Application of Organizational Culture Diagnostic Practice As A Means of Improving The Efficiency of The Enterprise

International Journal on Integrated Education e-ISSN : 2620 - 3502
p-ISSN : 2615 - 3785

https://journals.researchparks.org/index.php/IJIE
Application of Organizational Culture Diagnostic Practice as a Means

of Improving the Efficiency of the Enterprise
Omanova Nargiza Rustam qizi

Tashkent State University of Economics, Department of Corporate Governance,
Basic doctoral student
nargizaomanva96@mail.ru
Abstract: Organizational culture of the companies is not the only means of improving employee
motivation, but also an effective tool to develop company’s strategic and operational objectives.
In this article, organizational culture of “Uzkimyosanoat” joint stock company is analyzed by
using model of Denison and Complex method of organizational culture. Based on the results of
these models, exact datas and recommendations are provided.
Keywords: Organizational culture, corporate culture, innovative corporate culture, model
Denison, complex method.
---------------------------------------------------------------------------------------------------------------------
1. Introduction.
It's no secret that the organizational culture of an organization is literally the pillar of the
company, because it is through the organizational culture that the concept of value, company
etiquette, behavior and the environment of the company are formed. The more these elements are
properly formed and suitable for the enterprise's activity, the more it will be useful for the
enterprise's development. A positive organizational culture in an enterprise motivates employees
to work better, to fully realize their potential, to reduce costs and, of course, to increase the
efficiency of the enterprise. However, there are unhealthy environments that hold back business
development and create unfavorable business conditions. Determining the organizational culture
in which enterprises and organizations operate is a very important factor, because it is through
that environment that appropriate strategies and tactics for the enterprise are developed.
So far, many researchers have developed diagnostic methods of organizational culture, each of
which covers a separate element of organizational culture and by implementing Denison model
and Complex method of analyzing organizational culture, datas of “Uzkimyosanoat” joint stock
company can reach an inclusive conclusion of its organizational culture.
Reforms related to the development of the corporate management system in Uzbekistan, mainly
the introduction of modern corporate management methods in the national corporate
management system, the radical increase in the efficiency of the activities of enterprises and
organizations, the wide attraction of foreign investments to them, ensuring their openness and
attractiveness, corporate in the strategic management of enterprises is focused on the
implementation of measures such as creating favorable conditions for strengthening the role of
culture, great work is being done on fundamentally changing the principles and approaches of
the corporate management system, giving it a real color typical of the market economy. In
particular, in 2014, a new version of the law "On the protection of joint-stock companies and
shareholders' rights" was adopted, the President of the Republic of Uzbekistan dated April 24,
2015 No. On the basis of the Decree "On measures to improve the corporate management
system", the program "Measures for the fundamental improvement of the corporate management
system" was approved and the tasks and measures specified in it were implemented. As part of
Copyright (c) 2023 Author (s). This is an open-access article distributed under the
terms of Creative Commons Attribution License (CC BY).To view a copy of this Volume 6, Issue 6 | Jun -2023 | 120
license, visit https://creativecommons.org/licenses/by/4.0/
International Journal on Integrated Education e-ISSN : 26203502
IJIE | Research Parks Publishing (IDEAS Lab) p-ISSN : 26153785
the modernization of corporate governance in Uzbekistan, the Code of Corporate Governance

was adopted, and its recommendations were implemented in the activities of many enterprises
[1].
2. Literature review.
The concept of "corporate culture" has many meanings and definitions. According to Edgar
Shane, corporate culture is a pattern of collective basic ideas acquired by a group in adapting to
changes in the external environment and solving problems of internal integration, to consider its
effectiveness as valuable and to tell it to new members of the group. It turns out to be sufficient
as a system of correct perception and consideration of the mentioned problems [2].
In the 80s and 90s of the 20th century, the phenomenon of organizational culture became the
center of attention of a large number of researchers. Among the most prominent ones, T.J. Peters
and R.H. Waterman's "In Search of Effective Management" defined corporate culture as the
invisible pillar of an organization and suggested analyzing corporate culture in three different
ways [3].
Cameron and Quinn say that the way that organizations prioritize the competing values captured
in their model will determine the types of cultures that will emerge within them. They conclude
that there are four types of cultures: hierarchy, clan, adhocracy, market[4].
V. Ouchi's "Theory Z" (1982) is also one of the studies that played an important role in the
formation of corporate culture. It is logically a continuation of theory X and Y, and puts forward
the idea of using leadership skills in the formation of corporate culture [5].
In addition, T. Dill and A. Kennedy's work "Corporate Cultures" is one of the important guides
on the importance and importance of the formation of corporate culture in enterprises and
organizations [6].
Gustavo Razzetti is one of the scientists who consider the hybrid work method to be the most
effective work tool today. In his book "Remote but not distant", he calls the hybrid way of
working a new wave of corporate culture and does not deny the feeling of an organizational
culture without an office [7].
O. G. Tixomirova o’zining tashkiliy madaniyatni tashkil qilish, rivojlantirish va baholash
asarida, korxona va tashkilotlarda eng ko’p qo’llaniladigan va aniqlik darajasi yuqori bo’lgan
modellar bilan tadqiqotlarini olib borgan [8].
One of the first approaches to be developed created a published instrument, the Organizational
Culture Inventory, which was based on perceptions and expectations regarding behavioral
norms. This approach was developed by Cooke Lafferty and Cooke Rousseau identified twelve
cultural styles in three categories: constructive styles, passive/defensive styles, and
aggressive/defensive styles [9].
Comparative measures of organizational culture have also been developed by Chatman Reilly
and Chatman Caldwell who were interested in the socialization and selection of new employees.
This line of research identified eight dimensions of culture (innovation, attention to detail,
outcome orientation, aggressiveness, supportiveness, emphasis on rewards, team orientation, and
decisiveness) that were used to assess person-organization fit in a public accounting firm. This
method was used to predict the level of satisfaction of new employees and the likelihood that
they would leave the firm [10].
Many of Peter Essens' works have appeared in leading journals, including Journal of
Occupational, Organizational Psychology, Journal of Management Studies, Published in
Organizational Behavior and Academy of Management Journals. He is the editor of Routledge
Human Centered Management, the Global Workplace book series and co-author of Wellbeing
for Sustainability [11].
terms of Creative Commons Attribution License (CC BY).To view a copy of this Volume 6, Issue 6 | Jun- 2023 | 121
Many scientists have denied the possibility of purposeful direct influence on the formation of
national and international corporate culture. According to them, changing the corporate culture is
a long-term process, so changing it arbitrarily creates its own difficulties. The authors of this
approach treat the problem of corporate culture management more carefully and consider it
something that should be taken into account by management. Among them are P. Berger, M.
Louis, J. Mercy, A. Pettigrew, S. Robbins, D. Silverman and others [12].
3. Analysis and results
There are various methods for studying corporate culture that have been developed and
successfully applied in practice by both foreign and domestic scientists and managers. Methods
are divided into direct and indirect. In a direct study, to which
include quantitative, sociological and field methods, the real state of corporate culture of the
organization (based on questionnaires, interviews, studying
traditions and rules, management practices that have developed in the organization). In indirect
research, documents, the organization's website, declared and used rules for working with
personnel are analyzed.
When diagnosing corporate culture, the method of Daniel Denison[13], developed in 1990 is
widely used in national and international enterprises. Employees of the organization fill out a
questionnaire which consists of 60 questions, according to four parameters (mission,
involvement, coherence (consistency), ability to adapt). When answering questions, values from
1 to 5 are put down (where 1 corresponds to the answer “strongly disagree”, and 5 – “strongly
agree”). When processing questionnaires, the arithmetic mean value is calculated, which is fixed
on the D. Denison model.
The analysis of answers to questions related to the mission makes it possible to characterize the
level of planning, vision, and goals implemented in the organization; adaptability – prospects for
learning, focus on the client, attitudes towards changes in the company. These parameters are
elements of the “external focus”, they are important not only for the staff, but also focused on a
third-party, external audience, play an important role in shaping the image of the organization.
The parameters "involvement" and "consistency" are associated with the personnel of the
organization. Involvement characterizes the level of his responsibility and authority,
development, degree of joint creative work; interaction - the presence of agreement, coordination
and common values in the organization. These are the elements of "inner focus". They provide
an opportunity to get a complete picture of the level of personnel development both in an
individual personal context, and in the collective: the psychological climate, professional
compliance, opportunities, prospects and in the collective: the psychological climate,
professional compliance, opportunities, prospects.
Indicators that reflect the external focus of the organization correlate with the level of overall
growth, while pronounced involvement and alignment (internal focus) indicate high quality and
satisfaction of employees' expectations.
Considering those factors, questionnaire and survey have been conducted in order to diagnose
the current status of organizational culture of “Uzkimyosanoat” JSC. As mentioned before the
core elements of the company is identified by pasking 60 questions related to 12 sections of the
model. The results are the following:
Criteria Index Results Average result Percentage, %
Ability to change 3.6
Adaptibility Customer care 3.6 3.3 66
Organizational learning 2.8
Strategic direction and
Mission intentions 3.0 3.1 62
Goals and tasks 3.2
Vision 3.2
Coordination and integration 3.2
Consistensy Ability to consensus 2.6 2.6 52
Value engagement 2.2
Empowerment 3.0
Involvement Development opportunity 2.6 2.8 56
Teamwork collaboration 2.8
To analyze the table, indicators of “Uzkimyosanoat” JSC represents various information of each
section. For example, the lowest result (2.2) belongs to the value engagement which is the part of
the section consistency. Implications of this results cores to the following reasons:
1. The company has not got a clear and consistent set of values that define the way the business
is run
2. The company has not got a distinctive management style and a clear set of management
practices.
3. Leaders and managers does not bring an example of communication between words and
actions.
4. There is not distinct ethical code of the organization that defines the company’s behavior and
teaches to distinguish right from wrong.
5. Ignoring the core values of this organization are actively involved in their work
In order to tackle those issues, the company need to cooperate with the system of human-centric
management style which encompasses engaging each employee to the mission and objective of
the company. Without realizing the core values of the company, no chance will take it to the
efficiency, to be competitive and effective.
The second and third least numbers belong to development opportunity (2.6) and ability to
consensus (2.6). This means the company has problems with nourishing its employees as
development opportunity has clearly disappointed the respondents. Furthermore, conflict
management skill is really needed in the organization as consensus is reached only after
considerable amount of time.
Based on the results obtained, a number of recommendations can be proposed to improve the
corporate culture of the enterprise (Table 2), while paying special attention to such elements as
resources, processes, values, behavior, climate, and success.
Table 2. Recommendations
Criteria Index Recommendations
Development and implementation of a
Ability to change
mentoring system
Communicating information from
Customer care consumers directly to employees through
Adaptibility
meetings, local media
Introducing activities that allow you to
Organizational learning work in various positions, encourage the
desire for universality
Informing staff about the short-term and
Strategic direction and
long-term goals of the organization, as well
intentions
as the results of their achievement
Mission Formulating a strategy and communicating
Goals and tasks
it to staff
Formulating values and communicating
Vision
them to staff
Increased coordination and integration
Coordination and integration through the formulation of common goals
and joint work
Improving the effectiveness of
Ability to consensus communication between structural units
Consistensy
through common activities
When formulating values, focusing on the
role and importance of personnel in the
Value engagement
process of achieving the goals of the
organization
Formulating the value of employee
Empowerment performance as an important source of
competitive advantage
Encouraging the participation of employees
Involvement
Development opportunity in the process of solving production
problems
Articulating the value of teamwork as a
Teamwork collaboration
success factor
Analyzing organizational culture of “Uzkimyosanoat” Joint Stock Company using complex
model of analysis of organizational culture.
The existing complex model of analysis of organizational culture method was developed [14]
and improved by the author in order to deeply discover the elements individualism and
collectivism, innovativeness or bureaucracy, main attention of the company: internal or external
focus. The first model to analyze encompasses to examine the type of organizational culture
which the company belongs. This is the overal demostration of the findings based on the method
of complex diagnostics which is conducted at the same enterprise. The detailed analysis are
given below.
Table 3. Individualism-Collectivism. Evaluate indicators of the type of organizational culture

according to the given scale:
From the graph we can conclude that the organization has the elements individualistic culture
company which means a community prioritizes the individual over the collective group.
Individualistic cultures emphasize attributes like uniqueness or individuality; personal goals;
independence, self-reliance, self-sufficiency; and privacy. The company is the freedom to do
what employees want as independent people. People are constantly bombarded into doing things
that people in authority want them to do. It's important because if everyone was able to pursue
their own goals, then we would have a stronger society as a whole. It attaches social status
rewards to personal achievements and thus, provides not only monetary incentives for innovation
but also social status rewards, leading to higher rates of innovation and economic growth.
From the second graph, we can analyze the organizational culture of “ Uzkimyosanoat’ JSC by
the nature of the management of the organization: innovative bureaucratic.
N Indicators Scale Results
1 A method of building a By region, consumer 0-50 40
management structure and product. 51-100 60
By functions
2 Recognition of the Minimum 0-50 25
person Maximum 50-100 0
3 Management Centralized 0-50 50

Decentralized 50-100 0
4 Openness of information Available 0-50 50
Not available 50-100 0
5 Management model Systematic 0-50 0
Hierarchy 50-100 100
6 Continuous development Available 0-50 0
7 Efficiency in decision- High 0-50 45
making Low 50-100 0
8 Appreciation of initiative Available 0-50 45
Overall 500
Arithmetic average grade 31.25
On the basis of analyzed data, we can assume that “Uzkimyosanoat” JSC has an element of
innovative culture which rewards inventiveness that yields ground-breaking goods and novel
concepts. Strong leadership that recognizes that innovation necessitates failure and that failure
necessitates patience is necessary for such a culture. “Uzkimyosanoat” JSC can progress through
the innovation cycle with the help of an innovative culture. It is simpler to regularly generate
ideas and advance those with promise to the next stage of the innovation process when numerous
individuals, groups, and departments are engaged in the pursuit of original solutions.
External/Internal focus
1 Hiring employees Internal recruitment 0-50 25
51-100 87
2 Investment Recruiting from outside 0-50 50
51-100 0
3 Quick coordination To the employees 0-50 0
51-100 92
4 Attitude towards achievement To partners 0-50 5
51-100 89
Total 348
Average arithmetic score 43.5
It can be interpreted from the graph that the company belongs to the internal focus of
organizational culture which means “Uzkimyosanoat” JSC is an internally focused company
as one in which internal processes, systems, and employees matter most. They often expect
partners and customers to conform to their way of doing things.
4. Conclusion and recommendations
Diagnostics of the corporate culture of “Uzkimyosanoat” JSC in question showed that in order to
improve the efficiency of the organization, it is necessary to implement measures aimed at
encouraging employees to innovate, to improve coordination and integration of personnel,
namely:
 encourage staff members' enthusiasm to take part in the creation and implementation of
innovations by developing and implementing a mentoring structure. and implementation of
innovations;
 develop a clear mission, strategy, and values and communicate them to the staff.
 increase the effectiveness of communication between structural units through shared
activities.
 communicate information from consumers to employees through meetings, local media, etc.
to let them know about the organization's short- and long-term goals and the results of their
accomplishment.
To implement the proposed activities, the following steps are proposed for “Uzkimyosanoat”
JSC:
 assign a mentor to a new employee (the first two weeks of work), develop
programs for adaptation and primary certification (after one month of
work);
 introduce measures to encourage the desire of employees to improve their
skills;
 form a personnel reserve from among the working employees;
 involve shop personnel in the selection and testing of new equipment,
development of technologies and recipes together with the technology
department;
 organize daily short meetings (five minutes) at the beginning and end of
the shift, announce important news, goals, achievements, etc.;
 promote employees' interest in learning about various career paths and universality;
 develop a clear mission, strategy, and values (such as a responsible work ethic, commitment
to quality, and cohesion);
 hang out and often update displays with details about the corporate ethics, culture, and values
of the company;
 once a month, host celebratory outdoor sporting events with participation from staff from
several departments;
 forming a system of personal examples;
The suggested actions are intended to:
 declare the value of an employee as the most important resource for competitiveness and
efficiency in achieving goals;
 increase the innovativeness of the processes for carrying out activities;
 identify and formulate common values that are available to all employees;
 create a climate that is conducive to behavior;
 concentrate on success in achieving goals and competitive advantage.
To conclude all points, the tasks aimed at educating and supporting the staff, team cohesion, and
high performance will be solved by taking into account of actions and recommendations that are
directed towards “Uzkimyosanoat” JSC . The practical use of various methods for diagnosing
corporate culture (in our case, the method of D. Denison and complex model of analyzing
organizational culture) can really help managers in making management decisions that will lead
to an increase in the efficiency of the organization. This is an example of decision making not
based on hypotheses and assumptions, but using a scientifically based approaches.
5. References
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этиш чора-тадбирлари тўғрисида»ги Фармони.
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135-139b

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International Journal on Integrated Education e-ISSN : 2620 - 3502

p-ISSN : 2615 - 3785

Application of Organizational Culture Diagnostic Practice as a Means

Omanova Nargiza Rustam qizi

the modernization of corporate governance in Uzbekistan, the Code of Corporate Governance

Table 3. Individualism-Collectivism. Evaluate indicators of the type of organizational culture

3 Management Centralized 0-50 50

11. Harter, J. (2018). Dismal Employee Engagement Is a Sign of Global Mismanagement.

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