Abstract:
This paper aims to examine the role of culture building process of an organization and its
influence on the effectiveness in establishing desired organizational controls. It further
highlights the function of organizational culture ’alien’ or ‘indigenous’ in effecting
behavioural control in employees with a view to achieving common goals of the
organization. The acculturation or ‘training on culture’ is significant as this phenomenon
is studied in the context of Japanese management culture prevalent in the organization
that supplies a high security component to a leading supplier, to Toyota Corporation
Management controls refer to sum total of all formal and informal arrangements
designed to monitor and direct current actions of organizational participants directed at
achieving organizational objectives. Control mechanisms in organizations are
instrumental in motivating, monitoring, measuring, the sanctions and actions of
managers and employees (Macikntosh, 1994). They include formal apparent
mechanisms and informal intangible mechanisms. Formal ones are management
structure, operational controls, reward systems, budgeting, standard operating rules and
procedures, strategic planning system, etc. Informal mechanisms are leadership and
organization culture. The control techniques and procedures are outputs of leader’s
control orientation and the specific organizational culture (Hopper and Mackintosh,
1993). This research in the form of a case study with grounded theory approach
illustrates the culture building mechanisms and the control function of culture. The
research site is a Board of Investment approved export-oriented Japanese investment
managed by a Sri Lankan CEO whose culture blinding initiatives are phenomenal.
It has been vividly illustrated as to how elements of trust, self – control and voluntary
control of employees ensure superior performance. The product that is produced is
unique as it requires extra effort of diligence and gilt-edged precision. While maintaining
these requirements, the employees are able to achieve performance targets easily. The
management structure is also unique - CEO and workers, no managers are found in the
hierarchy. This facilitates the CEO’s direct involvement in building the culture that
regulates behaviour of employees in the desired direction. It is also evident that
transferability of Japanese management elements has been quite successful. In
summary, the case provides a sound illustration about the importance of acculturation
process and the instrumentality of organizational culture in effecting management
controls.
