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Organizational Culture

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Organizational Culture
MM2021: Managament & Organization
Individual Essay on
Does a strong organizational culture increase the performance of a firm? Illustrate a real-life example to support your arguments.

In tackling the above question, we shall first have a brief understanding about organizational culture.
To introduce, organizational culture is a way that employees, as well as managers, generally perceive, think, and react to the environment, such as working environment and customer environment. (Schein, 1996, as cited in Hartnell, Ou and Kinicki, 2011) For example, Disneyland, having a strong organizational culture of positiveness, happiness and hominess, its organizational members tend to think optimistically (as symbolized by the Disneyland philosophy of “Create dreams”), collectively (with high desire for group consensus) and treat internal and external incidents leniently, such as employee mistakes or visitors conflict.

Besides, organizational culture are predefined beliefs, values and goals recognized by its members. Values refer to judgment of organizational members of what is important or right while believes refer to the method and style of working in an organization (Bro Uttal, 1983, as cited in Sun, 2008). Taking the main research subject as example, Google, featuring high degree of organization culture informality, has deeply held values of high staff density, with goals that staff works closely in team, actively share own ideas and devote intense emotion and energy upon the team. (British Columbia Institute of Technology, 2007)

Nonetheless, relationship between members and culture of an organization is not unidirectional. Instead, they are correlated, affected by each other, considering possibility of managers or subordinates having believes and values contradicting to, or at least, differing from those held by the initial organizational culture. This phenomenon is commonly found in case of mergers and acquisitions, in which two organizations are

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