Organizational And National Culture: Models And Their Impact On Argos

Models of Culture and Their Implications for Employee Behavior

Different models of culture that are proposed by various researchers helps in the identification of various subsystems and elements in an organization and their interdependency on each other. They have direct impact on the behavior of employees with in a given environment. A few examples can be organizational goals, technology used in the organization, and structure management. The style of interaction that takes place between employees at various levels are primary determinants of behavior in a given culture (Martins and Martins, 2002). In other words organizational culture models can be referred to as qualitative measurement tools that will help the managers to identify where cultural aspects should be improved within an organization to make sure that the company as a whole is ready for achieving organizational objectives (Salleh et.al, 2011).

Two models that can be adopted by Argos to ensure realization of their missions are focusing on ‘Task Culture’ as proposed by Charles Hardy and ‘Work Hard/Play Hard’ cultural model as proposed by Deal and Kennedy (Ghinea & Bratianu, 2012). The reasons are that in Task Culture, stress is on getting the tasks done by bringing together appropriate resources to improve performance. There will be an increase in the efficiency of the group as the company’s goals takes precedency over individual’s requirements. In the case of Work Hard/Play Hard culture, there will be high levels of energy & activity and is optimal for a sales oriented organization.

National culture can be considered as the highest level of culture that imbibes values and beliefs in people during their childhood and are deep seated in every individual’s life. These norms, behaviors and customs tends to be the same with in population of the same country. The relation between both cultures become increasing valid when one considers transferring various management techniques and theories to different places in the world (Nazarian & Atkinson, 2012). When it comes to organizational culture, it can be referred to as the collection of norms, values, behavior, beliefs, attitudes that are shared and communicated by management to its employees and then to the stakeholders by imparting a feel of the organization.

The national culture theory of Hofstede, describes the national culture in the light of different dimensions including power distance, masculinity vs. femininity, uncertainty avoidance, individualism vs. collectivism, indulgence vs. restraint, and long term orientation vs. short term orientation (Nazarian & Atkinson, 2012). Trompenars try and define national culture using seven different dimensions that are universalism/particularism, individualism/collectivism, achievement/ascription, neutral/affective, specific/diffuse, internal/external and time orientation (Nazarian & Atkinson, 2012).

According to the organizational culture model suggested by Schein, there are three levels in which culture exists including the artifacts, espoused values and basic underlying assumptions (Dauber, 2012). There is a distinction between four different domains in organizational culture that includes organizational strategy, organizational culture and identity, organizational design, structure and process and organizational behavior and performance (Hatch & Cunliffe, 2006).

Argos is UK’s leading home and general merchandise retailers and operates as two business that are Homebase and Argos. They look forward to shaping the future of shopping through means of retail leadership digitally, multi-channel capability and developing services and product ranges. Argos, is UK’s general merchandise retailers and offers value unrivalled, choice and convenience to its customers. These are some of their core cultural values

National Culture and Its Impact on Management Techniques

Compelling customer offering: Argos is company that stresses on the convenience of the customers. Hence they focus on ensuring availability of their wide product range and services to customers, by being physically present in places and also through digital leadership and accelerating multi-channels.

Cultural values: The basic values are that they believe in winning and makes use of the new opportunities. They believe that change is inevitable and stresses on team work and gives a high amount of stress on the completion of the job.

Workplace culture: Employing thousands of people, Argos ensures safe and fair working environment through policies and management on several topics including data protection, emergency and recovery procedures, equal opportunities, safety, training opportunities to develop ones career on the basis of their previous performances. They are motivated through employee benefits and competitive reward packages (Homeretail group, 2015).

Corporate governance: Argos adheres to the norms and code of conduct as proposed by government and board of directors, ensuring conformity to the highest standards when it comes to corporate governance.

Corporate responsibility: There is a reduction in operation costs by reducing fuel and energy consumption when it comes to operational processes. Argos is trying to create a balance between mutual social and commercial benefits.

Corporate culture of an organization gives a shared understanding about the mission of a firm including the mission, the strategies undertaken by them, principles and goals, staff beliefs, and explains why organization is the way it is. They are the rules that guides decision making at various levels in any chosen firm. For example, the policies, public statements and activities undertaken by an organization reflects the priorities in a company including safety, integrity, security, learning, improvement etc. it also influences how employees and shareholders associate themselves to the firm and also how day to day business is conducted by the organization. Hence corporate culture of an organization has a direct impact on the effectiveness of an organization (Desson & Clouthier, 2010). Employees when relate directly to the culture of the company and adapt to it, performs in a better way towards the fulfillment of these objectives.

Organizational Climate can be explained evaluated with the help of dimensions of climate

Structure- works on consensus and not authority

Responsibility- Argos tries to be a responsible retailer by reverting positively to the general expectations of the stake holders. This is done by taking inputs from various processes, people and community.  

Rewards-individual and the company performance leads to rewards and also an opportunity to buy shares of the company.

Warmth-A stress is given to the health, safety and wellbeing to the staff of the company and the organization has created a fun loving friendly atmosphere for both its employees and customer.

Support- Argos support the customer requirements by giving them an impressive product range. The vision of the company is to have an overriding vision that will create an open and friendly culture, where there will be high performance through team work.

Organization identity and loyalty- the policies and code of conduct of the company ensures equal rights to the employees. The company keeps its loyalty to workplace policies and management.

Cultural Values and Practices at Argos

Risk- there is always a fair review on the risk and the performance, be in security of human resources or finance by the company regularly taking necessary decisions to avert risks if possible.

Organizational climate is shaped by five factors including motivation, change, teamwork, execution and trust. When it comes to motivation, a task should be aligned to the employees that is clearly understood by them followed by a reward structure to keep them motivated. There should be a boost in the morale of the employees and management by ensuring equal rights to all the employees and evaluation based on performance. Imparting certain levels of autonomy will ensure improvement on terms of entrepreneurial spirit and innovation. Change will be required when it comes to de-cluttering of the workspace and so the employees should be prepared for embracing change in the given organization. Stressing on respect and trust for colleagues will help in creation of a sense of purpose and thus leading to the enhancement of organizations climate. Provision of technology is essential for collaborating ideas and making it successful. In certain cases it should be supported by training and development. Review of performance and constructive criticism will improve the performance of employees. Adherence to policies of management will also ensure ethical conduct thereby improving corporate climate with in a given organization.

Values can be incorporated in to the organization through a step by step framework ensuring inclusion of all necessary elements that will work towards fulfilling the strategies. The various steps are planning and analyzing, designing, building, delivering and operating as shown below

Special strategies have been formulated in Argos for growth in the future. They are attaining digital leadership and becoming a market leader through multi-channel retailing. To concentrate on the portfolio of stores that also acts as pick up points for different multichannel offerings and leading to continued evolution of stores. To attain leadership in products and to provide exclusive brands, make compelling customers offering and to support growth of the organization making good investments (Home Retail Group, 2013). Implementation of this framework prepares the management to manage and analyze the employee’s talent along with managing both internal as well as external stake holders, after rising up to their expectations. Communications and feedback ensures that the organization is working as a single unit towards realization of strategies checking on major mile stones. Allocation of tasks eliminates clutter and confusion and training and development prepares the employees to handle the technological as well as managerial challenges successfully.

Internal stakeholders are people who are a part of the organization and wants the organization to be successful. It is important to analyze who they are because, their satisfaction is prior because of the accountability that the organization have towards stakeholders (Hill et.al, 2015). Internal stakeholders in the case of Argos are its employees, the management, the directors and owners, the shareholders, trade unions and employee associations. External stakeholders are people who may be impacted in some way because of the decisions that are taken by the organization. In other words they are customers, creditors, government and trade unions, the community as a whole and the customers and suppliers (Hill et.al, 2015). Some of the major stakeholders in Argos includes Marie Cure Cancer care, British Retail consortium, Irish business and Employers’ Confederation, and International confederation Toy Industries along with their 28,138 shareholders (Home Retail group, 2013).

The industry that Argos operates in is highly dependent on perceptions of customers, there should be a communication between the organization and the stakeholders ensuring that both of them understand each other’s position and Argos meets their expectations.  Argos communicates through press releases, web sites, annual reports, project reports, advertisements and other reviews as imposed by corporate governance, and also informing their plans and strategies in advance (Home Retail group, 2013). These includes all three different aspects of stakeholder communication including traditional reporting, project relations that are essentially formal in nature and direct communication (Stake holder management pty, 2012). The direct communication seems to be lower with Argos.  A successful stakeholder management should be a two way communication process where feedbacks from stake holders are considered in to account and are implemented (Jeffery, 2009). Argos should therefore stress on stakeholder participation rather than one sided communication.

The communication strategies that can be adopted by Argos remains the same that are traditional reporting and project relations. Annual reports and press releases can be now used as a means to communicate their culture and corporate social responsibility. But these are more of one way communication techniques that ensures no stakeholder participation. So Argos should concentrate on direct communication which will also help to reassert stakeholders and manage them in a productive way. Following diagram represents how stakeholders can be engages meaningfully.

Social media acts as a major platform for two way communication. Two way communication will also help the management to understand the expectations from the stakeholders and seek to strike a balance between what is best for organization and the stake holders (Lovejoy et.al, 2010). There are chances that cultural difference among stakeholders will lead to a situation where communicated messages by the company are perceived differently. That is the reason why differences in the beliefs, customs, values, traditions and language should be taken into account. Communication strategy cannot be isolated and should contain more than a set of actions that are inclusive in the business strategy (Barker & Angelopulo, 2005). Hence communication strategies should be adapted according to the cultural requirements of the stakeholders to gain their trust.

References

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