Organizational Culture and Performance

This assignment explores the relationship between organizational culture, innovation, and performance. It utilizes Schein's model to analyze how different cultural dimensions impact an organization's ability to innovate and achieve success. Students are tasked with evaluating the model's effectiveness and providing insights into best practices for fostering a culture that supports both innovation and high performance.

ORGANIZATIONS AND BEHAVIOR
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Table of Contents
Introduction......................................................................................................................................3
1. Case study 1: Oticon....................................................................................................................3
1.1 Comparison and contrast between organizational structure and culture...................................3
1.2 Impact of the connection on business performance...................................................................4
2. Case study 2: Nice Cars...............................................................................................................6
2.1 Comparison of effectiveness of leadership styles......................................................................6
2.2 Organizational theory underpins management practice............................................................7
2.3 Divergent approaches to management.......................................................................................8
3. Case study 3: The Benefits Agency.............................................................................................9
3.1 Impact of leadership styles on motivation in time of change....................................................9
3.2 Application of different motivational theories..........................................................................9
3.3 Evaluating the usefulness of motivation theory on managers.................................................11
4. Case study 4: Zico computers Ltd.............................................................................................11
4.1 Nature of group and group behaviour......................................................................................11
4.2 Crucial factors behind effective teamwork..............................................................................12
4.3 Impact of technology on team functioning..............................................................................13
Conclusion.....................................................................................................................................14
Reference List................................................................................................................................15
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Introduction
Diverse competition and augmented complicationsin terms of operating business in any sector
has certifiedamalgamation of organization structure and culture to run a business
successfully.Areas such as behavior of group interaction, shared value have been given
substantial importance to ensure success. Nayloret al.(2013) noted that structure of a
multinational company having wide range of employee base differs from a small firm having a
very small employee base. The nature of workforce will significantly affect the culture within the
organization. Therefore, close link between organizational structure and cultureaccelerates
motivation among the employees that determines the behavior of the group within the
organization. The study will make successful effort to elucidate the behavior of workforce as the
result overall organizational design. The study also endeavors developing understanding of
leadership approach and its influence on team functioning widely based upon motivational
theories and relevant theoretical foundations. Special emphasis will be given to the specific
issues and discourse will be made considering conceptual case studies.
1. Case study 1: Oticon
1.1 Comparison and contrast between organizational structure and culture
There exists a close linkage between organizational structure and culture by shaping the
workforce and determining behavior of people operating within a group. Based upon the nature
of organization, goals and sector, structure is adopted that fosters working culture within the
organization (Rothaermel, 2015). Different organization opt for different structures that include
functional, matrix, divisional, flexible working. Certain pros and cons are involved in each of the
structure that are illustrated below.
Functional: based upon similar set of tasks, groups are formed encouraging expertise skills that
ensure high level of specialization. However, lack of teamwork and management control is the
barriers.Matrix: different cross-functional units are present in this structure ensuring excellence
but conflicts often restrict the success.Divisional: parallel teams are formed against similar
product or service line that fosters common culture. Conflicts between divisions, is the common
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occurrence in this form of organizational structure.Flexible working: it facilitates
productivityand long lasting results but lack of departmental intervention may result in chaos.
Regardless of structure, culture is designed within an organization, where workability of the
employees and functioning are determined. Power culture (more dependent on individual than
group) facilitates more hierarchical control than other organization culture (Hogan and Coote,
2014). Whereas, in role culture people are selected to carry our specialized roles and integration
of power is determined through this.Task culture is fostered based upon the tasks and the
culture seeks right people to carryout tasks. Person culture is one of the unusual forms, where
individual is placed at the focal point. The culture may not be followed in big firms as corporate
objectives are more important to be met that individual objectives.
Based upon the portrayal of organization structure and culture the link can easily be found. For
instance, if organization follows hierarchical structure then there might be presence of power
culture, where individual holds the ultimate power (Titi Amayah, 2013). Divisional structure
may integrate task or role culture based upon the characteristics involved within it. Flexible
working structure tends to be foster person centered culture to ensure flexibility. From the
discussion made, similarities and differences can be drawn regarding this. It is worth mentioning
that while close link between hierarchical structure and presence of power culture, formalization
strategy (similarity) might be found. In addition, chain of command is also presentthat is
different (dissimilarity) than combination of divisional structure and role culture. Top down
decision-making is another phenomenon common (similarity) in divisional, functional and
matrix structure.
1.2 Impact of the connection on business performance
Combination of appropriate structure and culture leads an organization towards enhanced
performance ensuring continuous growth by assuring competitive advantage and sustainability.
Considering Otricon combination of flexible working and person culture has led the organization
towards success.
Oticon being the second largest producer of hearing aids gives more stress on engineering and
quality of products. Notably, there is a tendency of not taking initiatives other than carrying out
own roles and responsibilities among the personnel. The company has run the business in topsy-
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turvy situations in-between 80s and 90s. Initiatives have been taken by recruiting Lars Knud as
the CEO to recover the business from loss. While taking a glance at the previous project work, it
is found that conventional hierarchical structure is followed having different functional
departments(Friesen et al. 2014). Due to the fact, the members possessed the attitude of owner in
many projects resulting in chaos among the employees. However, informal approach (effective)
has been adopted in terms of communication and the organization has given importance to face-
to-face communication other than formal approach such as e-mailing. Interestingly, two or three
members are called up for meeting avoiding the participation of other members yet informing
them through information database (Fan et al. 2013). Later on, the structure of the organization is
restructured from hierarchical to flexible working. In the newly set up structure, importance has
been given towards setting clear goals, flexibility and absence of departments (minimizing local
interest). Oticon has set a remarkable example of success by re-structuring the organization and
enforcing flexible working culture and has increased profit by 10%/annum (business
performance enhanced).
Initially, due to the hierarchical structure, presence of power culture could be observed resulting
in loss of market share. It has set an example; in accordance with Handy’s model, power culture
may drive the employee towards demonization. Conversely, after the re-arrangements, there is a
reflection of person culture due to the adoption of flexible working structure. From the instances
given, it can be averred that organizational structure shapes the culture developed within the
organization that significantly drives the origination towards success determining proper
functioning of groups. Currently, the culture fostered in the organization is linked with the
structure adopted leading to enhanced performance by ensuring motivation among the
employees.
1.3 Discussion of the factors influencing individual behavior at work
Certain factors shape the behavior of individual in workplace that individual difference (in terms
of various aspects) behavior at work and personal factors. Leeet al.(2015) noted that attitude,
aptitude, intelligence and perception are some of the factors that may be the result of cultural
background or due to the genetic differences. In time of forming team, delegating responsibilities
or in time of change each member of group may behave differently pointing out towards
personal differences. In addition, while performing same task; different results may come up as a
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result of this. Self-image, personality and work behavior are the factors responsible for ensuring
high degree of performance. Practical instance from the case study 1 can be drawn by saying in
the time of radical changes (in organizational structure) employees used to possess single skill
but they tend to develop more skills later on to expertise. When the departments are dissolved
due to the hierarchical chaos, the employees held themselves to be efficient to work
fluctuations.Nevertheless, other factors such as urge to understand other’s behavior,handling
conflict, perceptual selection shape the behavior of employees. One instance from case study 3
can be averred here, where it could be seen behavior has been perceived as a barrier to
promotion.Staffs got de-motivated due to the fact that there was a change in the promotional
criterion. As a matter of fact, employees showed less productivity in one group and creativity in
the other group members. It clearly illustrates the change in attitude, perception, personality and
aptitude of the employees in terms of adopting radical changes. In addition to that, some other
factors such as abilities, cultural influence, attribution and gender determine the way one behaves
at workplace. Abilities include physical ability, intellectual ability and self-awareness in addition
to that, cultural influence also influence the behavior. For an instance, stereotyped thought about
culture may hinder the potential of being exposed to the other team members. Attribution
contains consensus, distinctiveness and consistency that shape the observation behavior resulting
in formation of perception.
2. Case study 2: Nice Cars
2.1 Comparison of effectiveness of leadership styles
The leaders of different organizations follow different leadership approaches to deal with
augmented complexities in terms of team handling. The notion of cross-cultural management has
also fueled up the importance of adopting appropriate leadership style. Brief illustration of the
accepted leadership approaches are given below (Ward, 2016).
Autocratic style: from the very name, it can be understood that this leadership approach is boss
centered holding all the power. Consultations with the subordinates are given less importance
avoiding flexibility resulting in employee de-motivation.For instance, Donald Trump the owner
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of Trump organization has followed this approach. Autocratic style if more applicable in Army,
where strong command is required to lead people.
Democratic style: involvement of the subordinate in the decision making process is the key
mechanism of this kind of approach. Upward and downward communication helps in ensuring
involvement of the subordinates within workplace. For instance, teachers are seemed to be
applied democratic style to keep the student motivated.
Transformational style: this is one of novice and popular leadership approach followed by the
leaders in big firms. Motivating the employees is the mechanism behind expecting high degree
of performance from them. Empowering the followers significantly influences magnitude of
motivation. In terms of layers, this particular style is applicable.
Laissez-faire style: interference of the higher authority is minimal here that empowers the
subordinate or the followers. However, research shows that this approach is one of the
ineffective leadership approaches used by the leaders.NHS may be the area where this leadership
style can be applied.
Charismatic style: the revolutionary power of the leaders is applied in this style, which does not
mean behavioral change but change in terms of values and beliefs among the subordinates.This
particular characteristic helps in differentiating the charismatic leaders from the transformational
one. Architecture firm can be led using this style.
Contrasting discussion made in the above section draws attention towards selecting appropriate
styles has been given substantial significance to maintain performance and overall productivity
of the organization (Ward, 2016). Depending on the requirements of the organization, leadership
style is adopted in linking with organizational structure and culture. Therefore, one leadership
approach may be effective in one area, but in other situation, it may result in vain. Change in the
leadership style is also found in many organizations to be compatible with the workforce.
2.2 Organizational theory underpins management practice
Nice Cars has gone through tough phases including wastage of time, rigid policies, de-
motivation among employees, stress, lack of communication, lack of participation in the decision
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making process resulting in poor performance and low margin of profitability (further led to
bankruptcy).However, change in management approach has been proven fruitful ensuring human
centric approach there comes the notion of practicing organizational theories.Organizational
theories are used in different aspects of working business. Most of the people adhere to utilize
the theory in work practice for ensuring success (Shafritzet al. 2015). One of the popular
approaches is scientific management approachthat focuses on standardization, specialization
and efficiency in terms of work practice. After establishing mutuality between the management
and the workers, productivity is ensured. By applying this approach, management of Nice Cars
may opt for scientific selection of the employees and can manage cooperation minimizing
occurrence of conflicts. Scientific training is also given to the workers so that they become more
efficient to perform own duties.Contingency approach puts stress on different forms of
organizational relationships.Here inter-relationship between organizational system and
environment is given importance to ensure effective working practices. Organization is often
considered as social system where growth of the employees is regarded as growth of the
organization.With the formation plan, objectives are met. Communication is one of the
significant factors that underpin progressive work practice.Human relation approachgives stress
more on democracy, rationality and stability.Nice cars aim at upbringing the interdependency,
negation of aggressive work to amplify profits, therefore maintenance of proper approach would
be prevalent to guide the management maintaining right track in terms of business decision
making. These approaches would serve better prospects to the managers of Nice cars to run the
organization by adopting appropriate approach, complying it with organizational objectives. The
managers has benefitted by the theoretical application as it could be seen that the organizational
has put in stress on building organizational relationship.
2.3 Divergent approaches to management
After the bankruptcy, intervention actions have been taken where Japanese style of management
approach (continuous improvement while applying technology)has been adopted that helped in
developing culture of continuous improvements through utilization of technology. This approach
used by the management ensured profitability for the organization can use this approach.
Westerners approach towards Nice cars it has promoted and changed the system of evaluating
process. Westerners have taken competition seriously and focus mainly on effective decision that
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develops and harmonizes such as productivity, and updating company technology regarding Nice
car management. The goal was clear to everyone that guided towards the right direction (Nonaka
et al. 2014). Conversely, in case of Shin-Gijutsu group it could be seen that management
maintained the approach to make the employees aware of the fact to be loyal following Japanese
style. This style mainly focuses on improvements by applying technology, where growth is
expected through providing favourable environment of work.Employees have been provided
with the opportunities of getting lifetime rewards and promotion in exchange of hard work and
organisational commitment. Seniority has also been given preference while giving promotions
that made the procedure valid and fair to the employees. Providing training to the employees is
one of the important areas of the managerial approach and informal communication between
managers and subordinates reduced the intervention of labour union minimising complexities.
This approach resulted in salvation for Nice Cars reducing occurrence and number of errors.In
fact, the advantage incurred through right managerial approach boosts production and
manufacturing of cars in a comparative lower price.From the discourse made, it can be averred
that management underpins performance by determining and maintaining correct situational
approach.
3. Case study 3: The Benefits Agency
3.1 Impact of leadership styles on motivation in time of change
Leadership styles drive the workforce of an organization towards accomplishing the primary
goals and objectives of the company. In that case, types of leadership rely on the nature of the
business and the empowerment and position allocated of particular individuals. In the opinion of
Clarke(2013), leadership ensures right direction to the team members to avoid unnecessary
workplace hazard with assurance of return against team dedication and coordination. Types of
leadership incorporate autocratic, democratic, bureaucratic, participative and Leissez Faire style
of leading a group of individual. Autocratic leadership follows one-way communication where
maintaining the flow of information from higher level staffs to lower level employees. On the
other hand, democratic follows collection of views in decision making process. Moreover,
bureaucratic or participative leadership is appropriate for effective strategic development. In the
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current case of Benefits Agency, the phases during change incorporation has entertained
different leadership styles to improve motivation level of staffs being a part of government
operation of addressing claim of public. The initial phase has entertained autocratic leadership
style where every worker in the organization has been liable to follow the hierarchical structure
and thus, resisted change and innovation in the operation. However, Nahavandi(2016) stated that
flexibility in allocation influence the staffs to incorporate innovation and skilled input to improve
the quality of services hiking satisfaction of the customers claiming benefits from governments.
The area managers are allowed to make changes accomplishing the Leissez-faire leadership style
that has allowed the same to work according their own way of operation. However, such
allowance has lowered the scope of promotion and value against strict compliance of rules.
Therefore, management of Benefits Agency has been bound to get back its older hierarchical
structure while introducing multitasking team to operate all benefits, claimed by people. Such
new structure of the organisation has motivated the staffs being recognized with responsibilities
while possessing little opportunity of promotions and rewards.
3.2 Application of different motivational theories
Motivational theories as developed by different authors have highlighted the workplace factors
and perception if individuals regarding the return on the investment to improve dedication in the
allocated works. Two major theories of motivation are as follows:
McGregor theory of motivation:
This theory of motivation is dependent on the individual perception of the organisational staffs
that would assist the leaders to treat its team members accordingly. The theory has highlighted
two management styles within an organisation based on perception and commitment of
employees. Theory X reveals the appropriateness of authoritarian management styles as average
people are likely to follow instruction than leading a group. Such mentality needs a strict
framework defining certain way of performance and its rewards as well as punishments. On the
other hand, theory Y discloses the perception of people having natural fenomena of working
voluntarily with self motivation and control towards company goals and objectives.
Herzberg theory of motivation:
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Unlike the McGregor theory of motivation, Herzberg theory has explored the factors affecting
motivation and performance of organisational staffs. In the opinion of Wery and
Thomson(2013), motivation of company employees are highly driven by the both monetary and
monetary factors, termed as hygiene factors and motivators driving the performance and level of
commitment. Hygiene factors incorporate company policy, workplace condition, wage, job
security and allowance for better personal life. In contrast, motivating factors are workplace
recognition, achievements in allocated responsibilities, challenges in tasks, types of
responsibilities and scope of further growth.
In the current case of Benefits agency, Herzberg two factor theory is more applicable as the
staffs of the agency are more aware of the future benefits from the organisation against the
performance. At the initial change where the flexibility is given to the area managers have
interrupted the value for rules compliance and thus resulting as resistance of change and
significant employee turnover. However, latter phase has motivated multitasking employees with
lower scope of monetary and non-monetary growth. Therefore, aligning to opinion of Zameeret
al.(2014), the managers and chief executive of Benefits Agency needs to ensure benefits to the
staffs in terms of security and adoptability of change with recognition for better commitment and
output in terms of client satisfaction.
3.3 Evaluating the usefulness of motivation theory on managers
Motivational theories as mentioned above and other sources are necessary for the managers of
the company to develop understanding on the factors improving employee contribution and
company profitability. The motivational factors, as mentioned in the Maslow pyramid of human
needs would assist the managers to organise the rewards according to individuals’ needs and
perception. Therefore, the monetary rewards and non-monetary rewards would be categorised
into the base level staffs and strategic level of employees in the company. In case of Herzberg
two factor theory, managers would ensure the hygiene factors and motivating factors through
responsibility allocation and delivery of benefits against performance. Moreover, the managers
of an organisation need to entertain the needs of employees to get the work done by the staffs.
Furthermore, Lavergne and Pelletier(2016) cited that employee retention is one of the key
concerns to produce quality and expected outcomes with input of skilled labour and knowledge
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into the process of executing the business strategies. Therefore, the motivational theories and
models would assist the managers of Benefits Agency to plan and deliver the rewards to the
employees based on performance and retain the same for longer with scope of attaining growth
prospect. In opposition, Zameeret al.(2014) argued that motivational theories rely on a set of
assumptions where the real scenario of the workplace would be different from the theoretical
base. Therefore, selection of motivational theory is crucial for the managers that would best
describe the current scenario of the organisation so that proper list of motivational factors would
be developed.
4. Case study 4: Zico computers Ltd
4.1 Nature of group and group behaviour
Group within an organisation is responsible to meet the primary goal of the business while
producing collective outcomes from different types of group characteristics. In the opinion of
Biroet al.(2016), nature of group relies on the characteristics of individuals and professional and
personal background of the same working within a company. Therefore, behaviour of the group
in terms of dedication and work process is therefore, homogeneous in nature based on the
mentality and similarities in perception. In that case, Tuckman Theory would be beneficial for
the company to judge the group behaviour of the team. The theory incorporates Forming,
Storming, Norming and Performing where application of the theory would be implemented in the
company to judge the behaviour and develop the team with collective decisions and opinions.
Forming states that a team is formed and task is allotted to them, In this process individuals
behave independently in spite of having goodwill nobody knows each other in this process time
is spent on planning, collecting information and bonding together. Storming on the other hand is
a process of addressing the task and suggesting ideas. The relation at this phase may break
between team members; in this phase it is necessary that the team has a facilitative skill. Coming
to norming it is a third process after storming this tends to be a harmonious working practice
team agrees to the rules and values to operate. The team begins to trust themselves and accept the
vital contribution of the team the team leader takes back its step from leadership back from
leadership that depends on his decision as individual members take greater responsibility.
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However, there is a risk at norming stage is that the team is likely to lose its creative edge and
the drive that brought them to the process. The last process follows the stage of performing, this
is the toughest phase and not all team can make it performing team are known for high level of
independence and motivation, knowledge. The independent decision made by team is decent and
it expected and encouraged too because there will be high level of respect and communication
between team members.
Based on the activities and ethnicity, group would be categorised into formal group and informal
group. The formal group incorporates the people from different cultural backgrounds and
technical expertises working together towards the goals and objectives of a project. In contrast,
Jiang and Perc(2013) stated that informal group refers to the collection of individuals from the
same cultural and ethnic background to work together with the similar perception and target to
be achieved while working in the company. In the current case of Zico Computers, formal
groups are virtually present to develop the new accounting software where the coordinators are
primarily responsible to form a bridge of communication to share progress information.
Moreover, the formal group in the company has possessed the expertise from different fields and
sectors to produce the best outcomes in terms of accounting software. Such group is highly
driven by the company and project goals and objectives through input of skills and knowledge in
existing strategies and its implementation.
Unlike the formal group, informal group is formed through collection of people within a team
from the same cultural and social classes. Therefore, the information group is highly involved in
the project being performed within a branch of the concerned company. In that case, the group
members are highly involved in cooperating with the other team members working towards
accomplishing the same goal. In the words of Biroet al.(2016), informal group is more effective
to meet the target being performed at the same place. Therefore, the group members
communicate with each other directly while discussing on the project planning and upcoming
difficulties to be encountered.
4.2 Crucial factors behind effective teamwork
In era of competitive market position, every business entity is following the collective effort
from expertises in different fields and sections rather the traditional hierarchy process of working
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under a single empowerment. In this context, Stampfelet al. (2015) mentioned that brainstorming
process and participation of each member in decision making process accumulate potential
alternatives for better business outcomes. Following are the factors having significant
contribution towards effective teamwork.
Communication:
Communication plays pivotal role in making a information bridge among the team members to
share the valid information regarding the project and progress of the same. On the other hand,
communication creates a friendly relationship among the team members that influences the
teamwork through sharing the allocated responsibilities. In this context, effective communication
also assists in identifying the loopholes in the existing operational process to take further
prevention resisting more difficulties in the projections.
Leadership style:
Leadership style in terms of flexibility or rigidity influences the final outcomes of the responsible
team through promotion of motivational forces among the concerned team members. In the
opinion of Nahavandi(2016) leadership plays important role in team coordination and
accumulation of individual effort to combine for a final and expected business result. In this
context, bureaucratic and participative leadership at strategic level allows the members to deliver
creative effort for a quality and standard outcome business output having capability to earn
profitability.
Cohesiveness:
Cohesion represents the cooperation of the team members to drive the same towards team goal
and accomplishment of company objectives. Cohesion also reveals the similarities in perception
regarding the allocated job roles so that the way of performing tasks would be at the same
direction for all its team members. In the words of Stampfelet al. (2015), team cohesion also
eases the tem leaders to steer the tasks towards right direction to produce expected outcomes.
Recognition:
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Recognition in front of team would be another factor to build an effective team effort where the
same would be accounted as one of the rewards management strategies of the company.
Diversity:
The mentality and perception of each team member to cooperate with peer irrespective to the
cultural and linguistic barrier is a potential factor influencing outcomes of a team in the business.
4.3 Impact of technology on team functioning
Technology in terms of improved network and advanced gadget system improve the team effort
through better coordination and reduction of communicational gaps. Different media including
internet has enabled the team members to conduct effective communication among the other
staffs working within the same team. Some of the technologies, widely used in the teamwork are
e-mail, mobile operations, groupware, Computers and intranet. E-mail is used as the virtual
communication and notification tool to deliver information regarding company operation to its
staffs based on the requirements. Moreover, mobile has become one of the mandatory device in
the teamwork to communicate updated information among other team members. In that case,
group ware plays significant role in conducting a group discussion at a time so that the time
consumption for individual interaction would be minimised. Furthermore, in the opinion of
Galegheret al.(2014), computers are widely used to develop the project planning and schedule its
execution accordingly. In case of Zico Computer, the software development team has maintained
a formal communication with help of team coordinators at different functional areas of the
company. In addition, presence of internet and intranet would be useful for the company
operation to share information within and among different divisions of the company. On the
other hand, Galegheret al.(2014) argued that technology has negative impact on teamwork due to
dependency of individuals on the software for each of the project step. Moreover, such
dependency also reduces the efficiency and creativity of the team members indicating
diminishing value of business outcomes.
Conclusion
The current study has revealed that organisational behaviours plays pivotal role in producing
quality and standard outcomes through effective communication and efficient team coordination.
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The current study has relied on four different case studies describing various aspects of
organisational behaviours. In that case, the case studies have revealed that communication and
leadership are two crucial factors affecting the teamwork and business outcomes. Moreover,
structure of an organisation develops the internal cultural background of the workplace driving
the staffs towards company goals and objectives. In that case, the evidences have also
highlighted the usefulness of individual traits and characteristics in making significant
contribution towards the business outcomes. Moreover, leadership styles and capability in
individual drives the performance of individuals and responsible team through introducing
motivating factors within the teamwork. However, selection of leadership relies on the nature of
the project work and the qualification of associated staffs. Communication in this context,
influences information sharing process within and across the organisation at comparatively easier
way to develop the expected business outcomes and deliverables as projected at planning phase.
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