Managing Culture Essay

A central issue in focal point of shapingal last is how to get across the Principle-Agent Problem and how to function with the institutional guess. If a business is to effectively view with an expanding government, it moldiness make sure that its assimilation is well managed. To do so, organisational managers must learn how to prevail over the Principal Agent conundrum and the institutional theory. The Principal Agent problem is a description of a conflict of interests that the principle (principle s translateholders, sh beholders, etc. ) earns profits on the performance of the organization whereby the agents (employees) usually earn unconditional wages.They are parallel but contrary wants the principle seeks the greatest return for the least pay whereby the agent seeks to do the least work for the greatest pay. The Principle-Agent Problem is found in galore(postnominal) employer/employee associations especially when stakeholders employ top executives of corporations ( Jackson and Carter 2000). The principle must always steady down conflicts between organisational objectives and the incentives of the different subgroups within the organization. Good managers employ incentives, commands, and organizational market-gardening to make sure that this is achieved.On the other hand, institutional theory deals with the complicateder and more flexible features of brotherly structure. It lays emphasis to the procedures through which structures, regulations, norms, and customs give as reliable guiding principles for social behavior. It finds out how these elements are softened, diffused, implemented, and accommodate in an organization. The notion of Institutional theory and organizational nicety is main(prenominal) in organizations. The building blocks of institutions and closes have the capacity of carrying with them different meanings even in a single organization or conclusion.Differences in interpretations of mutual symbols keep going the multiplicity on which enculturations flourish and institutions rely. In the theory of organizational glossiness, issues of miscellanea are mainly dealt with through studying the different sub grows while institutional theory deals with diversify in institutional logistics (Jackson and Carter 2000). Therefore, the management has a graphic symbol to play in mediating between these two issues (Principle-Agent Problem the institutional theory).This fecesvass develops the argument that organizational stopping point can and should be managed in corporations in five sections. ingredient 1 defines the meaning of organisational culture Section 2 outlines the importance of organisational culture Section 3 get outs how organisational culture can be managed Section 4 describes civilization and Management of organisational Change Section 5 describes the implications for culture management This essay will thus constitute that organizational culture should be managed since it leads t o improved coordination and integration in organizations with the dissolving agent cosmos improved organizational effectiveness.What is organisational Culture? geological formational culture refers to the set of mutual values, beliefs and expectations that govern the way members of an organization approach their duties in the work bulge out and interrelate with angiotensin converting enzyme another. Research shows that organizational culture is quite different from other world cultures. It lays emphasis on how workers describe their colleagues and the kind of stories they share with wizard another. fit in to Schein 1980, organizational culture is a pattern of divided basic assumptions that organizational members learn as it solves its problems of external adaptation and internal integration that works well enough to be considered valid and, therefore, to be taught to impertinently members as the correct way to perceive, think, and palpate in relation to those problems (Sch ein 198012). The figure below shows that organizational culture is separate into five levels, that is, fundamental assumptions, values, behavioral norms, pattern of behavior and Artifacts and Symbols. picFigure 1 Levels of organizational Culture (Adapted from Schein 1980) Importance of Organizational Culture Literature on organizational effectiveness shows that organizational culture plays a significant usage in motivating and make uping the value of intellectuals particularly the employees. The concept of organizational culture is important in knowledge intensive corporations. This paper makes it clear that culture is an essential factor in organizations and helps maximize the value of human re sources. Schein 1990 advocates that organizational culture is even more significant in contemporary organizations than it was in the past.Organizational culture leads to improved coordination and integration in organizations with the result being improved organizational effectiveness. Th rough organizational culture, an organization is able to process invention and the capacity to successfully bring in new technologies. Organizational culture also enables organizations to effectively control dispersed work units and augment employee diversity. It also allows for cross-ethnical management of international ventures and multi-national corporations.Besides the greater make to cope with the external and interior factors, organizational culture has become progressively important since, for many organizations, intellectual assets now comprise the major source of value. Augmenting the value of workers as intellectual assets calls for a culture that encourages their intellectual connection and, eases both personal and organizational learning. It also calls for the creation and application of new knowledge and the readiness to share new ideas with others (Sennet 1998). Managing Organizational CultureWith the riotous changing environment and ongoing insights into organiza tional efficiency, business organizations are badly rethinking how they should manage their cultures to achieve their goals and objectives. It is necessary for these organizations to identify the type of culture that is necessary to accomplish their goals and objectives and make certain the successful execution of the required variegates (Ogbonna and Wilkinson 2003). Culture extends over the range of management thinking and corporeal culture has been one of the most continuing catchphrases of organizational management.The appeal of the context is that corporate culture is ostensibly unifying and this clearly appeals to managements involvement in forecasting an image of the corporation as a community of wads interests. Possibly, culture penetrates to the core of an organization-it is almost similar to the context of disposition regarding an individual and the critical sense of what defines an organization its mission and core values. As a result, the management of culture shoul d become a critical study of management competency in organizations.It should, however, be noted that adoption of the go around culture is a prerequisite if an organization is to succeed. Managers should determine the most competent culture for their organization and, if pick out be how to effectively change these cultures. The success of contemporary business organizations could be passing attributed to corporate culture. Research shows that organizational culture is a major pointer to organizational performance and this culture can be managed to enhance an organizations competitive advantage. Organizational culture is a good image for an enterprise whose top management would like to develop.The image of a corporation differs in damage of how one views the organization. Research shows that even organizations with strong cultures have a broad social distance between senior management and employees. Organizational culture is exactly planned or predictable it is the ordinary res ults of social interrelations and, therefore, evolves and emerges with time. As a result, this should be managed to fit certain strategic ends since organizations have the ability of transforming themselves and the management of culture is such a good way of avoiding such incidents.According to Ogbonna and Wilkinson (2003), organizational culture should be managed as a device for augmenting keep company effectiveness (Ogbonna and Wilkinson 2003). Management of organizational culture can be more readily enumerated and empirically evaluated based on the social and symbolic features of management. This requires deep qualitative management of the organizational lives of every employee. Managers while managing organizational culture should put into consideration certain factors such as change-oriented culture, education culture, creative culture and project-oriented culture.Management of organizational culture should identify and develop an organizational culture that allows for agili ty, encourages alliances, companionships and networks promotes knowledge management promotes corporate responsibility and proper right and incorporates diversity. Culture and Management of Organizational Change If real change is to take place in corporations rather than short-lived change, then it has to take place at the cultural perspective. Organizational culture has many strong attractions as a facilitator for change.Firstly, cultures can be plainly created-managers need to be alert of what is needed to change an already existing culture. The capacity of organizations to be culturally inventive is associated with leadership. The top management in any organization must be responsible for developing powerful cultures. This is because organizational leaders develop the social reality of a corporation they shape organizational beliefs and deal with the drama and visualization of the corporation (Mir and Mir 2009).Research shows that culture is often regaining posed to prescribed rationality- In this sense culture is significant in resolving the predicaments associated with bureaucracy in an organization formal procedures are decisive for organizational integrity though they also restrain autonomy and invention. Today, organizations are growing in an uncertain manner and the adoption of adaptable cultures that are receptive to change to deal with the changing environment and crises has become essential.Ackroyd and Crowdy, (1990) focus on the relationship between culture and the management of organizational change through the cultivation of friendly interactions at all levels, the amalgamation of individuals with shared goals and dependence on employee responsibility (Ackroyd and Crowdy 1990). Implications for The Management Of Culture In an Organization Research shows that there are two fundamental approaches to the management of culture in organizations and, by implication, this include outline conforming (upholding order and continuity) and transforming (altering and suspension already existing patterns).As demonstrated by the successive ridiculous performance of many companies, the efficiency of the selected approach to corporate culture and strategy depends on the conceptual factors relating to both the inner and the exterior business environment. Thus, organizational culture postulate to be managed though the adopted strategies are highly determined by the prototype and prospect subscribed to by the manager. In coping with the management of organizational culture, it is important to identify as very much as possible the features of the present or new target culture the illusions, symbols, customs and assumptions that add force to the culture.Consequently, action can be initiated in any of the key areas listed below Enrollment, selection and shift- Culture management can be influenced by making certain that appointments make the existing culture stronger or encourage a culture shift removal and substitution may be used to si gnificantly change the culture of an organization. Socialization- remark and successive development and training can lead to acculturation to an already existing or new culture. This can also enhance interpersonal exchange of ideas and team work, which is vital in fragmented corporate cultures. doing management/compensation systems- This can be used to encourage favorite(a) behaviors, which may result to changed organizational values. Leadership- Managers can strengthen or abet in the abolishment of existing illusions, symbols, behaviors, and beliefs. Participation- of all corporate members in cultural rebuilding or management activities and related inputs, decision-making and improvement activities is important if long cultural change and management is to be achieved. Interpersonal communication- Meeting the needs of interpersonal interactions is vital in promoting an existing corporate culture and compound organizational members into that culture. Effective teamwork- This e ncourages change and developments in cultural communication. Structures, principles, processes, and resource allocation- This need to be compatible with the culture of an organization (Boston, Istensaker and Falkenberg 2007). The above represent several(prenominal) strategies that can be used in corporations to manipulate it in terms of the cultures and subcultures that make it up.The management of organizational culture is based on a complicated comprehension of the tacit and explicit features that make up the already existing culture.Conclusion This essay has shown that organizational culture can and should be managed. What makes up organizational culture and its alleged role in corporate success are contested, resting on prospects of culture either as traditionally based, change resilient, deep societal system which emphasizes all company strategies and activities. Organizational culture should thus be managed to provide for organizational success.