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Manage differences between organizational culture and subcultures

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Manage differences between organizational culture and subcultures
1 Research Context
1.1 Background
Organizational culture becomes a competitive advantage of a company that “was found to impact a variety of organizational processes and performance” (Siew & Kelvin, 2004, p.340). Definition of organizational culture given by Schein (1999) containing basic underlying assumptions which define the deepest, the most fundamental level of organizational culture. Assumptions are divides into artifacts and espoused values. In addition to the meaning of organizational culture, Robbins and Judge (2013, p.512-13) defines that “it refers to a system of shared meaning held by members that distinguished the organization from the other”. Only when understand the people’s collective beliefs and assumptions in-depth, managers are able to define appropriate steps to strengthen organizational culture and effectiveness.

Organizational culture has been extensively studied over the recent decade to affirm a strong link with organizational performance. This idea shares the same one with Siew and Kelvin (2004, p. 340) which is “the cultural elements which distinguish company from each other were found to be related to performance”. Damanpour, Devece, Chen and Pothukuchi (2010, p.457) state “organizational practices are commonly accepted organizational routines and actions that they have evolved over time, have become institutionalized in the organization and are considered appropriate in managing the organization and conducting its business”. In addition to the importance of organizational culture to the economic performance, in Kotter and Hetskett’s research on 207 firms, they come up with exciting results: companies with culture that emphasizes all the key managerial constituencies achieve an increase of 682% in revenue, 282% in expanding workforce, 901% increase in stock price compared to ones without cultural traits only get 166%, 36%, 74% increase over 11 years (Mobly, Wang, Fang, 2005, p. 13).

There are many levels of culture that effect



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