Hello Respected Researchers and HR managers, In this section we will discuss about “Organizational Culture- Advantages and Disadvantages“. It is very much important for a Researcher as well as HR Concern person/ manager to know The Organizational Culture- Advantages and Disadvantages. If researcher or HR Manager could follow the Points accordingly,it would easier to reach the goal. Let’s have a look…
Developing a Strong Organizational Culture:
⇒ Organizational cultures are considered strong when the core values are both intensely held and widely shared. In a strong culture where people share assumptions and values, the workplace is an environment in which people thrive and learn. Strong cultures foster high agreement among individuals, building loyalty, commitment and cohesiveness. As a result, employees show lower absenteeism and are less likely to leave the organization.
⇒ In what ways can founders and/or managers set the foundation from which to build a strong organizational culture? It has been argued that this can be done in 3 ways:
- The founders and/or senior management of the organization hire or retain employees who think and feel the same way they do;
- Management indoctrinates and socializes members within the organization to their own way of thinking and feeling;
- Top managers serve as role models – employees observe their behaviours, and eventually identify with them, and internalise their beliefs, values, and assumptions.
⇒ Schermerhorn, Hunt and Osborn argue that there are specific elements of strong corporate culture:
- A widely shared real understanding of what the firm stands for, often embodied in slogans.
- A concern for individuals over rules, policies, procedures and adherence to job duties.
- Recognition of heroes whose actions illustrate the company’s shared philosophy and concerns.
- A belief in ritual and ceremony as important to members and to building a common identity.
- A well-understood sense of the informal rules and expectations so that employees and managers understand what is expected of them.
- A belief that what employees and managers do is important, and that it is important to share information and ideas.
⇒ Advantages of Strong Organizational Cultures:
⇒ Johns and Saks have identified three primary advantages of strong cultures:
- Coordination: Structural changes within organizations over the last decade or so, have given rise to increased interdependence across functions and activities. As such, coordination has become a critical success factor in helping organizations achieve their goals. Where strong cultures exist, communication is facilitated. Employees are not afraid to share information and this will ultimately add value to the customer base.
- Conflict resolution: When people share the same basic core values in an organization, it can often lead to conflict resolution more quickly than in an organization with a weak culture. While members of a not-for-profit might argue over how to best deliver a service, agreement might be more readily reached when they can all agree that they share the core values of serving the membership to the best of their ability.
- Financial success: A number of studies have been done that indicate that strong cultures (where the mission, strategy and goals of the organization are supported) contribute to the bottom line. A study of insurance companies found that managers who responded more consistently to a culture survey had greater asset and premium growth than those with disagreement.
Disadvantages of Strong Organizational Cultures:
- One of the cons to strong cultures was mentioned above, and that is of colliding values and beliefs when organizations merge or are acquired. In addition, one of the most significant downsides to a strong organizational culture is a forceful resistance to change. In a new economy where change has become the norm rather than the exception, organizations must be flexible and adapt quickly to external influences. Often, this necessitates a new perspective, part of which includes the adoption of new and different beliefs and assumptions. Innovation might depend on a cultural change; strong cultures tend to resist this.
- A strong culture can also act as a barrier to diversity. One must be able to “fit” with the culture of the organization, and often new employees, because of race, gender, disability, or other differences, might not be perceived as an appropriate “fit”. It is critical for managers to remember that a heterogeneous work environment will provide a variety of strengths within the organization.
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