The Perceived Effect of Culture on Organizational Success: A Case Study

Abstract

Culture has been a mainstay in the field of anthropology from it’s beginnings and was significant in the early stages of the development theories on organizational behavior. However, only in recent years did theorists give more attention to the topic as a major contributing factor to an organization’s success. With new trends such as reengineering, downsizing, acquisitions, and other pressures, many managers are taking a closer look at the inner workings of the organizations to see if they can still make sense in the new business environment. Organizational Culture is a pattern of basic assumptions — invented, discovered, or developed by a given group as it learns to cope with it’s problems of external adaptation and internal integration — that has worked well enough to be considered valuable and , therefore, to be taught to new members as the correct way to perceive, think and feel in relation to those problems. (Luthans, 1998) It is a significant field of study because of the new environment brought about by rapid changes in technology and society. Successful organizations continually search for techniques, programs, vision and leaders who can deal with the fast pace of change and adapt to the new environment. Upon further scrutiny, one will realize that culture has a profound role in influencing organizational behavior and can spell the difference between strategic success and failure. This research aims to accomplish a descriptive study on the perceived effect/s of culture to an organization's success. It focused on the Retail Development Division — Commercial Centers Group (RDD — CCG), of the Ayala Land, Inc. The RDD —- CCG is the think tank group for strategic planning and implementation of projects under the Ayala Property Management Subsidiary. It is made up of sixteen individuals chosen by the management of the CCG. Aside from discussing and conceptualizing ideas and putting them into action, the group is in charge of conducting feasibility studies, research reports; they produce video documentaries and publish magazines about the events at the Ayala malls. The theoretical framework is derived from Wendell’'s Model of Organizational Performance and Robbin’s Model of Organizational Success. The integrated model implies that organizational culture takes it’s effect, positive or negative when it is perceived, “absorbed” and enacted by the members of the organization which is quite important to an organization’s success. The study was conducted through distribution of questionnaires which included one hundred percent (100%) of it’s membership. Data was analyzed through percentile computation. The study had several significant findings: 1. The culture at the RDD — CCG is very high in strength (strong culture). Members have a high awareness of their culture. 2. The culture at the RDD — CCG is very much into maintaining and reinforcing their culture. This is done through the processes of selection and socialization. 3. A possible weakness of the culture might be it’s non-recognition for change. There is no culture of “anticipating change”. 4. The culture at the RDD — CCG, although dominantly of a single type, possess features from other profiles. 5. Members of the RDD — CCG value mostly anything that might affect their quality of work. Values like responsibility, high standards, urgency, creativity, outcome orientation and cooperation gained top spots in the assessment of values. 6. All members of the group agreed that the organizational culture at the RDD - CCG plays a role in the success of their organization. 7. According to the members of the RDD — CCG, Organizational Culture is a Commitment Generator, a Control Mechanism, an Image Keeper, a Motivating Force, a Participation Enhancer and Behavior Increaser. 8. These roles take a positive effect, serving their purpose when the members of the RDD —- CCG are working and fulfilling their duties and obligations to the organization. 9. The Organizational Culture at the RDD — CCG contributes to the organization’s effectiveness by increasing employee behavior beneficial to the organization and enhancing participation from it’s membership. It also generates commitment from the members which are integral in achieving effectivity. 10. The Organizational Culture at the RDD — CCG contributes to it’s efficiency by serving as a control mechanism helping them put a systemto the workplace. 11. The Organizational Culture at the RDD — CCG contributes to the organization member’s Participant Satisfaction by becoming a Motivating Force, an Image Keeper, and Commitment Generator. 12. The Organizational Culture at the RDD — CCG contributes to the organization’s success by becoming a factor/s to some of the four measures of organizational Success. Based on the findings, it is then recommended by the researcher that: • Since it plays such an important role in an organization’s success, members of the organization take note of properly handling it and probably consider injecting a culture of “anticipating change” should a time come for a culture “overhaul” • A study be made in connection with the other factors of organizational success and how culture would “react” with the other factors; • A study be made on how culture could malfunction in an organization and it’s effects if ever it does; • A study be made in connection with other topics which should be discussed extensively like Motivation, Performance and Participant Satisfaction; • A similar study be made in another kind of organization — government, private (but of another nature), non-government, and other kinds of institutions • A comparative study be made about the cultures and their effects in organizations of the same kind