Since the days of industrialization and growth of business in the society, the family businesses have incorporated as the business houses of moderate scale, partners running business jointly have formatted their deeds and the enterprises having growth plans have put in the complex and emerging business operation structure to organize the same. It is the virtue of the complexity of the business that the business concerns no more remained mere business houses, rather transformed into organizations.
These organizations have eventually grown bigger and global; encompassing a larger volume of business generation, higher growth of man-power, which includes employees from various demographic pockets developing varied influence of culture and values in the organization. These composite values and ethics of the owners and workers have made the holistic culture of the organization that it follows and depending on its elements it balances the situational issues, which has a high involvement of man-power leading to productivity, motivation, job satisfaction, turnover rate, etc.
The paper will investigate and evaluate the position of George, the new CEO of Benefice Charity and what would be the viable approach in tackling the issues from the cultural perspective. While doing so, the important aspects it will address are the enhancement
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Before jumping into the core issue and starting to criticize, it is of great importance to comprehend the meaning of organizational culture in the eyes of management and organizational studies. In fact, it is the attitude, psychology, experiences, believes and values of the organization, which are in turn driven by the persons and their cultural values of the concern. It is the collective values and norms that are been shared by the employees or the groups in the organization, controlled by the way of their interaction with each other and the out side members like the stakeholders.
The above stated activities have a continuing effect in the organization to set the values, other wise known as the believes and ideas; on the basis of which the organization ideate the common goal and set forth the standard or the way to pursue for the pre-stated objectives leading to the organizational goal. As per the human observation factor, it reflects the work place behaviour the organizational members adhere to perform the daily functional levels and to further to elevate to the achievement of the goals.
These behavioural factors is the fruit of the values that develops the norms, guidelines and expectations in the organization, which in turn establish the organizational behaviour for the employees to react on certain situation and among themselves too (Hill & Jones 2001). Agendas that George undertook were quite chronological in order and were inter-linked. Increasing the productivity by enhancing the human output counts the factors like their behavioural approach to the meet the goals of the organization.
It was known to George that work place practices performed by the employees are with the alignment of the value that the organization holds for past several years. It has a strong impression of execution of religious order even in matter of management and ration decision making process. This is where the sentimental approach had left the former CEO with no room to innovate ways to incline the performance graph of the organization. And here George executed a rational theory for holistic change. But the impact of twenty long years has been misunderstood by the CEO appointed.
It was indeed a harsh reply of the long lasted failure for the autocracy, uncommunicative structure that negates the participation of all employees in decisions. George has conducted a through review of the firm; starting from the former CEO to the present employees, but unfortunately that remained a superficial observation. This; in the long run created a trap for George to fall back. This fatal step has the logic of the fact related to new CEO’s background. He is from a commercial sector where the concept of corporate gains the edge over the organization.
And his calculated steps to gain back the status of the organization portray the systematic quick revival approach, mainly active in the highly articulated and precised corporate culture. Like organizational culture, corporate culture too has the collective effects of the values, customs, traditions and meanings, which is very own to the company for which it is often recognizes as the “the character of an organization” as it symbolize the vision of the founder. Values of this culture epitomize the ethical standard within the concern and the managerial behaviour as well.
It is a common tendency of the top management to establish a corporate culture in the concern. This enables them to practice the corporate values and standard of behaviour that that represents the corporate objectives. In addition it creates an internal culture among the work force. But considering the organizational culture, work-group has their own hang-up, which is perfectly blended with the essence of the organizational norms and expectations affecting the organization as a whole.
As suggested by Roger Harrison in four-culture typology latter and adapted by Charles Handy, pointed out a critical difference that unlike organizational culture, corporate culture can import new elements like expertise, language and behavioral gain exclusive and independent of the organization of a training and development officer. But the subtle issue is this change and presence of the new elements can influence or rather shake the over all culture of the organization (Montana & Charnov 2008).
In the very first year, George imported certain outside elements such us the situation analysis regarding income and expenditure, status of the employees and their skills, their participation in the organization and internal organizational factors. These are indeed very compact and to the point of solution factors, common in the corporate sectors. In doing so he saw the true and sorry state of the organization.
In order to rectify the bad course of past organizational practice he introduced the tight concept of the horizontal movement of order and communication, which diametrically contradicts vertical formation which it had for past 20 years. Like it has been said that the imports of the new elements of the corporate culture into the organizational culture can affect or even shake the foundation of the organization, George had to bear the burn of this effect eventually. According to Blau and Scott, as far the cultural aspect is concerned every organization has two dimension of its culture.
Formal and informal are the broadly classified segmentation of it. It is an established fact that without understanding the informal dimension or the character of the organization, it is absolutely impossible to judge the concern. It suggests the cognitive impulses of the organization in respect to how the employees think, logisize and take decision as the in the depth of the employees mentality culture encompasses the complexity of the values, assumptions, norms that will propel the business.
In an existing culture the introduction of the new culture can develop a competitive cultural scenario indulging the organization to oppose and argue the distinctive ideologies and the structures of the meaning of their existence (Pfeffer 1981). The above situation reflects the communication gap made by George in not understanding the informal character of Benefice Charity.
This became vivid when the new CEO looked back after the entire organization accepted the new order, but left astonished to see that most of the key managers had no idea about the open communication management system. And in failing to deliver what they vowed; under the new system, they have leaped back to the old order without any information. George also revealed the informal message that managers have liked the goals and objectives but were under fear about the cultural change, which appeared to be a cultural shock.
George should have become intimate with the senior managers and the members of the board in the most informal way that would initially represent the established norms to show the so called respect for it to get the nerve of the concern parties. This would have helped him in making a practical and rather diplomatic course of action to change it for good. In nutshell, George need to have been more diplomatic in dealing with the existing members, knowing the fact that he will he is going create a new rational order over the long practiced sentiments of the religious past.
This kept him far short from the reality that up to what extent endeavors are been actualized. And this led George to realize the surprise that despite of all the success of his five years plane to improve the organizational status the Board is not impressed for which he had to put his papers down. A cultural shift can only be constructive, where it establishes itself as an organization considering its position in the society.
It includes the four discrete dimensions of culture like, (i) individualism that assess the self interest of the people in contrast with the interest of the wider group and its acceptance; (ii) uncertainty avoidance that measures the limit of people’s habit to take calculative steps to uncertainty in against of their tolerance to unknown changes; (iii) power distance that maintain the distance between the superior and subordinate both in the formal and informal ground and (iv) masculinity that defines the extent of success depending on the challenge and ambition rather than the approach of caring and nurturing (Hofstede 1980).
The stated cultural dimension leads the issue to the extent of the values of the organization where George missed the unsaid or the invisible value that remained unattended even after taking care of all the possible values. As the open communication disempowered the exclusive power of the member of the order, it became an issue of sentiment and ego for the stakeholders, whose support of the religious order has ran the charity for twenty long years. The dignity and the position of these groups are the major issues that George undermined.
His approach was ambitious, but this organization needed a caring and nurturing attitude. George played the role of transformational leader in Benefice. But the type of organization played great role too. In a concern like a not-for –profit organization it is mainly driven by position, sentiment, personal value and long established norms. For which the major change in the attitude and making the members realize the organizational mission presenting the bigger picture that holds both the wider and the personal interest is of outmost important.
This creates followers for the leader, and that will be the first important achievement. George missed out here, as he chalked out all his plan, executed it and achieved the result. But in forte of communication there remained a wide gap. To support the order, many of the senior managers rejected the strategic changes for last twenty years and now also parallely with the formal communication, in the most informal way they have done the bad mouth about the strategies and the new CEO to the board of members and the former CEO too. This has proved to a case of slow poisoning the existence of George.
But it makes the matter clear that he failed to win the trust, admiration, loyalty and respect of the followers due to not paying attention of the sensitive needs of them and the individualized consideration (Yean 2009, vol. 12). Like small consultancies the non profit organization generally has the effect of personal culture. Benefice too followed the same structure entertaining only their personal needs. To do their things, the members depend on an office for the space, minimal equipments, which can be even compensated by the clerical and secretarial help.
It has cluster of members to operate the activities with any concept of appraisal, liaison and other performance measuring departments (HANDY 1976). For this reason George’s financial analysis became the victim of the communication gap, which he did not noticed initially that the managers do not have the formal understanding of to grasp the analysis. Over that the profitability of the sister concern certified was in error. This was George’s biggest defeat to overlook the reluctant attitude of the employees and the reason behind this.
Benefice loss making further added reason to believe that the strategy they were following under the flagship of new CEO was wrong. Lastly, George could avoid the mess by educating the employees about the vision he wanted to introduce as it is only survival key of the organization in the emerging and changing market. Educated employees could have understood the new application and its value as the contingency theory with the increase in performance and the historical blunder of working with wrong information would not have occurred putting George into the surprise of blame (Fard, Rostamy and Taghiloo 2009, vol.
31, pp. 49-50). The moral of the case shrinks back into the idea circling that understanding the informal character of the organization would have saved the entity and future of Benefice and George. Bibliography Fard, HD; Rostamy, AAA. and Taghiloo, H 2009, How Types of Organisational Cultures Contribute in Shaping Learning Organisations, SINGAPORE MANAGEMENT REVIEW, VOL. 31 NO 1, pp. 49-50. Hill, CWL and Jones, GR 2001, Strategic Management, Houghton Mifflin. Hofstede, G 1980, Culture’s Consequences, Sage, London.
HANDY, CB 1976, So You Want to Change Your Organisation? Then First Identify its Culture, Management Education and Development. Montana, P and Charnov, B 2008, Management (4th ed. ), Barrons Educational Series, Hauppauge, New York. Pfeffer, J 1981, Management as symbolic action, in Cummings, L. L. and Staw, B. M. (Eds), Research in Organizational Behaviour, JAI Press, Greenwich, CT. Yean, J 2009, ‘Transformational Leadership, Organizational Culture and Organizational Effectiveness in Sport Organizations’, The Sports Journal, vol. 12, no. 2.