Is Organizational Culture Play an Important Role in Success
Culture can be a helpful tool or a barrier during organizational change (Bratton, 2016 and; Gibelman and Furman, 2012). For example, a company with a culture of collaboration and adaptability will more readily accept change. In contrast, a company with a less flexible and more bureaucratic organization culture may react negatively to transformation. Leaders must be aware of this as they guide their businesses through times of change (Bulow et al., 2012).
Organizational culture is generally described as the set of trust, values, and attitudes of a company and how these influence employee behavior (Bratton and Gold, 2017). According to a recent post published in Harvard Business Review, organizational culture is defined as a collective effect of expected behaviors, beliefs, and values of the people that are working within an organization. These norms that are present within a company tend to regulate the performance of the employees as well as how the company serves to its customers, how employees cooperate with each other, whether are they motivated towards meeting their goals and whether they are sincerely devoted towards attaining the company’s mission (Groysberg, Lee, Price & Cheng, 2018).
The Concepts and Theories of Culture
Allaire et al. (1984) have presented ways in which cultural anthropologists have given the complex and diverse school of thought over the underlying concept and organizational change theories (Lunneburg, 2011). Prepositions suggest that organizations hold cultural values that have values, meanings and beliefs. The first concept of organizational culture is that of the ideational system which claims that both cultural as well as social spheres are, although distinct, interrelated (Allaire et al., 1984). A group of experts and theorists belonging to the cognitive school, like Goodenough and Levi-Strass from the structuralist school and Wallace from the Mutual Equivalence School, holds a strong belief in interrelation with culture. Another group of theorists within the ideational systems believes that culture is the product of the mind where there exist shared meanings. These theorists, Geertz and Scheider, belong to the symbolic school of thought (Morris, 2006).
The second theory related to culture is that of the sociocultural system whereby culture is perceived as a component of the social system to be a way of life and behavior. The theorist behind this belief, Malinowski, belongs to the functionalist school whereas Radcliffe-Brown belongs to the functionalist structuralist school (Allaire et al., 1984).
Importance of Organizational Culture in Managing Organizational Change
Organizational culture is like the collective personality of the organization. This is the most complex administrative component to change compared to products and services, founders, current leaders, and other more concrete organizational elements (Packard, 2008).
There are five main pillars to make this happen. It is necessary to address the behavior of leaders, organizational practices, the beliefs and values conveyed, the methods of conducting operations, and the behavior of individuals. Each of these pillars can be addressed sequentially in order to define the fields of action where it is possible to act. There are no results without effort and efforts must be consistent so as not to give swords in water. It is important to be able to make a concrete action plan to guide priorities and embark on a process of organizational improvement (Schein, 2010).
Corporate culture is the sinews of war. It is a major strategic element in ensuring the success or otherwise of the company’s activities. You have to put effort into organizational culture and then focus on operational development to achieve effective execution. Without initial efforts, operations are disorganized and the bottom line is lame (Tsai, 2011).
The mistake is often to address the processes without having really defined the overall vision of the company, the hierarchical model, the management model, the means of communication, the responsibilities and the accountability of each and every one. How to go back to basics and create a strong organizational culture? We have to put time into it and make it as important a priority as managing finances. Why? Because every day spent in an organization where the staff is demotivated, stressed and disorganized prevents the company from reaching its full potential. This full potential limits the possibilities for growth and puts the company against a wall (D’Aveni, Dagnino and Smith, 2010).
Human resources are more than employees. It is a full-fledged organization that must develop by adapting to the changes experienced in the organization. Every employee is part of this living organism. Training is essential in staying on course for business objectives by supporting staff to develop to move the business forward (Helfat et al., 2007).
Organizational Change Management at Netflix
The gargantuan media services provider Netflix was launched in the year 1997. Initially, monthly subscriptions to get movies delivered to their home were the base business model of the online streaming service provider. However, in this way, late fees were avoided, which was a crucial element in the traditional movie renting business.
Since its inception, Netflix has been a disruptive organization that had the capability to transform as well as to adapt to the digital world. Streaming started in 2007 as the business and its subscribers no longer had to wait for DVDs to arrive via mail.
In this way, Netflix successfully implemented change management so as to meet the customer demand which was to view content online. At a particular point, it was at crossroads when the longer-term sustainability of Netflix was dependent over how change is managed toward a digital future (Zhao and Chao, 2013).
Resistance to Organizational Change
Sometimes it is not so much the object of the change that is questioned but the very act of transformation. Indeed, people consider that the time, energy and attention required to complete a change project are “not worth it” (Fugate et al., 2012).
Thus, to limit this factor of resistance to change, the management should be vigilant in communicating “with the way” on these 4 conditions:
1- Change is good; it has one or more significant benefits for those involved and represents added value compared to the current state.
2- Change is compatible; it has characteristics that respect, as much as possible, the values and experience of the individuals affected by the change.
3- The change is relatively simple; it is able to be understood and implemented by all people.
4- The change is in the trial period; it is subject to experimentation in a gradual manner and liable to be modified as it is implemented.
Understanding organizational culture has become vital for companies to attain strategic outcomes. Strategic organizations have a perspective as to where it will go, which eventually means evaluating the dynamics of the organizational culture with respect to what needs to be changed and what needs to be the same. The core value of an organization initiates with the leadership as the subordinates will be motivated by their values and behaviors, thereby developing a strong organizational culture. Moreover, when change occurs within an organization, employees may resist its change because people make decisions about aspects they prefer, whereas the management base its choices on organizational preferences. In order to manage this change, the organization should provide a strong rationale behind the changed decision made so as to make the change process transparent and apparent.
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