Factors set by the Organisational Culture Essay Example

from aggressive importers in the industry - these importers contribute 7.4% to the fabrication sector (NSO 2009). According to company records from 2003, prior to Malta joining the European Union (EU), QPL had two primary customers - the commercial sector accounting for 70% of revenues, followed by the domestic/home user sector representing 30%. Anticipating the removal of import levies after Malta's EU accession in 2004, QPL's management took a proactive approach, strategically responding to the expected increase in cheaper mass-produced furniture (Chircop 2002). To effectively compete with ready-made do-it-yourself furniture, this decision was accompanied by investments in machinery (Chircop 2003).

In the following years, QPL's client base was significantly affected by this strategic outcome. By 2008, 70% of QPL's clients were domestic, which was a clear departure from the client base in previous years. As a result of these changes in the market, carpenters also began purchasing do-it-yourself products without any prior notice.

Theoretical Background: Positions on Schein's Theory

In terms of QPL's size and level of informality, Schein's theory, with its three degrees of cultural manifestations, is highly relevant. Therefore, it is crucial to apply this theory to QPL's culture to a great extent. Schein defines group culture as a collection of shared assumptions that are specifically tailored to solve both internal and external challenges. This approach helps in embedding these assumptions as the accepted standards for new recruits (Schein 2004). Organization culture, in this context, encompasses three distinct levels of manifestations, all of which influence each other.

These include artifacts, espoused beliefs / values and implicit in premises.

Schein's Artifacts Level

Schein describes the artifact level as being essentially composed of tangible points, which

influence one's initial feeling as one enters a new group. In position of the deficiency of apprehension of the implicit in premises, artifacts tend to be difficult to construe. Typical illustrations of artifacts are the physical environment, merchandises, manner (vesture), organizational charts, written/spoken linguistic communication and related engineerings (Schein 2004).

As you step into Quality Postform, you are greeted by the distant sounds of routers and round saws. The entrance features a wide garage door that leads to a vibrant display of kitchen countertops, which cover three walls and create a stunning rainbow effect. Furthermore, the salesroom showcases an extensive selection of colored postform samples. These physical examples demonstrate QPL's dedication to hard work and their objective of offering clients a wide variety of products.

Although the rest of the staff adheres to a formal company-wide dress code, which entails wearing a polo shirt featuring the company logo, safety shoes, and earplugs, there is one exception to this policy. This deviation could be perceived as causing a separation between white-collar and blue-collar workers. Nevertheless, the inclusion of safety shoes and earplugs highlights management's dedication to valuing employees' well-being by ensuring a safe work environment.

The text highlights the organizational structure of QPL, as depicted in

. This demonstrates that QPL primarily operates as a hierarchical administration, capable of delivering personalized products and services on an individual level.

Figure 1

In terms of communication channels, it is worth noting that QPL relies on face-to-face interactions through informal meetings conducted onsite or via the grapevine (Peters and Waterman 1982). The grapevine approach is skillfully utilized by QPL to gauge receptiveness towards innovative ideas. Furthermore, upon closer examination of QPL, there are a

limited number of computers, some low-tech computerized machines, and a non-interactive company website.

The company's hesitation to invest in essential information technologies leads to a cultural perception.

Schein's Concept of Espoused Beliefs and Values

Espoused beliefs and values, according to Schein, refer to the group's ideal vision rather than the current reality. When a leader imposes their own beliefs and values on the group, they establish themselves as the leader and address the group's issues. Once there is social agreement, the leader's personal beliefs become standardized and disseminated within the group.

The described situation exemplifies the environment at QPL, where employees recognize the need to follow regulations and ordinances set by the MD. By adhering to these rules, uncertainty is reduced and employees are able to experience higher levels of dedication and responsibility towards their job. This positive mindset leads to the development of a strong normative commitment, which Caldwell et al (1990) define as the point at which an individual accepts work rules and values as the standard.

All employees must display a certain level of attention and dedication when producing each product, treating it as if it were their own. They are aware that failing to report any defects in production will result in penalties. These values, including accountability and responsibility, are deeply ingrained in QPL's current culture, which replaced the previous "blame culture" (Vince and Broussine 2000). This mindset is passed on to new hires through informal means such as observation and hands-on experience (Anon 2008). As the company's founder, the Managing Director serves as the source of innovative strategic ideas.

First and foremost, the resettlement of the administration and the investing in new machinery can be

included. This further justifies the commonly held perception of being the "hero" of the company (Peters and Waterman 1982). One can include doggedness, dedication, and motivation as foremost among these values. His authoritative personality and active and constructive attitude toward pursuing the company's objectives clearly qualify him as a leader (Zaleznick 1977). Despite joking about being retired at age 63, his tactful level of control and bossy leadership, as defined by Lewin et al (cited in Anon 2008), shows otherwise.

According to observations, it is evident that all important decisions made by the MD require his approval. When analyzing the MD's characteristics using a managerial grid developed by Blake and Mouton (1964), it becomes apparent that he possesses qualities that align with those of an autocratic leader. This type of leader is described as having a "low concern for people and a high concern for the task" (Blake and Mouton cited in Anon 2008). Subjectively speaking, it is widely understood among all employees that the values and beliefs regarding the MD must be accepted and inherited unconditionally by everyone.

The MD's criticism of the evidence of his successful track record is supported by the employees. According to Kotter (1990), the main role of the general director at QPL is to oversee the day-to-day operations. As a result, the GM is fully dedicated to managing complexity. This approach is justified by his preference for low-risk pursuits and his desire to thoroughly evaluate new ideas before implementing them. This approach has fostered a consistent, reliable, and prompt culture at QPL.

Schein 's Basic underlying assumptions level

According to Schein, the subconscious level encompasses the fundamental underlying

premise associated with problem solving. Schein asserts that changes are not enjoyable because they require individuals to move outside their familiar comfort zone. As a result, people often live in denial. Conversely, Condon and Crano (1988) suggest that individuals who share similar beliefs prefer to regularly interact with each other.

In regular fortunes, subsidiaries depend on their superior further up the line for reliable advice when solving professional and/or personal problems. The GM handles unresolved issues that are passed up. The MD is rarely involved, unless there are major issues like significant financial investments or significant changes happening at work. This is the incorrect escalation communication process at QPL. It is similar to what Schein refers to as one's 'mental map.' Any attempt to alter this approach would be seen as unpleasant.

As a fabrication-oriented concern, QPL employees have an expectation that stocks are always readily available for the client. Consequently, they experience feelings of guilt and vulnerability when this assumption is not met. This is because there is no culture of blame among employees, as defined by Vince and Broussine (2000). Another cultural belief within the organization is that all employees must contribute fully to a day's work in a sincere manner. This involves producing high-quality (defect-free) products. Therefore, any form of procrastination is seen as laziness.

However, whenever gross revenues employees are perceived as 'calmly ' conversing to clients about non-related concern affairs, it is assumed and accepted by the direction that they are seeking to bring forth more concern from future possible clients.

Hofstede 's Theory

• Hofstede 's theoretical probe as expounded in a cross cultural survey found in a transnational company, dealt with the
  

designation of four distinguishable features, being:

(Hofstede cited in Anon 2008) Hofstede's theory focuses entirely on international and planetary concern concerns.

There is a strong correlation between the cultural apparatus at QPL and Hofstede's theory. Hofstede classifies Greece, Turkey, and Iran as part of the "Near Eastern" category. Iran shares similar characteristics with QPL to a significant extent, including a high power distance degree, low individuality, high uncertainty avoidance, and a medium level of masculinity (Hofstede cited in Anon 2008). This raises the question of whether these similarities are due to shared geographic and national cultures, influenced by a common Mediterranean background and a strong Arab-oriented heritage.

Malta has the characteristics of Power, Role, Task and Person Culture according to Handy's Theory. The leader in a Power Culture has a strong influence in the entire organization and imposes their personal values to establish dominance.

This is further reinforced by the fact that the MD serves as the exclusive recruiter and disciplinarian, as Handy connects power cultures to typically

small organizations that rely on trust, compassion, and one-on-one communication (Handy cited in Mullins 2007). Additionally, this is characterized by the absence of regulations, procedures, and bureaucracy. At QPL, these findings are supported by the lack of documented strategic plans, including mission statements.

Organizational goals

Goals function as a guiding principle within every business. Particularly short-term goals are always communicated directly by the MD through verbal communication.

These typically include achieving a high volume of work, meeting strict standards. QPL faces significant challenges in this area due to its small size and laid-back approach, as well as the absence of clear certification requirements. This is particularly true for mission statements and strategic plans. However, the effectiveness of these designs in contributing to the success of organizations, such as QPL, is questionable. According to Brown (1998), most strategic plans are merely "buzzwords," with flashy descriptions of future success, often backed by arbitrary goals. Furthermore, Serwer (1994) argues that in situations where leaders have personal communication with staff members, as in the case of QPL, smaller organizations can still thrive. This is also true when there is no formal mission statement or lack of a detailed guiding principle.

The MD's vision for QPL is to improve business performance by offering a wider range of products with superior quality, while operating within a safer and friendlier work environment. The following goals have been identified from the mission statement:

• Increase profitability
• Expand product portfolio
• Manufacture higher-quality products
• Create a safer and more friendly work environment

An interview was conducted with the MD to define these goals. However, it was noted that the goals lacked specificity and a measurable nature. Furthermore, they didn't have a specific time frame, which goes against the concept of S.M.A.R.T. goals introduced by Drucker (1954) in his concept of 'management by aims'.

There are doubts about the company's success, which raises questions about the overall coherence of this logic. This is especially true in today's fiercely competitive and constantly changing markets. According to Larson (1998), when there is no long-term vision and management prefers to make impulsive decisions, especially during turbulent times, the outcome will inevitably be risky. Brown (1998) further supports Larson's viewpoint, stating that not having a strategic plan or having a vague one will directly affect the organization's competitiveness.

According to Serwer (1994), these claims are further justified by the argument that they hinder growth. After analyzing the organizational culture of QPL and its stated goals, as clarified by the MD, it is relevant to determine whether the cultural attributes align with or oppose the company's goals.

Organizational goals - supportive attributes

Considering QPL's moderate level of masculinity, as described by Hofstede as a culture with preferred goals that include material possessions (such as money and personal ambition), one could interpret this characteristic as being in favor of the profit-oriented goal. The tangible signs of hard work, deemed important and leading to the company's ability to offer a wide range of products, can be seen as supporting the goal of increasing the product portfolio. The cultural artifact of a company uniform can be seen as analogous to safety gear, supporting efforts to create a safer work

environment.

The third end, which refers to a higher quality product, can be recognized by deducing its various strengths from cultural properties. These strengths usually involve adherence to regulations and guidelines, reduction of uncertainty, supported by greater levels of commitment and responsibility from the employees. As explained in Schein's expressed beliefs and values, all employees treat each product as if it were their own. The inherent cultural values of accountability and responsibility can be seen as contributing to the achievement of the different organizational goals in a comprehensive manner.

Furthermore, it can be safely argued that the accomplishments of the MD, as defined by Zalenick (1977) and Handy (cited in Mullins 2007), which are embedded in the civilization of QPL, are the major contributor to his own defined goal of profit. The assumption of the employees to utilize the job escalation procedure, in order to address any issues with product quality and manufacture defect-free products, supports the provision of a higher quality product. Additionally, the GM's cautious and risk-averse behavior regarding quality indicates support for the aforementioned goal. Other characteristics, such as the MD being defined as a leader with full control over significant decisions, can be interpreted as aligning with the initial objective of increasing profit. Finally, one can observe that the positive and friendly manner in which sales employees communicate with potential customers is seen as being in line with the profit goal.

The negative impact of QPL's organizational culture on its goals

It can be argued that QPL's organizational culture, which segregates white-collar and blue-collar workers, does not support the goal of creating a friendly environment. In fact, it tends to

create a "us vs them" dynamic. In today's business environment, where reliance on advanced technologies is increasing, one could infer that QPL's lack of investment in IT contradicts the goals of generating more profit, more products, and ultimately a better quality product. One may question if there is enough space and tolerance for an authoritarian leadership style (cited in Anon 2008) like that exhibited by the MD.

In this respect, it is relevant to critically examine the effectiveness associated with modern management leadership styles (Fournier 1998) favoring the full-scale empowerment of the employees. This can be seen as having a negative impact, inhibiting productivity, resulting in a decrease of profits, thereby contradicting the initial goal. Additionally, employees viewed as loafing and perceived as being sulky can potentially negatively impact the profit, product portfolio, and superior product goals. After thoroughly reviewing Handy's theoretical insights, QPL's 'power culture', handicapped by the absence of documented rules and procedures, can be confidently interpreted as a direct hindrance to the successful accomplishment of all four goals - the absence of which makes it highly unlikely to assess one's progress and continue successfully without clearly defined paths.

Decision

Throughout this analysis, one can reasonably infer that in real terms it proves to be quite challenging to define organizational culture.

According to Schein's theory, the major elements of QPL's culture are largely intangible, particularly in terms of values, beliefs, and premises. By critically analyzing this theory, it became evident that QPL's culture possesses numerous counterproductive features. These features are apparent in the distinct dress codes followed by both management and factory staff, as well as the non-formal procedures they have adopted.

This is further supported by a

stubborn unwillingness to change the current business practices, due to the GM's conservative mindset and strong excessive advocacy for organizational stability. Additionally, upon closer examination, it becomes apparent that the employees are seen as operating in a robotic manner through this presentation. This is justified because they are deeply rooted in established approved ways of doing things, otherwise feeling vulnerable. This ingrained behavior is further exemplified by the MD, as depicted by Peter's and Waterman's 'hero' archetype.

The behavior, values, and beliefs of the MD are being transmitted to the administration's members not only through his bossy leadership manners but also consistently reinforced through his preference for masculine-oriented goals. These goals primarily focus on achieving financial growth and personal ambitions. Additionally, these findings support Hofstede's perspectives. Despite the MD's attitude, it is evident that QPL's culture includes employees who wholeheartedly embrace the value of loyalty and are deeply committed to working a full-day. Lastly, there is a sense of camaraderie felt throughout the organization.

In the absence of quantified goals and strategic programs, QPL may be perceived as a subpar company, vulnerable to a potentially catastrophic event in the future. However, evidence from QPL contradicts this notion and supports Sewer's belief that companies can still prosper despite such circumstances (Larson, 1998).

Recommendations:

The wisdom of the oriental proverb "A 1000 mile journey begins with the first step" is particularly relevant considering the incremental approach favored by the MD. Therefore, the recommendations provided reflect both pragmatism and practicality, which are crucial in ensuring a strategic fit between QPL and its fiercely competitive business environments. To align with QPL's culture and beliefs, a reasonable recommendation would involve exploring

and assessing whether embracing change is beneficial for the long-term sustainability of the organization.

From a subjective perspective, this could be driven by a re-alignment of the organizational culture towards clearly defined and measurable goals. This implies a measured approach that favors achieving a desired cultural change, achievable through belief and lateral thinking. As a result, by having vague and implied goals instead of formal and explicit ones, it can be argued that QPL's success story is highly problematic. This could be the reason why the degree of QPL's success is immeasurable.