Organisational culture and decision making

This process of making decisions is influenced by both the internal and external environment Stojkovic, et al. The organizational culture is an internal factor that has a profound impact on the decision making process. It is important for decision makers with the organization to take account of the widely held assumptions, values, and beliefs as they play an important role in determining the success of individual tasks undertaken within the workplace Jonassen,

It can happen in the world of commerce that things which are closely intertwined may be thought of as one and the same.

That can be a little bit misleading because there may be separate definitions. It is important to stand back and look at relationships to give us a better idea of the influence one element of an entity has over another. Knowing the relationships can help in future plans that will affect the organisation as a whole.

Organisational structure and culture are often commented on the same sentence. This is a relationship where one certainly depends on the other for its existence. The Relationship as a Whole You can think of this relationship as one of the forest and the trees.

The organisational culture is the big picture of the entity. It is how the company does business, both internally and externally.

Factors Affecting Organization Culture

Just as a forest cannot exist without its timber, the organisational culture will not stand without structure. The organisational structure is how communication moves from one area to the other, the reporting procedures where one person has decision-making powers over subordinates, and ultimately how the company gathers its resources to achieve objectives.

The culture of the organisation matures and spreads out from the support beams brought on by the structure.

The structure is then built with that end idea in mind. The concept of what will be the culture has an enormous influence on the structure as it is developed.

The decisions about organisational cultural themselves may be influenced heavily by external events. A company that is heavily regulated by the government has to have certain procedures in place to be compliant with the law.

Article and Author Information

This is especially true of financial institutions, and while they made appear extremely formal to the outsider be defined structure is necessary for financial reporting and compliance purposes.

Other cultures have to respond immediately to changes. The software and mobile application industries need to have cultures that can react quickly to any technological change. This means the structure may have an orientation towards teams as opposed to departments, or only three levels of staff, with executives not that distant from the workforce in the hierarchy.

Communication flow within the organisation may have to be formal or informal, depending on what is demanded by external factors. A software company that has to move quickly cannot have the hierarchical structure of a bank. The reason why many corporate mergers experience initial difficulty is that two separate cultures, with different structures as well, are joined together.

No matter how upper management tries to allow both to coexist, sooner or later one organisational culture and structure is going to prevail.Organizational culture comprises the unwritten customs, behaviors and beliefs that determine the “rules of the game” for decision-making, structure and power.

It’s based on the shared history and traditions of the organization combined with current leadership values. Although social influence plays an important role in organizational groups, past findings regarding culture's impact on social influence have been scarce and inconsistent.

Culture, Affect, and Social Influence in Decision-Making Groups, in Ya-Ru Chen (ed.) National Culture and Groups (Research on Managing Groups and Teams, Volume 9) Emerald. Examine the major influences that organizational culture can have on organizational ethical decision making.

From your personal experience in your current or past organization, provide one (1) example of how organizational culture influenced the outcome of an ethical decision.

The Environmental Domain

Factors Affecting Organization Culture Culture represents the beliefs, ideologies, policies, practices of an organization. It gives the employees a sense of direction and also controls the .

The goal of the course is to increase knowledge, provide guidance, and offer examples of how to incorporate the principles of procedural justice into organizational decision making, policies, and procedures, creating an environment where these core principles are .

Jun 29,  · Decision-making is an essential aspect of running a successful business, but effective decisions can't be made without following a 7-step process that can help business owners identify and.