Every company comes with an unique organisational culture. Its culture derives from its past, its present, its current people, technology and physical resources and from the seeks, objectives and principles of these who work in the company (Lynch 2003). In recent years there has been increasing acceptance of the role that organisational culture takes on in the formulation and execution of organization strategies and in influencing the success of these strategies. Regarding to Deal and Kennedy (1982) research, in addition they stated that organisational culture defines the success or inability of organisation. Therefore, it is important to understand culture in an organisation concerning help organisational leader in making management decision and in achieving excellences strategy. It is necessary to view strategic management from a cultural point of view because successful organisational performance often rests upon the amount of support that strategies get from the organisation's culture (Hodge 1996).
Organisational Culture
Definition of Organisational culture and its importance to tactical management.
When any group of people live and interact for any amount of time, they form and share beliefs in what is right and proper. They establish behaviour patterns predicated on their values, and their activities often become things of habit which they follow routinely. These beliefs and ways of behaving create the culture of the organisation. Culture is a structure of shared tacit assumptions that was learned by a group as it fixed its problems of external adaptation and internal integration, which includes worked well enough to be looked at valid in organisation which is essential to be educated to new customers as the correct way to believe, perceive, and feel in relation to those problems that happen in many organisation today (Schein 2009). Culture also influences the selection of men and women for particular careers, which affects the way in which tasks are carried out and decisions are created in an company. With the word of organisation added to the definition of culture, it could be defined as the habits of beliefs, beliefs and learned means of dealing with experience which may have developed during organisation's history, and which tend to be manifested in the behaviours of its members (Brownish 1998). Organisational culture is the taken-for-granted assumptions and behaviours that make sense of people's organisational framework and it plays a part in how groups of men and women respond and react with regards to issue they face. This means that culture has important influences on the development of organisational strategy. Strong organisational cultures are important strategic asset as it is the heart of most strategy creation and execution. In the first 1980s, Berry (1983) talked about that by using culture, organisations could are more strategically effective. To be able to support this statement, the popular global online book-seller known as amazon. com, used their culture which referred to as intensely customer-focused to drives their organisational strategy creation by concentrating more on intensive training of each individual worker as these could strengthen the culture. As the consequence of using their culture and become more strategically effective, today's amazon. com is becoming one of the most successful online shop worldwide (Bezos 2007). Additionally, an effective proper leader should understand and shape the culture of organisation to ensure that vision can be pursued and planned strategic implemented. That is something that leaders of Apple Inc. have applied, by leveraging their culture of technology toward product as well as inner processes; they may have had the opportunity to survive amongst their competitors as well as project into new and profitable market segments. In fact that in third quarter of 2012, Apple Inc. has made more than $35 billion earnings as this determine their success in technology industry (Fekete 2001). Moreover, organisational culture is dependent on the leadership such as particular individuals. For example, organisational culture of your body shop company is dependant on the commitment with their creator, Anita Roddick, to create only green products (McGuire 2009). Through her commitment, nowadays The Body Shop is continuing to grow and prospers to become large and international businesses. From all good examples above, it shows us the bond between culture and strategy of organisation is essential in order to understand assignments of culture that affect the creation and implementation of strategy within an organisation.
Key characteristics of culture in an organisation.
There are some key characteristics of culture within an organisation. First of all, culture can be shaped by people as employees' personality and experience create the culture of any organisation. For example, if almost all of employees are extremely outgoing, the culture in the organisation apt to be open and sociable. The other characteristics are culture is negotiated; this is because culture cannot be created by only specific person. Employees must try to change the work environment, the path, the way work is conducted, or the way in which in which decisions are made within the general norms of the workplace. Its difficulty to improve is another characteristic of organisational culture (Heathfield 2012). Changing in culture require visitors to change their behaviours. It is hard for individuals to unlearn their old way to do things, and also to start carrying out the new behaviours consistently. It takes commitment to change the culture within an company especially in companies with strong culture. More aged strong culture organisations have established stories, use symbols, carry out rituals and even use their own language. In this type of strong culture organisations, the primary values are extensively shared, reputed and covered. However, corresponding to Beamish (2008) research, he argued that culture is not static. He stated although a solid culture is incredibly resistant to improve but culture is not static. Once a culture is set up in an company, it tends to be reinforced by the types of leaders chosen, by the choice, induction and training operations, by the systems, strategies and set ups, and by the assertions and communications of senior leaders about just how things are done around organisation. Furthermore, overtime, the environment changes, new solutions develop, new public norms occur, and new rivals emerge, cultures will evolve to complement these improvements (Beamish 2008). For instance, as new technology developed, CEO of General Electronic (GE), Jack Welch develop new strategy called'GrowYourBusiness. com', targeted at getting the many businesses to accept electronic business as the new way to do business which had a significant effect on the mandatory culture (McGuire and Rhodes 1999). Great things about electronic business are cost saving, provide faster answers for customers and offer more interesting tasks for employees. Nowadays the majority of GE's customers are employing web to track orders, sometimes right to the location of your delivery van and instantly getting information on products. The last characteristics of organizational culture is more than one culture might which means that two or more subcultures might are present in same organisation. However, almost all of the researchers presume that there should be an individual culture for the organisation (Stanford 2010). It could be true for small or extremely focused or geographically focused organisations, but for organisations with a wide selection of products, customers and physical locations, individual subcultures are essential. For examples, the China operation of a multinational supplier seeking low-cost development will have a significant different culture from its sales and marketing procedure in Singapore and Australia, where in fact the company is wanting to provide an up-market image. It is therefore very important to an organisation to acquire appropriate cultures in each unit and to be able to coordinate these ethnicities for the benefit of the organisation as a whole.
Internal and external factors that impact organisational culture.
Organisational culture is subjective by several factors which have an impact on its development, performance and development. Organisational culture originates and retains evolving from the dynamics of the discussion between inside and exterior factors (Wilson and Bates 2003). Internal factors contain organisation's values, management style and framework (Kwamme 2010). Beliefs in an organisation determine the inner culture of every individual employee. Furthermore, managerial concentrate and leadership style has known as the contributor of shaping organisational culture as it could preserve an impressive and creative culture in an company. Healthy organisational composition includes procedures, targets and policies are likely for staff to be motivated, better and creative that may influence the culture in an company. On the other, external factors that impact organisational culture, includes business romantic relationships, technology, laws and regulations and procedures (Kwamme 2010). Business associations have a great effect on employee's behaviour and the culture in an organisation. For example, if an organisation has relationship with an additional business and this business is based on high prospects, personnel may behave in their working as the reason of those high potential customers. As the consequence of today's technology progress, it could lead to changing in culture of organisation particularly with a growing interaction between individual and machine. Furthermore, scientific creating competitive organisational culture as it reduces face-to-face discussion between human. Last but not least, organisational regulations, guidelines and exterior work related serves significantly influences organisational culture, for example worker who work in organisation that performs a stringent "work to rule" plan, they exhibit characteristics such as do things because they are told, less passionate about their job and refuse to be creative, thus it could directly change the whole culture in an organisation. This combo of interior and exterior factors will effect the organisation's culture and have an impact on interpersonal relations. What is important is to be aware of it and to take profile of how programs to build up the company may be damaged by and impact its culture (Wilson and Bates 2003).
Organisational ethnicities and organisation's performance
Studies of Peter and Waterman (1982) stated that high-performance organisations usually have strong organisational culture. A strong culture will help to align the elements required for effective implementation. Each organisation in same industry requires different business strategies. Different strategies require different cultures. Evidently, the culture of the company needs to be matched to the business enterprise strategy of the company. The issue is to align the culture with the strategy, not to seek some ideal culture. There are a few views on the relationship between organisational cultures on organisation's performance. The most common one known as strong-culture thesis, that assumed the dedication of employees and managers to the same group of values, beliefs and norms will have positive results that immediately correlated with the level of profits in a business (Dess 2008). It is possible that success brings about a common set of orientations, values and beliefs. This culture may become more than simply a by-product of high shows, but beliefs and meanings may reproduce an effective organisation and therefore contribute to performances. Since the ethnical principles are observable and measurable, it could be compared immediately between organisations, employees and organisational performance. Just lately, employee engagement has turned into a key measure of people's dedication to the organisational culture and high scores have been associated with high organisational performance. For instance, Italian eyes ware and eye good care company Luxottica improved its employee proposal and achieved increased performance. The corporation discovered that employees in its Australian and New Zealand operation of total 6500 individuals were disengaged and 56% of these did not understand the business enterprise strategy. However after employee proposal program was made which include understanding the culture of the organisation, Luxottica has achieved 15% of improvement in engagement, 30% reduction in recruitment costs and an 8% reduction in turnover (Story 2009). Many business leaders are convinced that culture has a substantial affect on performance. Therefore, when an company performs consistently at their ability, the outcome is not only improved strategic success but also an organisational culture permeated with a soul of high organisational performance.
Organisational culture influence on strategy
Because of its crucial role in organisation performance, it's important to examine the partnership between culture and strategy because potential for success will be higher if there is a close event fit between culture and strategy. Organisational cultures should be associated with any changes in strategy of company; often the strategy is most likely failed. In other palm, if supportive ethnic arrangement is recognized by right strategy, probably the strategy will be being successful (Montanari, Morgan and Bracker 1990). The taken-for-granted character of culture makes it centrally important with regards to strategy and the management of strategy. George Davis (2010), the founder of clothing retailers Next and GIVe, recognizes culture as central to management. He added that culture is the matter that makes us do things and halts us doing things. A couple of benefits in the taken-for-granted mother nature of culture. Josephine Dumont (2010) reinforced this view and explained that because of all employees take as given what sort of firm runs, it reduces the necessity for constant guidance. The better the fit between culture and strategy, the less professionals have to depend on policies, rules and procedures, which means that lesser supervision needed to enforce what people should and really should not do. A couple of then benefits to the taken-for-granted aspect of culture. Moreover, a confident culture might impact in reaching strategy within an organisation. For example, Hong Kong and Shanghai Banking Firm (HSBC) is the second largest financial institution on earth which consists of more than 10, 000 office buildings in eighty countries. HSBC has their own and effective culture as part of its proper management. One of the known tactics within the HSBC organisational culture is its respect for work-ethic endorsement. This practice consists of the careful screening of employees with the required skills and high prospect of improvement. Through this culture, the HSBC have the ability to create a highly effective workforce that is determined to succeed and it is highly committed to work. It believes that whenever employees are highly determined with the job and always do their very best, it could help in obtaining strategy and plan within an organisation. Business strategies of HSBC are to increase income growth, expanding brand strategy further, enhancing productivity and preserving the company's prudent risk management and strong financial position (HSBC 2011).
According to appendix 1, it shows the result of culture within an company to strategy development. In the problem of declining performance of any organisation, professionals or market leaders need to increase the implementation of existing strategy such as hoping to lower cost, improve efficiency, tighten up adjustments or improve accepted way to do things. If this not effective, a change of strategy may occur, however change in line with the existing culture. For instance, when there are attempts to improve highly bureaucratic organisations to be customer-oriented so there's a need to change a culture's of the company. However, some employees do not quickly to accept the social change within an company as they are being used to the culture they had before. People prefer the familiar and typical culture concerning minimise uncertainty or ambiguity in the company.
The connection between success and culture may seem to be evident as successful business is the result of successful execution of any good strategy, and therefore culture is focused on execution (Stanford 2010). Strategy can be effectively executed only when an organisation's culture is both strong (consistent) and healthy (employees are involved and devoted, customers are satisfied and other stakeholders are contained in organisational discussions). Appendix 2 summarises the hyperlink between the two through the truth of Southern Airlines. They believe that the link between strategy and its culture are the one of the reasons that makes this organisation become successful. The culture in an company is strong as there may be consistency of what folks see, hear and experience it and employees are clear of how things are done and are happy and in a position to help the airline achieve its goals. Furthermore, their business strategy is good includes stretching and addressing short-term and longer-term goals and they are evidently articulated. As the consequence of the strong culture and good strategy, Southern Airlines has already reached their business success in airline industry. The CEO of Southeast Airline, Gary Kelly (2009) added that strong culture contributes to business success which is instrumental in a few of the proper decision of the company.
Organisational Culture and Strategic Decision
Nowadays, terms of strategic is used more regularly in its broader sense, including proper decision. There are some important important elements of proper decisions that are related primarily to the organisation's ability to add value and compete in market (Lynch 2003). This include making sustainable decisions that may be maintained over time, it must have the ability to delivers ecological competitive advantages over its real or potential competition, it must exploit the countless linkages which exist between the company and its own environment and lastly it will need to have the capability to move the company forward a significant way beyond the current environment. Therefore, it's the responsibility of tactical decision maker to reach and maintain key elements of good strategic decision with an organisation. It is important to a strategic decision maker to make decisions by considering the different cultures, agencies, agendas, personalities and wants in an company (Guillot 2003). Tactical decision makers should never only be familiar with the culture within an organisation, however they must work to condition an organisation's culture to help achieve its targets. If an organisation needs to improve the public's perception of its customer service, then proper decision manufacturers must steer the organization's culture so it promotes or induces high accomplishment in customer support activities. Changing an organisation's culture helps protect from unethical or illegitimate behaviour by members of the organization. Organisational culture immediately affects the way the customers of the company view and interact with the environment the organisation operates in, including their connections with the general public. For instance, Howard Levin, Chief executive and CEO of Digicon Electronics, he got the time to understand the company as an company and he even undertook the benchmarking the business's culture against companies with reportedly effective business culture and not simply in that industry. Every operational improvement and new strategic decisions he undertook was from the new culture that he was building for the business. He was motivated that the company would have a culture that could support enlightened leadership. Over time, the scholar of culture became the teacher as Digicon became a business leader (Want 2006).
Conclusion
In final result, this academic essay has explored the role of culture in the overall scheme of company in terms of proper management. An organisational culture is observable and powerful push in organizational that can influence the development and change of organizational strategy. Culture and strategic management of the company are closely attached together. Adjustment in one often signals the necessity for changes in the other. Therefore, strategic system methodology emphasizes the need for alignment between culture and all the areas of the organisation. It's important for organisation to get creative and learning organization in order to boost company's efficiency and effectiveness, as well being the source of creativity on changing and enhancing organisation. Moreover, this can be a electric power and beneficial potential when culture and organisation's performance well included in a couple of effective values, values and behaviours with the goal of attaining organisation's systems since ethnic ideals are observable and measureable through stakeholders (organization, employees and organizational performance). In addition, a potential for success will be higher in organization if there is a close event fit between culture and strategy. When culture has clear beliefs, values and behaviours and it connects to the vision, objectives and tactical, it'll encourage to the right behaviours and activities on helping the strategy. Therefore, with understanding of organisational culture, proper leader will be able to make a wiser decision by means adapting with external environment on strategy formulation and encourage and leads his/her people on strategy execution.
