ࡱ> $kbjbj$Arr5f'h h 8dG,(T(|||NFFFFFFF$InLXF***F||4GZ&Z&Z&*||FZ&*FZ&Z&nYBD|RjnaC FG0GCLr!tL@DD8LDZ&***FF#t***G****L*********h & :$IMPACT OF ORGANIZATIONAL CULTURE ON PRODUCT MANAGEMENT PERFORMANCE  CASE STUDY ON DOMESTIC APPLIANCE INDUSTRY dr. Neven `eri University of Split/Faculty of Economics Cvite Fiskovia 5, Split, Croatia Phone: ++ 385 21430659; Fax: ++ 385 21 430 701 E-mail: nevseric@inet.hr dr. Peter Me~a College of Industrial Engineering Mariborska 2, Celje, Slovenia Phone: ++ 386 41 769 566; Fax: ++ 386 3 428 79 06 E-mail:  HYPERLINK "mailto:peter.meza@t-2.net" peter.meza@t-2.net Abstract In this paper, we joined gained knowledge about organizational culture and product management with empirical findings. We gathered quantitative data with the use of questionnaires on the sample of twenty organizations. Based on the results of the questionnaire analysis, which were prepared to measure organizational culture based on the Cameron and Quinn typology CVF (The Competing Values Framework) we tried to establish the link between organizational culture in organizations and the functioning of product management teams. We aimed to establish, which type of organizational culture is most appropriate for successful functioning of product management teams. We set two research questions for our research problem which result findings that organizational culture have influence on the functioning of product management teams, and that the findings which type of organizational culture is most relevant for successful teams. Key words: organizational culture, product management, Tuckman's model 1. Introduction Product management is one of the most important functions in company. Yet the product management literature has focused largely on creating successful products and has relatively little to say about its interaction with organizational culture. This paper focuses on the organizational determinants of product management at the level of project teams. Organization culture, in regard to its impact on various situational variables within the framework of organization, is a particular research subject in management science which has never decreased its research area popularity. Organization culture has been seen as a main factor to be investigated through in organizational life, and the researches questioning its impact on realization of organizational goals has been increasing day by day. To drive growth and profitability, firms need to successfully introduce new products and manage existing products effectively through their life cycle. Product management is the corporative role that carries this important responsibility. Despite the importance of the product management function, there is considerable ambiguity about the roles and responsibilities of product managers and the factors that drive effective product management performance (Katsanis, Laurin, and Pitta, 1996; Low and Fullerton, 1994). Product management teams often lack the authority they need to carry out their jobs effectively. Organization structure is often poorly defined, which in turn makes it difficult to determine the appropriate metrics for evaluating the performance of product managers (Katsanis et al.; Wood and Tandon, 1994). 2. Review of literature 2.1. Organizational culture As Drucker (1975) mentioned, the management system is concerned with people, culture, and performance. One challenge of organizational development is organizational culture. Culture is traditionally referred to as intangible, a set of values, beliefs, and symbols that make the community an organization. Additionally, each organization has its own culture. Culture is a model of norms, values, beliefs and attitudes which affects organizational behaviour. The definition of the organizational culture exists in many versions. Kilmann et al. (1985) stated that organizational culture as shared philosophy, ideology, value, assumption, beliefs, hope, behaviour and norms that bound the organization together. Robbins (1984) mentioned it as Common perceptions which are held by the members of an organization; a system of common meaning, while George & Jones (2002) mentioned it as Informal design of values, norms that control the way people and groups within the organization interact trough each others and with parties outside the organization (2005). Schein (1992), who is an expert in this field, defined organizational culture as a pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way you perceive, think, and feel in relation to those problems. Moreover, Dwivedi (1995) mentioned that organizational culture also has influence on the attitude and behavior of employees that will lead to organizational improvement. In comparison, the strong organizational culture will lead to improving innovation, supporting teamwork, and increasing efficiency, quality, and productivity, while a weak organization culture could block the creating of new ideas, processes, and systems (Morgan, 1989). In the literature, there are several organizational culture typologies and related dimensions such as Schein (1992) who present The Competing Values Framework (CVF). The CVF is one of the most influential and extensively used models in the area of organizational culture research. Cameron and Quinn (1999) have developed an organizational culture framework built upon a theoretical model called the Competing Values Framework The CVF is one of the most influential and extensively used models in the area of organizational culture research. In this study CVF is utilized. This framework refers to whether an organization has a predominant internal or external focus and whether it strives for flexibility and individuality or stability and control. The framework is also based on six organizational culture dimensions and four dominant culture types (i.e., Clan, Adhocracy, Market, and Hierarchy). The implications of each culture type are summarized as follows. It has been shown that the CVF is both theoretically sound in integrating organizational culture to other organizational components and can be operationalized as a psychometrically sound instrument (Yeung et al., 1991). The CVF (Fig. 1) is built upon two axes to reflect different value orientations (McDermott and Stock, 1999). The control-flexibility axis (vertical) reflects the extent to which an organization focuses on change and stability. A focus on flexibility indicates the organizations desire for flexibility and spontaneity, while a focus on control indicates a complementary desire to stay stable, controlled, and in order. The internal-external axis (horizontal) refers to the organizations focus on the internal organization and the external environment. An internal focus means that the organization emphasizes maintaining and improving the existing organization, whereas an external focus means that the organization focuses on competing, adapting to, and interacting with the external environment. Figure 1. Cameron and Quinn's model,1999 Internal concentrationExternal concentrationFlexibilityGroupDevelopmentalConstancyHierarchicalMarket Source: Cameron and Quinn, 1999 The two axes combine to reflect four culture types, each representing different values about motivation, leadership, and strategic orientation in organizations. Group culture focuses on flexibility and internal maintenance by emphasizing strong human relations, cohesion, and participation of members. Developmental culture emphasizes flexibility but external positioning through growth, resource acquisition, creativity, and adaptation to the external environment. Rational culture puts a focus on the external environment while stressing control by encouraging competition and achievement of well-defined goals. Hierarchical culture emphasizes stability and internal organization and thus stresses centralization and regulations with rules and routinization (McDermott and Stock, 1999). An important assumption underlying the CVF is that the four quadrants are ideals (Henri, 2006). Organizations seldom reflect only one culture type, rather each organization will exhibit a combination of different culture types, although it may be that one type is more dominant than the others (McDermott and Stock, 1999). In other words, a high rating on one end (e.g., internal orientation) does not exclude high rating at the other end (e.g., external orientation) (McDermott and Stock, 1999). Thus, when using the CVF to assess an organizations culture, researchers can examine the relationships between different culture types and different facets of the construct(s) being studied. A number of empirical studies have adopted the CVF to explore the effect of organizational culture on various operations management practices such as advanced manufacturing technology (McDermott and Stock, 1999). 2.1. The concept of product management Product managers in industry are responsible for the overall product success on market and business development. Me~a (2009) defines product management as a kind of a messenger of a market. It directly transfers clear information market logic to different departments in a company which need such information to make their business decisions. Nowadays, in the times of severe competition and constant price pressures, this should be a permanent activity of product managers to care for cost reduction of product cycles. Product management core activities are by no means focused on a product and/or on management activities. They are related to direct participation in project development and in planning of new products. The outcomes of the product management work can be judged by the product quality or the level its success. Certainly, we should note, that there are some products which are more likely to be successful on the market, and there are others, which might be unsuccessful as well. On the other hand, domestic appliance industry is facing a crisis nowadays. Some authors (Me~a, 2009) suggest variety of possibilities to solve or even prevent such product crises. Product management plays an important role in avoiding and preventing potential product crises resulting in inefficient market communication, weak commercialization of novelties/changes (due to poor advertising start and inadequate advertising strategy). According to definition, a product management as a discipline (i.e., organizational design) has been tested, scrapped, and brought back by many firms. This is not surprising since there are both advantages and disadvantages to it. Gorchels (2000) points out that a product manager becomes a champion for select products, brands or services in a multiproduct firm, acting as a "general manager of a virtual company." This provides dedicated attention to a set of offerings, but can also pose challenges. Product managers must juggle the demands of selling existing products with the development of new products. They may also be faced with resource constraints when competing with other product managers in the same company. Product management is the entrepreneurial management of a piece of business (product, product line, service, brand, segment, etc.) as a "virtual" company, with a goal of long-term customer satisfaction and competitive advantage. Product managers are generally accountable for this piece of business without having direct authority over the entities that "make it happen." It may include, but is not synonymous with, project management, new product development, or sales support. 2.2. The relationship between culture and product management There is a gap in research literature regarding studies addressing relationship between culture and product management. Steers (1975) and Zammuto (1982) described the measurement of effectiveness was the most issue in the organizational culture theory. For linking organizational culture, Ouchi (1980) identified the characteristics to determine the organizational effectiveness. Quinn and Rohrbaugh (1983) examined that relationship organizational culture and effectiveness by utilizing the competing value framework. Kotter and Heskett (1992) studied the relationship between strength of culture and organizational effectiveness. Ostroff and Schmitt (19993) found that the organizational effectiveness was influenced by the organizational culture. Juechter, Fisher and Alford [28] completed the research found that the organizational culture heavily influenced the organizational effectiveness of business. Quinn noted that organizations were likely to experience tension among organizational effectiveness attributes for example, all organizations have a need for some level of stability as well as a need to be flexible and adaptable; a need for control and discipline as well as a need to allow some degree of freedom and autonomy; a need for rational formal structures and non-rational informal relations. They concluded that effectiveness depended upon the ability of an organization, and its managers, to strike the right balance among these critical attributes, as required by the organizations objectives and situation (2002). An increasing body of evidence supports a linkage between an organization's culture and its business performance. In accordance with the studies presented above, the organizational culture has a positive influence on organizational effectiveness, therefore the relationship between organizational culture and organizational effectiveness becomes important. Product managers often lack the authority to carry out their responsibilities effectively. This section reviews relevant literature and presents qualitative finding of our research. 3. Research model 3.1. Research background From the perspective of product management in organizations and in the light of literature framework appearing of significant relationship between organizational culture and organizational efficiency dimensions, the effect of stable or variable organizational environment in internal and external context on the organizational culture and product management task structure can be proposed for this research as is shown in Figure 2. Figure 2. The research framework of organizational culture  EMBED Word.Picture.8  The aim of the present study is to investigate the relationship between organizational culture and product management task in domestic appliance industry. In this research the relationship between four different kinds of organizational culture, namely group, developmental, market and hierarchical culture and product management tasks is examined. The research was carried out in the domestic appliance industry. In order to examine organizational culture types, Quinn and Camerons Organizational Culture types (Clan, Hierarchy, Adhocracy, Market). 3.1. Research methodology and results This study is applied, correlationnal descriptive research and is categorized as field study. To collect related literature, the related books, articles and journals were consulted as data collection procedure and analyzing the collected data, two kinds of questionnaires has been used. The first is Comeron and Queen s (1999) questionnaire about organizational culture types and the second of one is Me~a's (2012) classification of product manager tasks. Subjects answered the relevant questions based on a 5 staged Likert scale. This shows that measuring tools have high levels of constancy. The whole population was about 57 among which 35 were randomly selected. The relevant information about level of education, age, sex and years of service is as follows: Education: 13% have diploma (4 persons), 76% have BA degree (27 person) and 11% MA (4 person). SEX: 83% (29 person) male and 7% (6 person) were female participants. Age: 15% was under 30 year old (5 person), 55% between 30-40 years old (19 person) and 30% more than 40 years old (11 person). Years of product management job: 22% of participants have less than 5 years of record of service, 23% between 5-10 years and 35% between 10-15 years, 17% between 15-20 years and 3% more than 20 years (12 person). In this study for the purpose of analyzing the collected data, SPSS software was used. Also descriptive statistics (percentage, frequency, mean, standard deviation) was used to test research question inferential statistics like variance test, pearson correlation coefficient and regression test were used. The result of ranking different organizational culture from the view point of product managers in companies is presented in table 1. Table 1. Results of the mean of organizational culture types Organization cultureAverageGroup culture (G)3,15Developmental culture (D)2,53Hierarchical culture (H)2,93Market culture (M)3,25 Table 2. Product manager function - Product manager Tasks Product manager TasksPerformanceT1: Initiate market research studies or analyze their findings.3,65T2: Use sales forecasting or strategic planning to ensure the sale and profitability of products, lines, or services, analyzing business developments and monitoring market trends.3,5T3: Coordinate or participate in product promotional/education activities or trade shows, working with developers, advertisers, or production managers, to market products or services.4,25T4: Managing new product proposals, product registration and product changes3,25T5: Demonstrate or explain products, methods, or services to persuade customers to purchase products or use services.3,75T6: Suggest specific product purchases to meet customers' needs.4T7: Collaborate with sales teams to understand customer requirements, to promote the sale of company products, and to provide sales support4,25T8: Develop, present, or respond to proposals for specific customer requirements, including request for proposal responses and industry-specific solutions2,75T9: Collaborate with sales teams & quality department about product quality issues4,25T10: Prepare and deliver technical presentations that explain products or services to customers and prospective customers.3,25T11: Provide technical and non-technical support and services to clients or other staff members regarding the use, operation, and maintenance of equipment.4T12: Direct and coordinate activities involving sales of manufactured products, services, commodities, real estate or other subjects of sale.3,25T13: Confer with potential customers regarding equipment needs and advise customers on types of equipment to purchase.3,5 The obtained results from pearson's correlation, coefficient are presented in table 3-6. Table 3. Correlation Coefficient between Group Culture (G) and Product management task (G)T1T2T3T4T5T6T7T8T9T10T11T12T13R0,8540,8220,6120,8340,6330,7630,8070,6570,8310,6030,6090,7970,671Sig0,000,000,000,000,000,000,000,000,000,000,000,000,00n35353535353535353535353535r20,7290,6760,3750,6960,4010,5820,6510,4320,6910,3640,3710,6350,450 Table 4. Correlation Coefficient between Developmental culture (D) and Product management task (G)T1T2T3T4T5T6T7T8T9T10T11T12T13R0,8610,8610,6070,8340,6270,7630,8320,6730,8330,6120,6110,8350,671Sig0,000,000,000,000,000,000,000,000,000,000,000,000,00n35353535353535353535353535r20,6630,7410,3680,6960,3930,5820,6580,4260,6940,3750,3730,6420,450 Table 5. Correlation Coefficient between Hierarchical culture (H) and Product management task (G)T1T2T3T4T5T6T7T8T9T10T11T12T13R0,7980,8730,6070,8340,6210,7630,8110,6530,8280,6140,6110,8170,675Sig0,000,000,000,000,000,000,000,000,000,000,000,000,00n35353535353535353535353535r20,6370,7620,3680,6960,3860,5820,6920,4530,6860,3770,3730,6670,456 Table 6. Correlation Coefficient between Market culture (M) and Product management task (G)T1T2T3T4T5T6T7T8T9T10T11T12T13R0,8140,8170,6280,8320,6210,7530,8330,6750,8330,6190,6230,8010,681Sig0,000,000,000,000,000,000,000,000,000,000,000,000,00n35353535353535353535353535r20,7410,6670,3940,6920,3860,5670,6940,4560,6940,3830,3880,6970,464 4. Conclusions A product management function is an important activity that helps enterprises to survive and make further steps to increase competitiveness. On the other hand, culture can affect product management performance in different ways. As product management task framework and it's related findings can penetrate into culture, organizational culture is also affected by organization efficiency. In the present study the concept of organizational culture and product management and the relationship between them was examined, then with the application of the proposed model the extent of relationship between four different kinds of organizational culture (group culture, developmental culture, hierarchical culture and market culture and thirteen product management tasks (T1 T13) of product management in domestic appliance industry were evaluated. For doing so after data collection procedures and analyzing them by appropriate statistical techniques the dominant situation in domestic appliance industry were examined. Results indicated that the dominant culture in domestic appliance industry is Developmental culture. Moreover this research shows that 99%, there is significance relationship between different organizational culture and product management task. Also the Market culture plays an important role in product management framework. A more significant aspect of the study however, is identifying potential lessons for product management development policy that domestic appliance industry may adopt. Therefore, we recommend conducting further research related to other types of cultural model and product management competencies, because the findings may have a significant impact on the company strategies and daily business. Reference list Baker, K. A., Branch, K. M. (2002) Chapter 1: Concepts underlying organizational effectiveness: trends in the organization and management science literature. Trends, 1-14 Berson, Y., Oreg, S., and Dyir T (2005) Organizational culture as a mediator of CEO values and organizational performance. Academy of Management Best Conference Paper; Israel. 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