Managing Organization Cultural Essay Example

of Commerce Bank and Wal-Mart. Although not a big bank, Commerce Bank achieved rapid growth quickly. Conversely, Wal-Mart began as a single store in Arkansas in 1962 but had exceptional expansion during the 1970s and eventually became a publicly traded company. A particular focus will be placed on investigating why Wal-Mart exited the German market.

Wal-Mart, founded in the 1980s, revolutionized the retail industry by launching its first supercenter. This innovative concept combined a supermarket with general merchandise and introduced computerized point of sale systems to enhance checkout efficiency and accuracy. By 1990, Wal-Mart had become America's leading retailer. In subsequent years, they expanded globally, entering the German market in 1997 and acquiring ASDA in 1999 to enter the UK market. In the early 2000s, Wal-Mart focused on providing a seamless shopping experience across various platforms - online, in-store, and on mobile devices (www.corporate.walmart.com).

Commerce Bank has a rich history dating back to its establishment in 1865 as National Bank of Commerce. It gained prominence as the largest bank west of Chicago by 1890. Notable milestones include introducing the first nationwide round-the-clock transit department in 1928 and establishing an extensive International Department during the 1960s. In a groundbreaking move for banking services, Commerce Bank launched Special Connections in 1984 - offering a card that integrated credit and ATM features ahead of its time. The bank's exceptional reputation was recognized with Missouri's prestigious "E Star" award in 1989 (www.commercebank.com).

According to Tylor (1871), culture is defined as "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) states that culture

is primarily composed of the symbolic, ideational, and intangible aspects of human societies. Commerce Bancshares was ranked seventh among the top 150 publicly traded bank companies in the 2008 Bank performance Scorecard. (www.commercebank.com)

The interpretation, use, and perception of artifacts, tools, and other tangible cultural elements distinguish one culture from another. Material objects and tangible aspects do not define a culture. Symbols, values, interpretations, and perspectives are what set people apart in modern societies. Members of a culture typically share similar interpretations of symbols, artifacts, and behaviors. Culture is based on the beliefs, values, and assumptions held by its members. It encompasses the knowledge within a society or organization. Organizational culture, for example, refers to the shared system of beliefs held by members that sets the organization apart from others (Schien 1985 and Becka 1982, Cited in Divedi, 1995). There have been various approaches in attempting to define organizational culture.

Culture in organizations encompasses various aspects, including manifestations such as heroes, villains, rituals, myths, and legends. It is a socially constructed phenomenon that arises from interactions, shaping commonly accepted interpretations of situations. Culture is an influential force within an organization and can be observed. It is composed of shared values, beliefs, symbols, and behaviors of its members and unconsciously guides their decisions and actions.

The culture of a company can greatly impact its success. When we enter an organization, we can sense its distinct atmosphere, whether it is dynamic and adaptive or stagnant and resistant to change. This sensation is known as "organizational culture". Culture encompasses the structure, regulations, practices, and values that shape a company. Handy (1985) identified four types of

organizational culture:

The power culture, role culture, task culture, and person culture are various organizational cultures.

The Power Culture emphasizes the importance of individuals and their political awareness, rather than committees. Control is centralized and relies on informal networks of influence, rather than formal procedures.
On the other hand, the Role Culture can be likened to a building with columns and beams, where each has a specific role in maintaining the structure. Individuals within this culture occupy specific roles, but the role persists even if individuals change.

This culture is comparable to Weber's concept of the "ideal-type" bureaucracy. The Task Culture emphasizes efficient task completion and resource utilization to achieve organizational objectives. It is adaptable to change and driven by customer satisfaction. In contrast, the Person Culture places priority on individuals and their needs, with the organization serving them rather than vice versa.

Control mechanisms or hierarchies are extremely difficult to implement and impact the collective. None of the four types can assert their superiority; they are each suitable for different situations. In actual organizations, a blend of cultures is common, and according to Handy, each culture is appropriate for different circumstances and personalities. In both organizations, A firm that explicitly states its culture should demonstrate it through symbols and actions so that expectations can identify and evaluate them.

Wal-Mart underwent a strategy overhaul and became an exceptional company. The key to transforming a good company into an extraordinary one lies in having a strong organizational culture. Wal-Mart's accomplishments have always been attributed to its powerful culture, which experts like Jim Collins describe as having a "cult-like" quality shared by

outstanding companies. Employees at Wal-Mart are affectionately known as "Walmartians," representing the unique culture they follow. This culture enables a company of such scale to maintain its entrepreneurial spirit over time. As we strive to serve our customers, clients, and communities and generate returns for our shareholders, we understand that success is only meaningful when achieved with the right values and methods. Our commitment to this principle is crucial in building public trust and confidence in our company, ensuring long-term success." (Brian T. Moynihan, Chief Executive Officer). Commerce Bank stands out as one of America's top-performing financial institutions recognized for being America's most convenient bank due to its unwavering dedication to astonishing its customers.

They created a joyful environment and stayed dedicated to delivering excellent customer service in their commerce banking activities. Although the company serves multinational corporations, small businesses, and medium-sized businesses, the consumer division is the most profitable. The organizational strategy highlights envisioning an organization's future, delivering value to customers, and maintaining a strong market position.

Organizational strategy is the conversion of strategic intent into organizational capability, commitment, and performance. One way to implement this strategy is by establishing an appropriate organizational culture. This can be achieved through various means such as slogans, posters, events, memos, videos, and websites. It is crucial for the entire senior team to demonstrate their support for the strategy and exhibit the appropriate behavior. Successful strategy implementation is facilitated by strong cultures, whereas weak cultures hinder it.

A strong culture is characterized by a shared belief in practices, norms, and organizational strategies that motivate employees to effectively implement success-oriented strategies. While Commerce Bank prioritizes customer

satisfaction through exceptional service in its branches, Wal-Mart and other banks may encourage the use of ATMs or limit teller visits as alternative options for customers.

Commerce Bank stands out by providing customers with the option to bank through its ATM’s and website, while also encouraging branch visits. The bank differentiates itself through its emphasis on friendly and attentive service. In contrast, Wal-Mart is renowned for being a successful company, with its strong organizational culture playing a crucial role in its achievements.

They embraced a strong culture in Germany, where individuals act based on their belief in its values. This decision to leave the German market was influenced by the notion that a 'cult-like' culture is characteristic of successful companies, as suggested by experts like Jim Collins. The formation of organizational culture can take place through different methods, typically starting with an individual who has a new business venture idea. The founder then recruits key individuals to form a group that shares a unified vision.

The organization begins the process of creating itself by engaging in collective action, which includes incorporating others and establishing a shared history. Socialization is how individuals acquire the necessary attitudes, behaviors, and knowledge to become successful members of the organization. This process can take up to a year and helps new employees adjust, build relationships with colleagues, and understand their role within the organization.

Irrespective of their prior work experience, new employees need to grasp both the technical and social elements of their job and the company in order to effectively adjust to a new environment. The management team will evaluate their own effectiveness as leaders

and the culture of the organization, with the goal of enhancing their individual leadership abilities and aligning their approaches with the long-term strategy of the company.

Organizational behavior in management is a critical aspect that concentrates on the conduct exhibited by individuals within an organization. Managerial behavior plays a pivotal role in strengthening the organizational culture. The intricacy of human behavior and the distinctiveness of each person present difficulties for successful organizations. By aligning tasks, skills, and forming compatible teams, a stimulating atmosphere can be created to manage conflicts and enhance synergy. Consistency is an essential characteristic for dependable companies as it ensures that actions are consistent with words. Failing to fulfill promises can erode credibility and confidence.

Intentionally misleading communications in extreme business circumstances can be repudiated as false advertising. Regardless of individual or corporate culture, words and promises that do not align with actions during the promissory stage are likely to deteriorate after a commitment, contract, or sale. If the words do not match actions prior to the sale, it is reasonable to anticipate ongoing inconsistency after the sale. Buyer beware. How did these two organizations establish their culture?

Wal-Mart is a well-known employer in the United States, recognized for its dedication to customer service and providing affordable, top-notch products. The company prioritizes treating customers with care and meeting their needs, reflecting the values of its founder, Sam Walton. Walton understood the significance of employees in Wal-Mart's success. As a result, Wal-Mart works hard to foster an environment that encourages integrity, respect, open communication, and innovation. Whether it's a temporary job or a lifelong career choice, there are plenty

of opportunities when working at Wal-Mart.

Wal-Mart attempted to develop their culture by implementing a service with a smile approach, even from their bag packer at the end of the band. On the other hand, Commerce Bank achieved their objective by adopting a "wow" culture, aiming to "wow" both their customers and employees. To maintain a playful environment, they organize weekly events such as Red Fridays. During these occasions, they encourage customers and staff to visit branches and have their pictures taken. When opening a new branch, Commerce Bank goes the extra mile by creating an atmosphere with a tent, music, and family-oriented activities in order to amaze the people.