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Journal number 1 ∘ Petre Adamadze
Role of Orgnizational Culture in Management Process

In any socio-economic process, the human factor plays a decisive role. The influence of economic (and not only) thinking spread in society on economic reforms is quite big (Khaduri, 2002). The main goal of any social process, including the economy, is also a human being, creating favorable conditions for his all-round development. In itself, the implementer of any public process is also a person, and how effective this process will be, first of all, is determined by a person. In other words, a person is the main indicator of any social process (Papava, 2020).
It should be noted from the beginning that there is no single "classical" definition of the human model in modern economic science. Nevertheless, the model of Adam Smith's homo economicus (economic man, homo oeconomicus, economic man) should be considered the most widespread, i.e. the model of a person whose defining motives are maximum utility in the family farm, and maximum profit in the firm. It must be emphasized that homo economicus forms the basis of economic society (Heilbroner, Milberg, 1998).
The management process consists of different elements, but all of them are united by a person, the unity of people to achieve a common goal. In this direction, the organizational (corporate) culture is considered to be one of the main challenges and a competitive advantage in the organization today, as an unique capital of the company, which engages people in the process of achieving the set goal despite the different worldview of each team member. In addition, the relevance of the issue is also determined by the importance of the topic in modern management, where greater emphasis is placed on the management approach, meeting the individual needs of team members and their values.
The purpose of this article is to present the importance of organizational culture in management, its role in the process of forming strategic management, directions of culture development in the company, as well as the role of corporate culture in the success of the organization, based on the analysis of scientific literature and practice.
In accordance with the scientific literature and reasoning given in the article, any process in management, its goals, tasks and results should be considered in the context of the person.
Human resources management is a coherent and complex approach to people development. Human resource management (HRM) can be viewed as a philosophy of managing people, related to various theories and strategies of people and organizational behavior. It can be seen as a contribution that can influence the growth of the organization's effectiveness and efficiency.
The culture of the organization should be taken into account not as a random factor but as a consideration in making any decision that affects any program of development of the organization and HR policies and practices. Organizational culture provides a shared system of values that is the basis of communication and understanding. If these functions are not performed to an appropriate degree, the culture can significantly reduce the effectiveness of the organization. This is why it is important for HR professionals to understand the concept of organizational culture and understand how it affects organizations.
Nowadays, many organizations are convinced that organizational culture is one of the main competitive advantages, the best mechanism for engaging employees to achieve a common goal. It should be noted that the current reality of Georgia is developing quite dynamically in this direction, today many Georgian organizations are making great efforts to create the best examples and practices of organizational culture.
Considering the importance of organizational culture and its impact in management is very important, we can say that it is one of the important components of strategic management, since organizational culture and strategies are both social processes, many strategy specialists claim that culture and strategies are connected. Once culture is established and shared among organizational members, it becomes a powerful management tool.
Another reason why culture becomes a determinant of business success or failure is its contribution to an organization's competitive advantage. Creating and maintaining a competitive advantage in a particular industry is always a major concern in the strategic management of an organization. This is because competitive advantage will help an organization stand out from its competitors and strengthen its position in the market. Culture can contribute positively to companies' competitive advantage. It can be a great tool for an organization to increase their performance level, making it more competitive in the market.
Organizational culture helps improve work processes and guides the decision-making process. It also helps teams overcome barriers of uncertainty. Team members who are informed about the processes going on in the organization are often more motivated to complete projects. A clear culture unites employees and promotes organized work structures, helping people work with purpose.
Keywords: Human, human resources, management, organizational culture.
JEL Codes: M 10, M54, O15

 

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