What factors most influence company performance and what can managers do to ensure the effectiveness of their companies? The answers to these questions are, in reality, complex because of the vast number of factors that may influence company performance. These include external factors such as market share and market environment, as well as internal company factors including organizational culture, management styles and human resource management practices. Recently, the increasing level of competition worldwide has led managers and researchers to focus even more sharply on these questions. Reducing labor costs in some countries, particularly in countries in the process of industrialization, has raised the level of competitive threat for countries which have been industrialized for some time.The pressures on managers to manage the complex and varied influences on company performance are greater than ever before.

Culture, in organizational context, may be broadly defined as a group¶s or nation¶s way of thinking, believing, feeling, and responding. Culture is the way of life of a group of people. More formally culture is defined as the complex whole which includes knowledge, belief, art, morals, customs and any other capabilities and habits adopted by members of a society. A society may be represented by the members of a nation or by members of an organization. ³The individualism-collectivism dimension illustrates this shift from cultural dimensions to cultural syndromes.´ (Gregory, 1983) Often, it is observed that the µActual Culture¶ is quite different from µOfficial Culture¶ with respect to participation in decision making and social orientation in a company.

If we assume that organizational structure is measured by four dimensions (specialization, standardization, formalization, and centralization) and culture is also defined also by four dimensions (individualism/collectivism, power distance, uncertainty avoidance, and masculinity/femininity), relationships between these dimensions will describe the relationship between organizational structure and culture. Based on such assumptions we can deduce that culture can relatively influence organizational structure in different variations; consequently, enhancing organizational effectiveness.

Even if a small percentage of the variation in organizational performance can be explained by employee attitudes, then managers are likely to take considerable interest in the factors that influence employee attitudes. On the other hand, if there is no link between employee attitudes and organizational performance, then those charged with running organizations may well argue that concerns about job satisfaction, for example, are moral and ideological rather than economic issues. ³Organizations do not decide to become bureaucratic. Bureaucracy, or any other organizational form, is the function of the actions of people in the organization, perhaps in response to conditions outside the organization.´ (Frank & Fahrbach, 1999) Rather than concentrating upon the culture of the organization, the performance of the management depends on the mind -set of the employees. Here the argument arises that any organizational form must comprise of such an environment that contributes to the optimum performance of the organization. Here the attitudes of the employees play an important role; they are responsive to the factors that exist internally as well as externally in the organization. Managers are required to make an effort through which organizational form integrates with the attitude of the subordinates. Being contradictory to the proposition above still it can prove to increase organizational effectiveness.

Organizational culture is interpreted here as the aggregate of employees¶ perceptions of aspects of the organization, for example, quality of communication, support for innovation, level of supervisory support and so on. However, the evidence for the influence of culture upon organizational productivity is limited. ³The voluntarism, commitment, and identification with the humanistic mission were seen by the organization's members (and the researchers) as having a positive effect on the organization's functioning, particularly in the early stages.´ (Denison & Mishra, 1995) Organizational culture is the set of values, norms and beliefs shared by member of organization. Organization develop a unique culture and employees share common values and beliefs about work-related issues. Organizational culture also can support company mission and strategy. Even companies in the same industry tend to have entirely different cultures based to their own mission and goals. This helps in providing the organization a clear direction to work towards. Ultimately when the organizational culture starts to support company strategy, mission, and policies; indirectly the employees will be redirect towards a collective motive. The strength of the culture depends on how strongly member share its values and basic assumption. The pervasiveness of an organization¶s culture requires that management recognize the underlying dimensions of their corporate culture and its impact on employee-related variables such as satisfaction, commitment, cohesion, strategy implementation, performance, among others. One consistent theme in the culture literature concerns the impact of a strong culture on organizational performance. The hypothesis is that an organization with a high level of shared meaning, a common vision, a ³clan-like´ attitude toward members, and a high level of normative integration will perform well.

Some authors have argued that this theory has universal application, while others have argued that the culture of an organization, in addition to having these characteristics, must also fit the business environment. ³The multicultural organization is characterized by pluralism, full integration of minority-culture members both formally and informally, an absence of prejudice and discrimination, and low levels of inter-group conflict; all of which should reduce alienation and build organizational identity among minority group members.´ (Cox, 1991) Aligning organizational culture with strategy is a powerful means for gaining competitive advantage and industry or sector leadership. Organizations that seek leadership and sustainability make the choice for culture by design, not default.

Building and sustaining a culture of engagement requires a full commitment from leadership and a climate that regularly considers how the organizational environment influences employee attitude, productivity, well-being and loyalty. In any organizational structure there are some regular official activities in which participation is required by every employee. But the extent to which the participation is mandatory is the question to ask. The engagement of the employees in the organizational structure is the primary cause of their involvement in these activities. ³The seemingly common structure of rituals, i.e., meetings, training programs, and formal sessions for information exchange, they serve contrasting functions in high and low innovation-supportive cultures.´ (Jassawalla & Sashittal, 2002) Here it can be proposed that cultures of different variation of notions can have a major impact on the employees¶ attitudes concerning their required performance. We see organizational culture as the critical foundation which shapes the way that the work of the organization gets done (established through goals, plans, measures, and rewards) and the infrastructure (systems, process, and structures) gets utilized.

Engagement reflects alignment of each employee¶s very personal goals and drivers of job satisfaction with the organization¶s strategy and contribution requirements. And, realistically, if employees themselves aren¶t clear on what they do well and what matters most to them, it¶s unlikely that any work situation will engage them. Cultural diversity is a part of organizational life. In the present business environment it cannot be ignored. The question arises µhow to manage it?¶ When a manager focuses attention on cultural differences, it causes problems as it is often confused with evaluation of a culture. According to Sadri and Lees (2001), a positive corporate culture could provide immense benefits to the organization, and thereby a leading competitive edge over other firms in the industry. However, a negative culture could have a negative impact on the organizational performance as it could deter firms from adopting the required strategic or tactical changes. Such type of culture could inhibit future changes in an organization. The changes cultivated by organizational culture have a positive relationship with the financial performance of the firms.

This term paper has enhanced the understanding of the role of culture in Organizational Effectiveness. Culture was found to impact a variety of organizational processes and performance. While more research remains to be done in this area, this term paper has demonstrated the power of culture in influencing organizational performance. Strong culture which all members in organization such as employees, executives and managers in organization¶s operation and management decision. In the same time, organizational culture also supports organization¶s strategy, mission and policies to achieve their goal. This term paper also showed that organizational culture is associated with attitudes toward organizational change. Different types of organizational culture have diffe rent levels of acceptance on attitudes toward organizational change. Finally organization culture play important role and is effective in many ways to achieve successful.

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