Role of Organizational Culture on Decision Making in Project Management: Samsung

Role Of Organizational Culture On Decision Making In Project Management: A Case Study Of Samsung

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Abstract

This research aimed to highlight the transformative power of organizational culture for decision-making in project management. The study outlines the importance of organizational culture and delves into its points of intersection with decision-making. The study is based on the case of Samsung Electronics. Samsung's key projects are scanned, and the relevant points from the case are synthesized with the existing literature to conduct an analysis. The discussion is based on thematic patterns as key themes arising from the discussion are listed and discussed concerning the literature review and the case study.

The findings suggest that organizational culture holds high significance for decision-making as it sets the tone and provides the managers and employees with a perspective through which they make sense of their choices. While seen from this perspective, the organizational sensemaking theory applies to the context and is considered the theoretical underpinning of the study. It is also found that organizations must configure their culture in line with their project management needs determined through the competitive landscape and the interplay among the factors in the external environment. Samsung's transformation from a traditional culture to one that fosters openness, mutual trust, and collaboration is largely behind the success of its projects. Besides, it is found that adequate risk tolerance and acceptance of change, when embedded in culture, triggers creative and innovative decisions. Relevant managerial implications and appropriate recommendations are covered in the paper. Besides, further research prospects are summarized towards the end of the study.

Keywords: organizational culture, decision-making, organizational sensemaking, project management

Table of Contents

Abstract 2

1.0. Introduction. 4

1.1. Background and Rationale. 4

1.2. Purpose and Context 4

2.0. Literature Review.. 5

2.1. Explaining Organizational Culture. 5

2.2. Theoretical Foundations. 6

2.3. Empirical Evidence. 7

3.0. Research Design. 9

3.1. Research Approach. 9

3.2. Data Collection Methods. 9

3.3. Data Analysis. 10

4.0. Findings and Evaluation. 10

4.1. Organizational Culture at Samsung. 11

4.2. Samsung’s Choice of Methodology. 12

4.3. Collaborative Decision-Making. 13

5.0. Summary and Conclusion. 15

5.1. Summary of Findings. 15

5.2. Managerial Implications. 16

5.3. Limitations and Recommendations for Further Research. 16

“Role of Organizational Culture on Decision Making in Project Management: A Case Study of Samsung”

1.0. Introduction

1.1. Background and Rationale

The type, nature, and style adopted for the decision-making have multidimensional implications for a project, such as determining the level of innovation complementarity across the team and optimizing the choices while navigating multiple tradeoffs (Powell & Buede, 2021). Therefore, the success of the project is primarily hinged upon decision-making. It is also understood that decisions are rooted in the perspectives held in high regard by the decision-makers in leading positions (Powell & Buede, 2021). Organizational culture shapes the decision-maker's stance on crucial matters (Alvesson & Sveningsson, 2015). Therefore, it is vital to assess the extent to which organizational culture plays its role in shaping decision-making approaches and styles.

1.2. Purpose and Context

Keeping the above in view, this research aims to evaluate organizational culture's role in decision-making in project management. This research aim extends into the following research questions that lay out the roadmap for the study:

* What is the importance of organizational culture in project management?

* How do certain types of organizational culture relate to certain decision-making styles in project management?

* Which types of organizational styles are more suitable to dictate decision-making in the contemporary context of project management?

The context for the research is the case of Samsung Electronics, a significant multinational dealing in consumer electronics and technology (Annual Report, 2022). The researcher has relied on information available from the company’s official and external sources about the decision-making and organizational culture at Samsung Electronics and evaluated its level of agreement with the insights gained from existing literature. Samsung Electronics is an interesting and highly representative case, considering its time in the international market and the revolutionary and innovative ideas it introduced.

2.0. Literature Review

2.1. Explaining Organizational Culture

Considering its multidimensional impact, organizational culture has received considerable attention and coverage in scholarly literature. According to recent research findings, companies with healthy cultures are nearly twice as likely to enjoy revenue growth by 15% or more within three years of operations. Similarly, a healthy culture enables the companies to secure 2.5% more likelihood of significant growth in stock value within the period above (Flolite, 2023). Despite these stats highlighting the importance of organizational culture, most firms generally fail to prioritize or achieve the desired organizational culture (Flolite, 2023; Lyons, 2017).

Based on the insights gained from different sources, organizational culture can be defined as the set of values, attitudes, and behaviors embedded within an organization’s norms that are vital to shaping the leaders’, managers’, and employees’ behavior at all levels and determine how they make sense of their day to day interactions (Alvesson, 2002). While it is common among businesses to be expressive about their cultures and make it reflect in their mission statements and statements of value, the real culture is determined through the actual experience of stakeholders as they engage in day-to-day interactions and operations (Alvesson, 2002; Alvesson & Sveningsson, 2015). In other words, the culture is determined through actions and practice and does not necessarily correspond to how a particular business states it.

2.2. Theoretical Foundations

The role of organizational culture within the context of project management is largely underpinned by the idea of