Creating Corporate Culture in Context with Standards ISO 9001: 2015.
Vanova, Jaromka ; Paulova, Iveta ; Rusko, Miroslav 等
Creating Corporate Culture in Context with Standards ISO 9001: 2015.
1. Introduction
Quality is ultimately defined by customers. There is significant
literature available on how to measure quality and value as perceived by
customers. In virtually every analysis, a major component of customer
satisfaction is the ability of the company to provide a competitively
priced product into which quality is designed, built, marketed, and
maintained.
The aim of the organization is to meet the needs and expectations
of customers as well as the other stakeholders and simultaneously to
reach, maintain and improve the overall performance and the capacity of
the organization. The surveys of economically successful enterprises
show that the soft factor "corporate culture" contributes to
their success. The change of the corporate culture belongs to some
complex management tasks. Any organization that is committed to the
transformation of quality management or environs in accordance with the
new requirements (in context with ISO 9001:2015), has to create such
environs in which the involvement of workers in the effective management
of changes and new requirements is supported.
Total quality is the total systems approach (not a separate area or
program) and an integral part of any high-level strategy; it works
horizontally across functions and departments; involves all employees,
top to bottom; and extends backwards and forwards to include the
supplier and the customer chains. [1].
The social system has a significant impact on motivation and the
ability to implement new ideas; it addresses corporate culture,
structure, rewards, teamwork, values, and the creativity of individuals
and groups. The social system is influenced by the values of the
founders, leaders, families, peers, and supervisors, as well as group
behaviours. Some authors are of the opinion that a certain type of
corporate culture can help to maintain the long-term performance of the
enterprise and be a source of competitive advantage.
That is why we also carried out secondary research of already
existing studies available from subject area, in addition to the
structured interviews and a questionnaire survey as a part of our
project.
Our survey in the area was carried out from May 2016 to October
2016. For the purposes of the processing of this article only the
questions that were related to the selected area of the present state of
the corporate culture in organizations, which began with the
transformation of the new standards ISO 9001:2015 were selected and
used.
2. Corporate culture
corporate culture, in the sense of a complicated and internally
structured system is created and developed continuously in the company.
Its creation in any particular company is timely compliant with the
company foundations. As a company grows and develops gradually, so its
culture is created, developed and continually changed (supplemented and
filtered) also its culture 2010) [2].
The notion of corporate culture is defined by several authors.
However, all definitions have the same characteristics and essence of:
"... the shared philosophies, ideologies, (values, assumptions,
beliefs, expectations, attitudes and standards ... how to make decisions
and to solve problems ..." [3]. In the case of a corporate culture
that is essential for the transformation of new approaches to the
management of quality, it is necessary for a top manager to be in the
role of a leader, to be a personality that leads the way, to be a
motivator and coach in the organization, to implement the creative
management style and both acknowledges and objectively appreciates the
achievements reached, the behaviour of individuals but also of the whole
team [4].
At present, the transformation of ISO 9001:2015 standards becomes
reality, that is affecting, in particular, some changes in approaches to
the management of quality in areas such as the change of behaviour of
the leaders, change of management (with respect to the risks) with an
emphasis on continuous improvement, creativity and innovation. From all
this it can be concluded that there is a change in the corporate culture
of the organization. Continuous improvement is the basement of the
corporate culture, which provides the organization of the management
aimed at constantly improving, and educates employees to search for ways
of possibilities for improving and solving some deficiencies. The
corporate culture of a particular organization must be able to cope
effectively with the changes in the organization. The characteristic
features of a corporate culture that supports the transformation of
requirements for quality management system and/or environmental
management system are as follows:
* involved, active and competent employees identified with the
organization objectives which they effectively perform,
* individual responsibility for performance of the tasks and
resolving disagreements [5].
It cannot be automatically assumed that mere creation of a
corporate culture is responsible for the success of the enterprise and
its development. There must occur a mutual interaction and linking of
corporate strategy--corporate culture--corporate structures--corporate
communication. [6]
In this context, the theme of the corporate culture and related
questions of quality of work, is getting into the centre of economic
interest and is still more often associated with possibility that may
increase competitive ability of company as well as satisfaction of
employees.
3. Some of the requirements for the quality management system
The new standards ISO 9001: 2015 substantially extended the
requirements to the top management-leaders. The top management has to
perceive and quickly respond to changes in the business environs, to
take an interest and make survey of stakeholders that can influence this
business environs. New challenges and opportunities require 101 for the
leaders to have a more sensitive approach to search and cope up with
risks, the ability to respond to changes and to be creative enough or at
least flexible [7]. It is further specified that the organizational
changes must be implemented in a planned way. The most common changes
can be those changes induced by the maintenance and improvement of the
quality management system, the changing of some processes, internal and
external aspects. Typical examples of organizational changes may be the
introduction and take-up of new technologies, the changes in significant
external provider, a change of the place of performance of services,
major personnel changes, etc.
Employees of the organisation represent resources that may directly
or indirectly influence their growth and the sustainability of their
performance. The aim of each organization is to support its operation
comprehensively. The management of the organization includes
particularly the setting of the whole management system of the
organization-setting the values and rules of the organization, setting
up an organizational structure, resource management, processes and
performance settings. For this reason, a basic requirement in the
framework of the quality management system of the organization is to
determine the responsibility of leaders for systematic and organized
using of the knowledge, which is essential to the growth and wealth of
the company. This is related to the requirement of continuous
development of knowledge of all those employees who may need them [8].
In this case, we perceive the knowledge as a set of abilities, skills,
experience, intuition, rules, and principles, personal notions of a
specific person or a group of people. The requirement of the standards
ISO 9001: 2015 is that the top management (leaders) have to assess how
to primarily identify and continuously acquire the knowledge needed to
meet the expected and anticipated future needs, to assess the knowledge
requirements along with the current need of the staff knowledge, to
assess the form of knowledge and the extent to which knowledge is
identified and protected.
Communication in the framework of the quality management system
increases the involvement of the people and improves the understanding
of management and approach of the organization; it allows to clarify the
needs and expectations of customers. Communication is a two-way process.
Sharing information and subsequent feedback obtaining are the
cornerstones of a good corporate culture [9].
4. Results of the survey dealing with current situation in
fulfilment of the requirements of ISO 9001: 2015 standards in
enterprises in Slovakia
As part of the project solution has been realized research through
questionnaire about actual situation in applying principles of quality
management in enterprises and comparison how are fulfilled some
requirements in several enterprises in Slovakia. We carried out a survey
on a sample of 125 enterprises in Slovakia. 40% of them was large and
60% medium sized enterprises.
Basic mathematical methods were used for questionnaires evaluation.
We applied methods of analysis and synthesis for obtained information
and various aspects of research problems solutions discussing. These
methods were used to sort and summarize identified data. In this article
we would like to present partial results of our survey focused on this
issue.
The requirement for a successful and transparent application of the
organization strategy is directed to the interlacing of the strategy at
the lower levels through the objectives and quality policy, which can be
fulfilled in the case, if there is a systematic approach created to the
monitoring of the objectives achievement at various levels of
governance, which must be all the key employees informed with. The level
of corporate culture is determined in particular by leaders, who define
responsibilities and powers for individual roles. It also includes a way
of planning, managing, controlling and especially communicating. The
survey revealed the level of leadership competencies for the successful
transformation of the requirements of ISO 9001: 2015.
Figure 1 shows the difference between large and medium-sized
organizations. Defined responsibilities and powers for effective
organization management are better perceived by large organizations. Up
to 77% of large organizations claim that organizational authorities and
responsibilities are clearly, assigned, communicated and understood.
Results from middle organizations point to the ambiguity of the approach
to a clear definition of responsibilities and competences, and in
particular communication. It is therefore necessary to draw attention to
the unequivocal determination of competences for leaders at all levels
of management as they are the carriers of the changes that need to be
made in implementing ISO 9001: 2015 standards.
One of the key tasks of the leader in organizational changes, and
thus in the transformation of the new requirements of ISO 9001: 2015, is
to be an example to other employees, an authority that can directly
present the company's goals of change. Creating trust between
management and other employees is a guarantee of success. For this
reason, we have looked at these aspects in large and medium-sized
organizations.
Figure 2 presents the results of the survey and points to the fact
that in 59% of the top management organizations has found its way to
people and communicates with them openly. In middle organizations, 40%
of top managers have found a way to people away and talk openly about
the organization's intentions, but the same percentage is at the
stage of looking for employees and not always communicating them.
Some organizations still have an authoritative style of governance
(22% in medium-sized organizations and 11% in large organizations),
which is not positive for changes in organizations. Employees are not
motivated to change and managing changes in the organization is
inefficient and cumbersome.
In addition to the need for effective communication of top managers
with employees, it is essential to have effective communication with key
stakeholders as well. Stakeholders are an essential part of an effective
transformation of ISO 9001: 2015 standards in organizations. They share
their insights into improving organizations' outcomes and
perceiving the organization's external environment.
As it can be seen from Figure 3 in large organizations, levels of
effective communication within the organization are equally balanced and
44% of stakeholders are interested in stakeholders and only 28% in
medium-sized organizations. In medium-sized organizations, the flow of
information in the organization is highest, feedback and verification of
customer understanding is random. However, a third of large and
medium-sized communication organizations take place internally with the
management interface and outsourced employees with customers.
According to Sivri, Hennersdorf, & Krallmann (2016)
"Research highlights that employees' awareness and involvement
within the implementation are crucial success factors." [10]
5. Discussion
The organizations have to adapt to the requirements of the
international market and, changes of the management methods and business
philosophy in order to withstand any tough competitive struggles and to
achieve a sustainable development. In all areas of economic and social
life there are increased demands on corporate behaviour and there is a
growing interest in maintaining and improving the product quality, the
environment and safety at work.
Business performance is composed of the performance of the
employees. Employees with their work, activities, work attitude and
their performance should contribute to reaching company's set goals
and required business performance. Successful company performance at the
market is influenced by potential of all company employees and managers
[11]. Improvement of managerial work is one of the main tasks of human
resource management in companies. It is due to the fact, that only a
well-prepared manager can provide desired results. Main development
requirement therefore is to educate the managers to be qualified leaders
who can focus on strategically important issues and effectively engage
employees to provide required performance. Recent trends bring a
competency model approach to the management and human resource
development
The organization identifies, develops and keeps competences of
employees. If the organization creates a structure to allow its
employees continuously develop their own competences, assume greater
responsibility and show more initiative, then the employees contribute
to the development of the workplace. Employee involvement is to create
and environment in which employees have influence on the decisions and
actions that affect their work. It involves creating a culture that
supports the mission, vision, and values of the organization in
practice. [12]
There are several factors that affect the performance of the
company and one of them is a corporate culture. A suitable shaping
corporate culture is achieved by working employee satisfaction, what
inherently leads to the achievement of the business objectives and
desired performance.
Through the corporate culture, company forms working environment
and try to make the employees identify themselves with the preferred
corporate values and ideas.
The survey shows that the challenge is to embrace and understand
the soft factors and to define them as a concept that can be used at
adapting the ISO 9001: 2015 standards. Because of this, it is necessary
to deal with the question, what are the characteristics of corporate
culture at the transformation of individual standards requirements.
The questions that can be asked, are e.g.: What characters and
characteristics should a culture have and how they can be used as a tool
of governance affecting the effective change of approaches, in
accordance with the required standards? The exact rules and fixed and
defined structures have a negative impact on creativity and motivation
of employees, which are an important prerequisite for the first stage of
the change at the transformation of standards.
Changes of the structure mean a change in the formal arrangements
of the organization, modification in the extent of centralization or
decentralization, authority, work descriptions, etc. Technological
changes relate to the machinery and equipment used, and to the ways and
methods of work performance. Changes in the field of people interfere
with approaches of people to work, their expectations, their perception
of work and organization, which is reflected in their behaviour.
In further research we will focus on how an organization enables
its employees to use their full potential in accomplishing
organizational objectives and how the organization maintains an
environment that promotes performance excellence, full participation,
and personal and organizational growth. Accomplishing this requires a
close coupling between the leadership system and human resource system
to enable defining and implementing the methods and structures needed to
lead the organization in its strategic direction.
In the next step we want to find answers to questions:
* How do managers motivate employees to develop and utilize their
full potential?
* How do managers ensure effective communication, cooperation, and
knowledge/ skill sharing across work units, functions, and locations, as
appropriate?
* How do managers identify characteristics and skills needed by
potential employees?
* How do companies determine the key factors that affect employee
well-being, satisfaction and motivation?
An organization must have approaches for enhancing employee
well-being, satisfaction, and motivation based upon a holistic view of
its entire workforce.
Measuring how well employees understand the connection between
quality and customers can also show what an organization needs to do to
achieve an organizational customer focus and competitiveness in the
market
6. Conclusions
In addition to guiding and coordinating internal and external
management and organisational processes in company, management of
company has to nowadays meet also other important tasks. They have to
harmonize profitability, humanity and legitimacy. If company management
wants to be successful in markets with increasing competition, they
should have set objectives to which it's heading, but also the
values that will be respected for achievement of these objectives.
Analysis confirmed that humanely and effectively created and shaped
corporate culture as well as model, exemplar behaviour of managers can
be included among the crucial factors in the success of many companies.
Each organization that is committed to the implementation of new
approaches of the organization to the requirements of the standards ISO
9001: 2015 must create such an environment in which the employees'
creativity is supported, which results in the possibility of different
forms of improvement. Enterprises are trying to ensure higher
productivity, greater employee satisfaction and the sustainability of
the organization in relation to the environment through building a
favourable corporate culture. A key role in this is met by leaders of
the organization, who are changing also their roles in organization
including the management style. The communication and its form and the
way that should be efficient for the emerging environs are also
important. It is essential to defuse an outdated management approach
through commands and controls, and to look at people in what their
strengths are and use it for the benefit of the organization. Satisfied
and happy employees have a great impact on the organization's
performance and profits. The human potential is a new competitive
advantage [13].
The survey results indicate that there is a need to create a
systemic approach in the sense of the current corporate culture analysis
(including a selection of characteristics, marks and sphere of
analysis), the proposal for a corporate culture that the way of
communication within the organization, especially in medium-sized
organizations. For this reason, it is necessary to focus on
reconsidering the way of communication between the different levels of
management, but especially the efficiency and the way of communication
between the management and the employees. Sharing information on time
and openly is a key aspect of the effective transformation of ISO 9001:
2015 standards. It is necessary to create a pro-innovative corporate
culture where it will be possible to design impetus, improve and, in
particular, discuss and improve at all levels of management.
For effective communication with stakeholders, it is necessary to
create a database of key stakeholders and identify their relationships
and the impacts of cooperation. The most important area is the change of
managers' leadership competencies, where the personality features
of the manager are especially important.
DOI: 10.2507/28th.daaam.proceedings.037
7. Acknowledgements
The paper is a part of research project VEGA 1/0990/15 "The
readiness of industrial enterprises to implement the requirements of
standards for quality management systems ISO 9001:2015 and environmental
management systems ISO 14001:2014."
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Fig. 1. Assigning responsibilities and authorities for relevant roles
in the organization
Are organizational authorities and responsibilities for the relevant
roles (including quality areas) assigned? (the data are in %)
medium-sized large
companies companies
Organizational authorities and 58 77
responsibilities are clearly assigned,
communicated and understood.
Organizational authorities and 7 12
responsibilities are assigned, but not
completely understood.
Organizational authorities and 22 0
responsibilities are not entirely clear
for all relevant roles.
They are appointed representatives of 13 11
management and specified requirements for
responsibility and authority
Note: Table made from bar graph.
Fig. 2. Results of research about perceiving top managers in the
enterprises (in %)
Is the top management a personal example to other employees, can it
inform them on its intentions openly? (the data are in %)
medium-sized large
companies companies
The top management has found its way to 40 59
people, communicates with them openly and
is a model ...
The top management is trying to find their 38 21
way to people, communication is not always
open
The top management has given its position 22 11
hierarchically
I don't know provide reactions 0 9
Note: Table made from bar graph.
Fig. 3. The internal and external communications in organizations
involved in research
Communication within the organization and with relevant stakeholders
can be characterized: (the data are in %)
medium-sized large
companies companies
Communication is effective, increases 44 28
people's involvement and improves
understanding of the organization, clarifies
the implementation of the ...
Communication takes place internally within 30 33
management interfaces and designated
employees externally with customers
The flow of information in the organization 26 39
goes from the top down, the feedback and
verification of the organization's
understanding by the customer is random
Note: Table made from bar graph.
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