Organizational Culture And Competitive Advantage
Organization is a group of people working together towards a common goal. And to achieve this organizational goal every organization develops a sort of organizational culture that helps manage its people. It tries to set an attitude and behavioral bench mark in the organization that needs to be adhered and complied. In this essay we are trying to argue on the various aspect of linkage between organizational culture and competitive advantage of the company. Janicijevic (2012) suggests that organizational culture has an impact of controlling the behavior in the organization. Control can be obtained by standardization of processes, standardization of output, standardization of knowledge and skills. It is the people who define the organization and in the information age, where skills and knowledge is the key, people are the actual asset of the organization that provides competitive advantage. When we analyze the organizational culture, we have to consider certain parameters such as type of industry (Service or manufacturing), employee strength of the industry, decision making structure (Informal or bureaucratic). As the world is changing and adapting to the technological innovations at a break neck speed, it becomes imperative for the organization to develop a culture of continuous learning and development. With arrival of internet and cyber era, many organizations have become flat and have adopted policies such as open door polices and flat hierarchies. This sort of culture promotes openness in the organization and encourages employees to speak up their mind. The reason for standardizing and benchmarking a particular organization culture and setting up a practice to continuously evolve this culture is to provide competitive advantage and sustainability to the organization in the times of uncertainty. Essay concludes that there is a definite link between the organization cultures that is used to manage as well as encourage its employees to achieve the end goal and the competitive advantage that is provide to the company in the process.