Management Decision Making Impact of Organizations Culture

Question: Discuss about theManagement Decision Making for Impact of Organizations Culture. Answer: Introduction: Organizational Culture The organizational culture can be considered as a system or a frame work which is practiced within an organization. This system involves or exhibits a shared belief and values which influences the behaviour of the individuals of the organization. The organizational culture acts as a guideline for the employees as well as the employers within an organization and it contributed to the development of a harmonious working atmosphere. The relevance of a standardized organizational culture has gained importance in the modern business environment due to high degree of competition and internationalization (Sartika, Antoni and Akbar, 2016). The concept of the organizational culture highlights an observable culture, shared values and common assumptions which make the employees work coordinately so as to achieve the common goal. Almost all multinational and reputed organization practices a standardized organizational culture. Through internationalization the work force of the organizations has become diverse and the existence of the standardized and effective organizational culture generates unity and coordination. It can motivate the employees and can hence increase the productivity as it focuses on the recognition, rewards, self respect, empowerment etc. The managers consider that organizational culture can enhance the effectiveness of the organization as it can shape the attitude of the employees and can enhance the loyalty of the employees towards the organization (Valencia, Jimnez and Valle, 2016). Within an organization a group or a team can exhibit unique culture referred to as sub culture which shares some specific values and behaviors. These sub culture are generally consistent with the organizational culture and contributed to the efficient implementation of team dynamics (Hartnell et al, 2016). Management Control System (MCS) Management Control system is a system which gathers various information and makes use of it for the evaluation of the organizational resources. The resources can be human resources, any physical resources like machines, property etc, financial resources etc based on which the organizational strategies are formulated. The MCS can be considered as the tool which enables the management to direct the organization to achieve the organizational objective and competitive advantage (Sander and Laidlaw, 2016). This tool enables the management to evaluate how well the organization is operating with respect to its proposed objectives. It monitors the performance of the employees, supplies, and other factors and enables the management to take appropriate measures to streamline the operations so as to achieve the organizational objectives. The MCS tool documents the organizational objectives, strategies, policies, access the performance of the internal processes, and show the current performance in relation to declared objectives and policies (Heinicke, Guenther and Widener, 2016). Impact of Organizations Culture on the Management Control System (MCS) Managing an effective organizational culture is highly essential for the controlling and managing the control system within an organization. The primary aim of the MCS is to monitor and control the proper use of the organizational resources so as to achieve the organizational objectives. The organizational culture supports this aim of MCS through its shared values and beliefs concept. Through sharing and coordination the resources like the human resources, other work related physical resources are shared and are better utilized (Kim, Williams and Kim, 2016). Some studies reveal that the organizational culture positively influences the objectives of the MCS. The organizational culture of the organization insists the employees to put forward their performance so that they can coordinately meet the organizational goals. It shapes the behaviour of the employees inconsistent to the organizational goals. Hence it supports the evaluation procedure of MCS and add values to it. In the modern business environment MCS can also be considered as a tool which enables the management to achieve competitive advantage through controlling innovations, creativity, change learning etc. The effective OC can motivate the employees and can bring out their innovative and creative skills. This culture recognizes the need of the employees in learning and development and makes provision for it which gathers confidence to them. Hence the organizational culture influences these aspects of MCS also. The OC makes the managerial process systematic which makes the planning and the information analysis much focused on the root of the organizational problems. This makes the information gathering of the MCS much effective and good control systems can be implemented (Luft, 2016). The sub cultures of the organization which highlights the team based cultures also contributed to the efficiency of the MCS. The sub cultures are stronger than the organizational culture which provides more confidence to the employees. It also makes the employees more committed, morale, productive etc which makes the controlling process more effective. The sub culture induces trust and participation within the team which influences the MCS in a positive manner. IT enhances the communication level and interactions within a team which makes the decision making through MCS an effective one (Johnston and Marshall, 2016). References Hartnell, C.A., Kinicki, A.J., Lambert, L.S., Fugate, M. and Doyle Corner, P., 2016, Do similarities or differences between CEO leadership and organizational culture have a more positive effect on firm performance? A test of competing predictions, Journal of Applied Psychology, 101(6), p.846 Heinicke, A., Guenther, T.W. and Widener, S.K., 2016. An examination of the relationship between the extent of a flexible culture and the levers of control system: The key role of beliefs control. Management Accounting Research Johnston, M.W. and Marshall, G.W., 2016. Sales force management: Leadership, innovation, technology. Routledge. Kim, E., Williams, D. and Kim, S.T., General Electric Company, 2016. Demand side management control system and methods. U.S. Patent 9,271,333. Luft, J., 2016. Cooperation and competition among employees: Experimental evidence on the role of management control systems. Management Accounting Research, 31, pp.75-85. Naranjo-Valencia, J.C., Jimnez-Jimnez, D. and Sanz-Valle, R., 2016, Studying the links between organizational culture, innovation, and performance in Spanish companies, Revista Latinoamericana de Psicologa, 48(1), pp.30-41 Sartika, C.D., Antoni, D. and Akbar, M., 2016, Influence of Organizational Culture, Competence and Quality User to User Satisfaction Information Systems Sander, C. and Laidlaw, C., 2016, How Initial Public Offerings Change Management Control System Packages.