Organizational Theory and Behavior
Organizational Culture & Employee Productivity

At most basic level a company’s culture reflects the image that the owner of said company wants the public to view the company as. Workers who genuinely enjoy going to [and/or being at] work are bound to be far more productive and management experience a much lower turnover rate than that of their less than satisfactory work experience counterparts. The previous statement is not only common sense but has been proven to simply be good business sense as well. That entire premise is the backbone behind the theory of organizational culture.

In order for one to fully understand how or why one would option to apply the methods of organizational culture in their business one must first understand how the theory of organizational culture works. A corporation’s public image differs from view point to view point. At a company’s most basic level a company’s culture reflects the image that the owner of said company wants the public to view the company.

Organizational culture is defines as a system of beliefs and/or mutual vision/thinking that are, not only, shared by members of an organization but new members are indoctrinated in as well. (Daft, 2009). However organizational culture is more than just ideas joted down for a business plan or transferred goals ona mission statement. Organizational culture acts like a central nervous system of a company. It is a way of corporate life developed over time that extends from the company executives (aka leadership) to the mailroom staff (workers).

One of the best examples of excellently implemented organizational culture is Southwest Airlines. In the wake of the terrorist attacks of September 11th most airlines showed a significant drop not only in sales , but as a result, employees as well. Southwest Airlines was the only airline show a decent profit margin in the quarters directly following the attacks. This was in large part due to the overall organizational culture exhibited by the company.

Researchers at Kansas State University (Wright, T. & Hodges, K., 2009) recently discovered a definitive correlation between content employees, increased productivity and accelerated goal achievement. This is the only reasoning that explains how the company managed to flourish in the midst of the public at large’s mass phobia when it came to flying. Southwest Airlines not only drastically reduced their prices but they also retrained their employee rooster that was in effect before the attacks. They achieved this not by increasing pay but increasing employee benefits. (Donnelly, 2002) Southwest Airlines were very generous in their employee stock options program thus giving the employees a highly vested interest in the overall success of the corporation. They also interested flight schedules, while other companies were steadily reducing, in order to pick up the slack for customers who did show a need and/or want to fly.

However the most amazing part of this story is not that Southwest was able to retain it’s employees and turn a profit but rather the great lengths those very employees went to ensure that their company was successful. It is not unheard of for Southwest pilots to help ground crews move luggage to ensure a prompt timeframe is kept. Additionally, instead of outsourcing their clean up detail Southwest’s flight attendants handle all pre and post flight tidying duties.

There is no one specific guideline or formula that determines the best strategy when it comes to developing a successful organizational culture program for a company.

Organizational culture is ever changing and is a part of a company from its inception. If someone wanted to change the company mindset, they would first have to discover a way to change the organizational culture. The only proper way to do that is for management to decide where they want the company to go. I find that by nailing down the particulars though collaborative organizational planning, the the organizational culture in some measure builds itself.

In order for a company to create a steady and fully functioning workplace, those at the helm must endeavor to implement programs that emphasize communication and motivation. When the aviation industry was in a tailspin Southwest stepped up to the plate and was open and honest about the challenges the company as a whole would be facing. Moreover they strove to prove to their employees that their trust was not misplaced in them by promising NOT to downsize and keeping that promise. Communication is the key to successfully and peacefully maintaining order in any given organization. In a general corporate sense, without communication, the right hand never knows what the left is doing. This almost always leads to confusion. In regards to organizational culture, communication is a crucial factor in boosting company morale. When management creates bilateral lines of communication in the form of “open door” policies, it reassures employees that management is thinking about their welfare.

Another key component of communication is positive verbal reinforcement. If management is aware that someone’s quality of work is exceptional or that someone has done something that deserves praise, they should not hesitate to reinforce that. Companies are in the business of making money and acquiring more business. Employee productivity is a good indication of a healthy and stable work environment. A company’s productivity is generally measured by how steadily a business acquires and retains capital. As management it is up to me to find a way to keep my employees motivated. One way to achieve this is by establishing a superior work ethic but also an eagerness to acknowledge employee due diligence. Appreciation need not be grandiose, however; it must be a meaningful expression of gratitude. Universally applicable examples of this are: Employee of the Month programs, [small] nominal company bonuses, and (if available) company stock options to reward longevity.

When one thinks about what is necessary to run a successful corporation, organizational culture does not readily come to mind. One of the best ways to ensure the success of an organization is for the leaders of said organization to fully commit to investing time, resources and energy into the creation of effect organizational culture.

As a manager, it is my responsibility to provide a safe and stable work environment for my employees. If I focus my company’s attention on developing a strong organizational culture, I am also sending a clear message to my workers that they are more than just an expendable resource. I firmly believe that when workers feel like they are more than just a number, they begin to develop a genuine interest in helping the company succeed.

It must be noted that initially implementing a company management system based upon the theory of organizational culture is highly. Most analysts tend to discourage due to, a not unsubstantial part, that very reason. Infusing a current system (or creating a new system) with aspects of organizational culture is a rather daunting task. One of the major difficulties is having a cohesive team in place and ready to lead in an effective and cohesive manner.

Building an organizational culture based upon motivating employees to perform is neither an easy nor a short-sighted goal. Think of the building of a organizational culture as more of a grassroots campaign that starts with motivation via attainable short-term goals and positive reinforcement that gradually switches to the motivated segueing into the roles of motivators. The goal of a manager should be to accomplish far more than just “managing.”

My ultimate goal as a manager is to utilize the aforementioned principles and manipulate them to create the foundation of a workplace that employees want to be a part of everyday.

References:
Bateman, T. & Snell, S. (2007). Management: leading and collaborating in a competitive world (7th ed.) New York: McGraw-Hill.
Bligh, M.C. (2006). "Surviving post-merger ‘culture clash’: can cultural leadership lessen the casualties?. Leadership, 2(4), 395-426.
Boehm, J. K., & Lyubomirsky, S. (2008). Does Happiness Promote Career Success? Journal of Career Assessment, 16(1), 101-116. Sage Publications. Retrieved from http://jca.sagepub.com/cgi/doi/10.1177/1069072707308140 on March 16, 2011.

Buckingham, M., & Coffman, C. (1999). First, break all the rules: What the world's greatest managers do differently. New York, NY: Simon & Schuster.

Daft, R. L. (2009). Organization theory and design. Boston, MA: South-Western College Pub.

Donnelly, S. B. (2002, October 28). One airline's magic. Time, 160(18), 45-48.

Trompenaars, F. (1993). Riding the waves of culture: understanding cultural diversity in business. London, UK: Nicholas Brealey Publishing.
Wenger, E., McDermott, R., & Snyder, W. (2002). Cultivating communities of practice: A guide to managing knowledge (p. 352). Harvard Business School Press.

Wright, T., & Hodges, K. (2009, February 3). K-state researcher says happy employees are critical for an organization's success. Retrieved from http://www.kstate.edu/media/newsreleases/feb09/wellbeing20309.html on February 25, 2011.