Topic: ArtMusic

Last updated: January 29, 2019

Course Code:BUAD 819
Course Title:Management and Organizational Behavior
Course E-Tutor: Dr. Kabiru JinjiriGROUP 5 MEMBERS:
S/No Names Registration Number Specialization
1 Agoha Ijeoma Adaku ABUMBA02015000845 HR
2 Garuba ZuliatuABUMBA02015005861 HR
3 Inegbeboh Jude ABUMBA02015001867 HR
4 Nwagbogwu Josey IkechukwuABUMBA02015002507 HR
Discuss the importance of culture for effective organizational performance critically. Give practically examples from any organization of your choice
Discuss critically how Globalization, Rapid changes in technology, Fierce world competition can be a great concern to Managers in service and manufacturing organization.
Location: KM 16 Badagry Express Way, Volkswagen Bustop, Lagos, Nigeria
Organizational development depends on analysis and identification of the different factors that conclude the effectiveness of the organization. Organizations and managers are willing to get employees commitment which leads to increased productivity. Management would like to familiarize employees with norm, values and objectives of the organization which is important in understanding the organizational culture. It is the responsibility of the management to introduce the organizational culture to its employees that will assist the employees to get familiar with the system of organization. Management must try to always maintain the learning environment in the organization. Proper understanding of organizational culture should lead to improvement in employees’ performance. As far as organizational development is concerned, employees’ performance is considered as a back bone for the industry. The complete knowledge and awareness of organizational culture should help to improve the ability to examine the behavior of organization which assists to manage and lead (Brooks, 2006). It is necessary for the management to identify the norms and values of the organization of the employees. The culture of the organization should be developed in a way to improve employees’ performance and continuously develop the quality of awareness.

What is Culture?
According to Kotter and Heskett (1992), culture means established set of beliefs, behaviors and values of society generally. Culture is the collective thinking of minds which create a difference between the members of one group from another (Hofstede, 1980). “Culture encompasses religion, food, what we wear, how we wear it, our language, marriage, music, what we believe is right or wrong, how we sit at the table, how we greet visitors, how we behave with loved ones, and a million other things,” Cristina De Rossi, an anthropologist at Barnet and Southgate College in London, told Live Science. In simple words, we can understand that culture is gained knowledge, explanations, values, beliefs, communication and behaviors of large group of people, at the same time and same place.

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Organization Performance
Organizational performance comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives). Organization performance relates to how successfully an organized group of people with a purpose perform a function. Specialists in many fields are concerned with organizational performance including strategic planners, operations, finance, legal, and organizational development.

An organization without unity will achieve little or nothing. At VON Automobile, it is part of the company’s culture that staffs engaged in the same kind of activities must have the same objectives in a single plan. This is essential to ensure unity and coordination within the workplace and department. For example, staffs working at the Fitters section, work in tandem with a single objective of making sure that all fittings for each vehicle that passes through that section are properly laid to avoid defect. A shared organizational culture helps to unite employees of different demographics. Many employees within an organization come from different backgrounds, families and traditions and have their own cultures. Having a shared common culture at the workplace gives them a sense of unity and understanding towards one another, promoting better communication and less conflict. In addition, a shared organizational culture promotes equality by ensuring no employee is neglected at the workplace and that each is treated equally.
Management of VON Automobile fosters the morale of its employees as a way of maintaining the loyalty of her staff. The management believes that real talent is needed to coordinate effort, encourage keenness, use each person’s abilities, and reward each one’s merit without arousing possible jealousies and disturbing harmonious relations. The management believes that this culture of loyalty will ward off potential poachers of their best hands by their competitors such as PAN, INNOSON, TATA etc. They also have loyalty clause attached to their staffs’ employment letter. Organizational culture helps to keep employees motivated and loyal to the management of the organization. If employees view themselves as part of their organization’s culture, they are more eager to want to contribute to the entity’s success. They feel a higher sense of accomplishment for being a part of an organization they care about and work harder without having to be coerced.

Healthy competition among employees is one of the results of a shared organizational culture. Employees will strive to perform at their best to earn recognition and appreciation from their superiors. This in turn increases the quality of their work, which helps the organization prosper and flourish. At VON Automobile, the management encourages healthy competition amongst her staff at various departments. Employees who perform well are given special recognition award and other incentives at the end of the month and the calendar year as deemed fit by the management. This culture by the management of VON Automobile is geared towards not only motivating her staff but also increasing productivity, as every staff strives hard to excel in order to be recognized and rewarded accordingly.

Guidelines contribute to organizational culture. They provide employees with a sense of direction and expectations that keep employees focused. Each employee understands what his roles and responsibilities are and how to accomplish tasks prior to established deadlines. It is part of the culture of VON Automobile to provide employee’s handbook to every newly employed staff. This gives the employee a sense of direction, a better understanding of job functions, chain of command, line of authority and channels of communication. All these are done to maintain unity of direction within the organization.

An organization’s culture defines its identity. An entity’s way of doing business is perceived by both the individuals who make up the organization as well as its clients and customers, and it is determined by its culture. The values and beliefs of an organization contribute to the brand image by which it becomes known and respected. Amongst her competitors, VON Automobile is known for excellence in the automobile industry as well as good welfare packages for her employees. They are known as the sole company with the franchise right to assemble Nissan, Hyundai, Honda, Volkswagen, Skoda, Audi, Ashok Leyland, IVECO Truck etc.

In conclusion, we can say that organizational culture reinforces the way a business operates with spoken and unspoken beliefs; and values and norms shared between employees and the owner. It is evident in everything from how workers dress, what time they come in, how they spend their lunch hours and how they create solutions for internal and external issues.

In nearly every corner of the world, from the ever-busy Computer Village in Lagos, Nigeria, to the Silicon Valley in the United States, we can see the impact of globalization, technology change and fierce competition. Technology has become ubiquitous and is changing every aspect of how people live their lives. When managers think about what influences their roles, they often think in concrete terms: worker productivity, chain of command, products and services. Even in the smallest businesses, however, issues like globalization, intuition, fierce competition and diversity greatly influence manager roles in this modern era.
These concepts influence how managers think, make decisions and even view the future of their businesses. Managers, who painstaking review these concepts, and how they influence their roles and management, can ultimately help them lead more competitive and modern businesses. Globalization is the increasing interaction of people through the growth of the international flow of money, ideas and culture. Globalization is primarily an economic process of integration which has social and cultural aspects as well. It involves goods and services, and the economic resources of capital, technology and data.

As globalization becomes more prevalent, it becomes a concern to mangers with regards dealing with increased cultural diversity within the workforce. These changes require small and large businesses to learn how to deal with this diversity as well as to adopt new policies and guidelines for workers. Differences in work ethics and religious differences are hot-button topics worldwide. This increased cultural diversity also has produced many benefits as companies gain new insights into different cultures from a management and a marketing standpoint.

Earnings Changes
As more manufacturing companies emerge and with a rapid change in technology, these companies have opted to recruit expatriate who can handle and possibly repair these machineries used in the manufacturing of goods, wages have changed for many workers. With lower standards of living, third world companies can offer their services at a rate greatly reduced from those in countries with higher standards of living. This has affected many workers in the Nigeria as well as other large countries as more companies embrace the outsourcing trend. While it means a greater profit margin for the companies, it can also lead to reduced earning potential for employees and this could create a hostile working environment just as its experience around the Niger Delta region of Nigeria.
Employee Training
Cultural, religious and ethnic diversity in the workplace presents a need for more employees training. In order to protect their companies and their new employees from discrimination, astute managers have had to implement policies and offer training to existing employees to make sure everyone can accept one another. This has led to a greater appreciation of other cultures and viewpoints in some companies, while irritating some employees who prefer a less culturally diverse work environment.

Increased Standards
Companies in foreign countries, particularly in the third world, have had to adopt a more Western standard in terms of providing better workplace safety and increasing workplace condition standards. This directly benefits the employees who may have been previously working in unsafe or unsanitary conditions. While conditions remain poor in some areas, an increase in concern over worker safety is apparent, particularly in larger companies. Occupational hazard is a serious concern to managers who values the safety of their employee
Fierce Competition
After the entry of Global System for Mobile communications (GSM) into Nigeria during the Olusegun Obasanjo administration, Nigerians were temporarily emancipated from the shackles of the once powerful, but now virtually insignificant, national telecoms monopoly NITEL. NITEL short changed and frustrated Nigerians for many years with their poor and almost non-existent service.
Nigerians were relieved when Econet (now Airtel) and MTN Nigeria launched their GSM mobile services in 2001. No sooner than later, Nigerians were bugged and enslaved by the new kids on the block (Econet & MTN) with outrageous tariff plan, per minute billing and price of purchasing SIM cards. SIM cards was sold for between N50,000 – N100,000 depending on the number series. The hues and cries by Nigerians to charge them on per second billing fell on deaf ears. As a matter of fact, both Econet and MTN categorically stated that per second billing was not possible in Nigeria as the machineries and logistics cannot work here. There was a need by the Nigerian customers but the early birds never focused on that until a fierce competitor emerged.
These problems highligted above lingered in the minds of Nigerians until August 2003 when Glo (a fierce competitor) was launched. Before the entance of Glo into the market, MTN dominated about 65% of the market and had the largest market share. Glo mobile brought fierce competition, innovation, and the popular breath of fresh air to GSM in Nigeria. Before Glo, connecting any mobile number on one dial was only possible in the realm of science fiction. Glo mobile thanks to new technology made it possible.

Glo offered Nigeians per second billing from the word go as they launched their service and provided flexible repayment package to purchase their SIM cards. By making SIM cards cheap, Glo empowered millions of Nigerians to join its GSM network, making it the fastest growing GSM network at the time and capturing a large chunk of the market share even above Econet. Its major rival and the biggest telecomms firm MTN immediately within less than a week of Glo’s launch, offered similar product and packages to Glo’s in a bid to maintain and recapture her already lost share of the market and to remian dominant.
This entrance of Glo brought about stiff competition in the telecommunication sector expecially between MTN and Glo. At this point it was lucid and a major concern to Managers at MTN that something needed to be done fast before they lose their strong hold on the market share.
The Technology revolution drives the extraordinarily rapid increase in the cost of procurement of modern machineries and rapid increase in the hiring of expatriate or skilled man power who can manage these machineries used by manufacturing firm to produce their goods. One of the major concern of production managers are efficiency and conversion time, and with rapid technology change, most mangers are seeking for the best machinery in other to produce more goods per day and out muscle their competitors in a race for economic survival.
REFERENCESAwosika, A., et al. (2016) Management and Organizational Behavior (First Edition). MBA Course
Material Ahmadu Bello University Press Ltd. Ahmadu Bello University, Zaria, Nigeria
Business Week. (2011). The Power of Us. Retrieved from: Retrieved from:, K. The Importance of Culture in Organizations. Retrieved from:, C. L. (2003). Globalization of IT Services and White-Collar Jobs. International Economics
Policy Briefs, 1-13
Stephen, P. et al. Organizational Behavior 5th Edition. London: Pearson Education, 2008.


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