A Value ‘Model’ For Organizational Culture For Improved Organization Performance

Mr. S. C. Pandya, Principal Consultant, Concept Business Excellence Pvt. Ltd., Vadodara

A Value ‘Model’

A Value ‘Model’

Liberalization, Privatization and Globalization are the current buzzwords in the developing countries of which our country, INDIA, the largest democracy in the world, faces lots of challenges and opportunities. How, “we the people of India” respond to these challenges shall decide the overall wellbeing – i.e. Health, Wealth and Happiness of our countrymen.

Our nation consists of various sectors of organizations such as government sector, public sector, corporate (private sector), cooperative sector, MSME (Micro, Small, Medium enterprises) sector, NGOs & agriculture sector. However the large number of populations forms the unorganized sector consisting of individuals.

The challenge of transition from a poverty ridden nation to a prosperous nation, calls for an initiative to be taken by the most informed, knowledge based and economically well placed sectors e.g. corporate, PSUs & cooperatives with the support of government policies and executive processes and procedures.

To convert the challenge into opportunity, we need to focus on creating a value model for organizational culture. The dictionary meanings of the term culture are

A cultured individual or group of individuals is one that is well educated and well behaved.

To reap the real benefits of liberalization, privatization and globalization it is time organizations set a “stage” ready to enter the challenging phase of economic transition. i.e. to play a decisive role in the turbulently competitive global economy. How should we set up such a “stage”?

The first and foremost step to set up a strong “stage” should be to create a credible, trustworthy and internally strong corporate India, where the business values are not just the build organizational culture characterized by “VALUE” in its true spirit. To set itself on the path of excellence, it becomes imperative in India to show up a unique and united representative face of an Indian organizational value system. Hence organizations should aim at evolving a culture based upon a value “Model” which embodies the following factor determinants as its foundations or principles.

  • Customer focus
  • Leadership
  • Total employee/ people involvement
  • Mutually beneficial customer-supplier relationship links
  • Process and system approach to management
  • Factual approach to decision making
  • Deep commitment to welfare of society at large and protection & preservation of environment
  • To address the needs of all other stake holders

Most of the above factors/principles also form the base for ISO 9001:2008 Quality Management System. The organizations need to interact with the above factor determinants/principles individually and as an integrated whole for evolving a value bounded organizational culture.

A Value ‘Model’

Customer focus

The organization should understand the current and future customer needs; stated o implied; should meet the customer requirements and strive to exceed customer expectations.

Leadership

Leadership function is to establish unity of purpose and direction of the organization is Vision, Mission and Strategy. It should create and maintain the internal environment in which people can become fully involved in achieving organization’s benefits.

Factual approach to decision making

Employees at all levels in an organization, from top management to first line employees and associates are trained and educated to take decisions which are based on accurate, adequate & reliable data and information and its scientific analysis. Decisions based on perceptions without any scientific base, invalid beliefs and mistrusts, fear etc. should be avoided.

To address the needs of all other stake holders

Just look at the top successful organizations at the national and international levels, when we take into account all their activities, we find that they are following the above mentioned principles which ultimately improves their business performance and builds an unique image of the organization for other to emulate.

Total employee/ people Involvement

Employees/ people at all levels are the driving force and business essence of an organization, and their full involvement enables their abilities and potential to be used fully for their own development and organizations benefit.

Mutually beneficial customer-supplier relationship links

Each organization forms a link in the chain of customer-supplier relationship. Each link plays double role of customer and supplier. All links are interdependent and a mutually beneficial relationship ultimately enhances the ability of all to create value for society as a whole.

Process and system approach to management

A process approach consists of importance of understanding and fulfilling the requirements of next process-customer. So as to add value and to measure the performance and effectiveness of the process objectively periodically with the aim of continual improvement. System approach is to identify, understand and manage interrelated processes so as to contribute to organization’s effectiveness and efficiency in achieving its objectives.

To address the needs of all other stake holders

When all the above factors are taken care of to enhance the all round performance of the organization probably no stakeholders shall be left out. It is not only financial interests of stakeholders but also emotional, sociability, & spiritual needs which are met by following the value model by an organization.

Deep commitment to welfare of society at large and protection & preservation of environment

All organizations exist as an integral part of society. They have government on one side and the people on the other side. Government represents the policy maker, regulator and facilitator and the people represent the aggregate home demand of products and services while taking care of environment. So as to avoid any kind of pollution be it of air, water, sound or any aspect that affects the safety of people. It is the experience of advanced & developed countries that sophisticated and higher order home demands of people always perpetuate improvements and innovation among organizations which is a pre-requisite for them to compete in international terms. This calls for “Demand orientation” to our educational system by coordinating closely with the government. So as to redesign the technical education to meet the ever increasing demand of the specialized field. Organization should also encourage the saving habits among their employees and promote the higher level of capital formation. They should also take up C.S.R. (Corporate Social Responsibility) activities such as national literacy mission, save environment, women’s safety & empowerment, healthcare etc… Such movements can instill a spirit of team work and discipline among employees in an informal manner and also inculcate the sense of empathy and comparison for fellow human beings.