How Organizational Culture impacts productivity
Organizational culture refers to a group of norms and values in an organization. These values and norms are shared by people in these organizations. It can also be described as the climate of an organization as a result of interaction between employers and their employees. Organizational culture also refers to the way activities are conducted in a given organization and it encompasses the values that employees in a given organization hold to.
It may also include the ideals that the organization upholds, the ideology that staff in a given organization attribute to, the mission and vision of a given organization, the technology used in a given organization, the artifacts, symbols, an...
Need essay sample on "How Organizational Culture impacts productivity"? We will write a custom essay sample specifically for you for only $13.90/page
...d stories that members of a given organization hold dear to them and lastly it entails how conflicts are solved in an organization as well as how communication and workforce diversity are managed (Cameron & Quin 1999). Organizational culture may result in positive developments.
Some of the positive aspects of the organizational culture include: provision of identity for members, it provides justification for actions, it controls the behavior of employees and guides in decision making processes. The strength of an organizational culture is important as a strong organizational culture could enable it adapt to a new environment and a strong culture facilitates a smooth changing process. Organizational cultures There are mainly four types of organizational culture. These are: clan culture, the hierarchical culture, the adhocracy culture and the market culture.
Clan culture in an organization is a type of culture that is internally focused. This means that this culture involves people operating like a family. Attributes such as nurturing, participation, mentoring, team building and empowerment are experienced by the employees of an organization. This type of organization has great concern for people and sensitive to customers’ needs (Cameron & Quin 1999). A clan culture is also considered to be one of the most effective types of culture for learning institutions such as universities and colleges.
This is because it enables an organization to concentrate on internal maintenance. In addition, this type of culture provides a friendly working environment that allows sharing among individuals. As a result, there is existence of loyalty and commitment in the organization (www. soi. org/reading/change/culture. shtml). The second type of organizational culture is the Adhocracy culture. This type of culture is entrepreneurial and dynamic. It is also focused on the generation of new ideas that will result into customer attraction to the organization.
The employees take risks because this type of culture allows them to be innovative. It mainly concentrates on the external positioning and embraces a high level of flexibility. Hierarchy cultures on the other hand apply to those organizations that focus on the internal maintenance with the objective of gaining control and stability. In this type of culture, there are laid down procedures that govern people on what to do. It favors coordination and efficiency and structure and control. The structure is created for the generation of dependable results (Cameron & Quin 1999).
The last organizational culture is the market oriented culture. This type of culture is externally oriented the driving force is winning in the marketplace. It also focuses on the needs of clients. The other attribute is that it is results oriented mainly concerned with getting the job done. As a result, employees are goal-oriented and competitive (Cameron & Quin 1999). Cause -and -Effect Analysis of Productivity. The interaction of man-power, methods, management, measurement and materials results in the operational processes within organizations that are complex in nature.
Therefore it is important that an organization develops methods of problem identification such as brainstorming, multivoting and cause-and-effect diagrams to be able to reduce any variations in these processes (Ammerman 1998). The cause- and –effect analysis represents the relationship between effects and the causes that influence this effect. There are various principles that underlie this analysis. The first principle is that undesirable events are meant to happen and these happenings are caused by design problems, errors, failures and human performance.
Since these events are meant to happen, they are simply effects developed by some other causes. Productivity on the other hand is the quality of output produced as a result of the quantity of input used in production process. Productivity of a firm consists of economic forces at the macro level and other internal factors which results in decision making and other processes in the firm (Ammerman1998). Productivity of a firm is related to the cause and effect analysis which is a technique that is used in problem identification.
Cause-and-effect analysis will often result in management control of the root causes of problems in an organization. This helps in enhancing the productivity of a firm. However for this cause –and- effects analysis to be effective, good judgment and experience is necessary. Impacts of organizational culture Organizational culture has both positive and negative impacts on both businesses and consumers at large. An organization with a strong organizational culture has visible signs that include heroes, ceremonies, stories, myths, rituals and symbols.
Organizational culture could lead into increased productivity in companies for instance in the case of mergers, this will lead to highly productive companies since they now share skills and knowledge in production processes. This also improves the image of both companies and enhances a strong corporate culture (Cameron & Quin 1999). An organizational culture has also its positive impacts on consumers by the equality of the products they produce. An organization with a strong culture will always aim for success and therefore it will maintain high standards of production and service delivery.
This results consumer satisfaction and hence the organization is able to attract more customers (www. joe. org/joe/2003april/a3. shtml). Organizational climate has its impact on the organization’s behavior and how it operates. Organizational evolve through periods of change and among the common changes experienced today are; technology organizational strategy and human resources. These changes could also affect the culture of a particular organization to change by the employees as the employees could perceive the changes differently. For instance, employees could perceive this change as a disruptive process.
This is because they are uncertain about their job security (Milakovich 1995). Organizational Behavior Organizational behavior can be defined as the study of human behavior in the organization, their skills, altitude, interaction and performance. It is primarily concerned with the human behavior dynamics in terms of the psychological and personal traits. It is essential to study organizational behavior because human behavior is dynamic. Since success is a process, it is vital to learn the principles of attaining success and this can only be done through the study of organizational behavior.
It is also important to study organizational behavior in order to interpret different behavior among different people in the organization (oz. plymouth. edu/david/b4342/chapter1. PPT). Organizational behavior involves both research and theory from managerial, psychology and sociology. Its purpose is to establish good relationships in the organization through attainment of objectives of the organization, human objectives and social objectives. There are various organizational variables that affect behavior of human beings at work.
They include: communication, jobs organizational design and structure. These variables have resulted into different behavior change in organizations (oz. plymouth. edu/david/b4342/chapter1. PPT). Two perspectives are important in understanding human behavior external and internal perspectives. External perspective considers factors that are outside the person in order to understand behavior. Human behavior is understood in terms of the environmental sources. This perspective therefore implies that to understand a person’s behavior it is best to examine external events and environmental forces.
Internal perspective on the other hand focuses on factors within the person in order to comprehend behavior. According to this view, human behavior is interpreted in terms of past experiences, feelings, needs of individuals and thoughts. These factors lead an individual to behave in certain ways. Therefore this perspective is based on the notion that it is essential to understand peoples’ feelings and thoughts so as to understand their behavior (oz. plymouth. edu/david/b4342/chapter1. PPT). Moreover, several theories have been put forward to explain human behavior.
Douglas McGregor’s Theory X and Theory Y is one of the motivational theories that were advanced. In this theory employees are assumed to be inherently lazy by their employers and they will always look for other ways to avoid work. As a result, these employees need to be closely monitored with the aid of comprehensive systems of control. The control will be enhanced by a hierarchical structure. In theory X, managers believe that the end result of an action or event is placing blame on someone, and thinks that employees have their own self-interests to fulfill.
Managers believe that these employees are out for money and hence they cannot be trusted (Nelson & Quick 2006). Theory Y on the other hand assumes that employees could be self-motivated, ambitious and anxious to accept greater responsibility managers also believe that these employees enjoy their work (Nelson & Quick 2006).
Ammerman, M. , (1998). The Root Cause analysis Hand book: A simplified approach to Identifying, Correcting and …. Productivity Press. ISBN 0527763248 An Organizational Culture Assessment using competing values. Accessed on 7 July 2007