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Determinants of the organizational culture
Determinants of the organizational culture
Determinants of the organizational culture
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The organizational culture at Home Depot provides the framework through which individuals and groups interact and behave in the company. A corporation’s organizational culture refers to the system of ideas, routine, traditions as well as expectations which impact on the behaviors of the company’s stakeholders including employees and the clientele base (Jha & Srivastava, 2014). At Home Depot, the workers demonstrate the firm’s organizational culture in a bid to maximize the level of customer satisfaction. Arguably the biggest retailer of home improvement in the U.S., Home Depot applies organizational culture to make certain that the work environment motivates the workforce and at the same time ensure that patrons feel welcome. Additionally, …show more content…
the organizational culture at Home Depot significantly distinguishes the home improvement retailer from competition. Importantly, the firm’s organizational culture provides an enabling setting for workers to reach Home Depot’s goals for the provision of top quality service to distinguish the company in its line of operation. There are three core elements of organizational culture namely; observable artifacts, espoused values and enacted values. Observable artifacts Observable artifacts are the most visible aspects of organizational culture.
They’re physical manifestations of a firm’s culture (Alvesson, 2012) Examples of observable artifacts comprise of; employees’ manner of dress, and the vocabulary or jargon. The company’s products, physical set up of the company including the landscaping, the interior design and the building itself, the company’s published mission statement, ceremonies held in the company and stories told about the company among others. Home Depot’s employees’ reward system is a perfect observable artifact. For example, the company’s ‘Orange Juiced’ program aimed at rewarding front-line workers in stores that provided the best customer experience. While it is standard practice to incentivize workers basing on whether set sales objectives are reached, Home Depot chose to reward employees basing on how they treat customers. This element of organizational structure aims at attaining and maintaining peak service levels to capture customer …show more content…
loyalty. Espoused values Espoused values are what the management and the leadership of a company advocate. They are beliefs upon which a firm is built (Alvesson, 2012). Home Depot’s excellence in service is the company’s most pronounced espoused values. The company’s leadership emphasizes on delivering excellent service to customers and achieves this through employee training programs. Additionally, experts such as plumbers and carpenters are hired to advise clients before making purchase decisions. This element of organizational culture enhances the company’s competitiveness and means that customers are ready to cross many lanes to go to a Home Depot store when they have a home improvement project because they’re assured that their project will be handled in the right way by an expert. Enacted values A company’s enacted values can be described as basic assumptions that form the foundation of a firm’s attitudes as well as actions.
Adopted values are central to a firm’s organizational culture and reflected in the way individuals behave. These are values that are significantly intertwined with the company’s ways of doing things such that people don’t normally recognize their influence (Alvesson, 2012). In Home Depot’s case, the company’s inverted pyramid demonstrates how a section of its stakeholders are prioritized in the firm’s strategies and culture. At the apex of the pyramid are customers who are given utmost priority by everyone in the company. Front-line associates follow the customers, and the corporate support comes after the field support. The last in the structure is the CEO. This prioritization has the effect of ensuring that the firm’s corporate values are ingrained throughout the workforce, particularly the front-line employees at the company’s
stores. Additionally, this element of organizational culture provides the front-line workers with a sense of security and also shows that the company recognizes the contributions of front-line staff. References Alvesson, M. (2012). Understanding organizational culture. Sage. Jha, S., & Srivastava, M. (2014). Organizational Culture and Commitment. Journal of Management Research, 14(4), 227-238.
The constant renewal and the work to sustain culture that produces good products, employees, and customers has helped Home Depot maintain its competitive advantage and lead the retail building industry.
The definition of organizational (corporate) culture is a pattern of basic assumptions that are considered valid and that are taught to new members as the way to perceive, think, and feel in the organization. In both American and Northwest airlines, their cultures provide a sense of identity to the members and increase their commitment to the organization. American and Northwest airlines have both been in operation since the early 1900’s. Both company’s employees seem to internalize the values of the company. They find their work rewarding and they identify with their fellow workers.
The Johnson & Johnson Corporation have withstood various problems that would have crippled other firms which can only be accounted with the cohesiveness of the corporation members and the internal structure of the corporation. Despite the corporation’s problems over the years their statement of values is an integral part of their corporation culture and how the firm continues to conduct business. “For us, the credo is our expression of managing the multiple bottom lines of products, people, planet and profits” Larsen (as cited by Hartman et al., 2014, p. 165).
14. Chapter 9: Corporate Stock 15. Chapter 10: Competitor strategy 16. Chapter 11: Corporate Strategy 17. Chapter 12: The corporate culture of Home Depot 18.
Organizational culture is the system of shared beliefs and values that develops within an organization and guides the behavior of its members, while organizational structure is an expression of social and economic principles of hierarchy and specialization (Kinicki, 2015). Both the culture and the structure of an organization are important things for management to understand in order to successfully set and achieve an organization’s goals. Companies who excel in highly competitive fields can attribute their successful economic performance to a cohesive corporate culture that increases competitiveness and profitability. This culture is best utilized in an organization that has the necessary structure to allow its employees to coordinate their actions to achieve its goals.
Even after 9/11 Southwest Airlines has always been the top airlines in the United States. The reason for their unwavering success is based on the simplistic way they execute common values. After extensively reading their value statement, I’ve come to realize the company’s ambition thrives on motivating and taking care of their employees. Southwest’s values revolve around a warrior spirit, a servant’s heart, and a fun-loving attitude. These values transcend the more original ones from other organizations and ultimately represent more than that. For example, a warrior spirit represent the area where Southwest Airlines provides the tools for employees to better serve their customers. A servant heart implies that one is encouraged to treat each other with respect by showing concern for the customer. Lastly, a fun-loving attitude suggests that employees should have fun at work. Value is a strong concept created to guide or direct individuals behavior towards a desired or favorable outcome. For Southwest Airlines, values are not just about what the company believes, it’s about how it sets the culture. Newly hired employees are tested in the company’s three core values and in reward Southwest Airlines provide a recognition program for all employees who are complimented by customers. These values are mentioned in newsletters, staff meetings by the CEO and at special event. Southwest’s
The organizational culture of my current employ would be a family culture. It is a family owned and operated store that has been in business 82 years, started by the Grandfather (who has now passed, but is still influential) now run by the son and training their sons. This family culture is one where we strive to grow successful by staying small. It is a culture where we take care of our customers like they were part of our family and we (in idea) take care of our employees.
The concept of organizational cultures was first raised in 1970s, and soon became a fashionable topic. Organizational culture is the shared beliefs, values and behaviours of the group. Theorists of organizations believe that organizational culture represents the pattern of behaviours, values, and beliefs of an organization. Hence, studies around organizational culture have been seen as great helpful and essential for understanding organizations and their behaviours. Additionally, organizational culture has been considered to be an important determinant of organizational success. Therefore, leaders and managers pay more than more attentions on this topic, focusing on constructing and managing organizational cultures.
Culture can be defined as “A pattern of basic assumptions invented, discovered or developed by a given group as it learns to cope with its problems of external adaptation and internal integration that has worked well enough to be considered valid, and therefore to be taught to the new members as the correct way to perceive, think and feel in relation to those problems”. Schein (1988). Organizational culture can be defined as a system of shared beliefs and values that develops within an organization and guides the behavior of its members. It includes routine behaviors, norms, dominant values, and feelings or climates. The purpose and function of this culture is to help foster internal integration, bring staff members from all levels of the organization closer together, and enhance their performance.
Simply speaking, a company’s structure and design can be viewed as its body, and its culture as its soul. Because industries and situations vary significantly, it would be difficult and risky to propose there is a “one size fits all” culture template that meets the needs of all organizations” (Nov 30, 2012). Those organizations who have shared beliefs and values and have organized methods on chain of command going to have positive outcomes. This will help shaping their employees views and performances. The growth and profit of the business relays on their employees and their performances. Culture is the core which will help and encourage all different level workers. If the core itself is weak, it will weaken the atmosphere of the business. Many companies announce that they have great culture but fail to implement to the lower level of workers. The basic issue is when organization has one set of culture and thinks one culture will meet the needs of all the workers. Each business is different and each individual is unique and have different beliefs and behaviors. The culture that is right for one individual might not work the same for the others. The ideal approach in this case would be, looking at the bigger picture of diverse working environment and give importance and respect to what are the ranges of business firms to achieve the perfect culture for organization. Sometimes one size fits all will not going to fit anybody, so the organization have to keep their ideas open and value everyone’s presence respecting all of their culture for the betterment and
Organisational culture is one of the most valuable assets of an organization. Many studies states that the culture is one of the key elements that benefits the performance and affects the success of the company (Kerr & Slocum 2005). This can be measured by income of the company, and market share. Also, an appropriate culture within the society can bring advantages to the company which helps to perform with the de...
Corporate culture is the shared values and meanings that members hold in common and that are practiced by an organization’s leaders. Corporate culture is a powerful force that affects individuals in very real ways. In this paper I will explain the concept of corporate culture, apply the concept towards my employer, and analyze the validity of this concept. Research As Sackmann's Iceberg model demonstrates, culture is a series of visible and invisible characteristics that influence the behavior of members of organizations. Organizational and corporate cultures are formal and informal. They can be studied by observation, by listening and interacting with people in the culture, by reading what the company says about its own culture, by understanding career path progressions, and by observing stories about the company. As R. Solomon stated, “Corporate culture is related to ethics through the values and leadership styles that the leaders practice; the company model, the rituals and symbols that organizations value, and the way organizational executives and members communicate among themselves and with stakeholders. As a culture, the corporation defines not only jobs and roles; it also sets goals and establishes what counts as success” (Solomon, 1997, p.138). Corporate values are used to define corporate culture and drive operations found in “strong” corporate cultures. Boeing, Johnson & Johnson, and Bonar Group, the engineering firm I work for, all exemplify “strong” cultures. They all have a shared philosophy, they value the importance of people, they all have heroes that symbolize the success of the company, and they celebrate rituals, which provide opportunities for caring and sharing, for developing a spiri...
The concept of organizational culture is one of the most debated topics for researchers and theorists. There is no one accepted definition of culture. People even said that it is hard to define culture and even more change it. It is considered a complex part of an organization although many have believed that culture influences employee behavior and organizational effectiveness (Kilmann, Saxton, & Serpa 1985; Marcoulides & Heck, 1993; Schein, 1985a, 1990).
Morley, D. D. & Shockley-Zalabak, P. (1991). Setting the Rules: An Examination of Organizational Founders’ Values. Management Communication Quarterly, 4, 422–449.
“Values are the beliefs of an individual, group, or organization, in which they are emotionally invested” (Carpenter, Bauer, & Erdogan, 2015). Many organizations consider corporate values strategically import for building their company’s reputation and keeping the customers’ confidence and allegiance. That, however, is only a tiny portion of the strategic benefits that organizational values can offer. “Further benefits include:guidance for decision-making on all levels, selection criterion for new employees, driver for individual and corporate behavior on all levels supporting the vision, mission, and goals of the company, and effective definition and implementation of core values” (Gupta, 2015). Values within a company need to be more than just a few words that sound nice to ensure overall acceptance within an organization. “Effective core values need to be emotionally appealing and workable” (Gupta,