Organizational
culture: A tool for business strengthening
Cultura organizacional: Herramienta de fortalecimiento empresarial
Edwin Vásquez-Erazo
Universidad Técnica de Cotopaxi, Latacunga
– Ecuador
https://orcid.org/0000-0001-9817-6773
Karla Yecenia Sanmartín-Vargas
karla.sanmartin9355@utc.edu.ec
Universidad Técnica de Cotopaxi, Latacunga
– Ecuador
https://orcid.org/0009-0009-2935-720X
Michael José Badillo-Chamorro
michael.badillo8155@utc.edu,ec
Universidad Técnica de Cotopaxi, Latacunga
– Ecuador
https://orcid.org/0009-0006-1750-7379
ABSTRACT
The
objective is to identify the factors of organizational culture that influence
the strengthening of service companies, in order to achieve a strong culture,
promoting open communication and continuous learning. A quantitative
methodology is used with a descriptive scope that guides the understanding of
the identified variables, a questionnaire of 60 questions was applied with 12
dimensions, decision making, teamwork, capabilities, values, agreements,
coordination, change orientation, customer orientation, learning, strategic
purposes, goals and vision, factors that are associated with organizational
culture. The study is important because it leads to the development of
organizations by strengthening their organizational culture to improve labor
relations, since personnel is the key to success in organizations.
Descriptors: culture of
work; occupational
psychology; human
resources development. (Source:
UNESCO Thesaurus).
RESUMEN
El
objetivo es identificar los factores de la cultura organizacional que incidan
en el fortalecimiento de las empresas de servicio, para lograr una cultura fuerte, promoviendo
la comunicación abierta, el aprendizaje continuo. Se utiliza una metodología
cuantitativa con un alcance descriptivo que oriente la comprensión de las
variables identificadas, se aplicó un cuestionario de 60 preguntas con 12
dimensiones, toma de decisiones, trabajo en equipo, capacidades, valores,
acuerdos, coordinación, orientación al cambio, orientación al cliente,
aprendizaje, propósitos estratégicos, metas y visión, factores que son
asociados a la cultura organizacional. El estudio planteado es importante, porque
lleva al desarrollo de las organizaciones fortaleciendo su cultura
organizacional para mejorar las relaciones laborales, ya que el personal es la
clave del éxito en las organizaciones.
Descriptores: cultura del trabajo; psicología ocupacional;
desarrollo de recursos humanos. (Fuente:
Tesauro UNESCO).
INTRODUCTION
As the 21st century progresses, various
economic and demographic trends are having a great impact on organizational
culture. Today's world is undergoing dizzying changes, which are reflected in
institutions of all types, impacting daily practices (Yopan-Fajardo, 2020).
From the 1980s to the present, organizational culture has been a concern in all
business sectors and even more so in service companies, no longer as a
peripheral element of the organization, but as an integral part of relatively
strategic importance. Likewise, the need for cultural management corresponds to
the growing recognition of the field of cultural management in Latin America,
which is presented as an academic and professional field. However, in the field
of theoretical concepts, the basis of organizational culture research is
reduced to organizational theory, whose descriptive and instrumental approaches
are unable to capture the complexity and dynamics of this structure.
In organizational strategic communication,
culture is now seen as one of the most important intangible assets or resources
of the organization, underpinning its intellectual capital. For some time now,
culture has ceased to be considered a variable and is understood as a
constitutive dimension of an organization (Besley & Dudo, 2022). From this
perspective, organizations are understood as culture; that is, culture is not
something that an organization "has", but what it "is"; the
organization is not understood and analyzed in economic or material terms, but
understood and analyzed from its expressive and symbolic aspects (Smircich,
1983), (Bernardes, et al. 2020).
It can also be indicated that when the
organizational culture is not aligned with the values, goals and strategies of
the company, it can generate conflicts and difficulties. If employees do not
share the same values and objectives, there may be lack of cohesion and
collaboration, which negatively affects the performance and results of the
organization, similarly If the organizational culture is rigid or resistant to
change, it can hinder the adaptability of the company in a dynamic business
environment. Resistance to change can arise when employees are entrenched in
old ways of doing things or are afraid of the unknown. This can hinder
innovation and limit the company's ability to respond quickly to new
opportunities or challenges (Angelini, et al., 2021), (Mengstie, et al.
2023).
Another element to take into account is that
companies have a diverse workforce in terms of generations, there may be a
cultural gap between younger and more experienced employees. Each generation
may have different values, expectations and ways of working, which can lead to
tension and conflict. Managing this cultural diversity and promoting an
inclusive culture can be a challenge for service companies (Wang, et al.
2022), (Gold-von Simson, et al. 2021), (Qiu, et al. 2022).
Taking into account that organizational
culture is considered an intangible resource in organizations, (Núñez &
Rodríguez, 2015) state that: current approaches recognize that one of the most
important sources of corporate value are intangible resources. The beginnings
of the theory of intangible assets date back to the 1990s, when these assets
began to be studied as strategic assets. Intangible resources are considered
all organizational resources that have no physical existence, have a potential
application, are renewable after use and will not decrease in quantity and
quality during use, but will increase, unless they are at the same time useful,
professional. high degree (Diefenbach, 2006, cited in Núñez & Rodríguez,
2015).
The importance of intangibles lies in their
ability to generate value. Playing a decisive role in the selection of
stakeholders (Lübbeke, et al. 2019). Finally, some intangible assets, such as
corporate reputation, mitigate corporate crises (Sierra-Toncel, et al.
2014), In this approach, organizational culture becomes one of these intangible
resources, such as social responsibility and brand, among others. Culture is
considered an internal strategic design, when it becomes a basic element of the
management orientation, that is, when the company is called culture, it means
that it moves from a spontaneous system to an organic management system (Trus, et
al. 2019).
Organizational culture is an important part of
the organizational microenvironment, since people are at the center of a
company's operations, it involves all the actions that arise spontaneously in
certain situations to build relationships among employees. Companies always want to improve
organizational efficiency by increasing sales, generating more profit, but to
achieve these results, the first thing to improve are the employees, for
example: employees with poor attitudes and skills. causing delays in business
On the other hand, employees with maximum availability to get things done will
allow better optimization of resources, generating more profit in the
organization (Kajamaa, & Hurmelinna-Laukkanen, 2022).
The objective of this research work is: to
identify the factors of organizational culture that influence the strengthening
of service companies, in such a way that they contribute to the development of
a strong culture, promoting open communication, continuous learning and the
strengthening of this important business sector.
METHOD
Methodologically, the research was carried out from
a quantitative approach, from a descriptive type with a non-experimental field
design.
For the research process, the first step was to
search for information in various databases: Scopus, Redalyc, EBSCO, Scielo,
PubMed; with the help of keywords as long as they included the variable
organizational culture. Subsequently, field research was carried out in the six
service companies with the participation of 59 workers whose only criterion for
participation was their willingness to take the survey.
For the study, six service sector companies in the
province of Cotopaxi were taken into account, with a total of 59 workers
surveyed, where professional practices are involved.
We worked with a questionnaire where 12 dimensions
were established and 5 questions were formulated for each dimension based on
the Likert scale, which were rated from 1 to 5, where the categorization is as
follows: (1) Totally disagree (2) Disagree (3) Neutral (4) Agree (5) Totally
agree (5) Agree
According to the valuation characteristics, 5
questions were grouped in each of the dimensions and variables regarding
organizational culture.
The Cronbach's alpha index for the study of
organizational culture with the 59 participants is 0.977, which indicates that
the questionnaire applied provides high reliability.
In relation to the evaluation of theoretical
constructs using Pearson's correlation analysis whose value is located between
0 and 1 and the minimum acceptable value is 0.70, which implies simultaneously
relating the established variables to each other, and summarizing the results
in a correlation matrix to identify the existing organizational culture in the
service companies of the province of Cotopaxi.
Descriptive statistics and Pearson's correlation
coefficient were applied, supported by the SPSS V25 statistical package with
the intention of processing the data collected and constructing the research
results section.
RESULTS
The
most relevant findings related to the factors inherent to the organizational
culture are detailed below:
Table 1. Weighting of the dimensions.
DIMENSIÓN |
VARIABLE |
PROYECCIÓN TOTAL |
PONDERACIÓN |
NIVEL DE ACEPTACION |
DESVIACIÓN |
D12 |
VISIÓN |
1475 |
1244 |
900 |
231 |
D10 |
PROPÓSITOS
ESTRATÉGICOS |
1475 |
1220 |
900 |
255 |
D11 |
METAS |
1475 |
1212 |
900 |
263 |
D2 |
TRABAJO EN
EQUIPO |
1475 |
1204 |
900 |
271 |
D1 |
TOMA DE DECIISONES |
1475 |
1198 |
900 |
277 |
D4 |
VALORES |
1475 |
1196 |
900 |
279 |
D9 |
APRENDIZAJE |
1475 |
1185 |
900 |
290 |
D7 |
ORIENTACION
AL CAMBIO |
1475 |
1164 |
900 |
311 |
D6 |
COORDINACIÓN |
1475 |
1162 |
900 |
313 |
D3 |
CAPACIDADES |
1475 |
1153 |
900 |
322 |
D5 |
ACUERDOS |
1475 |
1126 |
900 |
349 |
D8 |
ORIENTACIÓN
AL CLIENTE |
1475 |
1122 |
900 |
353 |
Source: Own elaboration.
Table 1
shows the value of each of the dimensions in relation to the organizational
culture. The total projection refers to the maximum score that can be achieved,
the weighting is the value obtained by each of the dimensions, and the level of
acceptance is the minimum point for the organizational culture to be accepted.
It can
be observed that the dimensions corresponding to Vision, Strategic Purposes,
Fulfillment of Goals and Teamwork are the ones that stand out the most as
factors of sustainability of the company, other dimensions that contribute but
that in the service companies of the Province of Cotopaxi are present but need
to be reinforced, such as Decision Making, Values, Learning, Orientation to
change, coordination are elements that should be taken into account to improve
the organizational culture.
Graph 1. Behavior of Organizational Culture in the
service sector. Own elaboration.
Graph 1, resulting from the data obtained from
the surveys applied to the 59 workers of 6 service companies, shows that the
dimensions measured in this sector in relation to organizational culture are
not adequately strengthened and need important strategies to reach the desired
levels.
Table 2. Measuring organizational culture in service
companies.
Source: Own elaboration.
Table 2 shows that, once the Pearson
correlation is applied, it is evident that the service companies in the
province of Cotopaxi do not have a strong organizational culture, but rather a
weak culture, which implies that employees are not aligned with business
objectives and have a very low motivation to fulfill their obligations.
DISCUSSION
Organizational culture with the passage of
time has become an important intangible tool in organizations, since its
success or failure is a challenge for all the workers of the companies since,
on them depends the generation of added value for
their economic activity; therefore, it is necessary to know the alignment and
commitment that all the collaborators of the companies have, which is reflected
in the work performance (Viđak, et al. 2021). Therefore; organizational culture
through its associated dimensions, shapes the way employees think, behave and
relate within a company. It has a profound impact on their motivation, job
satisfaction, sense of belonging and professional development. A strong and
positive organizational culture can boost employee productivity and engagement,
and contribute to the overall success of the organization (Yopan-Fajardo, et
al. 2020).
The identification of an organization is its
culture, which is why most companies in the world and in Ecuador have focused
their efforts to build solid, transcendent and innovative cultures within their
organizations; since that is what differentiates them from other companies that
may have the same activity. Therefore, the challenge for companies and
especially for the Human Talent area is to make members feel part of the
organizational culture and adapt to it so that their functions, activities and
tasks are executed under the same cultural line (Palafox-Soto, et al. 2019).
Organizational culture is based on values and
beliefs shared by the members of the organization. These values provide a basis
for decision making, behavior and interaction in the work environment, it
defines the way tasks are performed, this will influence the work style and
behavior of employees. It can also be mentioned that the organizational culture
can be influenced by the leadership style adopted in the company, so that the
company can be oriented towards achievement, through challenging goals that encourage
employees to strive to achieve them, so that they are aligned with the
company's objectives and values. The organizational culture must be recognized
and shared by all members of the organization to create a sense of identity and
belonging and with these tools achieve business sustainability (Cuenca-Galarza,
& López-Paredes, 2020).
Service companies have distinctive
characteristics that differentiate them from manufacturing or tangible goods
production companies. These characteristics influence how services are
designed, delivered and managed in firms. Understanding these particularities
helps service firms adapt their strategies and approaches to deliver satisfying
customer experiences as part of their culture to achieve a competitive
advantage in the marketplace (Quiñónez-Guagua, et al. 2020).
A strong organizational culture aligned with
corporate sustainability creates a foundation for ethical decision making,
promotes environmentally responsible practices, fosters innovation and
continuous improvement, drives corporate social responsibility, and increases
employee engagement. These factors combined can contribute significantly to the
sustainability and long-term success of a company (Rojas-Martinez, et al.
2020).
Culture is not something that an organization
"has", but what it "is"; the organization, can be
understood as a process that includes customs, habits, norms, rules, formal and
informal communication and a combination of all the factors that make each
organization unique. In this sense, (Wei & Miraglia, 2017), define
organizational culture as a multifaceted concept based on a pattern of shared
underlying assumptions that a group learns when facing challenges of external
alignment and internal integration and that works well enough to account for it
is efficient.
The multifaceted concept that encompasses
organizational culture has meant that for the present study the dimensions of
Decision-making, Teamwork, Capabilities, Values, Agreements, Coordination,
Change orientation, Customer orientation, Learning, Strategic purposes, Goals
and Vision have been taken, which has allowed to see the behavior of each one
of them in the service business sector of the province of Cotopaxi. In
addition, issues related to organizational culture are discussed in various
studies by different authors, which help to enrich this variable and show how
important it has been and continues to be for organizations and explain how
companies can achieve better results. The results are related to their
organizational culture.
Every organization has distinctive
characteristics, which differentiate it from other organizations. It can have a
profound effect on an organization's success as it shapes employee attitudes
and behavior. Understanding organizational culture is essential for any company
to succeed in today's competitive environment. The business structure of the
province of Cotopaxi-Ecuador, in its great majority are service companies, this
was the reason for it to be a source of analysis to identify how the different
dimensions associated with organizational culture are presented in this
business segment, so it is necessary to know what are the main characteristics
that are present in this type of companies.
CONCLUSION
The dimensions analyzed are a fundamental part of
corporate culture because they facilitate adaptation to change, promote
innovation, improve quality, develop talent, facilitate the transfer of
knowledge and will strengthen service companies in the province of Cotopaxi -
Ecuador. Culture is a fundamental aspect of an organization, because managing
it as well as possible creates a good working environment and work climate, and
employees feel proud of their work in the organization. Instead, the company's
values are dynamic and ever-changing in response to external and internal
stimuli.
AUTHORSHIP CONTRIBUTION
Edwin Vásquez-Erazo and Karla Yecenia Sanmartín-Vargas, conceived the initial idea of the
research project, generating the first working paper, Michael José
Badillo-Chamorro, contributed by researching the bibliography, statistical
analysis, the authors jointly carried out cooperative work to consolidate the
working paper into a research article, accompanying the editorial review
process of the journal.
FINANCING
Non-monetary
CONFLICT
OF INTEREST
There
is no conflict of interest with persons or institutions related to the
research.
ACKNOWLEDGMENTS
To the Universidad Técnica
de Cotopaxi, Latacunga - Ecuador.
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