Assignment

on

Understanding the Influence of Organizational Culture & Environment on

Organizational Decisions
 Assignment

On

Understanding the Influence of Organizational Culture & Environment on

Organizational Decisions

Course Name: Management & Organization Behaviour

Course Code: (MGT 7301)

SUBMITTED TO

Dr. Dewan Niamul Karim

Associate Professor
MBA professional
Faculty of Business Studies
Bangladesh University of Professions
SUBMITTED By
SL No. Name ID
01 Fatema Yeasmin Smrity 22230331056
02 Nur A Jannat Shampa 22230331058
03 Rayhan Uddin (Group 22230331060
Leader)
04 Khandakar Shajia 22230331077
Farjana Shuasha
05 Rafia Ferdous Mim 22230331083
06 Md. Shezanul Islam 22230331097
Batch-031, Section-B

Faculty of Business Studies

MBA Professional

Bangladesh University of professional

Submission Date: 1st November 2022

 LETTER OF TRANSMITTAL

Date: 1st November, 2022

Dr. Dewan Niamul Karim
Associate Professor
MBA professional
Faculty of Business Studies
Bangladesh University of Professions
Subject: Submission of group Report on “Understanding the Influence of Organizational
Culture & Environment on Organizational Decisions”.

Dear Sir,

This is a great pleasure for us to submit the report on Understanding the Influence of
Organizational Culture & Environment on Organizational Decisions”.Preparation of this
report has been a great pleasure & an interesting experience. It enabled us to know about various
organizational Knowledge more broadly than before. This report helped us tremendously to
understand and to know the various types of organizational culture and environment the use of
different organizations.
We have undertaken our sincere effort for successful completion of the MBA Professionals
program. If we have any unintentional errors and omissions that may have entered into this
report please consider with sympathy.
Therefore, we beg your kind consideration in this regard, we will be very grateful if you accept
our report and oblige there by.

Sincerely,
Rayhan Uddin
ID: 22230331060
on behalf of members of group 8
 Summary
This report is primarily concerned with explaining the organizational culture environment and its
influence on the organizational decisions and performance. We are focused on characteristics of
organizational culture, how employees learn organizational culture essentially connect the organization
and make decisions from history, distinguish it as a distinct feature that differentiates from other
organization. Organizational culture analyzes how organizational culture affects the decision-making of
the organization. How do employees act on strong and weak cultures accepting or rejecting the
organization's key values. Organizational environment elements have two different criteria - Internal
environment and External environment also known as Micro and Macro environment. This assignment is
an explanatory report, where different factors of organizational environment is discussed.  There are
multiple factors of organizational environment. Each of the factors have significant influence on an
organization’s performance and its decision making. An organizational structure grows within these
elements. Whether an organization will flourish or deplete, mostly it depends on how the resources are
utilized and how much it is influencing on the decision making of an organization. To have a
better understanding about the concept, multiple examples are explained under this assignment both
national and international perspective. Environmental elements create both favorable and unfavorable
condition for a company. Starting from resourcing to finished goods and distributing these factors of
environment has domination in every step of the operations. That is why organizational environment is
a part and parcel for making each decision for any particular organization.
Table of Contents

Introduction
Employee behavior is influenced by the organizational culture and environment, which is
described as a set of elements that identify the company and separate it from other companies
throughout time. Employees' functional behavior, trends, and motives are all influenced by these
traits. Managers recognize how important culture important organizational culture is to their
organization. An organization culture where employees are respect and treated like family. They
also enjoy a bit of friendly competition. A decision makers can recognize the challenges in trying
to manage the culture in the organization. How much impact do a decision maker actually have
on an organization success and failure. Many challenges, that organization managers and leaders
must remain vigilant about environmental changes. An organization's environment comprises of
its surroundings — anything that has a positive or negative impact on its activities. The term
"environment" includes both abstract concepts such as an organization's image and more
concrete ones such as country economic conditions and political situations. Environmental
factors, both abstract and observable, require careful examination. The information needed to
make decisions about which strategy to pursue comes from a thorough and adequate analysis.
Managers cannot make suitable and sound strategy based solely on their instincts and
estimations. They must make use of relevant data derived directly from the analysis of their
organization's context. Although the concept of an organization's environment may appear easy
at first glance, it includes a variety of levels. At each level, a variety of elements play a role, the
most important of which are sociocultural, economic, and intellectual variables, as well as raw
material suppliers, rivals, and the government [3]. In adding to these aspects, the environment's
globalized or worldwide nature has been increasingly important in recent decades. In order to
exist in a globalized environment, an organization can easily, and thus the responses and
practices of its management, must change.
Traditionally, organizational environment research has focused on qualities such as complexity,
uncertainty, and resource availability. However, no empirical research has been undertaken to
date that conclusively links all aspects of an organizational culture and environment to employee
attitudes and behaviors. The study of those factors that may impact the development of
sustainable, healthy organizations is of paramount importance, according to the original
perspective of the Psychology of Sustainability.
What is Organizational Culture?

Organizational culture is very important in any organization. It is like a double-edged

sword.Values, ideals, attitudes and goals that characterize an organization can be identified
as the culture of the organization. An organizations’ culture encapsulates what it has been
good at and what has worked in the past. For example, Gimex Clothing Ltd is a
manufacturing firm. Here, however, management encourages and rewards risk taking and
change. Decisions based on intuition are valued as much as those that are well rationalized.
Management prides itself on its history of experimenting with new technologies and its
success in regularly introducing innovative products. Managers or employees who have a
good idea are encouraged to "run with it," and failures are treated as "learning
experiences." The company prides itself on being market driven and rapidly responsive to
the changing needs of its customers.

Different Types of Culture

In organization there are different types of culture. In short we are discussing strong and
weak culture.

Strong Culture:

 Cultures in which the key values are deeply held and widely shared.
 The strong culture is the more that employees accept the organization's key values
and the greater their commitment to those values.
 Several organizations have moderate to strong cultures. There is relatively high
agreement on what's important, what defines "good" employee behavior, what it
takes to get ahead, and so forth.
  One study of organizational culture found that employees in organizations with
strong cultures were more committed to their organization than were employees in
organizations with weak cultures.
 The organizations with strong cultures also used their recruitment efforts and
socialization practices to build employee commitment. And an increasing body of
evidence suggests that strong cultures are associated with high organizational
performance.
 An organization's culture becomes stronger, it has an increasing impact on what
managers do.

Weak Culture:

 Have a greater influence on employees than do weak cultures.

 Employees reject the organization's key values and the lower their commitment to
those values, the weak the culture is.
 Some organizations do not make clear what is important and what is not; this lack
of clarity is a characteristic of weak cultures.
 Whether an organization's culture is strong, weak, or somewhere in between
depends on factors such as the size of the organization, how long it has been
around, how much turnover there has been among employees, and the intensity
with which the culture was originated. In weak culture culture has higher turnover
lower employee involvement, less intensity and employees are less motivated.

How Employees Learn Culture

An organization’s employees can learn about the culture in many ways. The most popular
are stories, rituals, materials symbols, and language.

Stories: Stories of an organization typically involves significant such thing as the

organization’s founders, feedback on past mistakes, and rule-breaking. For instance,
telling the story about the company's past help shape the future, the Manager of Nike says.
Top management explain the company’s heritage and tell stories as employees follow them
and operates efficiently and effectively.

Rituals: Ritual is an important “passing of pillars”. Corporate rituals is the activities of

repetitive sequences that shows the important values and goals of the organizations. For
Example: One of the best-known corporate rituals is apple incorporated product lunching
ceremony. This ceremony takes place in a large auditorium, on a stage in front of a large,
cheering audience, with all the participants dressed in glamorous evening clothes.

Material Symbols: Material symbols are created in organization personality. What type
of environment it is- formal, casual, fun, stories and so forth. How employees attire, what
types facility provided to top management, the availability of corporate transportation
are example of material syambol.

Language: An organization have different types of employees. So they use language as a

way to identify unite member of culture. Acronyms, jargon, pharses, and word meanings
specific to the organization.Using and learning language that attest to the culture. An
organization can use own created language for their environment. The world famous
software company Microsoft have their own created language using software program.

How Organizational Culture Affect Managerial Decisions?

An organization culture can provides direction to what manager can do and can’t do. It’s
specifically related to the managerial decisions. “The right culture with the right values will
always produce the best organizational performance”. The culture establishes for manager
appropriate and expected behavior. For Example St. Luke's advertising agency in London,
a culture shaped by the value placed on freedom of expression, a lack of coercion and fear,
and a  determination to make work fun influences the way employees work and the way
that managers  plan, organize, lead, and control. The organization's culture is also
reinforced by the office environment, which is open, versatile, and creativity.
Strong company culture is one of the factors that separates great companies from good,
bad, or mediocre ones. The culture must be based on some values. The right culture with
right values can make huge difference in organization’s performance. Employees’
performance depends on how the organization is treating them. If the company maintains a
organizational culture of treating employees as they treat their customers, the company can
have more productive and satisfied employees. A satisfied employee can make a customer
satisfied. Again, if any organizational culture has the value of ‘Be Yourself’, the employees
of the company can do work independently. So a creative environment can be maintained.
For example Zappos.com, organizational culture is Zappos’s main Business Strategy. Its
culture is based on ten core values. Its right culture with right values has brought them
immense success. Zappos.com is No.1 best e-retailer. Zappos.com is the largest online shoe
retailer of the world. This has become possible because it has a great selection of products,
super-fast shipping and free returns. And the real secret behind its success is its people who
make the Zappos shopping experience truly unique and outstanding. The organizational
culture of Zappos has provided it a sure path to success.
 Conclusion

Organizational culture sets the context for everything a company does. Because organizations
and situations vary significantly, there is not a one-size-fits-all culture template that meets the
needs of all organizations. A strong culture is a main contributor among the most successful
companies. Conversely, a weak culture can bring down the organization and its leadership.
Disengaged employees, high turnover, poor customer relations and lower profits. Top
management have major influence on organizational culture. They focused in-ward looking
culture the way of looking things. Organization culture help employees adapt to the
understanding culture, learn culture, effective decisions of the organizations. The
organizational environment is described as a set of qualities that describe and distinguish the
organization from others. Employees' functional behavior, trends, and motives are all
influenced by these traits. The framework within which the organization conducts its activities
is determined by the nature of the environment. In most cases, an inability to properly adapt to
the environment is a major cause of organizational failure. The external conditions in which the
company operates have a significant impact on its chances of success. The organization must
build a system of organizational reaction to any important changes in the environment in real
time in today's environment, which is prone to rapid changes. Organizational adaptation
to changing environmental conditions is a topic that has received a lot of attention.
The management's role is to continuously begin and cultivate controlled
experimentation among all personnel, as well as to encourage the development of all valuable
ideas,  regardless of source. Physical and material resources, financial and human resources,
information and knowledge, technical resources, organizational procedures and
processes, organizational capabilities, incentives, objectives, and employee skills are among
these factors. The collective behavior of the organization's management and employees
is referred to as organizational culture. It is made up of the employees' and management's
values, visions, beliefs, and behaviors. A strong culture makes it easier for the company to
fulfill its objectives. The success of an organization is also dependent on its resources. Physical
resources, human resources, financial resources, informational resources, and technology
resources are the primary components of a succesful  organization. In terms of decision-
making, all of these resources are critical.