Organizational Culture and Decision Making

Organizational Culture and Decision MakingIntroduction.Decision making is an of import part to operator a familiarity successfully, in the very(prenominal) time the organisational merchandise-gardening also can influence the company somehow, and the organisational nuance can been bringed as the centre theme of the whole company because of it describe and explain what the company is and what the company need to do. Decision making also can be influenced by the organizational refinement.The concept of organizational refinementTo define organizational acculturation, people should understand what civilization means in a society. In a broad sense, culture is the summation of spiritual set and material value which was recognized and formed in the historical activities of the society.In a narrow sense, culture is the ideology and the organization, rules which matched with it. But the organizational culture is different from the culture in traditional meaning, and it is the res ult of effect from serval elements such as the aw arness, character, habit of the member in the organization and their scientific and cultural train(See Schien,1985).Organizational culture is the beliefs and values that are shared. As such, the culture prescribe what is true, and describe and, therefore, the goals one ought to pursue and how one should go about pursuing them.(Beyer,1981) And the organizational culture is based on the organization, and forming with the organization or dying with the organization, it go no matter it has been presented.(Nystrom W. H. Starbuck)As a openhearted of culture which formed in a organization, organizational culture can be influenced by the managers, and that is why the organizational culture is a part of management. It is based on the organizational values, (Wikipedia, Organizational culture, 2010) and the organizational values is control and controlled by the manager-CEO(Chief Executive Officer). In the some other words, the organization al culture is created by the CEO.thither are several types of organizational culture, and they can be classified by several methods. According to Geert Hofstedes inquiry on IBMs employees in different parts of the world. He identified four dimensions of culture.1.Power distance2.Uncertainty avoidance3.Individualism vs. Collectivism4.Masculinity vs. Femininity.(Hofstede G. 1980).On the other hand, there are some elements of organizational culturePeople and empowerment focusedValue creation through innovation and transportAttention to the basics, hands-on management,Doing the right thing,Freedom to grow and to fail,Commitment and personal responsibility,Emphasis on the future. (Wikipedia,Organizational culture, 2010)All of these elements are important in the forming process of organizational culture, and they can non be copied so each organizational culture is unique and an organizational culture is improving all the timeThe effect of organizational culture on finale makingSince t he definition of organizational culture has been gave, it has become to a massiveer extent easy to analysis the relationship between organizational culture and stopping point making.There is no doubt that the decisions were do by the empolyee in the organization, according to the definition of organizational culture, the organizational culture influence the member.Organizational culture can be dissever into strong organizational cultures and lite organizational cultures. A strong organizational culture means the organizational culture can influence the organization more than deeply than weak organizational culture. Whether organizational culture is strong or weak can be relate to the original culture, the scale of the organization, the liquidity of employees and the employee. As a result, a strong culture can decide how the staffs who have a unitive attitude respond to the stimulus, on the other hand,with a weak culture of the organization, staffs have different attitudes and responds. That means a same decision can make different effects in two organization if the organizational cultures are differentin the organization with a strong culture, the decision would be accepted easily,and in the organization with a weak culture, the staffs may doubt the decision and that make the decision implement hard. (CambellNash,1992) So, the organizational culture influences decisions by its members and the way in which it influences its members acceptance or rejection of the decision. That means when the manager making decision, he or she mustiness consider more thing to ensure the decision can work out efficient.As a organization, especially a organization with a strong organizational culture, organizational culture can limit the managers choices to make decision to manage his or her management function. Because the organizational culture establish the regulations about what people should do or should not do. Although the regulations are not write down, even not exp licit or people do not talk about, they are exist and influence people all the time. The first gear hypothesis is that different groups can be demonstrated to have different degrees of culture fragmentation, and that this will either theorize or be reflected in their general well-being and success in pursuit of their goals.(Lee Roy Beach 1998)Decision making in organizations is accomplished by coat of both the compatibility test and the profitability test, in precisely the same way as for individual decision makers.(Lee Roy Beach, 1998) This is because the organizational culture, vision, and strategic plans are possessed by its members there is no organizational mind that retains there images and makes decisions(Beach, 1990) There are many commons in individual decision making between organizational decision making. All of the two type of decision maker must consider about environment, the whole plan of the business, and the danger. But decision making in an organization can be m ore difficult, because the decision can bring changes, and members of this organization may have resist or receive two precisely different attitude. In turn to conservative, nostalgia, maintain organization, people continuously based on past the criterion for judging now decisions, always worried in change will lose what will occur, thus to doubt and fear and changes of psychology and behavior organ-tissues Conversely, in a pioneering, innovation atmosphere organization, people always with the development the judgement to analysis and decision of rationality, always hope in May produce change, so eager to get what changes, welcome change, support changes. Obviously, welcome change of organizational culture conducive to the implementation of the new decision, and resist change of organizational culture may give any new decision-making implementation disastrous effects. In the latter case, in order to effectively implement the new decision through a lot of work, must first change organization member attitudes, establishing a conducive to change of organizational culture.How an organizational culture enhance a companyThe organizational culture is core of a organization. For modeling, the worlds first brand-Coca-Cola Company. Its boss said Even today all of my factory all set downed, tomorrow I also can easily built a new one Coca-Cola. That is because the Coca-Colas organizational culture give him the confidence. The general organizational culture is creative and focus on customer. All the decision making processes must focus on these two points. In China, Coca-Cola set up its brands such as Allen su and Qoo to pander to Chinese customer, even Coca-Cola has become the leader of the drink, but they quieten not give up creating. In 1995 German, the management of Coca-Cola decided to set up a new subsidiary corporation to produce a kind of new drink-koke light and diet koke. That was a result of the organizational culture influence,and the koke light has beco me the third drink brand in the world. Another example of Coca-Cola organizational culture is the found of Fanta. In World War II, a Coca-Cola factory in German insisted produced coke during the war, even the headquarter of Coca-Cola did not know they were free working. But because the shortage of raw materials, they decided to use other materials to produce another orange soda drink, and what make them surprise is the drink achieved a great success and earned a number of profits. This decision made Coca-Cola reborn in European, principals use of these funds, and assisted other European territory Coca-Cola drink whole kit rebuilding operation, for Coca-Cola postwar market solid foundation. While Fanta was also corporation acceptance, in the 1950s officially launched. (Wikipedia, Fanta, 2010) That is why the organizational culture makes Coca-Cola become the first drink brand whose share of market is 48% in the world.How the organizational culture can save a companyOrganizational cu lture not only can make Coca-Cola maintain its everyplacelordship in the market but also can save a small company from the predicament of expiration bankrupt. In 1980s, Haier is a company which only had a little factory and a backward product line, even worse the small company had debt of over 1.4 million. The Zhang Ruimin took over the company and pushed new management methods, put the attention on creativity. After years hard working, Zhang managed to create a new organizational culture, it made Haier refleash on the stage. As a result of focus on creativity, Haier produced more than 200 types including 13 areas. Now, Haier build more than 29 factory and 8 research centre. In 2008,Haier was appraised as the first brand of Chinese consumer electronics industry. Haier brand topped the top two consecutive years, reflect the Haiers international influence. (Jeannie Jinsheng Yi,Shawn Xian Ye, 2003)How can the organizational culture undermine decisionmakingOn the other hand, an organi zational culture not only can benefits a lot for a organization but also destroy an organization. Motorola, one of three world communion leaders, it can be recognized as the origin of the mobile phone and telecommunication. Almost all the modern communication technologies can refer to the contributions of Motorola, and Motorola had the largest share of market. But in recent years, the sale performance of Motorola keeps dropping, and the lack of creative lead to the product is repetitive and no vantage when compared with other same kind of products from other company. In an interview of Business Weekly, the CEO of Motorola-Greg Brow summarized the reasons. He saidAmong the departments of lack of a free flux communication. We need to quickly and no filtering the level of free flow of information flow, rather than information is divided into different levels. We should be in technology and products trends as soon as possible to face reality.Successful enterprise could hear sounds fro m both within and outside the enterprise. They are not only depending on technical level, level or search process, but different opinions, and seeking and user most close to the practical needs. They zhongsheng in observing the whole to the developing tendency of the market continuously, and examine the enterprise internal execution and resilience.(Business Weekly ,2009) From the interview, it is not hard to see the organizational culture made the negative effect on the decision making which lead Motrorla went downhill. The overconfidence and wrong forces on the requirement of customer results the share of market decreased from 100% to 4% in 1995 ,and in 1998, the Nokia announce they has become the biggest electric communication company in the world.The three examples of how the organizational culture affect on the decision making, all showed the organizational culture plays an important role in decision making.The managers should adjust the decision to blend in the organizational culture or make decision according to the organizational culture, only this way can make the decision work out more successfully and efficiently.ConclusionIn this essay, it is not hard to understand the organizational culture is so important that it can influence the development of the company in the future. An organizational culture can be strong or weak, a weak organizational culture makes the cohesive force low in enterprises, and a strong organizational culture makes more influence than a weak organizational culture, but that does not mean the organizational culture is more stronger is better.The organizational culture affects the decision making in two ways, one way is the organizational culture influences the atmosphere in the organization or encourage the staffs and direct them how to achieve the goals. Another way is to establish the regulations, it may make employees act more carefully in the organization, but it also limits the vision of employees to make right decision.