How Organisations Manage Their Culture Strategically Essay

Recent reviews of the relationship of systemal acculturation to Strategic piece Resource Management (SHRM) suggest that elaboration plays a significant constituent in strategy writ of execution for sustaining competitive advantage and contributing to potent performance (Dyer & angstrom unit Ericksen, 2005 Roberts & angstrom unit Hirsch, 2005 Roehling et al. , 2005). A search of the literature reveals lone(prenominal) two empirical studies examining organizational culture from an SHRM perspective.The first con was a small SHRM analysis examining the relationship between organisational culture and HR practices. An international study was conducted using Hofestedes model to examine each participating unc emergehs cultural characteristics at a national level. The findings from this study showed place upright for a stronger relationship between HR and upcountry communication practices and a weaker association with rewards (Papalexandris & Panayotopoulou, 2004).A second st udy of companies in Asia utilize a contingency approach to examine the effect of culture and HR on firm performance. A content analysis of public documents was carried out to assess cultural value for each organisation. The findings suggested that organisations with elite or attracter value profiles with a complementary HR system achieved melloweder financial performance (Chew & Basu, 2005).Although both studies had a number of limitations, both as well as pass ond preliminary empirical support for examining organisational culture as an important cypher in SHRM research. From the practical viewpoint, different organisations while implementing their strategic vision of organisational culture pursue different strategic HRM objectives to bring on trusting environment highlighted by cooperation and openness, to gain new market sh atomic number 18 and reaches targets, to achieve operational efficiency, to nerve for new opportunities and welcomes new challenges, etc.The appro ximately prevalent and cited quantitative approaches to strategic assessment and management of culture in organisations ar Hofstedes (1983) human beings dimensions model, Kets de Vries five dysfunctional types model (DeVries & Miller, 1986) and Cameron and Quinns (2006) competing value manakin (CVF). From both practical and critical perspective, managerial literature has relied heavily on the competing determine frame turn, which as a result, has been empirically validated (Cameron & Quinn, 2006 Kwan & Walker, 2004).CVF has also been tested in various ways in the HR literature using both quantitative (Prajogo & McDermott, 2005) and soft (Boggs, 2004) approaches, such as in studies showing that certain culture values are positively associated with HR outcomes including organisational commitment, crinkle involvement and empowerment, and employee outcomes including job contentment (Goodman, Zammuto, & Gifford, 2001), operational practices (TQM) and productivity outcomes. Cameron and Quinns (2006) competing values framework offers the most compatible practical framework for organisations for several reasons.First, CVF links to strategy implementation and resource-based view (RBV) through the integration of both values and dimensions in the model. The values framework allows for an assessment of organisations based on competing dimensions, which draw out the characteristics of organisational cultures. Second, it provides a level of assessment that tie to RBVs social complexity of managerial style and leadership, along with its ferocity on organisational capital (i. e. , organisational administration and coordination).Third, the framework has been empirically tested and shown to be valid (Cameron & Quinn, 2006 Igo & Skitmore, 2006 Kwan & Walker, 2004). Fourth, the framework is measured using the Organisational Cultural Assessment Instrument (OCAI), which assesses an organisations boilers suit cultural profile through a self-reporte d subject area method. The survey is easily transferable to a format that respondents can witness and respond to. The competing values framework differentiates organisational cultures on the basis of four culture types.Using the Organisational Cultural Assessment Instrument (OCAI), an organisations overall cultural profile and dominant characteristics can be assessed through a self-reported survey. The model considers two sets of competing values. The first set represents the contrast between the breaker point of control an organisation exercises on the one hand and the degree of flexibleness it offers on the other. In other words, where one dimension shapes the values for organisations that provide a flexible environment with discretion, the other dimension shapes values near a controlled environment with stability.The second set of competing values is represented by the contrast between the degrees to which an organisation has an internal versus an external focus. Organisation s that value an internal focus are interested in the ways in which the organisation integrates and operates internally, whereas organisations with an external focus are more interested in examining and responding to the forces outside. These competing dimensions administer as the basis to develop characteristics that shape four organisational culture types, which are measured by the OCAI.Each of these four main culture types has remarkable distinguishing characteristics. Studies using this approach to examine organisational culture have revealed that a follow often has one dominant culture type but demonstrates change degrees of each of the other types (Goodman et al. , 2001 Kwan & Walker, 2004 Prajogo & McDermott, 2005). The four organisational culture types are briefly described below. Clan social environment in which employees work well together in teams. Leaders focus on mentoring employees and facilitating grouping problem-solving. A strong emphasis on ooperation and openness is evident, highlighted by a concern for people and clients. High levels of employee loyalty are often prove in clan-dominant cultures.Market results-oriented approach emphasizing growing the market and customer base. Leaders are hard driving and competitive with a high demand for achievement. Emphasis is on being a market leader, which is move through goal orientation. Hierarchy environment with a strong emphasis on rules and processes. Leaders in such environments are typically peachy coordinators and organisers. The focus of this culture ype is to develop a stable environment with job security and conformity to rules by employees. Dependability and efficiency are spot to its success. Adhocracy innovative, creative environment that encourages risk-taking. Leaders in this culture type are entrepreneurial and encourage others to take risks and innovate. Employees motivated by challenges and new opportunities to create products and services are drawn to adhocracy-domina nt cultures. Organisations depending on their existing or capableness organisational culture type can employ specific organisational methods to achieve their objectives.