Their Effect On Organizational Performance - Myassignmenthelp.Com

Question: Discuss about the Their Effect On Organizational Performance. Answer: Introduction Organizational development has important features that will increase sustainability on the basis of effectiveness. The managers and the organizations are willing to get engaged in employees commitment which will improve their productivity. It is the duty of the employees to understand the organizational culture and to assist other employees or co-workers in the organization. Moreover, it is the responsibility of the management to maintain a healthy learning environment in the organization. One of the most important ideology that explains the interest of organizational culture is that it leads to increase in organizational performance. This performance comprises the actual production and outcomes of the organization (Naranjo-Valencia, Jimnez-Jimnez Sanz-Valle, 2016). There is no such single measure that will provide a performance target and thus the managers will have to choose the operational as well as financial performance. The idea that is associated with organizational performanc e is associated with success and endurance in the organization. The dimensions in the balance scorecard such as financial perspectives, customer perspective, learning perspective, internal and business perspectives. Balance scorecard is regarded as a one of the most critical and vital tool that provides a proper framework to ensure that culture and strategy in an organization is translated into a set of rational performance in the organization. It can be said that the performance measurement system in an organization will assist in enhancing organizational culture and also help in achieving the goals and objectives in a proper way (Nielsen George Hrivnak, 2018). This paper will discuss how culture plays an important role in the organization. The paper will also highlight the theories of organizational culture in the workplace. Interrelationship between organizational culture and performance in oil and gas industry The culture of an organization is based on such systems that will help to define how the employees will take important decisions in the organization. The culture can be regarded as a combination of values, beliefs and assumptions that will be beneficial to carry out business. There are four important functions of organizational culture such as enhancing the commitment, provision of sense of identity, strengthening the organizational values and then shaping the behavior through different types of control mechanism. The performance indicators involve the behaviors and results that will be involved in the leadership and management development in an organization. The performance in an organization is defined as the basic return for instillation of strong culture in an organization (Chatman, Caldwell, O'Reilly Doerr, 2016). It can be said that organizational culture has the capacity and ability to increase awareness about organizational performance and problem solving. When organizationa l culture becomes incompatible with the dynamic and varied expectations of internal as well as external stakeholders in the organization. The culture and performance of the individuals in an organization are associated with each other and thus there relationship is considered to be miscellaneous in the organization. The impact of organizational culture on the behavior and performance are based on certain basic ideas such as having proper knowledge of the organizational culture and understanding the history and functioning of the oil and gas organization. Moreover, it can be said that organizational culture raises the devotion in the philosophy and values of the organization. The commitment helps in the creation of shared values that will help in achieving the goals of organization (Bergh, Ringstad, Leka Zwetsloot, 2014). The organizational culture with its norms has control mechanism so that it will help to direct the behaviours and thus stay away from unfavourable behavior in the organization. It will also help in selection, recruitment and retention of the employees whose values will match with the other organizational values. This type of culture will be linked directly to performance and greater efficiency than the other. The dominant culture in an oil and gas organization will depend on an environment in which the company will operate and thus help in fulfilling the organizational objectives (George, Siti-Nabiha, Jalaludin Abdalla, 2016). The bureaucratic and well structured organization will follow such a culture that will have extensive control. The employees will follow the standard procedures with adherence to proper individual roles and hierarchy in an organization. In certain cases, sales may also forgo strict hierarchy and thus follow a competitive culture in maintaining strong relations hip with the third party or other external parties. The major instance in this case is to attain such a strategy where competitive advantage will play a stronger role over competition (Acar Acar, 2014). Advantages of organizational culture in oil and gas industry Strong corporate culture also has certain advantages and it indicates that the employees will have similar thoughts and opinions. Moreover, they will also hold similar ethical values and when this values align with the business objectives in an organization, it will be more effective in team building which will help in building rapport with the co-workers in the organization. It can be said that strong corporate culture will also help to ease the roles and responsibilities associated with communication of the individuals in an organization. The employees must expect and know what to do and how the management will handle them and assess their performance in the organization (Griffin et al., 2014). It can be said that organizational culture also has varying impact on the motivation as well as performance level of the employees. The workers in an organization work harder so that they can achieve the organizational goals and thus consider themselves to be a part of corporate culture. For example, in certain cases, the organization has to arrange reserved talk with the employees so that they can maintain organizational culture and thus it will facilitate the employees to work in co-ordination with the employers (Hannevik et al., 2014). Organizational culture and employee performance The organization must also structure their own recruitment process to engage and attract incumbents with the same trust and belief. It will ensure assimilation of employees in the organization and thus strengthen organizational culture. In certain cases, it has been found the corporate culture aligns with the performance managements system. If the culture and management are not aligned, it will redirect to the behavior of the employees which will result in the achievement of organizational goals. There are various definitions of organizational culture that are proposed by different researchers over the passage of time. Organizational culture is defined as the pattern of basic assumptions (Hartnell et al., 2016). The basic premises and the problems that are related to external adaptation and integration in the organization. In certain cases, organizational culture tends to be a series of certain assumptions which will lead to action and interpretation in the organization by highlighti ng the behavior for different positions. It also includes adaptability, mission, consistency and involvement in the organization. Moreover, organizational development can also be regarded as the most important variable that has been studied from decades. It has been defined as the relative degree in recognition with the company and involvement with it. The major benefit of organizational culture in the oil and gas company is to form a supply chain so that it will help to understand the behavior of the employees and the working conditions of the employees. It will also help in achieving the overall objectives and thus attract new employees in the organization (Ocasio, 2018). Nature of organizational culture in oil and gas company The globalized nature of competitiveness in the oil and gas market is putting more pressure on the organizations that are operating in these industries and thus it will help to develop organizational structure and culture. The cultural aspect of collaboration and trust will contribute positively to the oil and gas company and thus respond to the customers needs, environmental changes and growth. It will also help the employees to improve their performance in terms of quality of services and products. It can be said that cultural aspects can facilitate performance in the oil and gas companies by developing suitable workplace for the employees to share their knowledge with the other employees. Decentralization within the oil and gas company will also enable to identify the changes in the external environment and then adopt these changes accordingly. The frequent pace of change has put a premium ability to adapt quickly to the changing conditions in the oil and gas industry. The compani es must tend to make a tradeoff between stability and dynamism and this will help the organization to handle both these factors at the same time. The oil and gas company must control the in-house and the supply chain relationships and it will resemble the corporate culture in the organization. These developments are considered as part of the market and cost pressures that will lead to unsustainable operators and thus find cheaper ways of working (Valmohammadi Roshanzamir, 2015). The digital technologies are deployed in the core upstream operations and thus it disrupts the business model. The oil and the gas companies must take a close look at the value drivers and thus it will help in the creation of entry points along the value chain in the organization. Thus, it can be said that organizational culture can be regarded as shared mental assumptions and thus it leads to interpretation and action in the organization.. It is essential that an oil and gas company has a supportive couture and maintain good relationship among various factors such as job aid, promotional opportunities, effective feedback and others. Such type of culture is beneficial for oil industries as it reduces rate of absenteeism among the employees. Such type of culture is important for an oil industry because they require large amount of staffs to work in different department and a good friendly culture will allow them to work together and give good production (Ogunyemi et al., 2015). Moreov er, keeping a supportive culture within the organization will help the employees in the oil company to use sophisticated and complex technology easily as seniors will always be ready to help the juniors. Importance of organizational culture is increasing in oil and gas industry due to increasing globalization and competitive nature of the market. Thus, a better organizational culture is a best way a company can encourage its employees to improve performance and solve critical technologies by itself. Results/Findings Organizational culture affects various companies in various ways. This highly depends on the type of business one is conducting and different variables of the business. One such company is Oil and Gas Company that has various types of cultures within their organization that affects different aspects of the business in a great way. One of the important variables that are affected due to differences in organizational culture is employees performance. Having varied culture within an organization may affect the performance of the employee in a great way (Hiatt, Grandy Lee., 2015). Oil and gas industry also faces cultural challenges over the years in maintaining good culture in their environment and benefitting the employees. Oil and gas industry is facing huge challenges as it is getting reduced amount of oil reservoirs, which is enabling them to give proper opportunities to its employees. On the other hand, lack of oil availability is making its difficult for the oil companies to maint ain good relation with other companies, which is putting their culture at stake. However, the employees also face a lot of difficulty in communicating with the stakeholders at the time of crisis, which put the organizational culture at stake (Dupuis, 2018). Recommendations The work environment and the complexities in the oil and gas industry has increased the difficulty of setting equal standards in the industry. The following recommendations may be beneficial for improving the work culture and organizational performance in the oil and gas industry. The industry leaders can work towards cultural change by promotion of collaboration with the other regulatory groups for safety among the workers and contractors There must be safety and environmental standard in the organization that will help in the preparation of incident report and data to the public in a timely manner. Less emphasis must be given on formalization and thus it will provide the experts to handle their work operations that will lead to higher job satisfaction in the oil and gas company (Dupuis, 2018). Conclusion From the above analysis, it can be deduced that organizational culture has huge impact on various aspects of the business and its employees. It has been seen that the culture in an organization has both negative and positive impact on the organization. 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