Impact of Organizational Culture on Decision-Making

Introduction

The cultural concept is important to manage an organization. It includes various norms, principles, work culture of employees of an organization, and their performance. Culture is not easy to express but the members of an organization realize a particular culture when they come to that sense. Culture has a great impact on the decision-making of an organization. Organizational culture helps in decision-making. It gives suggestions about organizational studies and management. It describes the psychological features, attitudes, beliefs, and certain cultural values of an organization. The organizational culture of a company consists of its interior design, employees’ dress code, their behavior etc. It creates a good atmosphere in the workplace through the interaction among the employees. Employees’ participation helps to attain the goal of the organization. An executive leader plays a significant role in defining organizational culture through his leadership style. Decision-making is usually done by the topmost authorities in an organization. All employees make their own contributions to the organizational culture. IBM is one of the international companies highly concentrating on organizational culture. It has more than 160 branches all over the world. No single organizational culture exists in IBM on a national, cultural, and regional basis; it is associated with all types of cultures. United States is the birthplace of the organizational culture of IBM. It has a foundation all over the world. Innovation and risk-taking of the company led to the success of the organization.

Decision-making in an organization is reliant on its organizational culture. Decision-making has a high impact on an enterprise. The incapability to analyze the organizational culture may lead an organization to failure. Organizational culture influences the executives like managers, researchers, and other groups of executives in an organization.

“Organizational culture is the pattern of basic assumptions that are considered valid and that are taught to new members of the organization as the way to think, perceive, and feel in the organization. This corporate culture is comprised of three levels, each of which has its own distinguishing characteristics and realm. These levels include artifacts, values, and assumptions.” (Organizational culture, n.d., para.1).

Impact of organizational culture on the decision-making in IBM?

IBM was designed to help all other companies of all sizes to provide information in order to take the decision. Decision-making is taken by the topmost authority in IBM.

“Formal statements relating to diversity at IBM can be found as far back as 1953 by the then CEO Thomas J Watson Jnr, who said: “It is the policy of IBM to hire people who have the personality, talent and background necessary to fill a given job, regardless of race, color or creed.” (Cultural diversity, IBM style, 2009, para.3).

What happens when an organization changes its strategy?

Organizational culture as a strategy is the powerful way of attaining competitiveness in an organization. When an organization changes its strategy, it may create difficulties among the employees to keep in touch with the new strategy. Training is needed to the employees to adapt to the new strategies. So, cost and time is very essential. The goal of IBM is to influence the culture in order to achieve high performance. Development of a strategy depends on the support of the managers and opinion of the leaders. To make decision pertaining to strategy, IBM created various advanced sources of values which improve their revenue growth and convert the business into strategic options. High growth and value are the strategy of IBM. “With nearly 3,500 strategy professionals worldwide, IBM Strategy and Change (S&C) is part of IBM Global Business Services, one of the world’s leading management consulting practices.” (Strategy and change, n.d., Why IBM, para.1).

IBM has created a business setting globally. For example, in the business value of the technology IBM “inspire business strategy with technology opportunities and to align business and IT strategy. This includes, for example, business impact assessment of new and emerging technologies, IT strategy development, strategic sourcing, and IT value and investment management.” (IBM strategy and change services- technology strategy, 2004, p.2).

What happen when two organizations with different culture merge?

When two organizations with different culture merge it may lead to conflict among them. It may be due to comparing the benefits enjoyed by an organization with the other. It may also lead to failure of an organization. Culture is pervasive in nature. Difference in culture may make the employees in an organization look the same matter in different ways.

Conclusion

Understanding of culture and work based on it, requires special skill. Understanding of culture leads to the success of an organization. Culture of an organization changes along with its strategy.

Reference

Cultural diversity, IBM style. (2009). Human Resources Leader. Web.

IBM strategy and change services- technology strategy: Extract business value from technology. (2004). IBM Business Consulting services: IBM. 2. Web.

Organizational culture. (n.d.). 2009. Web.

Strategy and change: Why IBM. (n.d.). IBM. 2009. Web.

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NerdyTom. (2021, November 24). Impact of Organizational Culture on Decision-Making. Retrieved from https://nerdytom.com/impact-of-organizational-culture-on-decision-making/

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NerdyTom. 2021. "Impact of Organizational Culture on Decision-Making." November 24, 2021. https://nerdytom.com/impact-of-organizational-culture-on-decision-making/.

References

NerdyTom. (2021) 'Impact of Organizational Culture on Decision-Making'. 24 November.

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