Preview

The Impact of Organisational Culture

Powerful Essays
Open Document
Open Document
8599 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Impact of Organisational Culture
205

American Journal of Industrial and Business Management, 2012, 2, 205-216 http://dx.doi.org/10.4236/ajibm.2012.24027 Published Online October 2012 (http://www.SciRP.org/journal/ajibm)

The Impact of Organisational Culture on the
Implementation of TQM: Empirical Study in the Iranian
Oil Company
Yadollah Karimi1, Sharifah Latifah Syed Abdul Kadir2
1
Faculty of Business & Accountancy, University of Malaya, Kuala Lumpur, Malaysia; 2Department of Operation and Management
Information System, Faculty of Business & Accountancy, University of Malaya, Kuala Lumpur, Malaysia.
Email: karimi13812002@yahoo.com, slhadad@um.edu.my

Received June 16th, 2012; revised July 16th, 2012; accepted August 13th, 2012

ABSTRACT
Purpose of this paper is to investigate the relationship between four construct of organizational culture and two type of
TQM as soft and hard in the Iranian oil industry. The method of confirmatory factor analysis was applied to refine culture and TQM scales for empirical analysis in Iranian Oil Industry. The structural equation modeling method was applied to test the theoretical models. This study confirms the results of previous studies that considered culture as a set of practices. It confirms that not all types of culture—considered as a set of practices—has a positive impact on the TQM implementation. Only two components of culture—hierarchal and developmental showed a negative impact on the soft and hard TQM. The findings are useful for business managers in developing countries such as Iran, who want to enhance business performance through implementing TQM practices in different culture. The study has contributed to develop a measurement system of TQM practices that facilitates more quality management research in developing countries. It has contributed to clarifying the disputed relationship between different culture and TQM practices, and shows empirical evidence in Iran industry to confirm that the culture set deployed by a firm has an impact on Soft



References: Press, Cambridge, 1986. Edition, McGraw-Hill, New York, 1991. Administrative Science Quarterly, Vol. 40, No. 2, 1995, pp Management,” International Journal of Quality & Reliability Management, Vol. 20, No. 4, 2003, pp. 473-487. 20, No. 8, 2003, pp. 901-918. 7, 2006, pp. 414-424. doi:10.1108/01409170610690871 [14] J Management, Vol. 25, No. 8, 2008, pp. 793-808. No. 1, 1998, pp. 59-75. 4-5, 2000, pp. 442-452. doi:10.1108/02656710010298517 [17] T Lessons from America’s Best-Run Companies,” Harper & Row, New York, 1982. 10, No. 3, 1989, pp. 399-411. [20] L. Schein, “The Road to Total Quality: Views of Industry Experts.” The Conference Board, New York, 1990. Reading, Boston, 1982. [22] R. Goffee and G. Jones, “The Character of a Corporation,” Harper Business, London, 1998. [23] J. Martin, “Cultures in Organizations—Three Perspectives,” Oxford University Press, Oxford, 1992.

You May Also Find These Documents Helpful

  • Best Essays

    Busi 650-ILP Final

    • 3605 Words
    • 15 Pages

    Dinh Thai, H., Igel, B., & Laosirihongthong, T. (2010). Total quality management (TQM) strategy and organizational characteristics: Evidence from a recent WTO member. Total Quality Management & Business Excellence, 21(9), 931-951.…

    • 3605 Words
    • 15 Pages
    Best Essays
  • Powerful Essays

    Businesses and companies all over the world are looking for the appropriate tools to help management address the many different duties and actions that have to be taken into consideration when supporting their profits, assets, employees, and overall goals. There are a number of tools available to help achieve those goals and two of them are Total Quality Management, “TQM” and International Organization of Standardization, “ISO”.…

    • 1050 Words
    • 5 Pages
    Powerful Essays
  • Better Essays

    Organisational Culture

    • 1349 Words
    • 6 Pages

    An organisation’s culture refers to ‘the way we do things around here’ and is determined by the values, attitudes and beliefs of the people who work within it. As such, culture will undoubtedly influence the success of a business. In particular, it can be argued that an innovative culture can lead to business success because it enables companies to share ideas more freely and thus innovate and develop their business strategy. Furthermore, in light of Handy’s view of “discontinuous change” being ever more present in the business world, an innovative culture is likely to enable business to be flexible enough to cope with challenges that the future holds. However, it is important to bear in mind that when a business possesses over 75% market share that it benefits from economies of scale which can be an important determinant of success, regardless of culture. Perhaps more importantly, not every success international business possesses an innovative culture. A successful business strategy can be underpinned by other business cultures and thus the type of industry a business is in, and the different challenges it faces may determine what is the most suitable culture for them.…

    • 1349 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Wengart Aircraft

    • 1433 Words
    • 6 Pages

    Question 1: Driving and restraining forces toward acceptance of the TQM program at the top management level…

    • 1433 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    buad3030 studyguide

    • 813 Words
    • 3 Pages

    10. What is TQM and why is it important to an organization’s success? (p 59)…

    • 813 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Team Reflection

    • 1229 Words
    • 5 Pages

    TQM is defined as “managing the entire organization so that it excels on all dimensions of products and services that are important to the customer” (Jacob & Chase, 2011, pg. 286). TQM has two operational goals:…

    • 1229 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    • TQM is heavily embedded in the concept of continuous improvement. This is a never ending process – a continual process of change. While change is inevitable, a firm employing TQM must learn to accept it and continue to work toward continuous improvement. However, this is not a simple process, as it may require structural, organizational, cultural and process transformation. Yet the cost of these changes may not be seen as justifiable if viewed only from the short term.…

    • 6625 Words
    • 27 Pages
    Powerful Essays
  • Powerful Essays

    Tqm in Healthcare

    • 1424 Words
    • 6 Pages

    Reddy, B. Krishna, M. Arundhathy, and GVRK Acharyulu. "A Strategy for Successful TQM in a…

    • 1424 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Organizational Culture

    • 1175 Words
    • 5 Pages

    Organizational culture plays a key role in the design of organizational structure. According to Cartwright and Cooper 's four main types of organizational culture i.e. power culture, role culture, task culture and person culture, in these different types, the structure tends to be influenced by organizational cultures and be changed as the development of organizational culture. To be more specific, in power culture, the organization is likely leaded by one person or a small group. Through managers making informal decisions, the rays of influence start from the central figures to the other employees. In the effect of working of this type organizational culture, the structure is often small and simple not concerning much about formal structure and working processes. When the external changes occur, the organization can reflect fast and efficiently with small and centralized power. In contrast, if the size of the organization is larger and the structure is more complex, most employees are provided with limited freedom and of long distance from central power. As a result, power culture may fail…

    • 1175 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    The organizational culture literature itself is fraught with epistemological debate. Practitioners are interested in management by measurement and manipulation of culture. Theoreticians of culture, however, aim to understand the depth and complexity of culture. Unresolved issues remain regarding how to define culture, the difference between culture and climate, measurement/levels of analysis, and the relationship between organizational culture and performance.…

    • 346 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    Mba Group

    • 3676 Words
    • 15 Pages

    References: Al-Khalifa, K. N. and E. M. Aspinwall. (2001). Using the Competing Values Framework to Investigate the Culture of Qatar Industries. Total Quality Management, 12(4), 417-428. Cameron, K. and R. E. Quinn. (2006). Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework. Beijing: China Renmin University Press. Cooke, R. and D. Rousseau. (1988). Behavioral Norms and Expectations: A Quantitative Approach to the Assessment of Organizational Culture. Group and Organizational Studies, 13, 245-273. Denison, D. R. and A. K. Mishra. (1995). Toward a Theory of Organizational Culture and Effectiveness. Organization Science, 6(2), 204-223. Deshpande, R. and J. U. Farley. (2004). Organizational Culture, Market Orientation, Innovativeness, and Firm Performance: An International Research Odyssey. International Journal of Research in Marketing, 12(1), 3-22. Detert, J. R., R. G. Schroeder, et. al. (2000). A Framework for Linking Culture and Improvement Initiatives in Organizations. The Academy of Management Review, 25(4), 850-863. Hofstede, G., B. Neuijen, et. al. (1990). Measuring Organizational Cultures: A Qualitative and Quantitative Study across Twenty Cases. Administrative Science Quarterly, 35(2), 286-316. Howard, L. W. (1998). Validating the Competing Values Model as a Representation of Organizational Cultures. International Journal of Organizational Analysis, 6(3), 231-250. Kwan, P. and A. Walker. (2004). Validating the Competing Values Model as a Representation of Organizational Culture through Inter-Institutional Comparisons. Organizational Analysis, 12(1), 21-39. Lamond, D. (2003). The Value of Quinn 's Competing Values Model in an Australian Context. Journal of Managerial Psychology, 18(1/2), 46-59. Lund, D. B. (2003). Organizational Culture and Job Satisfaction. Journal of Business and Industrial Marketing, 18(3), 219-236.…

    • 3676 Words
    • 15 Pages
    Best Essays
  • Powerful Essays

    Tqm Case Study

    • 16634 Words
    • 67 Pages

    Every nation has its own independent historical and cultural background. The quality sce-nario , therefore, differs from one national setting to the other. The nations are orienting their quality management strategies and systems to meet the requirements of the opera-ing environment though the primary focus remains the same, that is, Total Customer Satisfication .Many of the present techniques of quality management were developed in Japan. However, U.S.A., European nations and developing nations have also contributed significantly to this development. The studies carried out by researchers in different national settings reveal that the concept and philosophies of TQM are not understood by the managers and others.An all out effort , therefore is required to promote the understan-ding by launching massive educational and management development programs at all levels so as to create a cultural consciousness towards quality. TQM is not undimensional…

    • 16634 Words
    • 67 Pages
    Powerful Essays
  • Powerful Essays

    A partir de l’analyse des apports de cet auteur nous essayerons de jeter un éclairage sur les fondements du TQM et sur le type des relations qu’ils entretiennent avec les références culturelles et religieuses locales.…

    • 3289 Words
    • 14 Pages
    Powerful Essays
  • Better Essays

    In a global marketplace a major characteristic that will distinguish those organizations that are successful will be the quality of leadership, management, employees, work processes, product, and service. This means that products must not only meet customer and community needs for value, they must be provided in a continuously improving, timely, cost-effective, innovative, and productive manner.…

    • 8989 Words
    • 36 Pages
    Better Essays
  • Good Essays

    Total Quality Management

    • 483 Words
    • 2 Pages

    Total quality management or TQM is an integrative philosophy of management for continuously improving the quality of products and processes.…

    • 483 Words
    • 2 Pages
    Good Essays