations in their financial and accounting systems. Business organizations need to incorporate important cultural values that will influence accounting procedures positively. Professionalism of individuals needs to be given priority when it comes to making decisions. Organizations have to create room for independent expert judgments by individuals with enough knowledge on the subject matter.
Their decision must be respected as long as they adhere to the set legislations that govern accounting procedures and at the same time the judgments they make should promote fairness to all workers ( Gregg, 2005). Cultural knowledge need to be used more in businesses since it provides valuable cultural information that can influence the making and implementation of more informed decisions.
Businesses will need to employ accounting secrecy and transparency to limit the disclosure of valuable financial information to competitors. Professional individuals must therefore create assurance for the security of any important financial information that may be used by competitors to their advantage. At the same time, transparency and accountability need to be practiced in the accounting and financing systems to avoid cases of a business losing money for individual gains.
Certain cultural beliefs and some set code of ethics promote transparency since they prohibit individuals from certain societal backgrounds from activities that may discredit them in providing financial results that lack accountability (Rand, 2006). Therefore, organizations need to employ workers with cultural values that promote accountability and transparency in the financial systems.
There is need for all businesses to ensure transparency and accountability in all its departments which can be achieved more efficiently by embracing set societal beliefs and morals. Both the managers and stakeholder should be in the forefront to in making sure that transparency and accountability is observed among all workers. They should be the role models to all other employees.
Influence of Culture on Accounting Procedures
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Organizations also need to employ conservatism which is one of the most ancient ways of valuing accounting procedures. The concept can be associated with uncertainty- avoidance aspect which tries to avoid the uncertain outcomes in the future. Conservative measures need to be taken that will help in the adapting of careful measures that will deal with uncertain results happening in the future.
A company that values its cultural conservatism highly is in most cases able to predict future outcomes thus avoiding occurrence of uncertain events in the future. An organization may opt for a lesser conservative theory to achieve consistency with short- term goals since the expected results are attained within their estimated time. Furthermore, this approach is more optimistic when adopted where the organization is trying to conserve its resources and investing these resources to achieve their long- term goals (Newing, 1995).
This is clearly shown when determining the total value of the business. In addition, the approach has tried to outline how various cultural values such as good behavior and customs can be used within an organization to facilitate good accounting and financial systems.
Influence of Culture on Accounting Procedures
Effect of cultural values and societal rule on accounting procedures
Written laws which can include societal rules need to be incorporated in the structural working of organizations to achieve uniformity in accounting and financial systems. Individualism is an aspect where culture has influenced both accounting and financial systems greatly, since it motivates individual performance towards realization of goals of an organization.
Further, this aspect has increased individual contribution towards the teams that runs various departments (Khan, 2002). Furthermore, an organization that chooses a more uniform financial and accounting theory, it is associated greatly with avoiding incidences of uncertainty. This has resulted to a lot of concern in matters pertaining laws and regulations which have forced these bodies to come up with strict code of ethics that monitors accounting and financial systems in any business organization.
These codes of ethics should go hand in hand with cultural morals that must be adhered to by all individuals. The organization also has role of ensuring that all set regulations of the firm must be followed to the letter without favors. For any business to be successful in the future consideration of individualism must be given more weight and priority since personnel’s with high cultural values will be more committed towards working with the sets regulations (Becker, 1991).
Influence of Culture on Accounting Procedures
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Economic theories of organizations control, makes the assumption that the firm is a lawful body that is composed of the manufacturing procedures whose information is accessible by other organizations. Executives are responsible for choosing a certain manufacturing process and provide a suitable environment for maximization of the present and the future revenues. In addition, it is also the responsibility of the managers and stakeholders to offer all required material and financial resources and also equip employees with required skills by offering training courses (Anthony, 2001).
Economic theories that have been discussed to help managers in business operations include; the principle agent theory, the transaction cost theory and the management accounting system design. The three theories all focuses on profit maximization where executives, workers, stakeholders and accounting controllers works together to achieve the organizations common goal of increasing the firms total output.
Economic theories should always try to adapt to mechanisms that describes the organization. On the other hand, non- economic approaches need to work towards filling the existing gap and expound on the firms’ knowledge behavior (Mullins, 2002).
Influence of Culture on Accounting Procedures
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There has been concern on whether principal agent theory helps in understanding the concept of profit maximization by the management. The approach refers to a point where the owners of the business are interested in capitalizing on profit or are concerned in functions that add value to their enterprise. The theory is also referred to as principle agent problem, since senior staffs may exploit subordinate staffs by for instance, installing financial programs that these junior staffs do not have skills to operate.
On the other hand, managers, concentrates on exploiting the available resources that include their salary and money to maximize on profit which is the main functions of their business (Warren, 2005). As managers tries to maximize on profits, it results to an argument of concern on how managers should be controlled in the way they should run their commerce and at the same time do their best to capitalize on the state of ownership.
For example, managers must consult investors on a certain decision before implementing so as to get the approval of the stakeholders. This facilitates effective decision making and implementation, since there thorough research on matters of concern and enough consultation is conducted before making a conclusive and final decision ( Harrison, 2004).
Influence of Culture on Accounting Procedures
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Despite managerial power system in relation to organizational activities not encouraging executives to express their open behavior, stakeholder do not have much information on managers day to day activities and the available information on profits. Ownership can therefore not force the management to work towards achieving the companies’ objectives by just highlighting the objective purpose. The solution to this is to design an efficient scheme that aligns the objectives of the stakeholder and those of the management (Whiting, 1986).
The scheme will tend to carry more weight on the objectives of the managers in comparison to those of the stakeholders. On the contrary, despite the approach trying to close on the gap within organizations, it faces a problem in that executive tend to utilize their power to enforce rules that may oppress the subordinates. For instance, the manager may authorize the purchase of an expensive machine for production to favor the seller while on the other hand; the manager is oppressing the subordinates who do not understand how to operate the machines.
It can be seen that the theory helps managers to maximize on profits as the management is given freedom to exploit resources at their disposal without stakeholders’ interruption. Further, the manager is given the mandate to set the rules and goals of an organization in order to maximize on profits (Bryan, 1999).
Influence of Culture on Accounting Procedures
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Effect of social cultural factors on profit maximization
Social cultural factors also influence the extent to which are managers able to maximize on profits from signing the right contracts which are cheaper compared to their market price. According to the transaction cost theory, a firms’ existence is validated by the ability of the entrepreneur to agree on contracts at lower price than the market price which can be negotiated.
The number of contracts that can be negotiated within the firm is always less than the number outside. The contract should only state the power limits of the entrepreneurs and the details of the contract should only be defined after the two parties have agreed on all matters. Due to this, there is a possibility of the firm emerging in cases where short term agreements are not satisfactory.
Further, the approach would be seen as the expense incurred while trying to cater for goods by purchasing from the market instead of the organization providing from within. In addition, many organization tend to provide for their needs from within which allows the organization to save more on production cost, thus maximizing on the total income generated (Laffont, 2002).
Influence of Culture on Accounting Procedures
According to this theory, the control of an organization is related to the control that the firm has over the marketing expenses. In addition, the theory claims that issues relating to organizations details play a vital role in defining the firms’ nature which is determined by the optimal production of available workers which is most likely promoted by the already existing inputs within the firm (Gebert, 2014).
In fact, resources with lesser value are priced at a lower cost since they can only generate products with lesser value, whereas, resources of high value are priced at a higher cost due to the high profit incomes that they generate. The approach faces a problem where, before managers undertake any transaction in the market, they have to know who are the willing seller/ buyer in order to initiate a bargain to get into contract and to conduct an inspection required to ascertain the validity o the contract.
The long processes involved in acquiring of industrial goods and services delays production by an organization since a lot of time is consumed/ lost between the time of identifying the needed resource and the time of acquiring the good. In addition, time may be also lost as the managers tries to fulfill legal procedures that are required for acquisition and installation of equipment (Flamholtz, 1996).
Influence of Culture on Accounting Procedures
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According to the theory, it can be seen that market prices determines the interactions between organizations. Furthermore, managers are responsible for making and implementing business set rules. For example, when a manager wants to purchase a machine that will be used in production department, he first of all consults an expert, then finds a willing seller, bargains, signs contract and finally makes the purchase (Chandler, 1992).
The approach involves three types of costs which are, “search and information cost “,”bargain and decision costs” and “policing and enforcement cost”. Without taking into consideration the transaction cost, managers will not understand well how the economic system work therefore making it hard to implement economic policies. The theory proves that managers are able to strike the right deals when they agree contracts before going to the market to strike at a market price.
Influence of Culture on Accounting Procedures
Effect of team work and organization culture on profit maximization
In the current business world, most organizations are using accounting and financial data in making critical decisions which in most cases is provided by management agents and controllers. The only question in this is whether the agents and the controllers have different perceptions with the managers on variable designs and the output quality (Chenhall, 2003).
Therefore, there is a need for the integration of the accounting controllers and the management involved in the decision making which would result in a consistent accounting language which benefits both the manager and the controllers.
The controllers do not seem to understand how vital their work relies on business success since they provide intangible and harmonizing information to the management. Therefore there exists a gap between the accounting controllers and the executives concerning on how to put into use the financial information. By providing information that promotes the growth of the organization, they improve their position as business consultants thus gaining highly influential positions within the enterprise.
On the other hand, managers must be transparent on the type of details they require and use while the controllers should not see themselves as specialists but instead be just like any other employee with the aim of realizing the organizations set targets (Sautet, 2000). Further, when both mangers and controllers agree to examine the policy that runs the business together, they tend to understand the matters concerning the social- economic factors m, thus leading to faster goal achievement of the organization within a short time.
In addition, managerial designs have assisted managers in maximizing on profits as decisions made by the two parties, when they work as a team, are implemented as agreed. When both the managers and the accounting controllers work together, it can be seen from the approach that there is quick goal achievement and higher profit maximization.
Influence of Culture on Accounting Procedures
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The above three discussed approaches do interrelate as all are aimed at realizing the long term profit maximization of the firm. First, Principal Agent theory illustrate on a scheme that is aimed at having the management and the stakeholders aligning their objectives so as make and implement efficient decisions that will enhance overall productivity. Though the senior staffs have a higher hand of determining the best course since they understand better the business environment, they still need to consult the investors.
The transaction cost theory explains on how managers need to give priority to contracts that can be implemented at lower costs than the market price. The management there focuses on resources that can be acquired at a cheaper cost but at the end yield more products which can generate more incomes. Lastly, the managerial accounting system design like the other two approaches focuses on making decisions that are aimed at maximizing the firms’ profits (Radebaugh, 2005).
The theory tries to integrate the company’s management with the accounting controllers so as to enhance the making of more informed decisions that would increase the firms’ total revenue. The three theories therefore summarize the role of different firm organs and departments in the realization of the goals of an organization which are to increase the total income revenue.
Influence of Culture on Accounting Procedures
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Sociological theories of organizational control are approaches that try to describe managerial behavior by stressing on main affinity of teams. Sociologists do not concentrate more on understanding individuals’ psychology and how they interact with others but emphasize more on group interactions.
According to the theory, managerial control is executed by set laws, policies and the chain of command (Klewes, 2008). Further, the sociological approach has been described using several other theories that include; functionalism, general system theory approach, contingency theory and theory of bureaucracy.
The theory of functionalism is based on the hypothesis that the social world has a strong, genuine continuation, and an orderly trait oriented to come up with a structured and maintained state affairs. The theory has been applied in social sciences and how they relate to the business world. According to the approach, the organization can be approached in two dimensions; from an internal view and an external perspective.
The internal view distinguishes the managerial, the technical and the institutional level. The managerial section takes part in the administration section of the organization (Chenhall, 1990). The technical level focuses on the activities involving practical work. The institutional part has to make sure that the objectives of the company are at par with the social goals.
The second approach is the General system theory approach studies an organization as a program of parts interconnected to each other but each specialized to perform a specific task towards achieving the goals of the organization. Further, the theory explains the common principles and regulations that an organization operates under. The principles must be in agreement with the cultural norms of the involved communal groups.
In addition to this, environmental laws must also be adhered to regardless of the firms’ laws and regulations. The cultural values of the society will therefore play a bigger role on the organization during its making of financial and accounting decisions (Bryan, 1999).
Another approach that is used by sociologists is the contingency theory which argues that, individuals cannot be expected to just follow set gestures unless they can respond to own worth and interest. The theory therefore recognizes enabling factors that facilitates capacity building within the firm. Capacity building in an organization can be limited by business environmental factors which always need to be addressed so as to enhance business productivity.
Organizations variables have to match with environmental traits so as to ensure an excellent working condition (Klewes, 2008). In addition, the approach also shows that the most successful firms are connected with administrative practices which best matches environmental circumstances with the techniques used for production.
Influence of Culture on Accounting Procedures
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The last approach is the theory of bureaucracy which is based on the official area of jurisdiction, the hierarchy of command, written agreement, training of the office management, the capacity of the employees and lastly the general rules by the management. In addition, the theory emphasizes on the rule of law which focuses on all formal structures of the firm. All employees have equal rights as does the consumers. All customers have to be provided with equal services regardless of their cultural beliefs, morals and the principles that monitor and maintain their behaviors (Radebaugh, 2005).
In conclusion, the impact of cultural values on accounting procedures can be seen clearly in the context. Various theories that include; principle agent theory, transaction cost theory and managerial accounting system design approach have all tried to explain the success of organizations based on how managers makes and implements decisions.
Further, sociological theories, such as, functionalism, general system theory approach, contingency theory and theory of bureaucracy have also been used by scholars to explain how cultural values influences financial systems in a business. Cultural values that influences these accounting procedures includes; cultural beliefs, morals, individual habits and the customs of the groups.
The above approaches have successfully been able to solve the gap that exists in many business organizations. Further, the study explains more on cultural behaviors which includes; professionalism, secrecy and transparency, conservatism and individualism. These concepts illustrates how cultural values affects the accounting systems and designs.
Influence of Culture on Accounting Procedures
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References
Gregg, G. S (2005). The Middle East. A cultural psychology. Oxford; Oxford University Press
Radebaugh, L. H., & Gray, S. J. (1997). International accounting and multinationalenterprises. New York; John Wiley & sons.
Khan, A., & Hildreth, W. B. (2002). Burdget theory in the public sector. Westport, Conn: Quuorum Books.
Becker, R., & burmeister, E. (1991). Growth theory. Aldershot, Hants, England; E. Elgar.
McChail, K (2013). Accounting ethics
Rand, S, Kouris, H, & Apex Art ( Galley) (2006). On cultural influence Collection papersfro Apexart international conferences 1999-2006. New York Apexart
Laffont, J-J, & Martimort, D. (2002). The theory of incentives: The principal- agent model. Princenton, N. J: Princenton University Press
Chandler AD Jr (1992). Strategy and structure: Chapters in the history of the American industrial enterprise. MIT Press, Cambridge, MA
Anthony, R. N., & Govindarajan, V. (2001). Management control systems. Boston
Marchant, K. A., (2012). Management control systems; Performance measurement,evaluationand incentives. Harlow, England
Chenhall R. (1990). Financial and accounting systems .Boston, MA; Auerbach
Gebert, K. (2014). Performance control in buyer- supplier- relationship; the design and useof formal management control systems. Wiesbaden; Springer Gabler.
Newing, R, & Ring, T. (1995). Financial and accounting systems. Chorleywood; Prime marketing.
Harrison, W. T, & Horngen, C. T. (2004). Financial accounting. Upper Saddle River, N J; Prentice Hall.
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Corporate Culture and Strategy
An organization’s mission strategy is a précis of the way in which the firm perceives its role and the beliefs the company employs in attaining its objectives. The culture of an organization signifies the professional values an organization espouses which dictate how the company interacts with its customers, partners, vendors and workers. Since the culture of the organization is a driving force in how the business organization carries out its business, it has a significant impact on developing business strategy (Hofstede, 2014).
This paper delves into the topic of culture and strategy. In this investigation of the topic, the subject of culture and strategy is analyzed exhaustively and critically. In particular, this paper provides an in-depth discussion of the relationship between company culture and strategy, importance of alignment between culture and strategy, and how national culture really influences an organization’s strategy.
Correlation between corporate culture and strategy
There is a strong relationship between corporate culture and strategy. In general, strategy is considered as a product of culture while culture, on the other hand, is considered as a product of strategy (Browaeys & Price, 2009). In spite of how good the company’s strategy is, when it really comes down to it, Schneider (2011) noted that it is the people who usually make the difference. At its core, strategy is logical and rational, simple and clear.
Strategy has to be easy to talk about and to understand. A business organization is lost if it lacks a clear strategy. In essence, strategy is the pattern of activities that a company follows as it pursues its long-term purpose. Put simply, it refers to where the company is at the moment, where the company wants to go, and how the company intends to get there (Akbar et al., 2012).
Strategy comprises a number of factors which include the following: objectives and goals of the company; mission statement and vision; and critical success factors, or the things which the company has to get right for it to succeed in its mission. It also includes core values; reputation/brand, which entails developing and communicating meaningful and powerful differences between the company’s offerings and the offerings of the company’s competitors; and positioning, whereby a company builds a preferred and valued position within the minds of its target audience (Cristian-Liviu, 2013).
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Conversely, culture is understood as the set of beliefs which drive the behaviours of workers. These could be things that everyone within the organization knows and shares, in addition to implicit rules. It is worth mentioning that the range of acceptable behaviours of workers in the company is rooted in these underlying beliefs (Weick, 2014). On the whole, organization culture consists of the shared values, norms as well as ideals in a business organization and it actually sets the basis and groundwork for strategy.
An important starting point of understanding the culture of a company is to understand its founding principles: that is, its legacy, heritage, the clients and markets which it serves, and its points of differentiation. Anderson, Anderson and Lee (2015) pointed out that culture of a company is an aggregation of the beliefs and mindset of the company’s workers. It is the manifestation of the mission, vision and principles which bind employees in the organization together.
In the current business world in which sell-offs, diversifications, acquisitions, expansions and mergers are becoming increasingly common, it is becoming very important to understand corporate culture in strategic decision-making. The consolidation of AOL with Time Warner did not succeed because of culture clash as did the DaimlerChrysler merger. Organization culture is a very powerful factor in an organization’s lasting success.
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For a strategy in a company to develop and be successfully executed, that strategy has to align fully with the corporate culture. As such, goals and initiatives need to be established within the company in order to support and establish a corporate culture which embraces the strategy of the company over time (Su, Yang & Yang, 2012). Corporate culture has a significant impact on strategy execution within the organization.
Characteristics of stability: an organization culture that is stable, a culture that would systematically support implementation of strategy, is one which promotes a culture of cooperation, unity, partnership and teamwork amongst staff members. This kind of organization culture would certainly enhance commitment amongst workers and focus on productivity in the company instead of resistance to regulations and rules or external factors which prohibit success.
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Flexibility and adaptability: according to Fombrun (2012), companies which remain flexible tend to embrace change and establish an environment that is open to both communication and production. This creates a model which welcomes cultural diversity and helps in clarifying implementation of the strategy. In any company, corporate culture could serve a number of different purposes such as unifying employees in the company and helping to establish a set of common rules or norms within the company that members abide by.
Goal unification: corporate cultures that are unified, strong and flexible would approach strategy execution and affect execution positively through aligning goals. In essence, goals could come into alignment when the culture of the business organization is working to focus on productivity and getting the mission of the company achieved. This might include shipping out more product items compared to the company’s main competitors, getting products delivered to the company’s clients on time, or similar objectives.
This would create a domino effect within the company which would ensure that all work carried out by every work group and employee within the organization is really focused on performance and on the company’s strategic importance (Dutch, 2013). This would allow corporate culture of the company to be in alignment with strategy execution at the most basic level. Hanson and Melnyk (2014) noted that for this unification level to work, it is important that goal setting aligns with and is supported by processes, procedures, policies and systems within the company, which would help to attain strategy execution and continuing the organization’s cultural integrity.
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Process implementation: part of strategy implementation and cultural alignment entails process implementation. It is noteworthy that processes include the use of technology in facilitating goal achievement as well as the results which an organization is looking for when it works with clients to satisfy their needs. Although the hard problems and needs of a company are attained most of the time, the corporate culture becomes overlooked during the process. This is where processes actually come into place and execution of the strategy slowly comes into existence to maintain and sustain corporate culture and strategies (Dutch, 2013).
Cultural alignment: when corporate culture is in alignment with implementation of the strategy, a company can operate more efficiently within the international marketplace. Corporate culture allows the senior managers of a company to work both as teams and individually in developing strategic initiatives in the company. These might include re-establishing old partnerships and creating new partnerships to continue to deliver the best services and products to an international marketplace (Slater, Olson & Finnegan, 2011).
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Organizational strategic alignment, in its simplest form, is lining up the strategy of the company with its organization culture. For an organization to experience organizational strategic alignment, then its goals, processes and management should align. In order to create a supportive culture, an organization should clearly define the competence of its resources by assessing whether its processes, employees and equipment could actually handle new changes. If staff members do not have the competence for handling a new strategy, then the organization should offer training to improve the skills of its workers and managers.
If there is no sufficient support and training, the relationships between managers and staff members within the organization would suffer and the company would lack flexibility. To establish a culture of support, the top managers need to be involved in organizational strategic alignment from the beginning and provide the right resources to help in ensuring success of the workers and the organization (Yarbrough, Morgan & Vorhies, 2011). Workers should commit to supporting an organization’s strategic alignment and senior managers could help ensure this success by defining the goals of the organization in a clear manner and giving incentives to help workers accept new strategies.
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When strategy and organization culture are misaligned, the misalignment would short-circuit performance and increase the probability that the company will not attain its goals. An organization culture which all employees within the company subscribes to will help in creating focus amongst the workers.
When workers comply with the values and beliefs of the organization, it will give a unified impression to partners, customers and vendors (Bushardt, Glascoff & Doty, 2011). The organization could then formulate a strategy knowing that every member would uniformly apply the guidelines and improve the likelihood that a strategy would succeed.
In aligning corporate culture with strategy, the following steps are important: first, the senior managers should define their company’s long-term set of guiding principles – the philosophy and purpose –, which are essentially the organization’s identity. A strategic plan would not succeed if the strategic plan is really not supported by these key principles of the company’s core culture.
Secondly, the senior management should evaluate the weaknesses and strengths of the company as well as the external factors which could impact success (Simoneaux & Stroud, 2014). Thirdly, the executives should create the company’s vision and then set strategic goals that are measurable and specific. Fourthly, the senior management should decide the strategic priorities which are in alignment with those strategic goals. It is worth mentioning that strategic priorities are a part of the organization’s core culture.
They are basically the values and principles which could alter given that their function is to align the corporate culture with the organization’s strategy. A company’s core corporate culture has to drive the company’s strategy and align with it (Mintzberg, 2011). Fifthly, with a clear understanding of the organization’s core corporate culture, strategic goals and vision, the top managers should create an action plan with measures for guiding performance. Finally, the senior executives should turn the strategic goals into measurable outcomes. Processes and employees should be aligned with the company’s core corporate culture and strategy (Simoneaux & Stroud, 2014).
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National culture and strategy
A country’s national culture greatly influences the strategy adopted by a company. National culture has an impact on organizational strategy and implementation of the strategy, and can ultimately result in business failure or success. In essence, all national cultures have an impact on companies in both negative and positive ways, depending on the particular business, the business cycle, as well as the specific strategies being pursued (Hammerich & Lewis, 2013).
Cultural dynamics could either derail or enable performance depending on these different factors. It is important that a company’s senior management recognize the cultural factors which have a negative impact on performance and the ones which could be harnessed to foster superior performance (Hammerich & Lewis, 2013). To formulate strategy, a company needs to identify and interpret strategic issues.
In this process, the company scans, selects, interprets and validates information and establishes priorities amongst issues. The national culture of any country could actually influence this process given that it affects the nature of the relationship of a company with its environment and the nature of the relationships amongst employees in a company (Schneider, 2011).
Whether it is big company pursuing international growth strategies or a small start-up firm in its initial phases of the growth curve, culture plays a vital role in making sure that the company does not swerve off the path and that it remains on course. Usually, driving and executing effective strategic change is a medium-term to long-term priority for a company’s management.
Likewise, the corporate culture of a company also develops with time, with a combination of active support by the company’s top leaders and voluntary cohesion and dissemination as the company’s purposes and beliefs pervade through the hierarchy. Owing to the intrinsic patience which the company’s top management requires to drive a strategic change and establish a focused culture, it is really sensible that both of them – strategic change and purposeful culture – work alongside each other and not against (Schein, 2012).
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Companies which are highly successful in driving strategic change and implementing it share 3 fundamental principles by which they embrace corporate culture and utilize it in the process as an enabler. Firstly, such companies are aware of differences in global cultures – this factor might be more pertinent and applicable to multinational corporations although it is equally applicable to small start-up firms that have ambitious aspirations for growth.
For instance, knowing the way that a worker in Malaysia would react to a new strategic initiative in comparison to how a worker in the Netherlands would react is of great importance in executing strategic change at the ground level (Schwartz & Davis, 2011). In essence, it implies that the overarching aspects of the strategy should be modified to fit the with local market-level ways of operation.
The second underlying principle is recognizing what culture means to different peoples – Cristian-Liviu (2013) reported that this second principle is more of a challenge for big companies with scale than to new, start-up firms. Within an organization, culture implies different things for different individuals.
In a brand consultancy company for example, the design/creative department might think that their department is really the best place to work in the organization, but the sales and marketing department whose role is to sell the design solutions, might think that the design/creative group’s capabilities are dull and outmoded. Broader changes within the company would impact employee groups in different ways and the cultural aspect of the change should be carefully measured (Schwartz & Davis, 2011).
The third underlying principle entails aligning strategic change initiatives with corporate culture – the Time Warner-AOL and DaimlerChrysler mergers were both in the same industry but still they did not succeed, they both failed. This evidently illustrates the dangers of overlooking culture as a factor when planning and executing a company’s strategic initiatives (Mühlbacher, Vyslozil & Ritter, 2014).
Although both Chrysler and Daimler produced vehicles, the styles of management and the collaboration processes in each firm were driven very much by their nation of origin; that is, the German and American cultural ethos. These 2 cultural ethoses were never reconciled and adapted in the merged organization and they clashed all the time. In essence, every form of strategic planning should take in corporate culture as a factor that impacts success, as well as manpower, finance and capabilities (Weick, 2014).
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Conclusion
To sum up, there is a really strong correlation between corporate culture and strategy. Strategy is considered as a product of culture while culture, on the other hand, is considered as a product of strategy. For a strategy in a company to be formulated and executed successfully, this strategy has to align completely with the culture of the organization. Thus, goals and aims need to be established within the firm so as to support and establish a corporate culture which embraces the strategy over time.
When organization culture is in alignment with execution of the strategy, a firm can operate more efficiently within the international market. When strategy and organization culture are not aligned, then this misalignment would short-circuit performance and increase the likelihood that the firm would not accomplish its goals. National culture has a significant impact on organizational strategy and implementation of that strategy, and could eventually result in business failure or success.
References
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The Impact of National Culture on Workplace Behavior
Culture
Culture is perhaps the most influential factors that impact the success of businesses across the world. Culture can be defined as a set of beliefs, values and assumptions that are held in common by a particular group of people. It is important for any business to understand the culture of its business environment as this is crucial to the success of the business. In this paper, the impact of national culture on workplace behavior is discussed.
Secondly, the paper critically analyzes the impact of national culture on organizational practices. Thirdly, the paper presents some of the factors that often act as change triggers in organizational culture. Finally, the paper presents a discussion on some current cultural issues that impact the operations of contemporary businesses.
National Culture and Its Impact
National culture can be defined as set of assumption, values and beliefs that are held by individuals or organization that have the same national identity. A comparison of the individual behavior people from two cultures in an organizational context can help to illustrate how national culture impacts workplace behavior. In this essay, the behavior of Indians and Americans in a technology firm is compared (Perlow, 2002).
There are significant cultural differences between Americans and Indians. American culture emphasizes on individual liberty while Indians believe in interdependence and mutually helping each other. According to Perlow (2002), these attitudes and beliefs can have a significant impact on behavior in the workplace.
According to Hofstede (1983) as cited in Perlow and Weeks (2002), American ranks highly as an individualistic culture while India scores 48 to America’s 98 on the individualistic dimension. According to Perlow and Weeks (2002), individualistic people are characterized by emphasis on independence and differentiation from others. On the other hand, collectivists’ individuals are interdependent and thrive on relationships.
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The impact of individualism/collectivism is apparent in US organization contexts. In the US, an individual is supposed to make individual contribution to the organization which will be rewarded by promotion up the societal hierarchy (Perlow and Weeks, 2002). Workers in the US easily link individual effort and ability to rewards. For example, salespersons will work as direct competitors although they are from the same company.
In contrast, India is a collectivist society where group performance is more important than individual performance. In India, a group of salespersons from the same company are likely to work collaboratively as they pursuit market opportunities for their organization. According to Perlow and Weeks (2002), Indian children are taught to subordinate their own personal interests to those of the family and other social institutions.
Later in life, Indians adopt the same attitude where societal or group norms, belief, desires, needs, and values have more priority than those of the individual. People from collectivist cultures have increased pressure to act in an acceptable, effective and legitimate way. According to Perlow and Weeks (2002), the individualism/collectivism dimension has a great effect on the willingness of individuals to engage in collective or cooperative tasks.
Perlow and Weeks (2002) found that Indian tech workers were more willing to help their colleagues who were faced with difficult task. The authors point out that Indian workers believed that helping fellow workers was an opportunity to enhance their own skills. In addition, assistance in task completion was greatly appreciated by Indian workers who were beneficiaries. In contrast, American workers considered assistance from colleagues an unnecessary interruption in their work. Furthermore, very few American workers were willing to help their colleagues who were experiencing difficulties in completing tasks that were assigned individually.
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The influence of national culture is an indicator of just how profound the impact of culture is in workplaces. Culture is an influential factor that impacts a number of workplace behaviors. According to () , how people work, behave, use language, solve conflicts and problem, negotiate and create relationship is dependent on their culture, and in particular their national culture. This change in behavior is driven by the common values that people from the same national culture posses.
Importance of Values
According to (), individuals learn both conscious and unconscious values from their national culture. People only become aware of their national culture values and beliefs when they are confronted by people with different worldviews, values and beliefs. National cultural differences make interactions and communication between people of different cultures especially difficult. According to (), there are significant variations across national cultures. Unfortunately, many people are biased to judge other using their own cultural norms as reference points or lens.
This biased view holds great potential for conflict, miscommunication and misunderstanding. () points out that diverse cultures lead to diverse behavior which may not be understood by everyone. There is need for contemporary workers to understand, learn and appreciate the culture of their colleagues from other cultural backgrounds and workplaces are becoming increasingly multicultural.
Individual vs Group behaviors and Values
According to Trompenaars and Hampden-Turner (), individuals can either be dividend into community or self-oriented. As seen earlier, Indians are community oriented while American are self-oriented. However, even in community oriented culture there is huge difference in the institution the culture identifies with. The Irish identify the Catholic Church, the French with family and country, while the Japanese identify with Corporations.
It may be assumed that the whole society is moving towards individualism but this is not really true. According to (), it is rare for a person to achieve an extraordinary feat without the assistance of other members of society. He notes that nobody has invented an new product on their own.
According to (), the best approach to survive and flourish in a multicultural environments is to adopt our individual values to the group. Culturally adapt individuals can adapt to fit into groups of different culture. Individuals can also behave in a “culturally intelligent” way by seeking to understand other and adapting behavior so that it can be easily understood. () advises immigrants or expertriate who move into foreign nation to adapt to local national cultures.
He points out that a person could end up forgetting some aspects of the home culture. However, () argues that people working in foreign countries have no choice that to adapt to host cultures as this is the most practical thing to do. However, people will rarely lose their values even if they work in a foreign culture for years.
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Building Multicultural workplaces
People are likely to work with people from different cultural backgrounds in contemporary organizations. It is therefore important to build work environment where people from different cultures can fit comfortably. Success in building such an environment is dependent on the development of common trust, understanding and commitment.
It is important to genuinely connect with people from different individual culture and realize the potential their hold despite the obvious cultural differences. Some of the important consideration to make include:
Is the person from a different national culture relationship or task oriented? Can I we collaborate in a task without first needing to build a relationship?
Is the person from a low-trust or high-trust society? With individuals from low trust society it takes little time to earn a person’s trust. In contrast, a lot of time and effort is needed to earn the trust of a person originating from a high-trust country.
Willingness to share information should also be an important consideration when working with people from different national cultures.
Does the person come from a direct communication or an indirect communication country? This is an important consideration when passing instruction to the concerned party.
Research the persons cultural background: its is important for members of staff who will be interacting with a person from a different country to know the cultural expectations of their national culture.
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Building trust with people of diverse national cultures is a difficult undertaking that need skillful employment of cultural intelligence. Trust is achieved when cultural understanding, intercultural engagement, and intercultural communication are employed. Cultural understanding includes being aware of our won cultural bias and those of the other party. On the other hand, intercultural communication involves use of both verbal and non-verbal communication and communication styles that can be easily understood. According to (), emphatic listening and respect helps in earning the trust of people from different national culture backgrounds.
Factors that Lead to Cultural Change in Organizations
Leadership Change
Many authors agree that changes in top-level management can contribute or drive culture change in organizations Morgan (2012); Christopher (2012); Beer (2012). Organizational culture is initiated by the founder of the organization, but it changes over time due to a number of factors (Beer 2012). Organizational culture changes significantly once the management of the organization changes and some new ideas start to flow in these organizations. However, Beer (2012) points out that organizational culture remains the same in public sector organization despite changes in the top-management of the organization.
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Beer (2012) and Christopher (2012) argue that changes in organizational leadership can either have insignificant or significant changes on organizational culture. According to Christopher (2012), the personal traits of the leader, the organization’s new strategy, and objectives influence the extent of changes in organizational culture at the onset of new leadership. In organizations where strategy changes significantly, the organizational culture also changes profoundly.
Technological Developments
Advances in technology have had a huge impact in organizations and in particular organizational culture. Technology has the potential to impact culture in different ways. For example, mobile phone, email and internet technology changed the way organizations communicate. On the other hand, technology such as CCTV enables organizations to closely monitor the conduct of workers at the workplace (Maude 2011).
For example, some organizations use strategically placed CCTV cameras to control lateness and absentia from work. Teleconferencing, email and video relay systems allow employee to work from the comfort of their homes or from remote locations. For example, Walshe and Smith (2011) points out that technology has enabled clients to make online appointments with health practitioner instead of making physical visits. Overall, technology is changing the way work is done in organizations and therefore changing underlying organizational culture in the concerned organizations.
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Mergers and Acquisitions
Christopher (2012) and Moran et al (2011) have linked changes to organizational culture to the merger or acquisition of organizations. Mergers and acquisition bring together two or more organization with different cultures. Obviously, the cultures of some or all the organizations have to change to enable them to work together successfully. According to Moran (2012), the period immediately following a merger or acquisition is especially difficult as employee have to deal with the inevitable clash in cultures.
However, this clash in culture is temporary and new hybrid cultures soon emerge after the acquisition and merger is completed. Sometimes mergers and acquisition involve organizations from two different cultures. In such a situation, the cultural clash is more serious and need more able leadership to manage it.
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In the views of Christopher (2011), effective leaders assist greatly in enabling the emergence of a new organizational culture blend in the case of a merger or acquisition. He argues that leaders need to support employees at all level of the organization to accept and embrace the new cultural changes. Leaders should also raise awareness about the inevitability of change after a merger or acquisition and try to prepare all stakeholders to receive the impending change positively.
4. Changes in External Environment
Changes in the external environment can act as triggers for changes in organizational culture (Morgan, 2012; Primecz et al. 2011; Velo, 2012). According to, changes in the Political, Social, Technological, environmental and legal environment can influence organizations to change their organizational culture. For example, governments may make changes to official workers requiring workers to report to work at 9:00 am instead of 8: am. Organizations will have no choice than to change their policies to suit the change in official working hours.
Cultural Issues in Business Environments
Successful intercultural negotiations
Businesses are engaged in multiple situations where negotiations between the parties are necessary. According to (), language and cultural etiquette forms a formidable barrier to intercultural negotiations. () argues that it is imperative that businesses operating in multicultural environment use the language of the customer. According to (), foreign trade partners may use a different language, think differently and have different priorities while engaging in business negotiations.
For example, in some culture, business meetings are formal and parties are offended if they are addressed by their first names. In other cultures, business meetings are informal affairs where negotiating parties refer to each other by first name. Obviously, two parties from these two cultures are engaged in negotiations they would have difficulties understanding each other. () argues that successful negotiations depend on the previous knowledge of each other values and assumptions.
Differences in negotiation styles are as diverse as national cultures. For example, negotiations between an South American and a North American businessman will be characterized by considerable differences as the true have distinctly different negotiation styles.
Differences range from the authority of a negotiator to approve a deal, to the level of relationship needed to start business negotiations. In some culture, it is necessary for organizations to build close and personal relationships with negotiators. These relationships are meant to establish fidelity and trust between the two negotiating teams.
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Religious Limitations
Religion moderates the behavior of communities more than any other cultural factor. Religion varies from nation to nation, within nations, and even within local communities. It is important for businesses to respect the religious norms that relate to their business operations. In particular, the advertising area of business is profoundly impacted by religions. For example, religious reason may prevent businesses from advertising alcoholic products, sanitary pads and other culturally sensitive product in some countries.
For example, the Koran (Islam’s holy book) ban the consumption of alcohol by believers. In some muslim countries, believer who are caught intoxicated are severely punished. The impacts of the alcohol ban on foreign businesses means they cannot market alcohol in countries where it is a banned. In addition, alcohol is a taboo subject in most of the Muslim world where people cannot discuss whether it should be legalized or stay banned.
Dressing and Dress Codes
Dressing is an important cultural consideration in businesses that operate across different national cultures. What is acceptable and decent varies from one culture to another. For example, KFC in the United States may be able to dress their female waiting staff in miniskirts and tight tops as this is acceptable in American culture. In contrast, if KFC operates a store in a conservative Middle Eastern country it would be considered indecent to dress their staff in miniskirts.
The backlash for breaking cultural dressing codes can be significant as some government can even cancel the operation licenses of organization that break local dressing codes. Cultural dressing codes also impact the dressing codes organization can use for their employees. For example, it is agreeable in many western countries for women to go to work in miniskirts as part of suits, but the same would not pass for decent office wear in the Middle East.
Furthermore, some communities require women to wear veils whenever they are outdoors. These points are important considerations for organizations who are developing dressing codes for employee in foreign offices.
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Women vs. men relationships
Women/Men relationships are becoming an important cultural issue that has the potential to influence business operations. In some cultures, some products are for men while other are for women. Another good example is where buying decisions for some products are the preserve of one sex. In some cultures, women make the buying decisions for food items, household items, and sometimes for holidays as in the case of Britain.
For organization marketing to different cultures, it is important to pre-determine the role of women/men in making the purchases decision for the product that you are offering in the market.
Taboos
Taboos vary from culture to culture. For example, in some culture Dogs are considered pets and thought of consuming their meat would be unacceptable. However, the Chinese consider dog meat a delicacy and there are many butcheries stocking Dog meat in China. One of the taboos which touch on organizational culture has to do with acceptance of tattoos in the workplace.
In the United States, tattoos have gained wide popularity and are quickly being accepted in the workplace. However, some workplaces in the US have rules that prevent employees from having visible tattoos. According to (), the prejudice associated with tattoos has faded greatly in the last twenty years and few people feel tattoos can prevent them from securing a job.
Despite this over 31 per cent of Human resource managers assert that visible tattoos can impact a candidate’s chance of getting a job. In contrast, the stigma associated with tattoos is still high in the UK. Most hiring managers thought that visible tattoos on candidates’ bodies indicated they were “thugs” or “drug addicts”. They also argued that ultimately it is customer’s attitudes towards employees with visible tattoos that influence the hiring decision.
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Conclusion
There is little doubt that culture is a powerful force in business environments. Businesses cannot ignore the potent forces of culture in both their internal and external environment. In particular, businesses must remember that contemporary organizations have to work with employees originating from different national cultures.
It is important for them to consider the role differences in national culture may impact the behavior of employees. For example, organizations receiving employees from foreign cultures may need to use special communication strategies to engage and connect with the employees from different national cultures.
Organizations also have their own internal culture which may need to change from time to time. This paper discusses leadership change, merger and acquisitions, changes in external environment, and technological changes as the main drivers of organizational culture change.
The paper argues that good leadership can enable organization smoothly transition into a new organizational culture. Finally, the paper presents several cultural issues that impact contemporary business including negotiations, religion, dress codes and taboos.
