Strong organizational culture would establish better performance in an organization as a result. In the performance management and organizational culture, it reveals that a strong organizational culture can raise up the performance of employees. That is benefit for the overall performance of a firm. Employee commitment is necessary in organizational culture. It increases the awareness and obligation of employees.
(Watkins 2013) A number of studies have stressed the importance of organizational culture, since its affects employee’s productivity, commitment, engagement, and shapes behavior. (Sørensen 2002; Peters & Waternman 1982) This leads to an understanding that organizational culture is indeed an
Organizational culture In the past decade much attention was given to study organizational culture as it has proven to have effected on performance and success of organization. Organizational culture has been considered as one of the components in success of an organization, as it affects all the functions of an organization. The concept of culture has been defined differently by each scholar (Schein, 1990). Most of the researchers state that organizational culture is a set of values, norms, assumptions, beliefs and understanding that are shared by the member of the organization and is taught to the new member of the organization. Schein defines culture as “a pattern of basic assumptions - invented, discovered, or developed by a given group
Introduction According to Schein (1992), organization culture is becoming very significant nowadays compared with the past because it will affect the overall performance of an organization. By understanding the organization culture, it enables managers to analyze the organization behavior in order to lead and monitor (Ojo, 2010). Organizational culture is the system of sharing the common actions, values and beliefs that develops within an organization despite the characteristic of the members are different and it will guides the behavior of its members (Schermerhorn et al., 2011, p 366). It acts as glue that holds the overall organization together with the common practices (Tichy, 1982). Pettigrew (1979) argued that style of an organization in conducting a business is mostly depends on the different level of culture based on the multifaceted set of beliefs, values and assumptions.
CHAPTER 5 DISCUSSION In today’s competitive world each and every organization wants to be the best. In order to stand out among the league the organizations have started working upon areas like culture of the organization, providing support to their employees in work and helping them to grow by giving cross training, coaching and education, providing employees to work from home, giving incentives and recognition etc. (Fowler, 2009) The research is done to study the impact of organizational culture on employee commitment. Organizational culture is a pattern of shared basic assumptions which a group learn while solving the problems which they face during an external adaptation and internal integration and the members are taught to correctly
In business management, organization culture is perceived to be a very significant element of the organization’s performances. Nevertheless, Watkins (2013) suggests that organization culture is one thing to really comprehend what it is. He says, “As there is a collective agreement that exists and have a crucial role in influencing the behavior in an organization, there is a minimal consent of what organization culture entails” Watkins (2013). However, few authors have tried to define what it is and according to Schein (2004) culture is “ a concept but its attitudinal and behavioral effects are very concrete.” He continues to suggest that it is a dynamic experience that is shaped through people’s interaction and that which is created by our
A.C. 1.1 - Analyze the concept of culture to organizations. Culture is the way things are done. In an organization aspects of culture may be, how work should be done, how people will be controlled and then rewarded, collectively how everything will be organized in the organization. Culture is set of values, beliefs, and ways of thinking, which are followed by the organization and are taught to the newcomers as correct. Culture is basically that part of the organization that is not written anywhere but is felt by the whole organization.
According to Wagner (1995), organizational culture has a strong impact on employees’ behavior and attitudes. Given the dynamics of culture and human behavior, studying how employees commit themselves to their organization has become essential in the context of management, and there are a few research reports. For example, Lok and Crawford’s (2001) study showed the significant impact of organizational culture on the commitment of employees. Deal and Kennedy (1982) also recommended that organization culture affects the commitment of employees within the organization, and the strength of organizational commitment is associated with the strength of organizational culture. That is, organizational culture could play an important role in enhancing commitments and improving performance of employees.
No humiliation and no bullying are allowed in the company. Also, employees are respected and valued by the subordinates, they treat everyone as their family members and fairness is important. Moreover, as the organisational culture is with a high transparency, whenever employees have new ideas and innovations, they can tell their manager, they can communicate openly and without barriers, managers would listen for understanding and valuing different opinions. Company members have the same beliefs that their thought would be
Employee turnover has been a topic of interest to economists and academic experts (Mowday et al., 1982; Hom and Griffetch, 1995; Griffetch et al., 2000; Hayes et al, 2006). When employees feel dissatisfaction for their organizational culture, employees will be leaving the company or change jobs. The rate of employee turnover is increased because the organizational commitment in a manufacturing company is low. Based on previous studies, organizational commitment is the reason to increase the rate of employee turnover (Law, 2005; Trimble, 2006; Pao-Long et al, 2007; Wagner, 2007). Organizational culture can produce the loyal employees or employee commitment (Kossek and Zonia, 1993; Fields and Weaver, 2002; Myers and Dreachslin, 2007; Sippola, 2007) Therefore, need to change the organization's culture of newer technology and finds innovative ways of retaining employees.