Importance Of Organizational Culture To An Understanding Business Essay

Organizational culture refers to a system of shared so this means held by people that distinguishes the business from other organizations (Schein 1985 and Becker 1982). Organizational culture provides employees with a definite knowledge of the "the way things are done around here". (Dessler 1976) provides three different methods to determine the culture- structural, subjective and fabricated. The structural strategies define culture as a couple of enduring characteristics which describe and organization, identify it from other business and influence the behavior of human source of information in it. The subjective strategies analyses culture from the standpoint of the 'feel' that people have for the business. The Synthetic methods stress both structural and subjective elements. Relating to this view, organizational culture is the recognized, subjective affect of the formal system, the informal 'style' of managers and other significant environmental factors on the attitudes, beliefs; worth and motivation of people in particular business (Litwin and Stringer 1986).

Organizational culture, therefore, can be explained as a set of attributes that happen to be identified by the individuals and which are deemed with an effect on the willingness of the individual to perform at his best. Actually, culture is what one responds to both physical and mental health and which finally determines the quality of the business. Recent research suggests that there are ten primary characteristics that, in aggregate, capture the essence of organization's culture. (Dwivedi 1995).

Importance of organizational culture

Every firm has its unique design of working which often contributes to its culture. The values, ideologies, principles and beliefs of an organization form its culture. The culture of the work area controls the way employees act themselves as well as with people outside the organization.

The culture determine the way staff interact themselves at place of work, a healthy culture encourage employees to stay motivated and dedicated for the management. Employees try their level better to perform much better than their fellow workers and earn recognition and understanding of the superiors. It is the culture of the place of work that actually motivates the employees to perform. Every organization must have set guidelines for the employees to work accordingly. (Feldman 2002)

The culture of a business represents certain predefined insurance policies which guide the employees and give them a feeling of course at the workplace. Every person is clear about his functions and obligations in the organization and learn how to accomplish the responsibilities ahead of the deadlines. Certain organizations follow a culture where all the employees irrespective of their designations have to step in to the office promptly. Such a culture encourages the employees to be punctual which eventually benefits them in the long run. It is the culture of the business making the individuals a successful professional. (Schein 2010)

Example: Haier

Such as home and foreign, there are numerous excellent corporations, their organizational culture does perfectly, not only to end up being the consensus of their employees, but also end up being the other signs or symptoms, such as esteem for the soul of creativity. Haier, the Chinese home device industry is exceptional to test the countrywide and international investment enterprises, throughout development in more than 20 years, Haier must create distinctive culture system: from idea to strategy, from talent to technology, to the service from the market, Haier innovation not only the successes of the introduction of businesses, and the personnel has also been more popular. Businesses have such a famous global brand is to be treated consequently: "Culture, is an emotion. (Wang 2009)

Organizational culture is kind of materials culture, when people discuss about Coca-Cola, we know that "brand, is an feeling"; by South Korea's Samsung Electronics, everybody knows that the brand so this means "quest for superiority"; Haier, we realize brand as "advocating invention"; Microsoft, we feel that brand is the culture of "love ". These are the material culture of a representation of penetrating the space-time, a far-reaching impact. These three ethnicities, like the three circles, the organization culture is the guts of the group, always turn around the organization culture. Enterprises to increase the overall quality of within growth cohesion, exterior increase competitiveness, enterprise development strategies; the role of culture is very prominent. In a way, the value of commercial culture even is not limited to the organization itself, but also has a far-reaching effect on the city big. After having a good corporate and business culture nurtured the ability, the importance of sociable self-evident.


Organizational culture effect on tactical management

1. Organizational culture is the building blocks of strategic management

The organizational culture is a nature ethnic, it get the complete enterprise mutually. As the corporate culture is examined by time, constantly summarize, recognized by the organization members. It from behalf of an business, can be said is another indication; inward is the manifestation of the cohesion of the organization, but also the perception of all associates of the, and it can donate to all users of the progress toward the same goal.

The commercial culture is the culture of institution. It is precisely because of the constraints of the corporate culture, the business can better collectively. Under the influence of corporate culture, the entire staff to truly have a high sense of responsibility and unity, in other words, is to truly have a strong executive electricity, and therefore protect the high-speed, reliable procedure, and achieve a multiplier result. The same time, in such corporations, employees and jointly create atmosphere, the introduction of products and services with a high added value, and much more likely to be accepted by consumers, by the trust.

Appropriate organizational culture to the formulation of strategic management, execution, control the right guiding ideology and the soul of business in coordinated with corporate goals, corporate worth, commercial ethics and commercial fashion, therefore, the success of the organizational culture for corporate strategy develop successful momentum, is the key to the clean implementation of commercial strategy, is also an important condition for keeping the corporate tactical advantage. Maintain the patency of the organizational culture and tactical management, corporate strategic management capacity to continue to boost, and ultimately increase the level of central competitiveness of enterprises. (Thompson and Martin 2005)

Example: Samsung

Samsung is convinced that to achieve the common passions of human, and to enhance the work of the human quality of life for the Samsung bounden historical responsibility. As an organization, Samsung will generate the best products and services, so that customers receive the fullest satisfaction to improve the human standard of living, promote the common interests of human being. (Lige 2012)

2. Organizational culture improves the success of capacity to strategic management.

One of the necessary conditions for the success of the implementation and development of corporate strategy is the development of the organizational culture and invention. To form business jointly had by all participants of the values and ethical standards must have excellent organizational culture, and this culture is able to emphasize the characteristics of the companies. When a business has different cultural characteristics, then the particularity performance values for all employees, that allows businesses to create distinctive, unique commercial strategy, as well as provided the original impetus for the proper development, and its own success laid the building blocks. (Hill 2012)

Example: Samsung

In order to achieve the ideal "donate to human society", to attain the goal of "creating the best products and services", the Samsung must on the main one hand, "not simply look towards looking for more talented people in the world, but also open-minded give attention to training all around us creative ability "on the other palm, " to free no effort to increase the rate of investment in technology - Open up "upgraded Samsung's complex standards to an international level. (Lige 2012)

The significance of proper management for organization.

Establish business development strategies, the objective requirements of the socialist item economy, the objective requirements of the marketplace mechanism, and the requirements of the success and development of corporations. That is to guarantee the conditions of the enterprise a decisive role in an invincible position in your competition. (Morden 2007)

Planning for future years is the basic function of the enterprise development strategy, business managers must set up a strategic concept, good at predicting the near future, thinking about future possible situations, and the impact on enterprise development, the introduction of organization program. (Morden 2007)


Times Group in direction of development of the planning company in the 1990s, find the strategy of know-how, greater than a decade, the business is developing swiftly, and today has 22 subsidiaries across the country, and setup a number of branches in Europe and the United States, the leader of the business is believed to be accurate the strategy is the standard conditions to allow them to gain (Lige 2012)

Development strategy in the implementation process, with the changes between the change of system elements, as well as elements of the development strategy must constantly alter and increased.

Once business development strategy is determined, all work must be carried out in accordance with the development strategy, its services, all work must reflect the basic idea and the spirit of business development strategies

In summary, venture development strategy should give attention to the global and future; it relates to the survival of the venture, only closely from the tactical management of the primary tips from the premise to guarantee the safety and clinical enterprises under the conditions of market economy.

The romantic relationship between organizational culture and proper management

The organizational culture guide strategic choices

Shared worth and behavior on behalf of the customers of commercial culture, corporate objective is one of the central concept of the organization culture, corporate mission to supply the important basis for the choice of commercial strategy.

Each organization should have a particularly different from the reason why for the life of the other organizations, clear corporate and business mission, essential for corporate proper management process for enterprise resource allocation can offer the basis and criteria that mitigation and coordinating role of the enterprise within the business has played a number of conflicting goals for organization employees understand organizational goals and course to provide opportunities to help create unity and enthusiastic spirit within the organization, the organization's business goals into specific functional goals and strategic jobs to each employee. (Sheldon and Windham 2002)

On the other hands, each industry has its culture, and culture generally have a more significant difference between the establishments, such as the characteristics of the IT industry is more focus on a relaxed environment, concentrating on the invention of the employees, concentrating on each other's exchanges. Every industry has its social identity, the essential characteristics of the industry won't change until there is no more ground-breaking changes in this industry, it's important, therefore, the cultural characteristics mainly determine the overall business strategy industry choose.

The organizational culture is an important means of implementation of the corporate strategy

Companies develop strategies need all users of the dynamic and effective execution. Organizational culture is to inspire people to excitement, an important methods to buy into the group people.

Organizational culture has the motivate function.

Such as venture implementation of employee stock ownership plan, the senior management of the stock option system, so to meet the needs of the people of wealth maximization. On the other hand, focus on creating an atmosphere of spiritual and ethnic management, team building, and mental management to meet up with the people identified by the common mission. (Adler N. J. 2008)

Organizational culture and corporate strategy must adapt to each other and coordinated

An enterprise's corporate culture is relatively steady, and for that reason, the formulation and execution of the corporate strategy must be designed to the existing corporate culture, commercial culture can't be out of the position quo. From the idea of implementation of the strategy, the corporate culture is necessary to the execution of the corporate strategy, will restrict the implementation of the organization strategy. Once the home based business strategy requires a commercial culture associated with it, the the initial cultural change quickness is very slow, it is difficult to immediately react to the new strategy, when the original business culture may be resistance to the execution of the new corporate and business strategy in the proper management process, interior turnover of old and new ethnicities and coordination can be an important warranty for the execution of the strategy to achieve success. (Schabracq M. 2007)


The romance between organizational culture and tactical management -Walmart

Walmart give attention to people- oriented corporate culture.

After decades of development, Wal-Mart has created the extremely valuable venture culture, which became the main element to its capability to entice and retain certified personnel. Sam Walton possessed a paragraph declaring: "employees to be cured like the flowers and trees in the garden, need religious encouragement, marketing promotions and beneficial treatment to water them timely transplantation to be able to ensure the best mix, if required also carefully remove the weeds in the area to be able to accomplish their development. "This passage can be described as details to the substance of the Wal-Mart's corporate and business culture

Wal-Mart employees as a small business partner to be treated on the partnership between professionals and employees is also true sense of collaboration. The vast majority of the Wal-Mart managers have to invest etched with "We care about our employees" bundle switches, they paid great attention to pay attention to the views of personnel. Truly treat employees as somebody in 1971, Wal-Mart has executed an insurance plan of "income posting". Sam Walton believes that if the companies share gains with employees, whether via salary, benefit or bonus products, stock discount, then move into the company's gains, there will be a continuous stream. Because staff will use what attitude they treat to management to treat their customers. In the event the personnel treat customer effectively, the customer will satisfied, this is the true way to obtain string store industry make profit. Now, Wal-Mart has more than 80% of the personnel or with the aid of a profit-sharing plan, or immediate ownership of the business's stock through an employee talk about option scheme, that your company and the employees to form a community of pursuits, so the employees are treat the business as their own business, thus, they are really work harder and harder. (Ma 2010)

Rise in the corporate culture as a strategic

The highest express of the industry culture "Integration of Form, " shaped "to add all the external things, including business system, process, strategy, organizational framework, responsibilities and privileges system, leadership style, products, etc. Formed God substandard "corporate culture was" schizophrenic "because the employees do not know precisely what should follow. The highest stage of the corporate culture is to through "make up your mind"; companies need to pursue the thought of make the culture and strategy mutually, enterprises should consider how to adjust to each other, like the regulations of economics, ethics, individual strategy, put people through demand for venture development and cultural progress combine to improve the sense of objective and responsibility. From creating a commercial culture to meet the demand viewpoint of folks, truly reveal the "people-oriented".

Wal-Mart is the success of the venture culture increased to a typical case of the strategy for the development of its string stores are always result from a sizable number of corporate culture, each employee must pre understand all the essential ideas of the Wal-Mart, the type of the standardization something unusual on the globe. (Ma 2010)


Strategic management and organizational culture are inseparable. They affect each other, the strategy technology as well as organizational culture synchronization technology. Organizational culture that is very important, but many companies are just a mere formality, and many companies are fundamentally doing not need culture.

At the same time, the business must understand and understanding the complementary relationship between proper management and organizational culture can help improve the overall quality and competitiveness, promote usage of quality, sustained and healthy development.

Enterprises to long-term development, we must have a development strategy, commercial culture and corporate strategy are directly linked. On the one hand a sizable magnitude can be said that culture can determine the strategy, which can be divided into two levels to understand˜ one of the level to the corporate mission to supply the basis for the formulation of commercial strategy. The implementation of the corporate strategy of each stage in order to achieve the strategic objectives of each level of the business, and the enterprise by the realization of the strategic objectives of each stage, the best all in pursuit of the mission of the venture. So the corporate culture in the corporate mission to supply the fundamental basis for the formulation of corporate and business strategy. Strategic Business Management platform, the mission to steer the strategic aims and proper goals to guide the entire tactical program is finalized. From another level, each industry there are industry culture, and tend to have a more significant difference in culture between your industry, like the culture of the creation sector, there it is the industry itself, in conditions of administration, it can be more stringent give attention to quality management, production efficiency, discipline, plus some emerging industries, including the characteristics of the IT industry to target more tranquil environment, give attention to employees' innovative, concentrating on mutual exchanges. Businesses in growing strategies, especially taking into consideration the industry choose, it must be based on the venture culture.

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