Assessing the Relationship between Strategy and Organizational Culture in an Iranian Manufacturing Industry

Khaled Nawaser,Azadeh Kamel,Seyed Mahdi Vesal,Fatemeh S Shahmehr

doi:10.5539/ass.v10n21p175

Abstract

Organizational culture and strategy are linked because organizational strategy can be devised by studying theorganizational culture in place. In other words, organizational strategy is influenced by the culture set in theorganization. Organizational culture and strategy are often part of the major contributing factors to how far abusiness will proceed. The purpose of this paper is to investigate the relationship between organizational cultureand the competitive strategies in Iran-Khodro Automotive Company. The research was conducted in Iran-KhodroAutomotive Company. The employees were considered as the population of the study and a questionnaire wasdesigned for the purpose of data collection. Results show that there is a significant relationship between strategyand organizational culture. Considering a minor difference between differentiation and lower cost strategies, thecompany's strategies could be mentioned as a combination of the two. Furthermore, in terms of its competitivestrategies, the company seems to pursue differentiation strategy rather than focus strategy. In addition, analysis ofthe company’s organizational culture characteristics demonstrates that some of these characteristics are not incoordination with company's strategies in specific cases in the Company.

Highlights

The researches on the subject of organizational culture and its effect on other organizational variables became widespread during 1980s
The purpose of this paper is to investigate the relationship between organizational culture and the competitive strategies in Iran-Khodro Automotive Company
The first part of questionnaire was related to background information which included five questions and the second part was known as understanding organizational culture-strategy which included four close type questions

Summary

Introduction

The researches on the subject of organizational culture and its effect on other organizational variables became widespread during 1980s. The strategic management and planning is of the most important and well-known of evolutionary programs. Regarding the fact that almost all organizational evolutionary programs are going to change attitudes and internalize new values (in the form of new behaviors) in organization and among personnel. Organizational culture, as the infrastructure and the platform of organizational evolution, is the center of thinking for these programs. It means that it is a platform which facilitates achieving the organizational aims in one hand and it can be a hinder against applying changes in the organization on the other hand

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