Management And Organisation In A Global Environment

Corporate Culture and Strategy

Discuss about the Management and Organisation in a Global Environment.
 

Corporate culture is the human involved in an organisation to understand the values and principles of the organisation. The strategy is the core and rational of any organisation that presents the company’s business path (Benko and Anderson 2013). The process and ways of any organisation is set by the strategy of the management. The management should implement new ideas and policies to run the company. However, culture and strategy shares a very good relationship with each other. The strategy drives the focus of the company while the culture takes care of the emotional part of the employees. Therefore, the company is regulated by the sources of strategy and culture (Benko and Anderson 2013). Strategy helps the organisation to create their organisational policies and planning to gain profit in future whereas the culture is the key process of the organisation to maintain the values and principles of the members. According to Benko and Anderson (2013), lattice strategy is the system of ladder that the members have to follow to gain the success. There are three steps such as, building career, working in a firm and then participate in the organisation. These steps will help the organisations to maintain the corporate culture as well as the strategy.

Organisational culture refers to the values and the behaviours of the organisation, which contribute to the social, economical and psychological environment of that organisation. Various definitions are there regarding organisational culture, which sometimes conflicts each other. According to Watkins (2013), in an organisation, the culture is the sense-making process. It refers to the values, beliefs, principles of the members of a particular organisation. On the other hand, it is argued by other experts that culture is powerfully formed by incentives. As per this doctrine, incentive is the most important element in an organisation, which is essential for the employees. Incentive refers not only the monetary rewards but also the non-monetary rewards, such as, recognition, status, advancements and sanctions. These really matter for an employee in an organisation. It is opposed by Watkins (2013), and said that organisational culture is civilisation in the workplace. The culture plays the role to promote the right things in the organisation and detect the wrong things to protect those.

Therefore, it can be said that the organisational culture is not only the values and principles of the organisation but it also includes the reward systems. Culture plays a vital role in creating the organisational environment. The members of any organisation always practice some values and rituals that reinforce the narratives of the people involved in the organisation (Watkins 2013). However, it cannot be said that culture only depends on the values and principles. People are working in an organisation to gain their monetary reward to lead their personal life. Therefore, a direct impact is always there that is indicating the culture with incentives. Incentives or the reward system is very essential in the organisational culture as well as practicing a proper value and principle also required within the workplace.

Definition of Culture

The corporate culture can be acquired from various companies’ policies that they have taken to improve their internal organisational culture. Therefore, a company’s practice of culture can influence the other organisations to incorporate their culture. Very few cultural activities make a short-term impression while some influences a long-term basis. In this study, the discussions of the corporation culture of Zappos can be analysed (Amednews.com 2016).

The corporate culture of this company has a very innovative style that they acquired in the organisation. They have started a new policy for the new employees that they would pay for the employees who will quite. The company sells shoes online and the want to get success through this business chain to develop a good organisational culture within it. Their expectation of generating sales per year was approximately more than $1 billion and they want to increase it to $70 million in next five years (Amednews.com 2016). They also offered various accessories subjects such as handbags, various apparel and they sale them with an emotional connection to the customers. This organisational culture was practices between the Human Resource Management and the customers’ satisfaction. The main motto of the company was to build the connection between customer and management. Therefore, they stated their products in their website and give them delivery in free.

They have offered their new employees to retain them in their company. They offered their employees that they will be paid if they quite after joining their company. It is said that they will be paid the amount they worked and another bonus of $1000 will be paid to them for joining in their company (Amednews.com 2016).

Toyota Motor Corporation has acquired a corporation culture that they used in their organisation to expand their corporate culture to get the benefits from it in their business. The company has emerged in the as a number one motor company in recent times as they used the corporate culture in their production system (forbes 2016). The production system of this company has changed its approach that liked by the customers. Customers liked it as they get a chance to introduce by new innovative ideas from the stereotyped approaches. According to forbes (2016), in an interview the president of Toyota Motor Corporation has stated that the company has reached in this success not in one day. When they started in the initiative time, then they have a very small amount in their hand and their product design system only made them able to reach the success where they has reached today.

Corporate culture Instilled in HRM Practices and Customer Satisfaction

The main corporation culture in this company was maintained by the innovation, humility; seize opportunities, strict discipline and mentoring. In beginning, the innovative culture of the corporation was get success to bring the popularity of the company but in late it has proved to be wrong in its approach. It can be said that the organisation has used the seven-dimension model of organisational culture to improve their culture within. The company has used the innovation and risk takers as their first dimension to get success. They have taken risk by launching 8 million vehicles worldwide for unintended acceleration (forbes 2016). Additionally, they used the teamwork and giving recognition to them involved them in the success story. Along with this, they used an aggressive approach to reach their organisational objectives, which made the organisation enable to beat their competitors.

Corporate culture is compared with the country culture. According to Peter Drucker, when the management should not try to change the corporate culture then the members can work in the organisation properly. As per his approach, the companies should not try to change their original culture instead of this they should apply their existing culture in their organisational benefit. However, Change Factory (2016) opposes it; corporate culture can be changed if required. It can be possible with a tactful leadership. Leaders are the one who can analyse the existing corporate culture and then can change it according to the requirement for the betterment of the company. Therefore, in this section the study is focussing on the models of corporate cultures for bringing the change in the organisations.

These models of corporate culture can be two types; one refers to the geometric presentation of the culture through a polygon. The length of the spokes from the centre of the polygon reflects a numerical value of a specific element or typology of “corporate culture”. The elements tend to have labels such as “Avoidance” or “Achievement” or “Reactionary” (Change Factory 2016). The second one is the element of theory based. It describes the model in normal words. According to the author, the second one is more effective in the corporate culture. However, it is very descriptive and lengthy process and sometimes it is dependent on the leaders how they present the model before their employees. In contrast with this, the first type of model is easier to become familiar with the corporate culture. It is easier to understand because of its presentation. The model describes the corporate culture with pictures and diagrams that reflects the actual scenario very clearly and the employees can understand it easily without any interference of leaders (Change Factory 2016).

The main concentration is in the study on the Cultural Web Model that refers to the second type model consisting of six major elements. These are – organisational structure, symbols, power structures, rituals and routines, myths and stories and control system. For instance, in a call centre the model can be implemented in the following way –

Organisational Structure	Myths and Stories	Rituals and Routines
·         Team shuffle frequently ·         Teamwork spirit lacking ·         Promotion process lacks	·         Low morale ·         Poor work-home balance ·         Lack of people management ·         Disaster	·         Staff development plan ·         Corporate values ·         Results of employee survey ·         Initiatives

References

Amednews.com (2016). amednews.com. [online] Available at: https://www.amednews.com/APPS/PBCS.DLL/PERSONALIA?ID= [Accessed 3 Aug. 2016].

Benko, C. and Anderson, M., 2013. The corporate lattice: Achieving high performance in the changing world of work. Harvard Business Press.

Change Factory. (2016). Using cultural models for changing corporate culture – Change Factory. [online] Available at: https://www.changefactory.com.au/our-thinking/articles/using-cultural-models-for-changing-corporate-culture/ [Accessed 5 Aug. 2016].

forbes, (2016). [online] Available at: https://MIT’s Ed Schein on Why Corporate Culture Is No Longer the Relevant Topic and What Is [Accessed 5 Aug. 2016].

Taylor, B., 2008. Why Zappos Pays New Employees to Quit—And You Should Too. Practically Radical blog, Harvard Business Publishing (May 2008), discussionleader. hbsp. com/taylor/2008/05/wy_zappos_pays_new_ employees_html (accessed 31 July 2008).

Watkins, M., 2013. What is Organizational Culture? And Why Should We Care?. Harvard Business Review, US.