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Behavioral Impacts of Organizational Culture

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2010, Henderson

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Behavioral Impacts of Organizational Culture


University of Redlands


Managing and Leading Organizations BUSB 330

Larry Henderson

12/02/2010


This paper will define and provide examples of two types of organizational culture and the effects it has on employee behavior. Let us first define what culture is within an organization. Organizational culture is best defined by McNamara (2000) "Pervasive, deep, largely subconscious, and tacit code that gives the "feel" of an organization and determines what is considered right or wrong, important or unimportant, workable or unworkable in it, and how it responds to the unexpected crises, jolts and sudden change." Along with defining culture, we must note there are four different types of organizational culture according to Tharp, (2004) "First Control (Hierarchy), second Compete (Market), third, Collaborate (Clan) and the fourth, Create (Adhocracy)." For simplistic reasons, we will explain only compete and create types of culture.

The types of organizational culture mentioned above are found in two of the most prominent organizations in the country Apple Incorporated, and General Electric Incorporated. Create style organizational culture, fosters the idea of Tharp, (2004) "Innovation and creativity with a future-forward posture and an entrepreneurial spirit reigns where profit lies in finding new opportunities." Apple fosters this type of culture to be on the cutting edge of technology.

Their culture is driven by a passion for new products with no end to challenges and opportunities. Where Apple must be continually striving for new technology General Electric operates in a more competitive arena.

The arena of compete style culture that General Electric ascribes to is illustrated by Tharp, (2004) "Organizations are focused on relationships, more specifically, transactions with suppliers, customers, contractors, unions, legislators, consultants, and regulators through external relations." This type of culture is concerned with rules, standard operating procedures and specialized job functions and appears to be more of a bureaucratic style culture.

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Now, let us take an in depth approach to how organizational culture influences employee attitude and performance within the corporation. As Zhang (2009, November) suggested, "Organizational culture is a kind of complicated and comprehensive composition element, it is a kind of values that is shared by the members, it is kind of inherent regulatory faith." An organizations culture will have a profound effect on the way its employees are influenced.

Suffice it to say, a corporation must look diligently towards the members they hire since these members will embrace or reject the culture, and without the employees sharing the same values, this will ultimately undermine the organization's overall performance.

An example given by Young (2007) states, "A key factor in creating and environment where both people and profits thrive is the ability to create alignment between values and organizational practices or behavior."

One study, Sorenson (2002) referred to culture and performance as an organizational process of, "Providing group members with a way of giving meaning to their daily lives, setting guidelines and rules for how to behave, and most important reducing and containing the anxiety of dealing with an unpredictable and uncertain environment." This ideology solidifies the importance of strong organization culture.

When people feel as if they are a part of a team they will be inclined to be more productive, merely from the pressure within. Sorenson (2002) suggested, "Strong culture organizations socialize new members faster, in part due to the explicit codification of beliefs and to the greater normative pressures." These pressures are how leaders, managers, and employees integrate and maintain the corporate methodology of goals, motivation, and performance.

The need for internal consistency throughout an organization maintains standardization towards customer relations, employee decisions, and resolution of issues, which builds the foundation for a higher level of customer satisfaction.

The medical field is one of the most prominent areas affected by cultural quality. This ideology is seen through extensive research done by Boan (2003) "Organizational culture has been linked to safety, and the creation of a safety culture is a key part of improving patient and staff safety." The link between employees and cultural safety have an enormous effect on patients and there well being.

Some cultural advances throughout the study suggested that Boan (2003) "Improving the work climate significantly improved the quality of services in the health care organization." In doing so, cultural climates create workforce effectiveness, which equates to a significantly elevated level of employee performance and customer satisfaction therefore increasing performance.

Employees now look for cultural characteristics that mirror their lifestyle and further their advancement. These newfound characteristics, define employees values, priorities, and the depth of dedication to their organization and its culture.

This organizational culture fosters dedication and turns it into performance and profits. As Martin (2006) contends, "Workers now scan the job market for the jobs that will put them in the best position to succeed both financially and professionally." With the vast array of companies and the diverse spectrum of corporate cultures, people are at liberty to find a perfect match between their beliefs and the corporate culture.

In summary, organizational culture is directly proportional to performance. Corporations must build their cultures in deep-rooted foundations. These cultural reflections of corporations must consider the customer, employee, and market of interest.

As research concludes, a strong organizational culture advocates performance above all.

References


Tharp, B. (2004, September). Four Organizational types, Retrieved from

Young, J. (2007, April). High Performance and Corporate Culture, Retrieved from ks.com/JYoung_article.pdf

McNamara, C. (2000, Feburary). Organizational Culture, Retrieved from

Sorenson, J. (2002, March). The Strength of Corporate Culture and the Reliability of Firm Performance, Retrieved from edu/stable/3094891?seq=1&search=yes&term=corporate&term=performance.html

Zhang, X. (2009, April). On How Organizational Culture Impact its Performance and Competitiveness, Retrieved from load/product/200911/2009cyjdhy4z1a5.pdf

Boan, D.(2003, November). Healthcare Quality Improvement and Organizational Culture, Retrieved from publications/reports/documents/Organizational_Culture.pdf


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