Essay International Business

Submitted By mersha1987
Words: 2904
Pages: 12

Introduction Organisations are always different in their nature. This differentiation is based on the organisational structure, behaviour, culture and many other things. Organisational culture is the core of every organisation. The employees and managers in an organisation are behaving in a way within the culture of an organisation. Organisational culture is a set of values, beliefs and unwritten rules. This assignment is a study of organisational culture, its proper management and the effects which badly affect the organisation if its culture is not managed effectively and how it effect the performance of the employees.

Organisational Culture and its management

Culture Culture can be defined as a group of common values, feelings, thoughts and activities that are transferred from one generation to the next. Every different group have its own particular culture, which is distinct from other. It is vibrant and changing. Culture can be defined as ‘ a code word for the subjective side of organisational life’( Meyerson & Martin,1987)
According to Schein(1984), Culture can be divided into 3 levels. 1. Surface manifestations, consists of rituals and behaviour. In this level culture is based on language, customs etc. In office level, the difference in work space eg. The basic structure of a bank with open spaces is different from an IT firm with small cabs or like the different dress code acceptable in different situations 2. Values, which are world widely, differ for each manger regarding their work. Values are always based on personal mind set. 3. Basic Assumptions, which is considered as the heart of the culture. It contains different assumptions of an organisation and its working condition, relate to personal attitudes. This assumptions are invisible in nature.

Significance of culture: Culture creates a ‘we-feeling’ which decrease isolation within the organisation. Organisational culture helps in better communication and mutual understanding between the employees. Absence of these factors may reduce the effectiveness of an organisation A strong culture develops when the employees line up themselves with the organisations plans and intentions. Commitment of employees to their company will promote its culture.
Development of Organisational Culture. Culture of an organisation can be developed by 4 different ways. They are: 1. Culture developed by the leaders – It means the leaders who formed the organisation in its beginning. It is based on their expectations and behaviour.(Schein, 1990) 2. Culture formed around critical incidents – Based on some experiences or events happened with the organisation and the result from that experience. 3. Culture developed to maintain an efficient working atmosphere – Development of a culture for the well being of staff which creates a favourable working conditions 4. Culture Influence by organisations setting – Depends on the external and internal atmosphere of the organisation.
Different researches on culture
Research of Laurent (1983) Laurent conducted a research on different organisational conceptions. According to his studies, he come to the decision that culture of an organisation can be identified by asking many questions to the managers and how they will solve the problems. The solutions made by them will show their thoughts about the role and power of managers in an organisation. Holding power is more important compared to attaining certain objectives. Role-formalisation is a system where managers prefer a description on the job in detail including roles and functions. Where in Hierarchical system all the powers go to the Boss and he has to be respected by the others.
Hofstede’s Research (2001) According to his research, he found that, difference in responses can be classified into four. * Power distance * Uncertainty avoidance * Individualism * Masculinity
Power distance: It is a term related to the