Organizational Culture, Structure, and Leadership in the 21st Century

Vision and value statements define how people interact with each other as well as set the direction on how to treat customers and the internal community. According to the research, the top values in terms of popularity are professionalism, diligence, integrity, cooperation, and good humor; while the least popular personal values are competition and stability (Hyde & Williamson 2000). Vision, as the statement of what the organization would like to become, holds all employees proud and excited for being part of the company and, therefore, should reflect the personal values of employees. Effective vision strengthens an organization’s image from inside (employees) and outside (customers, suppliers).

Vision of the international company has to shape and provide direction of the company’s future. For example, international company of the 21st century might have the following value statement: “To provide all people with the access to quality and safe products despite of their income”. The mission statement might be the following: “To ensure integrity among employees and customers, to promote credibility of products and services, and to maintain flexibility of operations.”

The issue of organization culture is highly important for companies operating in the 21st century. Organizational culture is vital for successful organizational change and maximization of human capital potential. In addition, culture management has become a critical managerial competency. The right working culture is an essential condition for organizational success. Managers of international business units are responsible for development of the most effective culture even if the change is required. Ideal new multinational company has to reflect appreciation of integrity, collaboration, loyalty, diversity, tolerance, as well as include fundamental values and behavioral norms. In particular, discrimination and prejudice of any form are totally eliminated.

Unlike traditional strong organizational culture which stressed commitment, solidarity, identity, and sameness, new companies are oriented on responsiveness, cooperation, focus on performance, and diversity. As Kathryn Baker (2002) has noted, the mission hypothesis and participation hypothesis are more relevant to the new business environment.

For example, mission hypothesis is based on the idea that shared mission, purpose, direction, and strategy coordinate and direct employees towards collective goals; while participation hypothesis promotes the idea that involvement of all employees contributes to the sense of responsibility and, therefore, ensures loyalty and commitment. New company integrates organizational culture which promotes responsibility, is focused on loyalty, and establishes open informal cooperation and participative leadership. It means that organizational structure is decentralized.

Companies of the 21st century have decentralized organization and establish participative managerial practices. While formal communication is preserved as essential element of documentation and subordination, informal communication is promoted to motivate cooperation among employees and to ensure sharing of ideas. Hierarchical structure with bosses at the top and everyone else beneath them (Willax 2001) is not longer acceptable. Employees are not treated as impersonal human machines. Maximum control does not ensure the best use of talented and increasingly expensive human resources. Informal communication channels are established by the people who are involved in organizational processes at all levels. Flexibility gives employees an opportunity to determine their own channels of communication. Moreover, self-organization is encouraged and layers of management disappear.

Organizational structure is based on the pie-share model (Willax 2001) under which leaders and employees are encouraged to participate freely, to share ideas, suggestions, as well as criticism and responsibility. New companies create favorable environment promoting efficaciously mobilized groups of employees able to meet the set objectives and highly adaptable to changes. Reactions and actions are mostly spontaneous and employees are empowered to act as needed immediately to accomplish the mission. Liberalization of organization structure is inclined to experiment, innovation, ingenuity, and creativity.

New organizations streamline and simplify line-management and vertical structures and the roles of line managers are narrowed (Bryan & Joyce 2005). Teams consisting of representatives of several lines are created to discover opportunities and ensure dynamic management processes. Knowledge and talent marketplaces are developed to stimulate exchange of professional employees. The company becomes more reliant on performance measures rather than supervision to stimulate self-motivated and self-directed individu