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Organisational Culture and Strategy Development

Organizational culture influences strategy development through its effect on human capital and organizational capability as shown in figure 1. Organizational culture encompasses the values, practices, and behaviors that influence employees’ competence, mindset/ attitude, and skills (Sun 2008, pp. 137-140). For instance, a company that has a culture of innovation will promote staff training and development, as well as, a positive attitude to equip its employees with the right skills and knowledge to achieve excellence.

Organizational culture also influences the capability of an organization in terms of its structure, job design, and control systems (Wolfgang 2013, pp. 76-100). For instance, an organization with a power culture will have a hierarchical structure with several management levels through which decisions are channeled from the top. Human capital and organizational capability determine the quality of the strategy developed by an organization (Schein 2010, pp. 82-132).

Using the cultural web, the organizational culture of Apple Company will be analyzed. The cultural web identifies six interrelated elements of culture, which include “stories, symbols, power structure, organizational structures, control systems, and rituals/ routines” (Sun 2008, pp. 137-140). Apple’s most important routines and rituals are open communication and staff training. These rituals are meant to enhance innovation in the company. The stories told within the company relates to its past successes in developing innovative products. The late Steve Jobs who was one of the company’s founders remains an important personality who is considered a hero of innovation at Apple.

To build a strong brand image, the company uses an apple as its logo (Apple 2014). The apple is an important symbol because it is directly related to the company’s name and is easily remembered by customers. Apple’s power structure emphasizes performance and technical expertise rather than seniority. Thus, employees with expert power have a lot of influence in the company. The reward system is one of the most important tools of control at Apple.

For instance, the company rewards only excellence to ensure that its employees remain committed to achieving their performance targets. Since Apple believes in innovation, it has a relatively flat organizational structure with only a few management levels. The flat structure is expected to enable employees to communicate directly with the top management to influence key decisions. For instance, the CEO often communicates directly with the company’s engineers to ensure that the product development strategy is followed as planned.

References

Apple 2014, About us. Web.

Schein, E 2010, Organizational culture, and leadership, McGraw-Hill, New York.

Sun, S 2008, ‘Organizational culture and its themes’, International Journal of Business and Management, vol. 3. no. 12, pp. 137-140.

Wolfgang, M 2013, ‘Effect of organizational culture on employee commitment in the Indian IT services sourcing industry’, Journal of Indian Business Research, vol. 5. no. 2, pp. 76-100.