Organizational Culture

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Organizational Culture and Its Positive Effects
Student Name: Dung Dang, Dung Nguyen, Phuong Tran, Sinh Nguyen, Vinh Phan Course/Number
Date: November 06th, 2012
Instructor Name: Prof. Douglas Foster

Organizational Culture and Its Positive Effects

Nowadays, organizational culture term is more and more familiar and becoming one of relevant topics in business area. It involves a set of values, norms, relationship, behaviors, and attitude towards an organization operation. Each company has its own culture that should get along with company growth and create distinct characteristics to distinguish the company with other competitors. Even though it functions within the company, it does not only limit at internal performance but expresses the effect to related external environment as well. Depending on its content, weak or strong, the implementation and effect will be different.

This paper would consider organization culture as one of important elements leading to a company success and point out its positive effects, how organizational culture performs and helps in different segments of organization. A strong and proper organizational culture can create a comfortable and pleasurable working environment, which will significantly affect on employees’ working attitude and their contribution for high productivity outcome. Furthermore, it supports on strategy planning process, creates competition advantages for the company’s success as well as company brand image.

Organizational Culture Effects on Productivity

Research evidence confirms that strong culture reducing operating costs and attracting talent to a company (Fombrun, 1996). Organizational culture and productivity are closely related. Simply stated, productivity is the art of getting the company's products and/or services to the customer at the possible lowest cost. Productivity can be considered as a result of motivation, which is how management transforms their willingness into organizational culture to success. It affects some elements as below:

Organizational Clarity

Acting at level, where every member awares of their roles and take part in organization plan and goal. Employees acknowledge their important role in the plan and their values. It motivates them to work hard for achievement. Organizational culture within a company is reflected through how the company treats employees, employees’ behaviors and attitude.

Researches show that task performance is affected positively in organization with specific goal clarity than in an organization without goal clarity. Goal enhancement can serve to clarify the person’s role in organization and to intensity the person’s awareness of associations among his liability and responsibilities of other (Denis D. Umstot.1994) The importance is creating an environment, which members can see what they should do and “high purpose” of their job. According to the American Management Association (2008) with the strong foundation in place, values and goals communicated, employees will have higher productivity levels, effortlessly adapt to changing demands with high levels of loyalty to the organization (as cited in Mahrokian et al, 2010, p.17)

Decision Making Structure

Strong organizational culture facilitates the decision making in organization chart. Manager needs to build up a system that everything in place and empower to lower level management of organization. When employees are empowered and allowed to make decisions, brain power is strong and people are invigorated. New ideas are generated and a company normally becomes progressive; because it harnesses the power of many.

Employee, as they are performing work by themselves, generally have more information than manager about the task they perform and hence can contribute in process of decision making in better ways. Involving employee in process of decision making and goal...
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