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Thursday, June 18, 2020

Organizational Culture

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An effective organizational culture creates an environment where a company and its people can thrive.Effective cultures have several traits, and they are marked with high levels of employee productivity, creativity and commitment.Dynamic cultures do not emerge by themselves within an organization. They must be actively forged and cultivated to produce the desired results within that organization.There are three essential traits of highly effective organizational cultures.First, there is clarity of vision, mission and values.Second, employees understand their individual roles in attaining the corporate vision.Lastly, there is a strong alignment between employee attitudes, goals and objectives. (Ireland and Hitt)


In thriving cultures, all employees understand what is driving the organization strategically.The employees recognize what the companies priorities are, what its competitive differences are, and how its products and services are positioned within the marketplace versus their competition.Understanding where their company is now, and where the company is heading, helps employees at all levels better deal with their customers, suppliers and business partners.Within Hilti North America, the organizational culture is based on the three principles of the book, Gung Ho.The first of the three principles is Spirit Of The squirrel (Worthwhile work).Second, Way Of The Beaver (In control of achieving the goal).Lastly, Gift Of The Goose (Cheering each other on). (Blanchard and Bowles)


Beyond vision and mission, a strong value system is the foundation of effective cultures.This is where the first principle of the book comes into play.The spirit of the squirrel is founded on these three points.First, knowing we make the world a better place.Second, everyone works toward a shared goal.Lastly, values guide all plans, decisions, and actions. (Blanchard and Bowles)A culture can only be effective if it is consistent with the organization goals and strategy.When employees genuinely embrace the ideals of the organization, they approach their day to day business dealing and relationships productively and positively.


In attaining the visions of the organization, all employees must have a clear understanding of their individual roles and how they impact or contribute to the future success of the company.This is where the second principle of the book comes onto play. It is also founded on three points, which are, first, a playing field with clearly marked territory.Second, thoughts, feelings, needs, and dreams are respected, listened to, and acted upon.Lastly, able but challenged. (Blanchard and Bowles)This section can be summed up in one word, empowerment.Employees in different departments and business units work in harmony to complete the task and to advance the growth and process improvement objectives.By their nature, all corporate functions are linked, but in thriving cultures, they are tightly linked.With empowerment, each individual recognizes how their functions affect others throughout the organization, and they coordinate their efforts accordingly.


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Empowerment gives strength to an organization's culture.It has the concepts of intrinsic motivation, internal justification for decision-making, shared responsibilities, and integration for problem solving. (Kurstedt and Mallak)Again, understanding what is driving the vision of the company helps employees coordinate their individual efforts and energies.


The third principle from the book is the most fun for managers.It allows the managers to catch someone doing something right, instead of catching someone doing something wrong.Like the previous principles, it is founded on three points, first, active or passive congratulations must be TRUE (Timely, Responsive, Unconditional, Enthusiastic).Second, no score, no game, and cheer the progress.Lastly, enthusiasm equals mission time's cash and congratulations.Just like a football game, you do not sit quiet while the team moves the ball down the field, and only cheer when they score.You cheer the progress, the right plays or actions executed which results in the touchdown.


In conclusion, alignment between employee attitudes and strategic goals and objectives is an essential characteristic of thriving cultures.When employees feel that their personal and professional objectives are being advanced in their current positions, they are more likely to have a positive attitude and be productive and loyal.When people do not feel that their current jobs are excelling them closer to their future goals, they become frustrated.With frustration comes the inclination and desire to look elsewhere in the pursuit of their personal and professional goals.


In a sense, the three essential traits are not only descriptive characteristics, as much as they are crucial conditions to foster growth and operational excellence.Clearly, every organizational culture is different.Each one possesses its own defining vision, but one thing is clear.The fact that culture is decidedly people oriented underscores its importance in ensuring the organizations success in the future.


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