Based on:H1: Organizations with a prospector strategy will have an organizational culture that is (a) more innovative, (b) less stable, (c) less focused on attention to detail,and (d) more outcome oriented than organizations with a defender strategy, with analysers in between.
H2: Organizations with a reactor strategy will have an organizational culture that is weaker in respect of all organizational cultural dimensions than organizations with a defender, prospector, or analyser strategy.
Research method:
First of all the authors made a searched the literature available and explained and showed previews works and approaches Like Sarros (2002) that were made before.
Aspects in Research methodology
1. Data collection methods:
- Mail survey questionnaire.
- Reports: "paragraph choice" (Snow and Hrebiniak, 1980) made the respondents to talk and select the characteristics of their organization
2. Sample sources
- Sampled country: Australia
- Sampled subject: The culture of Australian organizations.
3. Sampling methods: Probability method; A non-proportional stratified sample was taken to enable the selection of approximately an equal number of business units from each category of organizational size. Randomly selected from the Kompass Australia directory. Stratums: Financial Controllers in Australian organizations.
4. Sample sizes: 400 financial controllers in both manufacturing and service industries in Australia.
5. Response rates: The survey was administered using Dillman's (2000) Tailored Design Method which has been shown to improve response rates to mail survey questionnaires (Dillman, 2000, p. 3).
The main purpose of the study was to examine the culture of Australian organizations; this purpose was divided by the authors in four different purposes;
The first purpose of this paper is to add to the research of Sarros and co-authors by examining the culture of Australian organizations, but using a different version of the OCP and a different subsample of Australian managers. The second purpose of the paper is to examine the empirical relation between organizational culture and strategy in Australian organizations. The third purpose of the paper is to examine whether organizational culture varies between service and manufacturing industries. Sarros et al. (2005) hypothesized that service industries would have stronger cultures (i.e., would value the OCP factors to a greater extent) than manufacturing industries. A final purpose of the study is to add to the literature on the application of the OCP in different countries. Sarros et al. (2002, p. 160) argue that the OCP "represents one of the major measures of organizational culture in use today".
Variables were measured as follows. Organizational culture was measured using the Windsor and Ashkanasy (1996) adaptation of the Organizational Culture Profile (OCP) of O'Reilly et al. (1991). As noted earlier (and as shown in Table 1), this adaptation comprises 26 items (value statements) from the original OCP. Respondents were asked to indicate the extent to which each item was valued in their organization, using a five-point scale where 1 represented "valued to a very great extent" and 5 represented "not valued at all".
Strategy was measured with the Snow and Hrebiniak (1980) measure based on the Miles and Snow (1978) typology of prospector, defender, analyser and reactor strategies. Respondents were given four paragraphs (shown in the appendix), each describing one of the four strategic types, and were asked to select the description that most closely fitted the characteristics of their organization.
2. What were the main findings on Baird et al (2007)?
- Their results generally corroborate Sarros et al. (2002), with outcome orientation and respect for people perceived as the most prominent characteristics of Australian organizations' culture, and innovation the least prominent.
- The consistency of results using a different managerial sample and a different measure of culture to Sarros et al. (2002) suggests robustness of the descriptions of Australian organizations' culture.
- Their results support the importance of aligning organizational culture with strategy.
- They found no differences in the culture of service and manufacturing industries.
They corroborated Sarros et al. (2002) in finding that the most prominent characteristic of Australian organizational culture was Outcome Orientation, followed by Respect for People, with Stability and Innovation being the least prominent characteristics in both studies. The high ranking of Outcome Orientation, a cultural factor characterised by values of having high expectations for performance and being results and action oriented, bodes well for the success of Australian business if, as theorised, organizational culture is an important determinant of managers' and employees' work attitudes, decisions and behaviour and, ultimately, an organization's financial performance.
Less auspicious is the low ranking of Innovation, a cultural factor characterised by a willingness to experiment, being innovative, being quick to take advantage of opportunities, and risk taking. This finding is consistent with that of Sarros et al. (2002).
Their results support Ashkanasy and Trevor-Roberts' (2001/2002) and Ashkanasy et al.'s (2000); the "mateship" characteristic of Australian national culture "represents a leadership style that focuses on the group", with leaders expected to be "one of the boys" (or girls?). Egalitarianism (the belief that people should be treated the same and as equals) has consistently been identified as an Australian cultural trait, and seen by Sarros et al. (2005, p. 176) as "the ability of Australian leaders to engage socially with workers while also nurturing and developing their careers".
They found an association in the factors of Respect for People (including values of fairness and respect for the rights of the individual) and Team Orientation (including values of being people and team oriented) to be the second and fourth highest ranked aspects of Australian organizational culture. Additionally, the values of fairness and respect for the individual ranked equal 5th among the 26 value statements .
Finally, the paper makes a significant contribution to the literature examining organizational culture in the service and manufacturing industries.
They also found empirical support for the influence of organizational culture on organizational strategic orientation or strategic typology.
3. How does the culture of Australian organisations relate to their strategy?
Organizations of the prospector strategic type were characterised by organizational cultures higher on Innovation and Outcome Orientation than defenders, and defenders were characterised by cultures higher on Stability. While an associational study is unable to unravel causality, the implication for organizations is that they provide empirical support for the theoretical contention that culture needs to be aligned with strategic type, and that organizations seeking particular strategies need to consider the issue of whether their culture is conducive to, or can be moulded to be conducive to, the desired strategy.
4. How does Roy Green (2009)'s article relates to Australian culture and Australian organisations?
According to this article, innovation is the key to recover from the actual world crisis. Innovation can be achieved in many forms, such as, Good management and leadership.
Last's review of Australia's national innovation system sustained that a revival of productivity growth will largely be driven by knowledge and innovation Organisations in Australia must take the correct course and actions in order to obtain growth sustainability with innovation. In order to make the right decisions, the leaders of this companies must have leader skills and be well prepared to confront crisis and to create organizational environments that promote innovation.
But first of all, the culture of Astrualia must be aligned with the need for people, and in this case, for managements to become leaders. This means that Autralian Culture and Astrualian Organisations must find a complete harmony and alignment of interests, principles and policies.
Baird et al (2007) organizations seeking particular strategies need to consider the issue of whether their culture contributes to do, or can be molded to be contributing to, the desired strategy.
The society must offer the right components (working force) that the organizations need in order to succeed, in this may, the country will obtain the organizations results and numbers needed to growth the economy.
(Green 2009)"Governments can play their part in encouraging the take-up of good management behaviour. Doing so may be the single most cost-effective way of improving the performance of their economies"
The Article of Roy Green is a reflection of the crisis; an structural crisis of overproduction in relation to return on investment, promoted by an overexpansion of credit and a shift in the distribution of income from wages to profits. According to him, the challenge for policymakers is to link a short-term increase in demand with strategies for building the longer-term capacity for innovation and entrepreneurship that will enable enterprises to lead recovery through sustainable value creation.
"In addition to identifying market needs and adapting their products or services to meet those needs, firms must also find ways of prompting the market to lock into their innovations ahead of others. The problem for Australia is that productivity growth, has now fallen to less than half, after surging to twice the Organisation for Economic Co-operation and Development average in the late 1990s. The significance of last year's review of Australia's national innovation system is the recognition that a revival of productivity growth - and future competitive advantage for Australian firms - will largely be driven by knowledge and innovation.
"Countries with strong innovation policies are likely to come out of the crisis in better shape than countries with no clear commitment to invention, discovery and continuous improvement".
Management and leadership were key factors in the differential productivity performance of firms, including their ability to undertake innovation. While funding for the Government's fiscal stimulus is inevitably limited, a growing body of international evidence suggests that support for innovation is a cost-effective approach to this critical area of public policy. And support for organisational innovation is particularly cost-effective because it addresses the challenge of linking short-term recovery to the longer-term development of a more dynamic, competitive and environmentally sustainable, knowledge-based economy.
Bibliography: Gonzales-Perez, M. A. 2008. Presentation " Research methodology and research methods " part of the subject Organizations and Cultures at the University EAFIT.
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