There is a cultural variation with each society, depending on region in which a particular organization located. Organizational culture consist uniquely patterned beliefs, feelings, values and behavior that connect the members to the organization. Every organization has its unique style of working which often contributes to its culture. The beliefs, ideologies and values of an organization from its culture. The culture of workplace control the way employees behave amongst themselves as well as with people outside the organization. A healthy culture encourages the employees to stay motivated and loyal towards the management. * Employees try their level best to perform better than their fellow workers. It is the culture of the workplace which actually motivates the employees to perform. * Every organization must have set guidelines for the employees to the work accordingly. Every individual is clear about its role and responsibilities in the organization and know how to accomplish the tasks ahead of the deadlines. * No two organizations can have the same work culture. It is the culture of an organization which makes it distinct from others.
Certain organizations follow a culture where all the employees irrespective of the designations have to step into the office on time. Such a culture encourages the employees to be punctual which eventually benefits them in the long run. It is the culture of the organization which makes the individuals a successful professional. The whole discussion means that every employee is clear with his roles and responsibilities and strives hard to accomplish the task within the desired time frame as per the set guidelines. Implementation of policies is never a problem in organizations where people follow a set culture.
The new employees also try their best to understand the work culture and make the organization a better place to work. The culture develops a habit in the individuals which makes them successful at workplace. This study will be critically analyzing two organizations one of them world renown retail organization Wal-Mart on the second one is successful bank, Commerce Bank. In late 90 Wal-Mart entered into the German market they were struggling from the day first and were not able to successfully operate into German market and force to exit just six months of their operation.
On the other hand commerce bank was not a very big bank. However, they manage to grow very rapidly in couple of year’s time. This study will be critically analyzing both case studies and will be trying to understand what made commerce bank so successfully and force Wal-Mart to exit from the German market in the context of managing organizational culture. Wal-Mart Since the first Wal-Mart store opened in 1962 in Rogers, Arkansas. In the 1970’s a decade of incredible growth. Wal-Mart became a publicly traded company.
In 1980’s the first Wal-Mart supercenter opened, combining a supermarket with general merchandise. Wal-Mart replaced cash registers with computerized point of sale systems, enabling fast and accurate checkout. By 1990 Wal-Mart was the nation’s number one retailer in America In 1997 it entered in German market. Wal-Mart entered in UK with the acquisition of ASDA in 1999. 2000’s Wal-Mart entered the new millennium dedicated to offering customers a seamless shopping experience, whether they are on line, in a store or on a mobile device. (www. corporate. almart. com) Commerce bank Commerce Bank started in 1865. By 1890, the bank, then named the National Bank of Commerce, was the largest bank west of Chicago. In 1928, the company began the first 24 hour transit department in the country. The 1960’s saw the introduction of the first full-scale International Department and, in 1984, Special Connections, the first card in the market to have the combined features of a credit and ATM card, was introduced. In1989, Commerce was honored to be the only bank in Missouri to receive the Presidential “ E Star” award.
Commerce Bancshares was ranked seventh among the top 150 publicly traded bank companies in 2008 Bank performance Scorecard. (www. commercebank. com) Culture Tylor (1871) said that culture is “ That complex whole which includes knowledge, belief, art, law, morals, custom and any other capabilities and habits acquired by man as a member of society. ” Bank (1989) “ Most social scientists today view culture as consisting primarily of the symbolic, ideational, and intangible aspects of human societies.
The essence of a culture is not its artifacts, tools, or other tangible cultural elements but how the members of the group interpret, use, and perceive them. It is the values, symbols, interpretations, and perspectives that distinguish one people from another in modernized societies; it is not material objects and other tangible aspects of human societies. People within a culture usually interpret the meaning of symbols, artifacts, and behaviors in the same or in similar ways. Culture is rooted in beliefs, values and assumptions held by members. Originally values, beliefs, and codes of practice that makes a community what it is. It refers to the knowledge in an organization or society. Organization culture Organizational culture meaning refers to a system of share held by members that distinguishes the organization from other organization. (Schien 1985 and Becka 1982, Cited in Divedi, 1995). Attempts to define organizational culture have adopted a number of different approaches.
Some focus on manifestations – the heroes and villains, rites, rituals, myths and legends that populate organizations. Culture is also socially constructed and reflects meanings that are constituted in interaction and that form commonly accepted definitions of the situation. While not always easy to capture or define, culture is an observable, powerful force in any organization. Made up of its members’ shared values, beliefs, symbols, and behaviors, culture guides individual decisions and actions at the unconscious level.
As a result, it can have a potent effect on a company’s well being and success Types of culture When we walk into an organization and get a certain ‘ feel’ for it, whether it is fast moving and responsive, or whether it feels old and backward looking, this ‘ feeling’ is referred to ‘ organizational culture’. Culture is about how the organization organizes itself, its rules, procedures and beliefs make up the culture of the company. Handy (1985) has analyzed the different types of organizational culture and offers a four-fold typology:
* The power culture* The role culture* The task culture* The person culture
The Power Culture In this, the organization stresses the role of individuals rather than committees. Individuals are power-oriented and politically aware. Control is exercised at the center and is characterized by informal webs of influence rather than formal procedures. The Role Culture The role culture can be illustrated as a building supported by columns and beams; each column and beam has a specific role to playing keeping up the building; individuals are role occupants but the role continues even if the individuals leaves.
This culture shares a number of factors in common with Weber’s description of the “ ideal-type” bureaucracy. The Task Culture This is job-oriented and is concerned with getting the job done. It is concerned with utilizing resources to meet the organization’s objectives and is characterized by the requirement of efficiency. The culture adapts itself to change and is driven by the need to provide goods and services for the customer. The Person Culture The individual is at the heart of this organization and this culture, according to Handy, is not often found. The organization serves the individual rather than the other way round.
Control mechanisms or hierarchies are virtually impossible and influence the shared. None of the four types can claim to be better or superior; they are each suited to different types of circumstances. Most real-life organizations tend to involve a mixture of cultures, and in Handy’s view each is suited to different types of circumstances, including different types of personalities. Culture in both organizations A firm that is explicitly stating its culture should be able to represent them through symbols and actions in order for expectations to recognize them and include in evaluation process.
Wal-Mart overhauled its strategy. Wal-Mart is truly a great company. A strong organizational culture is the foundation for making a good company a great one. The secret to Wal-Mart’s success has long been attributed to its strong culture. Analysts like Jim Collins believe that Wal-Mart had the kind of ‘ cult-like’ culture that is shared by all great companies. Wal-Mart employees are referred to as ‘ Walmartians’ which is a sign of a unique culture shared by them. This culture is responsible for a company of this magnitude to be able to sustain its entrepreneurial spirit decade after decade. As we work to serve our customers, clients, and communities, and generate returns for our shareholders, we understand that success is only meaningful when it is achieved the right way, with the right values. Our commitment to this principle is the key to sustaining public trust and confidence in our company, and the key to our long-term success”. (BrianT. Moynihan Chief Executive Officer). Commerce Bank is one of America’s best-performing financial institutions. It is also America’s most convenient bank, with a fanatical commitment to “ wowing” its customers.
They created a playful culture and maintained commerce bank obsession with customer service. The firm provide corporations as well as small and medium-sized businesses, but the most profitable part banking and asset management services to many large multinational of the company is its consumer division. Organizational strategy and the importance of the culture in successful implementations the strategy Organizational strategy is concerned with envisioning a Future of organizations, creating value in the eyes of your customers and building and sustaining a strong position in the marketplace.
Organizational strategy is the discipline and expertise that converts strategic intent into organizational capability, commitment and performance. A common method of implementation strategy is appropriate organizational culture. This can involve slogans, posters, events, memos, videos, Web sites, etc. A critical success factor is whether the entire senior team appears to buy into the strategy, and models appropriate behavior. Strong cultures promote successful strategy implementation while weak cultures do not.
By strong culture, I mean there is a shared belief in practices, norms and other practices within the organization that helps energize everyone to do their jobs to promote successful strategy implementation. Strategy of Commerce Bank and Wal-Mart The key to Commerce Bank strategy is its branches, which provide the good environment to the customers. They adopted customer oriented strategy. They wanted to “ wow” their customer. Other banks try to facilitate the customers by offering incentives to use ATM’s or by limiting the number of teller visits allowed per month.
But Commerce Bank does just the opposite. While it still gives customers the option of banking through its ATM’s and its award-winning web site (used by 29% of Commerce customers), its staff are trying to lure more customers into the branch. Commerce Bank distinguishes itself with its commitment to friendly and attentive service. Wal-Mart is truly a great company. A strong organizational culture is the foundation for making a good company a great one. The secret to Wal-Mart’s success has long been attributed to its strong culture.
They adopted strong culture in German. When culture is strong, people do things because they believe it is the things to do. That’s why they exit from the German market. Analysts like Jim Collins believe that Wal-Mart had the kind of ‘ cult-like’ culture that is shared by all great companies. Development of culture How it starts Organizational cultures can develop in a number of different ways. A person has an idea for a new enterprise. The founder brings in one or more other key people and creates group that shares a common vision with the founder.
It begins to act in the concert to create an organization. Get others into the organization and a common history starts building. Socialization process Socialization is broadly defined as “ a process in which an individual acquires the attitudes, behaviors and knowledge needed to successfully participate as an organizational member. ” Socialization is an ongoing process that sometimes lasts for a year. It represents a sense-making process that helps new hires adapt, form work relationships and find their place in the organization.
Regardless of the years of work experience that new employees have, knowing the technical and social aspects specific to the job and the company is essential to function in a new environment. Alignment of individual behavior with organizational culture The management team will go through a leadership effectiveness self-assessment as well as an organization culture assessment, to be better prepared to address their continued individual leadership development as well as options for better aligning leadership approaches to the culture and to organization’s long term strategy.
It is one of the key areas in the field of management. Organizational behavior of individuals but is restricted to the behavior displayed by them in the organization. Importance of managerial behavior in reinforcing of organizational culture Human behavior is complex and every individual is different from another, the challenge of an effective organization is in successful matching the task, then determined the required skills and assemble a team that complement each other skills; thereby creating an enriching and conflict differences in individual ehaviors and use them appropriately increase the synergy. Dealing with messages inconsistent with organizational culture One of the most important character traits of a reliable company is consistency. As with an individual, one measure of corporate consistency is to “ practice what you preach”, which means simply that actions are consistent with words. If a person says one thing, and does another, then it becomes rather difficult to believe anything that the person has to say. Failing to deliver on promises can undermine credibility and confidence.
In extreme circumstances for business, intentionally misleading communications can be repudiated as false advertising. Regardless of the circumstances, individual or corporate culture, words and promises that are not consistent with actions during the promissory stage are very likely to deteriorate after a commitment, contract, or sale. If the words are not consistent with actions before the sale, it is reasonable to suspect consistent inconsistency after the sale. Let the buyer beware. How did these two organizations manage to develop their culture?
Wal-Mart is one of the largest private employers in the United States. Wal-Mart prides itself on excellent customer service and on providing quality products at fair prices. Part of Wal-Mart’s philosophy is to treat their customers well and give them what they want. As Sam Walton said, “ Our people make the difference. ” We’ve worked hard to build an environment that emphasizes integrity, respect, open communication and innovation. Whether it’s a part-time job or the career of a lifetime, working at Wal-Mart means opportunity.
Wal-Mart tried to develop their culture, service with smile from the bag packer at the end of the band. Commerce Bank achieves their goal through their culture. They adopt “ wow” culture. They want to “ wow” their customers. Commerce employees are trying to wow customers, the company trying to wow its staff. Weekly events like Red Fridays keep the bank playful. On “ red Friday” visit branches and take photos of staffers and customers. People love getting their pictures. Opening on new branch they create atmosphere, with a tent, music, family-oriented activities to wow the people.
