Page 335 - DMGT402_MANAGEMENT_PRACTICES_AND_ORGANIZATIONAL_BEHAVIOUR

Management Practices and Organisational Behaviour

Notes In addition to a greater need to adapt to these external and internal changes, organisational
culture becomes more important because, for an increasing number of corporations, intellectual
as opposed to material assets constitute the main source of value. Maximizing the value of
employees as intellectual assets requires an organisational culture that promotes their intellectual
participation and facilitates both individual and organisational learning, new knowledge creation
and application, and the willingness to share knowledge with others. Organisational culture
thus must play a key role in promoting
1. Knowledge management
2. Creativity
3. Participative management

4. Leadership
We should remember that excellent companies do not remain excellent for long.

Example: Perhaps a strong consistent organisational culture is useful in the beginning
start-up phase of an organisation but a mature organisation may need to become more
differentiated as well as more oriented to change and learning.
What is important for long-term organisational success may not be a particular type of
organisational culture per se but the ability to effectively manage and change the organisational
culture over time to adjust to changes in the situation and needs of the organisation.
The studies have shown that the organsitaions that succeed over a long period of time have had
one or all characteristics written below:

1. Strategic planning and the identification of necessarily cultural requisites
2. Ensured consistency of culture with mission, goals, strategies, structures and processes
3. Existence of formal statements of organisational philosophy and values
4. Established consistent incentives, recognition systems, and performance measurement
5. Well maintained appropriate error-detection and accountability systems
6. Coaching, mentoring, informal and formal training, and identifying role

7. Taking advantage of the growth of subcultures
8. Managing and promoting strong communities of practice.

Case Study Organisational Culture at Southwest Airlines

I n 1967, Air Southwest Co. (later Southwest Airlines Co.) was started by Rollin King
and, John Parker, who were later joined by Herbert D. Kelleher.

They wanted to provide the best service with the lowest fares for short-haul, frequent-
flying and point-to-point 'non-interlining' travelers The trio decided to commence
operations in the state of Texas, connecting Houston, Dallas and San Antonio (which
formed the 'Golden Triangle' of Texas). These cities were growing rapidly and were also
too far apart for travelers to commute conveniently by rail or road. With other carriers
pricing their tickets unaffordably high for most Texans, Southwest sensed an attractive
business opportunity.
Contd...

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