The Role of Organizational Culture on Strategic Management

The organizational culture is the basis of the Strategic Management, Strategic management is to determine its mission, according to the external environment and internal conditions to set the strategic objectives of the enterprise, in order to ensure the correct implementation of the goals and progress plan, and rely on internal capabilities implemented this kind of planning and decision-making, constraints in the implementation process of a dynamic management process. The organizational culture is the value orientation of the enterprise for a variety of internal and external affairs and resources, enterprises in the long-term organizational values, under the guidance of shared values, guiding principles and select corporate behavior. Excellent organizational culture is an important condition for business strategy development and success. It can highlight the characteristics of enterprises, the formation of the common values of the members of the enterprise, also because of its distinctive personality, more conducive to enterprise to develop a distinctive strategy of defeating the enemy. Strategy formulation process of collective behavior, establish above the values and beliefs of the organization members. Based on the wishes of the members of organization, the guidance from particular culture, to develop corporate strategy around the organizational culture. Therefore, the organizational culture is the basis of corporate strategic planning, development and implementation.

In order to maintain the organizational culture and strategic management of mutual synergy, the need for a comprehensive understanding of the positive and negative effect on the strategic management of cultural enterprises to analysis out how to change the organizational strategy culture.

The positive role of the organizational culture on strategic management

Corporate mission and values are important factors for an enterprise culture, so that employees can identify with the organization’s business philosophy and creed.

The formulation of corporate strategy is bound to affected by a mission. The corporate mission defines the scope and level of the enterprises operating in the field of socio-economic activities, represents the corporate identity and role in the socio-economic activities.

The core corporate values of the organizational culture guide the enterprises own strategy development to built on the basis of the values required of following the market and the enterprise’s own progress. When employees were able to agree with the company’s values, you would think that the efforts they made for the enterprise role, valuable sense of collective identity value will give employees greater satisfaction, and this sense of satisfaction in turn will more promote the dedication of the staff of the enterprise.

Culture played a stable role of organization in corporate strategy design, implementation. It guides and shapes the attitude and behavior of employees, make the employees to accept corporate norms and canonical role of restraint mechanisms, and the guidance play the role of restraint mechanisms to encourage their employees to achieve the behavior that enterprises expect. In the perspective of time corporate strategic constraints can be divided into prior constraints, afterwards constraints and any time constraints. Prior constraints requires to design a good valid strategic plan before the implementation of the it, however, it must be designed harmony with the organizational culture, if there is the deviation between the two, the organizational culture will play its regulatory role for the prior constraints goes smoothly. Organizational culture play its strategic constraints is more significantly embodied in the adjustment of afterwards constraints. It is based on the spirit of enterprise, to fully exploit the employees of self-restraint and self-regulation, use of a humane way to adjust, thus it can greatly reducing friction and communication costs of personnel in the process of implementation of the strategy, in order to promote the implementation of the strategy within the enterprise.

Organizational culture as a driving force of the strategy and continuously improve business performance, profitability and productivity, it become a powerful internal driving force. Culture enables members to understand the historical tradition and the present approach to business, provided to the staff a reasonable explanation for the events of the past of the enterprise, thus to facilitate the employees to understand their proper representation in the future in the similar incidents. This kind of non-institutional factors will enable more humane management to constrain the opportunistic behavior of managers and employees, thus promoting the effective implementation of the corporate strategy.

The negative role of the organizational culture on strategic management

Due to cultural difference between the various levels of the organization, when the overall strategy reached out the various departments, they have varying degrees of conflict and contradiction, the contradiction of this conflict will reduce the degree of integration of the entire department and hinder the corporate strategy implementation. However, due to the enterprise implement this kind of division of work, it will lead to a split and the formation of the sub-culture of organizational culture. Strategic management of the enterprise is to unify to form a unified concept of progress of the internal culture, it needs to coordinate the various departments grading, but this requires enterprises to pay the considerable cost, but also need to do ideological adjustment for the department have a propensity of conflict.

The existing organizational culture has been difficult to adapt to the progress of modern society and the enterprise. In order to adapt better to the external environment, to implement the new strategy, many enterprises began to change the organizational culture that are existing. The original culture has been deeply rooted within the enterprise, with the sudden shift, there will be great progress resistance.

People employed in the enterprise have the different cultural background, there is a significant difference between them. The companies believe that this can boost the organization to achieve enterprise multifaceted progress. Employees bear a strong organizational culture will naturally accept this culture, behavior consistent with its own characteristics will not be reflected in order to lead to the formation of a single environmental systems, lack of constructive sounds and opinion, the employees will not spend more time to update and improve the internal management of the enterprise, no innovative force at all.

Take Apple Inc. as the example, first, the business guiding ideology inadaptability lead to strategic mistakes. Apple does not like to hear someone accusations that he is wrong, and hope that regardless of their own employees, or the hot suitors of the outside world can stand together with his firmly. With the culture of “to go it alone” will inevitably lead to the company’s operating guiding ideology to a product-oriented, which leads the direction of the company and the market demand is difficult to coordinate. Secondly, lack of coordination within the organization, and inconsistent. Leadership is one thing to develop workflow and truthfully feedback process of the team is another matter entirely. Former Apple designer Andrew Poirot Minkowski, said: “from the design, each of the underlying designers is extremely difficult to get direct feedback from the executives. Typically, if you are not receiving a positive reply, then it is told you to stop doing stupid things. ” Third, over-reliance on individual heroes, serious personality cult. Apple has a unique program, that is to cultivate a person – whether he is competent, supervisor, or a common staff – on behalf of Steve Jobs eligibility. Steve Jobs is a dictator of the company, all of the key decision-making – as well as a lot of seemingly inconsequential decisions – are made by him. These decisions include how to design the route of shuttle for employees in San Francisco city, what kind of food served in cafeteria. However, as Jobs can insight into the company’s all move, he has not see if he is not sitting in the CEO’chair, the situation will be very different.

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