Which Managerial Planning Decision Is Most Affected By Organizational Culture

Organizational Culture and Managerial Decisions – 808 Words

As defined by the American Psychological Association (APA), culture refers to the ideas, values, and code of behavior upheld by a community that differentiates that community from other communities. Organizational culture consequently refers to values, conventions, principles, assumptions and patterns of conduct that separate one organization from another one. It is critical to have a thorough understanding of different cultures and how they impact company success. Management, on the other hand, refers to the process of organizing and leading people in order to achieve certain goals and objectives while utilizing existing resources in an efficient and effective manner.

It is explained in this article what the consequences of organizational culture are on managerial decisions and how culture may affect managers in their decision-making.

Effects of Organization Culture on Managerial Decision

The impact that organizational culture has on management decisions is dependent on whether the organization has a strong or a weak culture, according to the research findings. The decision-making process, as well as the pace with which decisions are made, is determined by organizational culture. Some cultures encourage all workers to take part in the decision-making process, while others do not. Other cultures only allow choices to be made by the top management. Organizations that enable all workers to participate in the decision-making process may find themselves with a prolonged decision-making process as a result of the protracted procedure.

  • The type of personnel that a business will hire is determined by the culture of the organization.
  • To clarify the qualifications necessary for a certain position, clear instructions are written down and distributed to all employees.
  • In this instance, the management must adhere to the established requirements (Robbins, 2003).
  • Specifically, formalization refers to how closely a company adheres to established rules and processes in order to function effectively.
  • This is due to the fact that there is a clear definition of how one is supposed to conduct himself/herself, and as a result, the workers closely adhere to the regulations (Robbins, 2003).
  • When it comes to making decisions on their own, certain cultures empower lower-level employees to do so whenever it is required, as long as the decisions are in keeping with the organization’s stated aims and objectives.
  • However, these decisions must be accepted by the company’s senior management (Robbins, 2003).
  • Having a culture that is overly rigid might make it difficult to execute change effectively.
  • This implies that the top management’s attempts to bring about change may be ineffective as a result (Robbins, 2003).
  • A solid working relationship between low-level employees and top management, or between employees in various departments, allows the workplace to be free of unneeded friction, resulting in an enjoyable and productive environment for all employees.

This indicates that everyone will put out their best effort in order to fulfill the aims and objectives of the business.

Influence of Organizational culture on Decision Making

Because of the organizational culture, a manager may have more leeway to use an assertive style of leadership. It will be possible to exercise authoritative leadership in a culture where only the top management is allowed to make choices. The reason for this is that only upper-level management makes decisions, and hence the opinions of lower-level employees may not be taken into consideration. Low-level personnel will be required to follow the directions of upper-level management without challenging them.

Managers’ ability to serve as role models can also be influenced by their organization’s culture.

It is via their actions and behaviors that they will help to reinforce the desirable values (National Defense University, n.d.).

When a culture establishes criteria for the behaviors that should be rewarded as well as those that should be penalized, it provides the manager with the authority to take the appropriate action in line with the criteria (National Defense University, n.d.).

Conclusion

Organizational culture has a significant impact on management decisions, as it impacts the success of decisions and the efficacy of decisions made inside the organization. As a result, it is critical for managers who make day-to-day decisions to grasp the culture of a company and determine whether or not the culture aids the business in achieving its objectives. In addition, management should strive to improve the working environment in order to foster a positive culture.

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References

Connolly, C., and Connolly, C. (2008). Organizational Culture is defined as follows: Nei & Associates, Inc. Defense University provided the information (n.d.). Organizational culture influences strategic leadership and decision-making. Air University is a non-profit organization dedicated to the advancement of aviation technology. S. was the source for this information (2003). Organizational culture refers to the way people behave in an organization. S lide is an abbreviation for Sliding Lide.

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Overview of Managerial Decision-Making – Organizational Behavior

Managing Managerial Decision Making and Perception

  1. The fundamental aspects of management decision-making are as follows:

Decision-making is defined as the action or process of considering several possibilities and picking the best one. Recognition that managers are constantly making decisions, and that the quality of their decision-making has an impact on the effectiveness of the business and the satisfaction of its stakeholders, is essential. Stakeholders are defined as any and all persons or organizations who are impacted by a company’s actions (such as customers, employees, shareholders, etc.). Members of the senior management team make choices on a regular basis that have an impact on the future of the company and all of its stakeholders, such as determining whether to pursue a new technology or product line or whether to continue with an existing one.

Management at lower levels of an organization has a smaller influence on the company’s survival than managers at higher levels of the organization, but they can still have a significant impact on their department and its employees.

Poor decision-making by lower-level management is unlikely to result in the complete demise of a company, but it can have a variety of negative consequences, including the following:

  • Reduced productivity if there are too few workers or insufficient supplies
  • Increased expenses if there are too many workers or too many supplies, particularly if the supplies have a short shelf life or are expensive to store
  • Employee dissatisfaction, reduced morale, and increased turnover (which can be costly to the organization) if the decisions involve managing and training employees

Deciding When to Decide

While some judgments are straightforward, the majority of decisions made by managers are complicated, including a wide variety of possibilities and unknown results. When faced with a variety of alternatives and unclear consequences, managers must gather information, which forces them to make another critical decision: how much information is required to make a successful decision, and how much knowledge is too much? Managers frequently make decisions without having all of the information they need; in fact, one of the characteristics of an effective leader is the ability to discern when it is best to delay making a decision while gathering more information, and when it is best to make a decision based on the information available.

Taking too long to respond to opportunities might result in missed opportunities, while acting too soon can result in organizational resources being allocated inefficiently to projects that have little possibility of success.

Individuals with fragile egos may find it difficult to change direction since acknowledging that they made a mistake is more difficult than continuing with a faulty course of action.

Managers that are effective know that, given the complexity of many activities, certain failures are unavoidable at some point. They also understand that it is preferable to limit the impact of a bad choice on the company and its stakeholders by identifying it as soon as possible and rectifying it.

What’s the Right (Correct) Answer?

It’s also worth mentioning that making choices as a manager is in no way comparable to taking a multiple-choice test: in a multiple-choice test, there is always one correct answer to each question. When it comes to managerial choices, this is rarely the case. Sometimes a manager is forced to choose between a number of excellent alternatives, and it is unclear which will be the best. Other times, there are a number of undesirable options, and the goal is to limit the amount of harm. It is common for individuals in an organization to have opposing interests, and the management must make decisions with the knowledge that someone will be disappointed regardless of the outcome.

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What’s the Right (Ethical) Answer?

Managers are sometimes required to make judgments that go beyond simply offending someone; they may be asked to make decisions that have the potential to bring harm to other people as well. It is possible that these decisions will have ethical or moral consequences. Our opinions about what is right and wrong, good and evil, virtuous and corrupt are referred to as our ethical and moral principles. The implications of ethics and morality are that they are related to our interactions with and influence on others; if we never had to engage with another creature, we would never have to consider how our actions affected other people or groups.

  1. In order to make informed judgments, it is necessary to consider if our actions have a good or bad influence on others.
  2. However, maximizing shareholder wealth is sometimes a short-sighted decision because it might have a negative impact on the organization’s financial health in the long run.
  3. Berrett-Koehler Publishers, based in San Francisco, California.
  4. More significantly, boosting the wealth of shareholders is not an acceptable justification for inflicting harm to other people or the environment.
  5. The ability to make decisions that have a beneficial influence on a company and its stakeholders may, nevertheless, be tremendously satisfying for those involved.
  6. Making a Plan for Long-Term Success A manager’s or a business owner’s primary emphasis is frequently on doing well in their job (making a profit).
  7. Why?

The business gives a chance for the founders, owners, or managers to pursue another aim that they are also enthusiastic about at the same time.

As a result, it should come as no surprise that their brewery is committed to decreasing its environmental impact.

As part of its advocacy activities, the group participates in campaigns such as the “Save the Colorado” (river) campaign, and it is committed to promoting environmentally responsible decision-making when it comes to environmental concerns.

While the brewery continues to rely primarily on wind power, it has also begun to generate a portion of its own electricity, some from rooftop solar panels and even more from biogas, a methane gas byproduct produced by microbes in the brewery’s water treatment plant.

The brewery cleans the wastewater created during the brewing process, and in the process, it creates biogas, which is collected and utilized to generate electricity to power the brewery.

Other sorts of waste are reduced by the firm, which sells spent grain, hops, and yeast to area ranchers for use as calf fodder, among other things.

Yes, all of these wonderful deeds must come at a cost, don’t you think?

When employees come up with innovative methods to reduce, reuse, and recycle, they frequently discover ways to save money as well (like using biogas).

Therefore, employees at those businesses tend to be tremendously committed to them, exhibiting high levels of engagement, motivation, and productivity in the process of working there.

As a result of this enthusiasm, the company gains value and demonstrates that it is possible to perform well while simultaneously making the decision to do good in the world.

As for New Belgium Brewery, aiming to protect the environment while simultaneously producing good beer is part of the company’s mission. Questions for Consideration

  1. What difficulties does New Belgium Brewery confront in achieving its environmental objectives
  2. What other firms do you know that make an effort to “do good” while simultaneously making a profit? Is it appealing to you to work for a company that is concerned with more than simply profits, even if this means that your pay or bonus will be less lucrative?

Karen Crofton’s article, “How New Belgium Brewery leads Colorado’s craft brewers in energy,” may be seen here. GreenBiz, published on August 1, 2014, Forbes published an article by Darren Dahl titled “How New Belgium Brewing Has Found Sustainable Success” on February 8, 2016. On February 18, 2016, Craft Beer.com published Jenny Foust’s article, “New Belgium Brewing Named Platinum-Level Bicycle Friendly Business by the League of American Bicyclists,” which was originally published on Craft Beer.com.

Robert G.

  1. Karen Crofton’s article, “How New Belgium Brewery leads Colorado’s craft brewers in energy,” is a good starting point for further research. Originally published on August 1, 2014 by GreenBiz. On February 8, 2016, Forbes published Darren Dahl’s article, “How New Belgium Brewing Found Sustainable Success.” On February 18, 2016, Craft Beer.com published Jenny Foust’s article, “New Belgium Brewing Named Platinum-Level Bicycle Friendly Business by the League of American Bicyclists,” which was originally published on Craft Beer.com on February 18. “The Impact of Corporate Sustainability on Organizational Processes and Performance,” Management Science, 60, 2014, New Belgium Brewery Sustainability web page, accessed September 18, 2017. Robert G. Eccles, Ioannis Ioannou, and George Serafeim, “The Impact of Corporate Sustainability on Organizational Processes and Performance,” Management Science, 60, 2014.
  1. The fundamental aspects of management decision-making are as follows:
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Managers make decisions on a regular basis, and those decisions can have substantial consequences and ramifications for both the business and the stakeholders in the organization. When it comes to managerial decision-making, complexity, insufficient knowledge, and time restrictions are all common characteristics, and there is rarely a single correct solution. In certain cases, a manager must choose between several excellent alternatives (or several terrible ones), and he or she must determine which will provide the most beneficial consequences (or the fewest negative outcomes).

Finally, management decision-making can occasionally have ethical ramifications, which should be taken into consideration before making a final choice.

Glossary

Directors are continuously making decisions, and those judgments can have substantial consequences and ramifications for the business as well as for people who are involved with it. There is rarely a single correct solution in managerial decision-making because of the complexity, incompleteness of the information, and time restrictions. There are instances when there are numerous good alternatives (or multiple terrible ones), and the management must strive to determine which will produce the most favorable results (or the fewest negative outcomes).

Managers must also acknowledge that there are frequently several stakeholders with opposing demands and preferences, making it nearly difficult to meet everyone’s requirements.

Culture Management — Management Systems

Managers make decisions on a regular basis, and those judgments can have substantial consequences and ramifications for both the business and the stakeholders. When it comes to managerial decision-making, complexity, insufficient knowledge, and time restrictions are all common factors, and there is rarely a single correct answer. A manager may be faced with a number of excellent (or terrible) alternatives, and he or she must choose which will result in the most favorable consequences (or the fewest negative outcomes).

Finally, management decision-making can occasionally have ethical ramifications, which should be considered before making a final choice.

  1. It is the way a business thinks about and respects its customers that is known as Customer-Client Orientation. Organizational “People Orientation,” also known as “Orientation Toward Employees,” refers to the way a company thinks about and handles its employees. Criteria of Performance and Accountability– the organization’s standards for performance, as well as the things for which employees are held accountable in the organization How the organization sees, reacts to, and manages innovation and change
  2. How the organization is committed to changing. Company Process Orientation (also known as “corporate citizenship” or “social responsibility”) is the perspective that individuals in a firm have on processes such as planning, decision-making, communication, and other aspects of the company’s operations.

Organizational cultures can be robust or weak; functioning or dysfunctional cultures can exist within an organization. It is possible to establish a strong culture if all workers understand and behave in ways that are compatible with the company’s values, beliefs, and standards. Having a poor culture means that people don’t grasp what the culture is and/or aren’t enthusiastic about it. A functioning culture has a favorable influence on the overall success of the organization. A dysfunctional corporate culture has a negative impact on a company’s potential to be profitable in the long run.

True culture is defined as the culture that has the ability to affect people’s behavior in the real world, while a desired culture is defined as the culture that a firm wishes to have in place to support the attainment of its longer-term objectives.

Having a well-defined and successful culture management approach in place is critical to achieving and maintaining a high degree of congruence between real and intended cultures inside an organization.

The senior leadership team is normally responsible for developing this declaration of desired culture.

Step 3: Develop a plan to improve the current culture.

Step 3: Identify and analyze the “gaps” (differences) between the desired and current cultural environments.

Step 5: Spread the word about the Culture Management Plan throughout the organization.

Step 6: Evaluate performance against the plan on a regular basis and make any adjustments.

Note: Management Systems’ Culture Surveys can be utilized to assist in the completion of Steps 1 through 3, and the information gathered from these surveys can be used as input to Step 4.** A more detailed explanation of the culture management framework can be found in numerous of our books and articles (see Publications), including Growing Pains and Corporate Culture: The Ultimate Strategic Asset.

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