Essay On Organisational Culture

explanatory Essay
1246 words
1246 words

A strong organisational culture leads to higher organisational performance

Organisational culture can be defined as a total function of common beliefs, values, patterns of behaviour that held and shared by the member in an organisation. It is also a valuable resource which can improve competitiveness of a company and uses to distinguish the company (Barney 1986). From 1970's the study of organisational culture has become an important issue and closely studied in early 1980s. Since then organisational culture turned out as one of the most important factors which affects the overall performance of a company. It brought organisational culture to the performance of a company which has become a critical topic in management department. In addition to what organisational culture is, organisations need to aware and prepare changes of the expanding workforce from business growing. Companies are facing with maximizing benefits as well as profits while minimizing negative factors that comes from those changes. There is no only one answer for the issue, but some of guidelines are clear. Awareness of organisational culture, teamwork, individual performance, external environment adaptation, leadership, and measurement of organisational culture are key factors that lead a company performs better.

Importance of organisational culture
Organisational culture is one of the most valuable assets of an organization. Many studies states that the culture is one of the key elements that benefits the performance and affects the success of the company (Kerr & Slocum 2005). This can be measured by income of the company, and market share. Also, an appropriate culture within the society can bring advantages to the company which helps to perform with the de...

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...e policies result in satisfaction of employees, so Starbucks has lower turnover rate than market competitors. As a result, better working condition, and great organisational culture help them to perform better. For the company, Starbucks can keep experienced employees longer so that they can provide better quality of product and service, also can save expenses from recruiting new employees. The dimension of People orientation leads company to make a friendly and flexible working surroundings to attract talented new employees and retain current employees. These days just high wage can't attract the best people. They are not just asking for better wage. Friendly, enjoyable working condition and company's environment are also critical factors to choose working place. When the employee's satisfaction is increased, more people will be staying in their current work place.

In this essay, the author

  • Defines organisational culture as a total function of common beliefs, values, patterns of behaviour that held and shared by the member in an organisation.
  • Explains that organisational culture is one of the most valuable assets of an organization.
  • Explains that strong culture influences more to its members than weak culture. turnover rate and size of an organisation can determine whether the company's culture is strong or weak.
  • Explains that a company with strong organisational culture can maximize profit and achieve its goals easily because employees tend to share the same set of values as well as trust each other.
  • Explains that strong organisational culture creates positive impacts on each member's performance, such as achieving goals in an enjoyable environment, working with better materials, and improving morale.
  • Argues that adapting external environment variation can be from the adaptive culture, which helps to understand improvement of organisation's performance.
  • Explains the importance of a leader's role in developing strong culture. they state that the relationship between employees and immediate managers is the most important variable in the attraction and retention of talented employees.
  • Explains that organisational culture is different'sets' of important values, which indicate effectiveness of organizational culture measurement as well as organisation's performance.
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