A business’s culture is defined by the values, and responses, of the people within an organization. More specifically, Brewis (2007) defines culture within a business organization as the shared commitment to, and understanding of, what matters to that organization, and the nature of interactions between the organization’s members. In the post-bureaucratic era, it is essential that leaders work to actively manage cultures within a business’s structure, in order to create an atmosphere of greater sustainability. This is intrinsically tied to the establishment of clear organizational ethics and the establishment of an atmosphere of corporate social responsibility. As such, the following essay will discuss the significance of establishing an organizational culture which successfully drives the value system of the business, through effective management, and creation of a sustainable business model (SBM). SBM’s can be defined as “a model where sustainability concepts shape the driving force of the firm and its decision making” (Stubbs & Cocklin, 2008). Thus, based on relevant sources, the essay will show how effective management practice work to control organizational culture, and assign organizational ethics in order to create a sustainable business model that values corporate social responsibility, especially as it relates to businesses in the post-bureaucratic era.
Organizational Leadership Styles
It is, perhaps, first significant to define what bureaucratic leadership was, how it managed corporate values, sustainability, and responsibility as it related to human resources, and why it has been passed over in favor of a more democratic system, moving organizations into a post-bureaucratic era. Bureaucratic leadership is focused on authority, chain of command, and following a set of systematized processes in order to get things done (Murgatroyd & Simpsons, 2011, p. 96). As such, bureaucratic leaders try to solve problems by increasing the layers of control, or the number of policies and procedures that an organization uses, so that nothing within the organization is left to chance (Murgatroyd & Simpsons, 2011, p. 96). As such, bureaucratic lead organizations adhere strictly to a chain of command with all ideas and solutions coming from the top of the chain of command. This divides workers into two classifications, “those who work, and those who plan, organize, coordinate and control work” (Jarreman & Alvesson ,2004, p. 150).
However, this mode of leadership limits creativity, and ultimately does not represent the kind of leaderships that is found in the most productive, or sustainable, businesses today. It also completely ignores culture, as a factor, because it is interested in the hierarchy of power within the organization, and not in developing a culture of value within the organization. The need for a higher degree of problem solving through the organization, in support of sustainability, and social responsibility has resulted in a movement, in business toward the post-bureaucratic era, or increased democracy within the organization (Murgatroyd & Simpsons, 2011, p. 96). This style of leadership is socially constructed, and encourages ideas, or feedback from all levels within an organization, through an increase in communication (Putnam & Mumby, 2013, p.7). This overall increases the knowledge, and change within an organization creating a culture that is both more socially receptive and responsive, and which is more sustainable, and more in keeping with the demands of today’s business market.
Organizational Culture
Culture is an extremely important aspect of post-bureaucratic leadership, because it offers a more socially acceptable, and socially conscious means of control (Kärreman & Alvesson 2004). Culture allows all members within an organization to operate according to a shared set of cultural norms, values, and ideas (Brewis 2007), This, allows leaders to lead, in a less hierarchical way, because of the social pressures that come from the sense of belonging that is inherent to the organizational culture, as “one can have friends” or becomes subject to bonds within the organization (Rosen 1988, p.470).
When used as a source of power within the organization, it thus becomes important for leaders to manage, or orchestrate the culture within the organization (Ogbonna & Wilkkinson, 2003). This means that leaders have to be able to exercise some control over the “values, beleifs, and assumptions of organizational members” (Ogbonna & Wilkkinson, 2003, p. 1155).This will, in time, generate an organizational set of values with a shared set of ethics, and sense or responsibility. This, in turn impacts loyalty and behavior (Brewis, 2007). Over time, altering the organizational culture can have a positive impact on performance and profitability, as well as increasing sustainability, by maximizing the way that human assets are used, and by eliminating practices that undermine the organizations larger goals (Ogbonna & Wilkkinson, 2003, p. 1174). It is important, however, the cultural change not occur solely among middle management, or be seen as a quick-fix solution to organizational issues, or efforts to alter the ethics within the organization may backfire, causing more damage than progress within the larger business setting, because the changes made are non-sustainable (Ogbonna & Wilkkinson, 2003, p. 1174; Wray-Bliss, 2003, p.161).
Ethics and Social Responsibility within an Organization
It is important to create a distinction between ethics, and code of ethics, in a post-bureaucratic environment. Codes of Ethics tend to be more concerned with behavioral areas, or crating a code that prescribes behavior (Schwartz, 2000, p.175). This creates a new form of control that is too similar to bureaucratic in that is procedural in nature, though more subtle than the rules that are applied in the bureaucratic leadership setting. Ethics on the other hand, also commonly called “virtues” are part of creating a more conscious culture in the business setting which encourages all employees to seek to “do good” (Sisodia, 2011, p.98). Conscious leaders encourage ethics within the organizational structure stressing TACTILE behaviors, including transparency, authenticity, caring, trust, integrity, learning and empowerment, via a hands on approach (Sisodia, 2011, p. 99).
This answers to social responsibility, within the organization, rather the response to hierarchy. Social responsibility relies on shared values, which make a company more competitive, while also investing in the economic and social well-being of the organizational community as a whole (Sisodia, 2011, p. 107). This can only be accomplished, ultimately, through the development of sustainable business models which are designed to set ethical and responsible priorities for the business as it relates to social and environmental needs (Stubbs & Cocklin, 2008, p.103).
Sustainable Business Models within an Organization
When creating a sustainable business model the culture of the organization must change, so that sustainability, or social and environmental values, are that the core of the businesses’ business model. The requires leaders to “sell all stakeholders on the idea of stakeholders, and on altering the organizational values to reflect the need for sustainability and ethics within the business’s agenda. (Stubbs & Cocklin, 2008, p.104). Organizations then focus on on working toward the common good, in a cooperative sense, so that the organization can meet basic financial outcomes while also meeting social and environmental objectives ((Stubbs & Cocklin, 2008, p.117).
Conclusion
Overall, it is clear to see that businesses shifted from bureaucratic to post-bureaucratic systems of control as means of meeting modern social and ethical demands, and of increasing the creativity and problem solving systems within organizations. However, this marks a significant shift in company structure, and requires a strong sense of company culture to provide social control over business happenings. It is essential that cultural change occur at every level of the business organization’s structure, and not only at the middle management level, or ultimately the acceptance of the ethics, and social responsibility for that culture will fail, because base-level employees are not investment. It has been demonstrated, through the references detailed in this essay, that company culture changes as the result of strong leadership, and a shared set of ethics and values, over time this generates a more socially responsible, and sustainable business model which can be dedicated to reaching the business’s overall goals, and driving the business forward toward meaningful and lasting success. More specifically, it has been demonstrated that effective management practice work to control organizational culture, and assign organizational ethics in order to create a sustainable business model that values corporate social responsibility, especially as it relates to businesses in the post-bureaucratic era.
References:
Brewis, J 2007, ‘Culture’, in D. Knights & H. Willmott (eds), Introducing organizational behaviour and management, Thomson Learning, London, pp. 344-74.
Karreman, D & Alvesson M 2004. "Cages in Tandem: Management Control, Social Identity, and Identification in a Knowledge-Intensive Firm." Organization vol.11 no.1,pp. 149-75. Web.
Murgatroyd, S. Simpson, D 2010. Renaissance Leadership: Rethinking and Leading the Future. Edmonton, AB: Innovation Expedition.
Ogbonna, E. & Wilkinson, B 2003, 'The false promise of organizational culture change: A case study of middle managers in grocery retailing*', Journal of Management Studies, vol. 40, no. 5, pp. 1151-78.
Putnam, L & Mumby DK 2013. The Sage Handbook of Organizational Communication: Advances in Theory, Research, and Methods. New York: Sage Publishing.
Rosen, M 1988, 'You asked for it: Christmas at the bosses' expense', Journal of Management Studies, vol. 25, no. 5, pp. 463-80.
Schwartz, M. 2000, 'Why ethical codes constitute an unconscionable regression', Journal of Business Ethics, vol. 23, no. 2, pp. 173-84.
Sisodia, RS 2011, 'Conscious capitalism: A better way to win”', California Management Review, vol. 53, no. 3, pp. 98-108.3
Stubbs, W & Cocklin, C 2008. “Conceptualizing a “Sustainability Business Model” Organization Environment, vol. 21 no. 2, pp.103-127.
Wray-Bliss, E 2003, 'Quick fixes, management culture and drug culture: Excellence and ecstasy, bpr and brown', Culture and Organization, vol. 9, no. 3, pp. 161-76.
