Organizational Culture and Managerial Decisions

Introduction Culture refers to beliefs, values, and code of behavior upheld by a community that distinguishes that community from other communities. Organizational culture therefore refers to values, norms, principles, assumptions and patterns of behavior that distinguish one organization from another one.Advertising We will write a custom research paper sample on Effects of Organizational Culture on Managerial Decisions specifically for you for only $16.05 $11/page Learn More Understanding different cultures and their influence on business performance is very important. Management on the other hand refers to the process of managing people in order to accomplish set goals and objectives using available resources in an efficient and effective manner. Management tasks involve planning, organizing, staffing, directing and controlling (Connolly, 2008). This essay explains the effects of organizational culture on managerial decisions and how culture can influ ence managers to make decisions. Effects of Organization Culture on Managerial Decision The effect that organizational culture has on managerial decisions depends on whether the organization has a strong or a weak culture. Organizational culture determines the decision making process as well as decision making speed. Some cultures permit all employees to participate in the decision making process. Other cultures only allow the management to make decisions. Those organizations that allow all employees to participate in decision making process, might take long to make decisions due to the lengthy process. However, such decisions are likely to be effective since they incorporate different ideas from different people (Connolly, 2008). Organizational culture determines the kind of employees that an organization will hire. The culture that exists determines who should be hired by the organization. Clear guidelines are written down to specify qualifications required for a specific job. Goo d criteria exist for recruitment, selection, promotion, lying off as well as retirement. In this case, the management has to comply with the criteria (Robbins, 2003). Organizational culture determines the level of formalization. Formalization in this case means the extent to which written rules and procedures are followed in an organization. Organizational cultures with high degree of formalization make it easy for management to regulate. This is because there is a clear outline of how one is expected to carry himself/herself out, and so the employees strictly follow rules (Robbins, 2003). Organizational culture determines the level of empowerment in an organization. Some cultures allow the low level employees to make decisions on their own whenever necessary as long as the decisions are in line with the set goals and objectives of the organization. This means that, the top management is not the only authority allowed to make decisions but also other lower level employees. However, these decisions have to be approved by the top management (Robbins, 2003).Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Organizational culture may hinder change. A culture that is too rigid may hinder effective implementation of change. This is because employees may not be willing to incorporate new changes due to fears of, for instance, loosing their jobs. This means that the efforts of the top management to implement changes might not be effective (Robbins, 2003). Organizational culture determines the kind of relationship that exists within an organization. When there is good relationship between low level employees and top management or between employees in different departments, then the working place is freed of unnecessary tension creating a good and productive working place in the organization. As a result, the top management decisions will always consider the low level e mployees and consequently there will be motivation and loyalty of all employees in the organization. This means that everyone will work hard towards the achievement of organizational goals and objectives. Influence of Organizational culture on Decision Making Organizational culture may give a manager more room for authoritative style of leadership. A culture that only allows the top management to make decisions will give room for authoritative leadership. This is because it is only the managers who make decisions and so the opinion of other low level employees may not be taken into consideration. The low level employees will have to obey the orders from top management without questioning. This may not be favorable at all. Organizational culture can also influence managers to be role models. In cultures where leaders walk their talk, managers always strive to maintain good conducts. They will reinforce the desired values by the way they act or behave (National Defense University, n.d .). Organizational culture can empower the manager to reward those who excel and punish those who disobey the set rules and regulations of an organization. When a certain culture gives criteria on the behaviors that should be awarded as well as behaviors that should be punished, it becomes an empowerment for the manager to take the right action in accordance with the criteria (National Defense University, n.d.). Conclusion Organizational culture has a big influence on managerial decisions as the culture determines the success of decisions made and their effectiveness. It is therefore important for managers who make everyday decision to understand the culture of an organization and see if the culture helps the organization to achieve its goal. The management should also create a better working environment to enable a good culture.Advertising We will write a custom research paper sample on Effects of Organizational Culture on Managerial Decisions specifically for you fo r only $16.05 $11/page Learn More References Connolly, C. (2008). Organizational Culture. Nei Associates. Retrieved from: http://neiassociates.org/ National Defense University. (n.d.). Strategic leadership and decision making: organizational culture. Air University. Retrieved from: http://www.au.af.mil/au/awc/awcgate/ndu/strat-ldr-dm/pt4ch16.html#top Robbins, S. (2003). Organizational behavior: organizational culture. Slide Share. 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