The Origin of Organizational Culture

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Table of Contents

Abstract
Sources of uncertainty and their effects
Mechanistic and organic structure
Origin and Importance of organizational culture
Reference

Abstract

Uncertainty is the state of unpredictability under different circumstances. This paper explains the sources of uncertainty which include unknown business directions and the inability to predict a successful business opportunity, among others. Various sources of uncertainty affect the operations of both small and large firms. Uncertainties are usually accompanied by fear which if not properly managed leads to failure; it also leads to decrease in the levels of confidence. The research paper further examines the differences between mechanistic and organic organizational structures and the circumstances under which a company can employ either of these structures. The origin of organizational culture and the importance of using different organizational culture for example diversity are also explained.

Sources of uncertainty and their effects

Business owners are faced with a number of uncertainties in managing both large and small businesses. The rapid changes in the organization reduce the confidence of managers in meeting the future needs of the business. There is difficulty in determining solid and profitable business requirements; this uncertainty is usually caused by constraints in the process of gathering information and selection of a vibrant business opportunity. The process of implementing products is complex due to the various features of different products (Gareth, 2010). Technicality in the implementation process is also a source of uncertainty. Participation or the presence of the human personnel in an organization is a source of uncertainty to the management process.

Uncertainty can also arise due to inadequate knowledge of the existence of alternative markets and the internal and external conditions of a firm. The time gap between the formulation and making of a decision and the implementation of what was decided also causes uncertainty.

The sources of uncertainty in a business affect its operations. In the case of a small biotechnology business, uncertainty leads to fear and ultimately, failure. It decreases the willingness by business owners to expand their businesses. It also leads to reduction in business activity. Uncertainties in the business environment lead to contraction of business credit, thereby lowering consumer confidence in different products. In order to survive in the automobile industry, large car manufacturers have to cushion against possible collapse as a result of the uncertainties in the environment. The federal government has put in place certain policies that allow car manufacturers to access liquidity.

Uncertainty can also lead to competition but the small businesses cannot shape the rules because they do not have enough resources. The management of the external environment is crucial in the success of any business whether small or big. It therefore implies that the management of the degree in which environment is changing, the availability and utilization of resources and the management of business continuity will ensure successful business operations.

Mechanistic and organic structure

The structure of an organization is very important to an organization because it links the actions of separate individuals and encourages the formal channeling of information. A company uses a mechanistic structure when there is the need to decentralize and formalize structures (Gareth, 2010). The structure also finds use when the operations of the organization require high levels of efficiency. An organization therefore prefers the use of mechanistic structures as a way of minimizing costs. It is also applicable when there is need to make employee operations more predictable and consistent because all employees have a similar procedure of solving a problem. Mechanistic structure is the decision making process in an organization, usually reserved for top management. Organic structures are preferred when the operations of the company are flexible, decentralized and involve low levels of formalization. The communication process is flexible and the employees are allowed to respond to different problems based on their expertise and organization’s needs. This therefore implies that employee inventiveness is encouraged. The decisions about the operations and the communication process are made at higher levels to minimize costs involved in the decision-making process.

Origin and Importance of organizational culture

Organizational culture refers to a pattern of shared assumptions that have worked well in solving problems in the past and are therefore considered valid. It began in the 1930s. The first attempt to use systematic organizational culture was at the Western Electric Company. By then its applications was primitive until the economic conditions in the 1970s led to heightened international competition. Organizational conduct and positive attitude leads to advanced performance. The culture of an organization depends on the social environment and on the history of the company. It also affects the structure, practices and policies that hold the leadership in place to enable it enable individual and group recital (Gareth, 2010).

Different organizations have different cultures and this enhances diversity. The different heterogeneous groups help in identifying goals and objectives that can be mutually achieved through cooperation of the different cultures. For diversity to be beneficial, the recognition of individual and group differences is encouraged. Most organizations have different cultures because this creates effective working relationships among the stakeholders who in most cases have mutual interests. Diversity helps in realizing mistakes previously made.

Reference

Gareth, R, J. (2010). Organizational Theory, Design and Change. 6th Edition.

Saddle River, NJ: Pearson Prentice Hall Publishing Co., 2010.

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The Origin of Organizational Culture

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