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Unformatted text preview: How can culture affect an organization’s performance (2007)? (weak answers lacked depth and empirical support – stronger answers emphasized motivational factors and link with performance)- organizational culture; widespread literary growth recently; strategically relevant and source of competitive advantage thus surely must affect performance; whether it is something managed/controlled is another matter; performance will also depend upon other factors (outsourcing, accounting problems; issues outside cultural control); several ways it can affect, most important is comp advantage- Handy (1995); culture “felt and perceived”; culture is difficult to define; Schein (1984) gives blueprint of three main cultures; Handy (1995) four – power/role/task/person. Role culture popular now (Pret, Google) flat power base, friendly, casual- despite ambiguities, Barney (1986) “provide sustained superior performance”; widely accepted. Dispute over the ease of adopting/copying cultures; distinction between what organizations perceive/want culture to be, and what it is, often blurred; can it be controlled or emerges?- Smircich (1973) argued culture can change, managed, copy. Company “has” a culture, rather than is. Counterargument- Meek (1988) culture is not deliberate, and emerges from company. Truth probably somewhere in between. You can use similar cultural aspects (room, workforce, symbols) but never truly achieve duplicate. Simply copying successful cultures will not work. Brown (1994) makes the point that you have culture before you join workforce- if we accept it can affect organizations performance, how can we show this empirically? Hofstedes (1980) research for Danish IBM managers did show that country culture affects organization. But his work only based on handful of people (not necessarily typical) so shouldn’t be overestimated. Problem is whereas it’s easy to measure performance, it’s relatively impossible to measure/define culture.- Barneys (1986) paradox of how it can be a competitive advantage; resource (1991) valuable, rare, imitable, copying would erode sustained superior performance over rivals. Philosophical debate, disputed in real life situations (cultures not perfectly imitable)- cultures certainly affect organizations and many believe they increase productivity of workforce; Ouchi (1981) warned that US firms shouldn’t copy Jap techniques totally, but use as basis. Southwest Airlines example; - Implications? Recent studies stress need for more empirical evidence; new set of definitions/dimensions to capture culture; Van Den Berg (2004) criticises current literature; suggests video techniques etc; make it more convenient to firms- example: recently appointed executive director of Siemans; Peter Loscherfeld; stressed importance of culture in Time 2008 interview; problem with “leadership culture” not “company culture”; no need to change strategy; more transparent/responsible - Motivational factors; culture (friendly based) has strong implications on how power is...
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- Spring '10