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Business sustainability, organizational culture and strategy

Table of contents:

Anonim

It is a current reality that respect for the environment, social policy and information transparency are aspects that any company that wishes to maintain a leadership position must consider, which means that "sustainability" approaches are increasingly valued every day. of companies, that go beyond mere economic results.

In this sense, sustainability should not be seen only from an environmental perspective but also comprehensive, that is, as a social responsibility where the company exists with renewed vitality, as a contributor to economic-social well-being. It can be noted that the extension of the life cycle of the company has an important economic and social content, perhaps decisive.

Sustainable development and sustainability have been understood, not as a product to aspire towards or as a path that everyone must travel, but as processes of change that can be driven by certain principles, but that have to be built locally based on critical reflection processes and in accordance with different contexts (Huckle and Sterling, 1996; UNESCO, 2002).

Stakeholders, who bet on companies with dissimilar motives, increasingly lean their preferences for those that operate driven by values ​​aligned with the principles of sustainable development.

To be in line with the principles of sustainable development, the company must promote a convergent organizational culture with the business strategy aimed at:

  • Promote the commitment to quality Create economic, social and environmental value, in the short and long term Enhance the use of resources destined to the manufacture of its products and the provision of its services Promote the well-being and evolution of present and future generations, in their operating environments, in their immediate and general social context. To endure with renewed vitality, which goes beyond simply surviving, but to redesign itself according to the evolution of the socio-economic needs of the country and the world scenario.

It is a reality that the company cannot also neglect the health, safety, personal and professional development of the people who work in it, among other significant aspects.

Organizational culture has an indisputable importance in shaping business strategy, if it is in a very dynamic environment, a culture that supports flexibility and coordination of efforts is needed. Therefore, if there is convergence between strategy and culture, it can be said that the company is in a better position to achieve sustainability.

An analysis of the above leads to coincide with the scholars of the subject that a sustainable company is one that creates economic, environmental and social value in the short and long term and also makes it necessary to consider that it is necessary to study and deepen essential elements of its culture, which allows it to work towards a future based on values ​​that support its sustainable development.

The foregoing highlights four important aspects to take into account in the organizational culture that allows us to see its link and importance with the sustainable development of the company:

  • They mark the habitual or desired behavior of the members of the organization. It contributes to shaping the system of incentives and sanctions. It is a factor of organizational control in accordance with the existing consensus around the values. It supports the business strategy.

As can be appreciated, taking into account the organizational culture in sustainable development is of real significance, hence the importance of revealing some of its essential manifestations such as: paradigms, beliefs, values, among others.

For the study of organizational culture, it is necessary to measure the essential, but not visible, aspects, constituted by the paradigms, beliefs, values, norms, which are specified in the manifestations in organizations through strategies, objectives, procedures; organization charts; technology; decision-making processes, control systems, information; rites; behaviors; habits; behaviors; form of oral, gestural, written expression; weather; group cohesion; motivation; as well as: logo; way of dressing; internal organization, among others, some are easier to measure as well as the instrument to be used for this purpose, not being the case in those that are related to the socio-psychological aspect at an individual and group level.

Some statements that can be made in relation to the importance of knowledge, study and deepening of culture in the organization are the following:

  • Achieve a more lasting change in the organization. Create the need to improve the organization Facilitate changes in methods and styles through self-knowledge Create the need for behavioral modifications and acquisition of new skills Achieve greater control of resources and comprehensive organization Mobilize human resources in the identification of problems and search for creative solutions Improve individual and group work Create capacity for self-diagnosis and self-design of business strategy.

In the study carried out in addition to the conceptual aspects presented, the dynamic nature of the organizational culture was taken into account, that is, that it is in constant transformation, substantially modifying its norms, values ​​and even essential content, which It does not imply that the culture disappears completely, but if it did, the new culture would probably retain more or less marked features of the previous one at a different qualitative level.

For a better understanding of the dynamic nature of culture, it is necessary to refer to four fundamental factors, interlinked, which also explain why cultures emerge and survive. (See Graph 1. Cultural Dynamics)

Graph 1. Cultural Dynamics

Environment

Current conditions have changed and the emergence of new thinking, new ideas, new approaches, more adequate and appropriate, is necessary. In relation to the system approach.

At present the holistic principle is present according to which each of the elements depends entirely, on each of the others and where there is total interrelation, where chaos begins to be seen naturally and where the system is no longer predictable, not describable by classical mathematics and statistics. A new paradigm of thought arises, new methods of managing and entering the future, as well as a new way of describing reality.

Although it is affirmed that there is all type of system, adaptive ones predominate, with non-linear behavior, highly influential and influenced by and from the environment and where the whole is not the sum of the parts, but much more and different. Where all the variables that are related to the system can be considered endogenous. Until the supposed environment, it becomes part of the mentioned system.

If the environment is analyzed in the scope of the organization, it projects towards it a multifaceted set of trends: economic, political, ideological, cultural, religious, social, among others, marked by the evolution and historical development of society. where the character of the patriarchal hegemonic systems of male domination in different societies is currently evident in certain values ​​and norms that privilege men in their condition of power and organizational leadership.

One of the essential requirements for the successful operation of the organizational system consists of the knowledge of the demands of the environment and its main tendencies that affect the organization in the form of positive or negative impacts, commonly called opportunities and threats.

The environment can be classified into Microenvironment and Macroenvironment. An example of the first can be customers, suppliers, competitors, higher bodies, government agencies, etc. The type of direct exchange that the organization establishes with these links presupposes a system of mutual influences on which it can influence.

In relation to the macroenvironment, composed of macrosystems, whose tendencies affect organizational microprocesses. Unlike the microenvironment, the organization cannot directly influence the macroenvironment, so its only alternative is to adapt its microprocesses to these macro-trends. The economic crisis, inflation, demographic and environmental trends are concrete examples of macro trends. In this sense, other aspects will be exposed when analyzing the External Adaptation function.

The analysis leads us to reflect on the fact that the organizational culture in its interaction with the environment is consolidated when trying to adapt to the substantial modifications that take place in it, which has an important influence on the process of formation, consolidation and cultural change.

Leadership

Leadership influences the functions (internal integration, external adaptation) that are explained later and has a fundamental role in the formation, consolidation and change of cultures, but its role cannot be overestimated in any way.

It can be noted that leadership has an influence on business culture, since it decides on resources, information, rewards and punishments, autonomy, control, among others, as well as incorporates: behaviors, habits, language, norms, etc.

If an unusual situation or crisis arises and demands a response, the manager (man or woman) acts, reacts and with his action, lays the foundations for the establishment of new norms and with them, new working methods and Values ​​are consolidated with all of them or new ones emerge, which in turn determine the norms.

A new boss sometimes implements (or tries to implement) new norms and their values ​​may be different from the existing ones, causing changes in attitudes and behaviors, which are the most obvious manifestations of culture throughout the organization. This can be positive or not, everything depends on the needs of change in the organization.

It is essential to understand that the leader plays a significant role in establishing the levels of culture (visible or not), but without the group itself, there is no culture and, therefore, each member of the group has a more or less participation highlighted in terms of the unit itself and the degree of consolidation of its culture.

Functions of Culture

In the process of culture formation, Identity is created as a function, given by the set of fundamental characteristics of the organization, where the previously exposed levels of culture intervene. Identity distinguishes each organization and is manifested within two other processes, which are vital, which Schein has called: Internal Integration and External Adaptation.

External Adaptation is also a fundamental function, since it projects the organization-environment relationship. This allows the organization to survive by adapting to a turbulent, aggressive environment, such as the current one.

Adaptation - Organization - Environment is mutual, there is a one-to-one relationship, because due to the interaction between the two, the former adapts to it and the latter as a social entity adapts to the latter and influences its transformation in relation to its own experiences and their values.

There is an interaction between the two that causes a dynamic balance; Even this will tend towards where the force is greater. What should not be doubted is the fact of the action - reaction, which is exercised between the environment and the organization. This does not mean that there are no contradictions between the environment and the organization, this contradiction is natural, in addition to being a driving source of development and without one the other would not exist.

It has already been stated that the environment can be divided into Micro environment and Macro environment, depending on what is more or less close to the company. In this sense, political, legal, economic, demographic changes, considered within the framework of the Macro environment, bring an impact on the company, but do not necessarily imply an organizational cultural change, however they constitute Macro trends that the organization must face in the process. of adaptation to its environment.

In the external fitting function Schein defines five "basic problems":

  • mission and strategy goals media measurement correction

The Cuban experience shows similarity with this analysis. It may be that the conditions of the Cuban business environment from the country's own development under special conditions modify, to some extent, the content of each of these problems. Furthermore, the business response is not always clearly found in each action undertaken in accordance with the problems that it must face in relation to these elements.

Internal Integration is one of the functions of the organizational culture, since it is born, develops and is transformed from the need of the group itself to exist and maintain itself as such.

This function is the unification of the group in the sense of its adaptation, formation and consolidation on the basis of the elements shared by the members that form them, while External Adaptation is nothing more than survival in terms of responses to the environment. in which the group is located and which maintains a constant interaction relationship, which may even endanger its own existence, being the environment a strong element in the formation and consolidation of the organizational culture.

The internal from the external should not be separated due to their great interrelation, but rather focus on them as a systemic unit and, therefore, in constant interaction and mutual influence. Around the company moves a set of other cultures that emit different positive and negative forces, understand these as threats and opportunities of the environment that move in a spiral and help or not it, which at the same time moves projecting its own strengths (strengths weaknesses).

Integration is internal and can only be seen within the group, because although the group as such does not have a material existence isolated from the environment where it arises and, to a certain extent, conditions its creation, since the organization has a life of its own; needs integration and it achieves this to the same extent that it consolidates itself as such and develops its own styles, common language and conceptual categories, group limits and inclusion and exclusion criteria, hierarchical order, mechanisms of power and authority, communication, interrelationships, systems of stimulation and sanctions, shared sense of belonging.

Schein, in the work referenced above, points out 6 Internal Integration problems which are:

  • Common language and conceptual categories. Group boundaries and criteria for inclusion and exclusion. Power and hierarchy. Intimacy, friendship and love. Rewards and punishments. Ideology and religion.

All the previous elements referring to internal integration enable the formation and development of the group as such and constitute a function of culture in terms of the fact that its organizational components favor integration and are, in themselves, a response of the group to its needs. needs in this regard.

The internal integration and external adaptation functions are inter-linked and interdependent, the first conditions the second in the sense that it enables the very existence of the group and, in turn, the effort for survival and adaptation to and from the environment makes integration is achieved.

Socialization of Culture

The adaptation process that new workers go through is known as the Socialization of Culture. This process is extremely complex since some of the basic elements of culture such as: norms, values ​​and beliefs or basic assumptions of the group (organization) are transmitted to the new members, so that they share them in order to join it., if not it will come out of this.

In this process, culture is self-perpetuating through learning by new members of the basic elements of it, but, in turn, is renewed and in constant dynamics, assimilates new values ​​related or not (although convergent) to its basic assumptions.

The person who comes to an organization goes through a period of adaptation and training during which he receives much more than he gives, (first phase of this process), but depending on the degree of integration of the culture of that organization and how divergent may be their own values ​​regarding the basic perceptions of this, the new member will be incorporated more quickly or not to assimilate the cultural patterns of the group. Otherwise, there will be a clash or incongruity of values ​​and basic assumptions between the individual and the organization.

This new member will join faster or not to assimilate the cultural patterns of the group and may, in turn, in a second phase that is more distant or closer, to incorporate new elements to it. Workers who do not learn, for example the essential value system of the organization, may be rejected by the group or exclude themselves from it.

In short, cultural learning has four phases: entry, assimilation, transformation, and perpetuation. From here the sense of commitment, their motivation, and their results in terms of productivity and even their permanence in time in the organization can be deduced.

The main objective of the socialization process is to incorporate new members to the organization through which the culture is transmitted and renewed and thus its perpetuation is achieved.

There are different mechanisms to carry out this process. Many of them are linked to the direction of the human factor, such as training, trainings, forms of reward, etc. As well as others derived from the role of the leader in the organization and the strength of the synergy that emanates from the groups. Likewise, some of the elements indicated in the internal integration function contribute to this end.

The socialization process has an objective nature, so it is of great importance that its existence is known and that its facilitation is participated in to contribute to the solution of the problems of external adaptation and internal integration.

Final thoughts

When you want to promote management processes oriented to a business activity of sustainability, it is necessary to know the cultural dynamics and its factors, as well as those key elements that make up the culture of an organization and that have a direct impact on the success of these management processes..

Some of the key elements that make up the organizational culture, which have an impact on the organization's processes and are significant to identify are: organizational structures, management styles, productivity, technology, information and communication systems, type of authority, work organization, control systems, strategic approach, that is, it is necessary to know indicators of the systems: cultural, human and management, as well as business paradigms.

Currently there is talk of new business paradigms that reflect how the organization thinks and operates and that are part of its culture, which is the support of the strategy towards a sustainable company. This requires: a manager prepared with knowledge to develop and achieve the objectives of his business, proactive management, distribution of powers and decentralization in decision-making, development of technological innovation and research to promote efficiency and effectiveness, a reward system, based on the effectiveness of management processes that takes into account the risks in their management, as well as a work team that participates in the actions of the organization, and therefore a business culture that facilitates interaction with the environment.

In Cuba, in the last 10 years, there has been an interest in the study of organizational culture and, in a preliminary way, results are seen - due to its real systemic link - in business issues such as: leadership, gender, communication, competition, communication, quality, among others.

It is important to take into account what is studied? The real or desired culture and specify the measurement instruments used and ensure the bias introduced by the researcher.

The determination of paradigms and the precision of cultural indicators are vital since they mark the behaviors of individuals in the organization. Empowering those that favor business improvement and contribute to the principles of sustainable development is one of the Challenges that the current company must face.

Studying organizational culture contributes to the formulation of a business strategy, where its convergence with culture is enhanced, in such a way that it allows the company to work towards a future based on values ​​that support the principles of sustainable development at that level..

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Business sustainability, organizational culture and strategy