The problematic nature of organizational culture and a changing control context

Citation

Ryan, B. (2006), "The problematic nature of organizational culture and a changing control context", Strategic Direction, Vol. 22 No. 8. https://doi.org/10.1108/sd.2006.05622had.005

The problematic nature of organizational culture and a changing control context

The problematic nature of organizational culture and a changing control context

Ryan B.Strategic Change, December 2005, Vol 14 No 8, Start page: 431, No of pages: 10 Afghanistan

Purpose – To examine the extent to which an organization’s culture can be affected by approaches to management control systems. Design/methodology/approach – Focuses on the way that aspects of organizational culture may affect the individual and their contribution to organizational activity. Asks if the changing business environment, and particularly the current emphasis on the importance of shareholders and the demands of short-term investors have affected individuals to the extent of undermining their productive contribution to the organization. Describes a case study set in a large US public corporation with a history of encouraging individual employee contribution. Findings – Observes that at this corporation, known as Eurel, growing “financialization” has driven change in the organizational control systems. Finds that individuals within the case study perceived an increasing intensity and individualization of control, in contrast to the company’s history, culture and rhetoric of valuing people. States that the evolution of the organization and changes in cultural atmosphere are consistent with the idea of a more individual, self-reliant and self-preserving organization member. Discusses the impact of this trend on Eurel’s approach to innovation, noting that the process of product development has become increasingly formalized over the last ten years. Notes that this occurred at the same time as a move towards more intangible, knowledge-based product output. Reflects on how people and the organization are coping with the changing emphasis of the control systems and the impacts on organizational culture and individual contribution. Originality/value – Highlights the importance of a cooperative environment in maximizing individual contribution.ISSN: 1086-1718Reference: 35AH172

Keywords: Change management, Control systems, Corporate culture, Management effectiveness