Essay: Analysis of Management Principles and Organizational Culture

This essay provides a comprehensive analysis of the impact of a strong organizational culture on organizational performance. The introduction establishes that organizational culture, encompassing behaviors and values, significantly influences interactions and knowledge development. The essay then argues the importance of organizational culture in determining an organization's performance within its industry, supported by multiple sources. It explores the characteristics of a strong organizational culture, including employee value maximization, support for learning, and intergroup cooperation. The essay also delves into different dimensions of organizational culture, using IBM as an example, and discusses conceptualizations based on process-oriented and classification-based approaches. Furthermore, it examines the relationship between organizational culture and performance, highlighting how a strong culture can lead to competitive advantages and improve performance. The essay also provides real-world examples of organizations with strong cultures, such as Zappos, Southwest Airlines, Twitter, Chevron, and Google, illustrating how these companies have leveraged their cultures to achieve success. The conclusion emphasizes that a strong organizational culture has a major impact on the performance levels of the organizations.

Running head: MANAGEMENT PRINCIPLES ANALYSIS
MANAGEMENT PRINCIPLES ANALYSIS
Name of the Student
Name of the University
Author Note

1MANAGEMENT PRINCIPLES ANALYSIS
Introduction
Organizational culture is mainly based on the behaviours and values which are able to
provide high levels of contribution to unique psychological and social environment of the
organization. The culture of an organization is thereby able to influence the ways by which
people are able to interact with each other and context related to the development of
knowledge as well. The beliefs, principles and collective values of the organization are
represented in an effective manner by the culture and environment that has been developed
(Ahammad et al., 2016). The assumptions and the collective behaviours of the employees
who are a part of the organization have a major impact on the organizational culture.
The essay will be based on the analysis of an argument that is related to the effects of
the strong organizational culture on the performance that is depicted by the organization in
the industry. The analysis will be helpful in providing an argument that is related to the
importance or significance of organizational culture with respect to the performance levels of
the organizations.
Effects of strong organizational culture on the performance of the organizations
As discussed by Alagaraja and Shuck (2015), the effects of organizational culture or
corporate culture is considered to be quite different for various organizations. The
performance levels of organizations are analysed with the help of different types of opinions
which are offered by researchers. The culture of an organization is based on the ideas that are
shared by the employees and the ways by which they are able to make the decisions. The
concept related to organizational culture is based on the proper determination of the
differentiation that exists between the culture that is followed by the employees and national
culture of the country in which the organization operates.

2MANAGEMENT PRINCIPLES ANALYSIS
As argued by Barakat et al. (2015), the culture based concept is related to two major
factors of the social group including, structural stability of the group and the process of
integration of a single item based on superior standards. The values and the norms of an
organization have been able to affect the culture that is developed in an effective way. The
four major types of organizational culture mainly include, counter culture, sub culture, strong
culture and weak culture. Counter culture is considered to be the culture that is based on the
values and shared beliefs that are considered to be opposite to beliefs and values of broad
organizational culture.
According to Baumgartner and Rauter (2017), sub culture on the other hand is based
on the different segments of the culture which are able to depict different values, beliefs and
norms due to huge differences between the departmental goals and geographical backgrounds
as well. The organizational culture in which the bigger parts of employees show similar
values and beliefs that are related to an organization can be termed as strong culture. The
organizational culture that is loosely knit in nature and the employees are not able to depict
similar values is termed as weak culture.
Different characteristics of strong organizational culture – The process that is used
for maximizing values of the employees is considered to be a major asset of the organization.
The culture is able to provide effective levels of support based on logical participation that is
made with respect to individual learning and organizational learning. The norms in an
organization are measured with the help of amounts of work that are done with the help of
proper cooperation between the employees and the management. The rules that are defined
for the behaviour of the employees are related to intergroup cooperation, relationship
between the customers and productivity levels (Eisenbeiss, Van Knippenberg and Fahrbach
2015).

3MANAGEMENT PRINCIPLES ANALYSIS
Dimensions of an organizational culture – The different dimensions of the culture of
an organization can be depicted with the help of the example of a major global organization
named IBM. The dimensions of the culture of the organization can be analysed with the help
of Hofstede’s model. The major dimensions of Hofstede’s model include, power distance,
individualism, uncertainty avoidance, masculinity. The dimensions are able to play a key role
in providing an understanding of the differences that exist between the cultures of
organizations that operate in different countries (Engelen et al. 2015).
Conceptualizations based on organizational culture – The organizational culture can
be conceptualized with the help of two major processes that are named as, process oriented
approach and classification based approach. The process oriented approach of the culture of
an organization is based on the ways by which real problems can be solved with the help of
processes and people who are a part of the company. On the other hand, the classification
based approach of the organizational culture is related to ideas that are initiated with the help
of two or more than two variables.
Performance based concept – The performance of an organization is mainly based on
the achievement of mission that has been developed. Performance of the team is analysed in
order to express range of the measurements related to transactional efficiency in the
organization. The performance levels of an organization are related to the capabilities that are
based on the capabilities of achieving goals by using the resources in an efficient manner.
The strategic performance measurement system is considered to be an important part of the
management of the performance levels of the company (Forés and Camisón 2016). The
measurement of performance is able to play a key role in the ways by which the operations of
an organization can be enhanced in an effective manner.

4MANAGEMENT PRINCIPLES ANALYSIS
According to Guerci et al. (2015), organizational culture of the firms is able to have a
major impact on the performance levels. The US based organizations in the industry have
been analysed in order to examine the effects of culture on the performance levels. The strong
culture of an organization is able to affect the long-term based performance or the economic
performance. Organizational culture is helpful in the proper development of the competitive
advantage of an organization. Strong culture of an organization is able to act as a major
driving force that is able to improve levels of performance.
As argued by Hyland, Lee and Mills (2015), the commitment of the employees and
levels of self-confidence are also affected by the culture within the organizations. A
sustainable and aggressive advantage is offered to the modern organizations with the proper
development of a strong culture. The weak and strong cultures of the organizations are able to
have a major impact on the organizational behaviour and the reduction stress levels of the
employees as well. The improvement of organizational performance is based on the major
levels of support that are provided by the culture of the organization.
According to Jung and Yoon (2015), the competitive advantage that is gained by an
organization in the environment is based on the strength of the culture that has been
implemented effectively. The beliefs and values of the employees in the organization are
quite different from each other. The culture that has been developed in the organization is
considered to be an important factor that has affected the performance levels. The impact of
strong organizational culture on the performance levels of modern organizations is
considered to be positive. However, the development of the common goals of the employees
and alignment of the goals with the organizational objectives is considered to be an important
factor for the formation of positive environment in the organizations (Jyoti and Dev 2015).
Examples of organizations with strong organizational culture

5MANAGEMENT PRINCIPLES ANALYSIS
The effect of strong organizational culture on the organizational performance and
work process of the employees can analysed in a detailed manner with the help of practical
examples of global organizations. Zappos has been able to develop its position in the industry
with the help of its fantastic organizational culture. The organization is mainly known for
selling shoes online and has been able to provide opportunities to the employees based on
growth. The cultural fit based aspects are highly important for the revenues and levels of
profitability of the organization as well. The benefits that are provided to the employees are
helpful for the organization to develop a dedicated and fun filled workplace (Körner et al.
2015).
The employees of the organization are hired based on the cultural fit. Southwest
Airlines is another major organization that is able to attract the loyal customers with the help
of friendly and happy employees. The organization has been operating in the airlines industry
for more than 40 years and has been able to communicate the vision and goals to the
employees. The employees of Southwest Airlines are able to go an extra mile in order to
provide happiness to the customers (Navimipour and Soltani 2016).
Twitter is an example of another multinational technological organization that has
been able to develop a positive and strong culture for the employees. The employees of
Twitter are also quite happy about the culture of the organization and different activities that
are performed including, rooftop meetings, team-oriented environment and friendly co-
workers. The members of different teams in Twitter are pleasant and friendly to each other
(Valmohammadi and Roshanzamir 2015).
A major oil and gas based organization named Chevron has developed a strong
organizational culture. The employees of Chevron are able to respond in a positive manner to
the culture of the organization. Chevron cares for the employees by offering them health and

6MANAGEMENT PRINCIPLES ANALYSIS
fitness based benefits to them. The employees are also insisted to take regular breaks in the
working hours (Walker, Chen and Aravind 2015).
Google is a major example of an organization that depicts a strong organizational
culture which is further able to impact the performance as well. The performance levels of the
organization are affected by the great culture that has been developed in Google. Google has
been followed as an example of strong and positive organizational culture by many
organizations in the technology based industry. Different benefits that are offered to the
employees of Google include, parties and employee trips, free meals, open presentations
provided by the high-level executives, dog friendly environment and gyms (Yahaya and
Ebrahim 2016).
The Googlers are mainly known in the environment for their talent levels and being
the best in the industry as well. Google has shown immense levels of growth and has been
able to increase its revenues in the technology industry with the help of the culture that it has
developed by the organization. The increase in size of the organization has led to the lack in
uniformity of the culture of Google. The reviews that have been received by Google are
mainly based on the perks, pay and the levels of advancement as well. The management of
the organization has thereby aimed at reducing the stress levels of the employees that is
related to the competitiveness of the environment (Valmohammadi and Roshanzamir 2015).
The analysis of the examples of different organizations with a strong organizational
culture have been able to depict the strength of the culture is able to provide major levels of
support to the performance levels. The performance of the organizations is based on the
productivity of the employees. A positive working environment is thereby able to ensure that
the employees are able to provide the highest levels of performance (Jyoti and Dev 2015).
Conclusion

7MANAGEMENT PRINCIPLES ANALYSIS
The essay can be concluded by stating that a strong organizational culture has a major
impact on the performance levels of the organizations. The development of positive culture
leads to the formation of a positive working environment as well. This is considered to be a
major factor that is able to increase the productivity levels of the employees. The analysis of
relevant literature and researches made by different organizations have been able to depict
that the organizations have improved and enhanced the performance levels in an effective
way. The modern organizations have aimed at improving the organizational culture in order
to enhance the levels of performance in the competitive industry. The competitiveness in the
industry is considered to be an important factor which is able to affect the culture.

8MANAGEMENT PRINCIPLES ANALYSIS
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