This assignment aims at discussing whether a strong organisational culture which can be used as a tool of management control helps to both motivate staff and improve company performance and should therefore be encouraged.
Organisational culture can be defined as “the basic values, ideologies and assumptions which guide and fashion individual and business behaviour.” (Wilson and Rosenfeld 1990, p.229). Following Schein, organisational culture can be subdivided into three levels, representing the visibility to the observer. Most visible are the culture’s artefacts or surface manifestations, including organisational structure, processes, physical environment, technology and products, employees clothing, manners of address as well as language and company myths. These and other artefacts can be discovered while interacting with the organisation as an employee, customer or other stakeholder. The second level are espoused beliefs and values. The companies set of values normally establishes over a long period emerging from the founders and managements own mindset. These values are (or better should be) adopted by all employees as a part of their own values and beliefs and are also manifested as stated company values. The third and most in-depth level of organisational culture are the underlying basic assumptions. They evolve when beliefs and values become treated as reality, though they are never visible to an observer and can be described as the company’s own culture (Schein 2004). An important factor, when looking at organisational culture is the similarity or differences of the management’s and the employee’s view of corporate culture. A high match of organizational culture levels results in a strong organisational culture whereas differences in both groups’ mindsets lead towards a weak culture. Important thereby is not only a match of the culture’s manifestations, which only leads to a superficial strong culture, much more significant is sharing of the same values and underlying assumptions (Hartog and Verburg 2004). In a strong organisational culture, common thinking and views between employers and employees may eventually result in a better working atmosphere, an alignment of the workforce and ultimately in better performance (Deal and Kennedy 2000). Weak corporate cultures on the other hand are marked by less shared values, beliefs and assumptions and are less stringent in its thinking but are therefore also more open to changes and fluctuations. [...]
Table of Contents
1. Introduction
2. The Definition and Levels of Organisational Culture
3. The Link Between Culture and Performance
4. Factors Encouraging Organisational Culture and Management Control
5. Critical Perspectives and Conclusion
Objectives and Topics
The primary objective of this assignment is to examine the debate surrounding whether a strong organisational culture can be utilized as a tool for management control to enhance staff motivation and overall corporate performance.
- The theoretical definition and levels of organisational culture according to Schein and other scholars.
- The relationship between leadership, organisational culture, and employee motivation.
- Empirical findings regarding the correlation between high-performance cultures and financial outcomes.
- The contrast between managerial perspectives advocating for cultural control and social science approaches that emphasize organic growth.
- The role of market-oriented versus internally oriented cultural traits in achieving organizational goals.
Excerpt from the Book
The Definition and Levels of Organisational Culture
Organisational culture can be defined as “the basic values, ideologies and assumptions which guide and fashion individual and business behaviour.” (Wilson and Rosenfeld 1990, p.229). Following Schein, organisational culture can be subdivided into three levels, representing the visibility to the observer. Most visible are the culture’s artefacts or surface manifestations, including organisational structure, processes, physical environment, technology and products, employees clothing, manners of address as well as language and company myths. These and other artefacts can be discovered while interacting with the organisation as an employee, customer or other stakeholder. The second level are espoused beliefs and values. The companies set of values normally establishes over a long period emerging from the founders and managements own mindset. These values are (or better should be) adopted by all employees as a part of their own values and beliefs and are also manifested as stated company values. The third and most in-depth level of organisational culture are the underlying basic assumptions. They evolve when beliefs and values become treated as reality, though they are never visible to an observer and can be described as the company’s own culture (Schein 2004).
Summary of Chapters
1. Introduction: This section introduces the core thesis of the paper, questioning whether corporate culture serves as an effective instrument for management control and performance improvement.
2. The Definition and Levels of Organisational Culture: This chapter categorizes organisational culture into three distinct levels—artefacts, espoused beliefs, and underlying assumptions—based on the framework established by Schein.
3. The Link Between Culture and Performance: This part analyzes various studies that explore the correlations between different types of organizational cultures, job satisfaction, and financial firm performance.
4. Factors Encouraging Organisational Culture and Management Control: This section identifies specific organizational traits, such as market orientation, that facilitate the use of culture as a management tool to drive success.
5. Critical Perspectives and Conclusion: The final chapter synthesizes the conflicting views between managerial and social science perspectives, ultimately concluding that the manageability of culture remains a complex and debated subject.
Keywords
Organisational Culture, Management Control, Staff Motivation, Corporate Performance, Schein, Artefacts, Espoused Beliefs, Basic Assumptions, Market Orientation, Financial Performance, Leadership, Socialization, Corporate Identity, Business Behaviour.
Frequently Asked Questions
What is the primary focus of this assignment?
The paper examines whether a strong organisational culture can be intentionally used as a management tool to motivate employees and improve overall company performance.
What are the central themes discussed in the work?
Key themes include the definition and visibility of cultural levels, the link between culture and performance, and the controversy regarding whether culture can be actively managed by leadership.
What is the overarching research question?
The work addresses whether a strong organisational culture helps to motivate staff and improve company performance, and if it should therefore be actively encouraged by management.
Which scientific approach is utilized?
The paper uses a literature-based analytical approach, contrasting the "managerial perspective" that supports active culture shaping with the "social science perspective" that views culture as a historical, organic development.
What topics are covered in the main body of the text?
The main body covers the levels of culture (Schein), the impact of shared values on atmosphere, empirical evidence of financial outcomes in market-oriented firms, and the skepticism raised by critics regarding the manageability of culture.
Which keywords define this document?
The paper is defined by terms such as Organisational Culture, Management Control, Corporate Performance, and Market Orientation.
How does the author explain the difference between a strong and weak culture?
A strong culture is characterized by high alignment of mindsets and shared underlying assumptions between management and employees, whereas a weak culture lacks these commonalities and is more prone to fluctuations.
Why is the link between culture and performance considered controversial?
It is controversial because research outcomes vary significantly depending on industry type, how culture is defined, and whether researchers focus on external-oriented versus internal-oriented cultural traits.
What does the literature suggest regarding the manageability of culture?
There is no consensus; while some studies argue that leaders can shape culture to achieve performance outcomes, social scientists often argue that culture grows over time and cannot be easily manipulated.
- Quote paper
- Matthias Arnold (Author), 2005, Organisational culture as a management tool, Munich, GRIN Verlag, https://www.grin.com/document/55705
