Introduction
Organizational culture denotes the procedure an organization follows in conducting its daily activities (Alvesson 2011). Corporate culture impacts the efficiency of the staffs, which subsequently affects the output of the business. A well-ordered culture motivates workers to improve their performance; hence, attain higher output. The external environment refers to the relationship developed by the company and stakeholders such as suppliers, retailers, and customers. The external environment has an important impact on the business since it affects the organizational culture. This paper will provide a literature review on organizational culture.
Literature review
Culture has a long-term effect on the business. It determines whether the policies designed by the management will be enforced (Schein 2010). A suitable culture provides guidelines for all activities that take place within the organization. Organizational culture is concerned with the persistent worker’s issues and organization of the firm. It includes all the processes affecting workers while they implement the policies of their firm. Organizational culture comprises aspects affecting staffs like promotion, hiring, pay, benefits, development, firing, and management. It offers a scheme that is utilized to resolve any crucial issue that may transpire in the business (Argyris 2012).
Organizational culture, through various mechanisms, upsurges the efficiency of business (Woodside 2010). This result is because it stimulates the employees. The workers handle the bulk of the errands in the business. They have relevant suggestions that can be adopted by the management to increase the productivity of the enterprise. The staffs have insight concerning the goods and amenities offered by the business. They are receptive to the current trends that are preferred by the customers.
Staff involvement is a feature of organizational culture utilized by the administration to improve the productivity of the firm. It is an adept aspect of culture employed by businesses to make efficient verdicts at all stages of vertical integration within the enterprise (Brinkman 2010). The administration makes practical decisions from manufacturing, processing, packaging, supply, and marketing. The chances of errors happening are significantly reduced. The overall outcome of this culture is enhanced performance in the organization arising from low turnovers (Woodside 2010).
Employee involvement is an aspect of organizational culture implemented to attain high productivity. This culture entails the management involving the workers at every stage of decision-making. The staffs play a principal role in all the policies that the business sets up. For example, applying an approach that nurtures a personal relationship between the administration and the workers is very effective (Schein 2010). This procedure stimulates the employees. They develop the desire to improve their productivity because they feel significant to the firm. By engaging this method, the workers envisage the need to change by themselves. The process allows the employees to learn more about the organization and, thus, understand it better. This procedure aids the workers to know the values of the organization; hence, be able to perform better in their tasks (Cameron & Quinn 2011).
Disregarding bureaucracy in the business is a culture that instigates a desire for improved productivity (Alvesson 2011). The workers conduct their tasks in an environment that is free from pressure. The employees have a supervisor who they can approach when they experience difficulty. This setting is appropriate for the employees since they are not subjected to stress. This organizational culture inspires the workers to improve their productivity. The employees interact with their bosses in an effective manner that ensures enhanced organizational performance (Ybema, Yanow & Sabelis 2011).
Employee development culture entails training that helps workers to execute their current errands better and obtain new skills that will facilitate them in handling more responsibility (Argyris 2012). A trained workforce positively impacts productivity. Training the workers raises their confidence. The significance of this culture is exemplified by better retention, greater job satisfaction, and superior productivity. Hence, it is a vital aspect of business.
The practice allows workers to attain occupation specific competencies (Brinkman, 2010). An accountant, for example, would gain sufficient math skills whereas an amenity provider would need exceptional client service skills. Staff development is a shared responsibility amid the personnel and the administration. The administration's role comprises activities like clarifying routine and social anticipations of the workers. Additionally, they are responsible for helping the staffs understand the organization long-term and immediate goals. They assist the workers identify learning opportunities, provide resources, and give corrective feedback (Cameron & Quinn 2011).
External environment
Favorable collaboration with the external environment guarantees that customers are contented with the amenities they get from the organization. Customer satisfaction will be significantly enhanced. The concept will result in other envisioned benefits of the organization. They comprise increased sales and more clients (Ybema, Yanow & Sabelis 2011). This aspect is because the satisfied customers will tell their friends about the excellent service they obtained from the organization. The customers will advertise it through word of mouth. The satisfied customers will also come back for the service when they need it again.
The relationship developed by the business and the external environment starts from the acquisition of raw materials required for the process of production (Zerwas 2014). It is important for the company to develop a culture that ensures the suppliers provide raw materials that are in good condition on time. The business can instigate strategies that help the suppliers to maintain raw materials in good shape. For instance, companies dealing with food products can install refrigeration facilities at the farms of suppliers. This move would assist in producing products that are in good condition.
Supply and marketing scheme used by an organization determines the relationship between the business and the customers. An efficient system will attract more customers and retain existing customers. An online system for ordering products and delivery is a culture that is being progressively embraced by customers (Schein 2010). The client's order for products on the company’s website, pay for the products using online schemes, and the business delivers the products to the homes of the clients.
Work-life policies help the employees manage the external environment (Woodside 2010). These systems aid workers to balance between work and family life. It is an important culture since affects the productivity of the employees. An employee that is having issues in his private life will not have a high level of productivity. Therefore, businesses are now helping employees to manage their private life while still carrying out their tasks. For instance, the introduction of a program where employees can work from home particularly the customer care evident has great significance.
Government policies have an important effect on the production cost. For instance, the government may impose regulations on product development and importation of raw materials. The rule on product development may cause a company to make adjustments that may result in higher production cost. Also, regulations on importation may forbid companies to obtain the products from a particular country. This factor is beyond the control of the business (Aswathappa, 2009).
Competition is also a significant external environment factor that affects businesses. Many similar products in the market may cause a firm to reduce the price of its products. Therefore, when the company faces stiff competition, it has to look for ways to have a competitive edge (Weatherston & Wilkinson, 2010). For example, a business may decide to offer free delivery of goods to customers. This procedure will be embraced by customers and thus, provide a competitive edge for the organization.
The economy has an important effect on businesses. This is because it determines how much money is in circulation and the money possessed by customers. A tough economy results in a situation where customers do not have adequate money to purchase products. Therefore, during such times, a company should produce cost-effective goods that customers can afford. The business cannot also spend much money on research and development during tough economic times (Aswathappa, 2009).
Public opinion can determine whether a company will obtain new customers and retain existing ones. A firm that is involved in public scandals may find it difficult to change customer’s perceptions (Weatherston & Wilkinson, 2010). For instance, a firm that is known to produce low-quality goods can experience low sales. This is because of word of mouth. The customers will talk about the company in a negative way. Numerous marketing initiatives are essential in changing public opinion regarding a specific firm.
Businesses that embrace technology in their products are often successful. Even though attaining this process may be difficult since technology keeps changing, firms should strive to incorporate technological changes in product development and service delivery. This factor is of utmost significance since it may result in the termination of a business. For instance, Netflix drove blockbuster out of business because blockbuster refused to embrace the new technology of viewing movies online
Recommendations
The culture adopted by businesses should be reinforced by regulations. Both positive and negative reinforcement should be used to ensure that all the stakeholders adhere to the culture. Positive reinforcement involves the administration rewarding the employees that practice the culture efficiently. It is very effective since it motivates the employees to respect the organizational culture that the business develops. For instance, the management may reward the employees that utilize business resources efficiently. Nevertheless, negative reinforcement should also be utilized. This procedure involves the management penalizing the employees that do not respect the culture of the organization. It ensures that the employees practice the culture.
Businesses should embrace organizational change. Since technology introduces better ways of conducting current tasks, the companies should incorporate the changes in their corporate culture. Often, employees resist change since they are not willing to relinquish the conversant methods of carrying out errands for new approaches that may be complicated to grasp. Therefore, the management should reinforce change with efficient methods such as training and development. This move helps the workers to embrace the change. Moreover, businesses should employ a culture that permits the employees to advance their skills. For instance, the companies should give employees time off to further their studies. This method enhances employee motivation and expertise. A motivated workforce results in high productivity for the organization; thus, higher income (Robbins & Judge, 2013).
Businesses should embrace policies that ensure that customers have a good public perception of their products. This is because negative opinion would result in low sales. Moreover, firms should conduct numerous market research to establish the new trends in the external environment. Armed with this information, the businesses can make adjustments that will guarantee high sales.
Conclusion
The adoption of an efficient organizational culture will ensure that businesses experience high levels of productivity. A positive environment will be developed in the workplace that will boost the productivity. Customer satisfaction within the enterprise will rise stemming from the flexibility and efficiency of services provided. Hence, the businesses will obtain higher revenue from low production costs and increased sales. Organizational culture has a long-term effect on the enterprise. It is thus important for companies to adopt the right culture in their operations.
Appropriate measures are vital in dealing with the external environment. This is because numerous external environment factors are beyond the control of the business. Nevertheless, the businesses should strive to ensure that these factors do not hinder them from attaining their organizational objectives.
References
Alvesson, M. (2011). Understanding organizational culture. London: SAGE.
Argyris, C. (2012). Organizational traps: Leadership, culture, organizational design. Oxford: Oxford University Press.
Aswathappa, K. (2009). Essentials of Business Environment. Himalaya Pub. House.
Brinkman, J. (2010). Unlocking the business environment. London: Hodder Education.
Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework. San Francisco, CA: Jossey-Bass.
Robbins, S. P., & Judge, T. (2013). Organizational behavior. Boston: Pearson.
Schein, E. H. (2010). Organizational culture and leadership. San Francisco: Jossey-Bass. Weatherston, J., & Wilkinson, G. (2010). The International Business Environment. Pearson Education Ltd.
Woodside, A. G. (2010). Organizational culture, business-to-business relationships, and interfirm networks. Bingley: Emerald.
Ybema, S., Yanow, D., & Sabelis, I. (2011). Organizational culture. Cheltenham, UK: Edward Elgar Pub.
Zerwas, D. (2014). Organizational culture and absorptive capacity: The meaning for SMEs.
