|Type of paper:||Essay|
|Categories:||Leadership analysis Company Organizational culture|
The Costco Corporation was founded in 1983 by Jim Sinegal and Jerry Brotman (Cascio, 2006). The organization focuses on sales of products that are relatively low prices, majorly focusing on small businesses and large families (Ellinas, Allan & Johansson, 2017). The company deals in products such as coffins, flat-screen Televisions, as well as gallon jugs of mayonnaise. It operates several stores in Canada, the United States, the United Kingdom, Mexico, Japan, Taiwan, South Korea, and Australia (Keyton, 2017). The organizational culture of Costco has dramatically impacted its general performance. As such, this paper presents an in-depth analysis of Costco's corporate culture.
Understanding Organizational Culture
Organizational culture Costco relates to a system of assumptions, shared values, and beliefs that govern peoples' behaviors within an organization. In Costco company, an organization the shared values and beliefs form some robust impact on the company employees and greatly determine how they perform their duties, dressing codes, and actions (Warrick, 2017). The essential characteristics of organizational culture at Costco Company include; innovation, attention to detail, aggressiveness, team orientation, and people orientation.
The organizational culture requires a clear demonstration of stability and outcome orientation. It is essential to note that the success of Costco Company can be attributed to the uniqueness of their operations (Ellinas, Allan & Johansson, 2017). Even amid competition within the retail industry, the company has often preserved its edge by building a unique culture.
It is also important to note that culture is a necessary foundation for everything. Costco has developed a distinct culture, thus resulting in improved performance and productivity from the employees (Keyton, 2017). The focus on the excellence of employees has resulted in happiness and increased satisfaction for employees and improved productivity and overall performance. Being one of the world’s largest chains, Costco has an immense customer base. This cannot be attributed solely to the fact that it offers lower prices to the customers, but the general culture of customer satisfaction (Warrick, 2017).
Dynamics of Organizational Culture
Cultural dynamism relates to the model that indicates the processes involved in the manifestation, realization, symbolization, and consequent interpretation. It is a framework for discussing organizational culture dynamism (Ellinas, Allan & Johansson, 2017). The organization has maintained its competitiveness by focusing on internal collaborations, employee satisfaction, employee training and growth, low pressure concerning performance and productivity, and a learning environment that provides the best learning and growth opportunities for the workers.
Again the organization has focused on customer satisfaction and customer service (Keyton, 2017). The organization’s focus on the satisfaction of the employees has immensely paid in the long run. It has both highly dedicated and more productive employees. By 2016, Costco enhanced its promise by raising wages for its employees.
It is also important to note that the organization has dramatically focused on collaboration in which the employees are not pushed to deliver what they cannot (Warrick, 2017). Costco company employees also do not feel any performance pressures and are accorded adequate time and space for work and growth. They are also given a chance to learn and happily serve their customers, devoid of any pressures. This can explain why the retention rates of customers at Costco are relatively high. The promotion of various employees is done within and the last longer within the organization due to the growth opportunities (Keyton, 2017). Another interesting part of the Costco Companies is that the employees get family leave as well as liberal vacations. There is enhanced organizational trust between the employees and the employer (Ellinas, Allan & Johansson, 2017). The organization does not treat the employees like mere employees but rather as partners and members of the same family.
The organizational culture promotes a buildup of trust between the management and the employees (Naranjo-Valencia et al., 2019). The organization embraces the culture of trust, which is significantly essential for businesses that require success and growth. It is also worthy to note that the Costco company takes care of the employees' physical, emotional, mental, and spiritual needs (Warrick, 2017). The Costco Company is majorly founded on accountability ethics, trust, and respect.
Layers of Organizational Culture
The layers of an organization’s culture are categorized as artifacts, assumptions, and values (Keyton, 2017). Artifacts include the obvious and overt aspects of an organization, including office layout, furniture, and dress norms. Values include the declared set of norms and values within the company (Keyton, 2017). They impact how interaction occurs with the company and typically represented the organization.
Costco organization is established on a bottom-up culture that values pride, passion, and integrity, thus rightly treating the employees and the customers (Ellinas, Allan & Johansson, 2017). The organization also has a positive reputation when it comes to employee compensation, thus leading the retail pack. Costco's organizational culture also permits them to offer customers whatever they want.
Shared underlying assumptions are the foundation of the organization's culture (Keyton, 2017). These beliefs include behaviors that are deeply implanted in the corporation and may sometimes be overlooked. They manifest in various ways, where they can be reflected in artifacts and espoused values (Naranjo-Valencia et al., 2019).
Costco's core values include; obedience to the law, care for vendors, and organization's members (Ellinas, Allan & Johansson, 2017). It is essential to note the company has a strong track record of conducting its activities in a manner that enables it to pass out as a leading role model to others within the sector (Keyton, 2017). As such, the organization's declaration of these values' fundamental nature indicates their role in ensuring the general success of the corporation.
Most importantly, the organization also believes that conducting its business within the laws. This indicates its respect for some of the foundational entities (Keyton, 2017). The organizational culture of the Costco Companies has often been instrumental over the years, thereby showing how suitable it is for the business (Keyton, 2017). The organization has maintained its competitiveness through focusing on internal collaborations, employee satisfaction, employee training and growth, low pressure about performance and productivity, as well as a learning environment that provides the best learning and growth opportunities for the workers.
Functions of Organizational Culture
Culture has a significant role in companies. Some organizations that have created a robust corporate culture have witnessed increased goodwill and gained a good market position (Naranjo-Valencia et al., 2019). Culture unites Costco’s workers through the provision of a sense of identity with the company. Again, Organizational culture serves as an informal control mechanism at the company.
Open communication is facilitated in the organization through the use of organizational culture. It is essential to note that Costco uses corporate culture when differentiating itself from other companies. Further, in most cases, the culture within an organization produces commitment that supersedes individual interests (Keyton, 2017). Moreover, culture is essential in setting organizational rules, norms, and standards. Therefore, it enables workers to function in a company by teaching them behavior requirements (Naranjo-Valencia et al., 2019). Organizational culture promotes consumer satisfaction by ensuring the excellence of employees in their services (Brooks, 2010).
The organizational culture also facilitates the optimization of the morale of the employees and customer satisfaction. The corporate culture also enables Costco Company to withstand the competition within the business sector (Ellinas, Allan & Johansson, 2017). There are five significant characteristics of the organizational culture of Costco, such as positive attitude, the common goal of excellence, high energy, and fast pace, teamwork as well as service orientation.
The culture of Costco is generally focused on performance excellence. This organizational characteristic permits the Costco Company to push for the high quality of services aimed at the satisfaction of customers (Minahan et al., 2012). Such a focus on excellence results in creating a sense of direction among the employees based on career and personal development.
It is also essential to note that the company embraces a positive attitude characterized by friendliness and courteousness (Ellinas, Allan & Johansson, 2017). The organization believes that such behaviors are essential in the attraction of more customers to the warehouses. Therefore, this feature of the organizational culture influences the morale of various employees within the organization (Naranjo-Valencia et al., 2019).
Again, Costco Corporation also embraces efficiency through fast pace and high energy. Through fast pace and high energy, the employees get the motivation for the maintenance of optimal productivity (Ellinas, Allan & Johansson, 2017). As such, this immensely contributes to the customers' satisfaction through improved efficiency and speed of service.
Costco's organizational culture's service orientation facilitates the alignment of employees to the goals of the business through efficient retail service (Naranjo-Valencia et al., 2019). Costco's service-oriented feature enhances the interaction between customers and the employees for improved profitability and productivity (Keyton, 2017). This is enhanced through the promotion of some products and services to the customers in various warehouses.
Costco also encourages teamwork among various employees within the organization (Greenhouse, 2005). The teamwork aspect of the Costco organization culture maximizes the organization's performance through the utilization synergy of teams (Ellinas, Allan & Johansson, 2017). Through teamwork, employees can achieve flexibility, which enables the organization to approach the variations in the preference of the customers. The teams also encourage the organization to encourage camaraderie for its employees.
Type of Organizational Culture
The organization has maintained its competitiveness through focusing on internal collaborations, employee satisfaction, employee training and growth, low pressure about performance and productivity as well as a learning environment that provides the best learning and growth opportunities for to the workers (Ellinas, Allan & Johansson, 2017). Again the organization has focused on customer satisfaction and customer service.
The core values for Costco corporation include; obedience to the law, care for vendors, and organization's members (Devaraja, 2011). It is essential to note the company has a strong track record of conducting its activities in a manner that enables it to pass out as a leading role model to others within the sector.
Every company is different and possesses a unique culture. An organization usually combines various types of organizational culture (Ellinas, Allan & Johansson, 2017). Hierarchy corporate culture focuses on the structure, control, coordination, efficiency, and stability.
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