Thursday, April 15, 2010

Organizational culture

Organizational culture
Organizational culture is a set of values,beliefs,assumptions,and symbols shared in common throughout the organization.It influences opinions and actions of members within the organization.It guides behavior.It has pervasive influence on organizational life through cooperation,control,decision making.Communication and commitment.
Leaders shape organizational culture in the following ways:
  1. Emphasizing dominate values:They are key themes or core values.They may be established by the founder of business.They are the source of competitive advantage.They can be :
  • Quality :Innovation in product development.Total quality management of product.
  • Services :Before,during,or after sales services.Speed in providing services.
  • Differentiation :It is relation to competitors.It can be in terms of physical parameters,image,promotion and channels.
  • Cost advantage :It can be low cost compared to competitors.
  • Disseminating stories and legends :Stories and legends that reinforce desired values and beliefs are disseminated.Organizational members strongly identify with them.
  • Institutionalizing practices:Practices that systematically reinforce desired values and beliefs are institutionalized.
  • Reward systems and structures:They are used to shape desired organizational cloture.
  • Managing strategy culture relationship :They are managed for strategy culture fit.They help strategy implementation.
  • Maximizing synergy:Synergistic aspects are maximized.

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