You must post 2 replies of at least 500 words each. Each reply must be supported by at least 3 scholarly peer-reviewed sources in the current APA format. Any sources cited must have been published within the last five years. The main post and replies must contain biblical integration. The Bible must be cited to support your assertions regarding biblical integration and be included in references in addition the number of required scholarly peer-reviewed sources.
Peer 1 Tatiana:
Organizational Culture, Change Management, and Operational Performance at Craft Originalities, Inc.
Craft Originalities is a company that experienced fast entrepreneurial growth but did not transition into a structured professional organization. Consequently, operational errors, weak internal controls, and performance declines began over time. The employee survey provides insight into the companys culture, and operational comparisons reveal efficiency gaps. From a management and accounting perspective, understanding the companys culture, evaluating the potential transition to mass production, and analyzing the influence of its environment are critical to diagnosing the companys challenges and identifying solutions to sustain the business. Organizational culture plays a key role in shaping employee behavior, productivity, and performance.
Cultural Analysis: Survey Scores
Characterized by strong interpersonal relationships and weak performance, Craft Originalities has a supportive yet complacent organizational culture, as indicated by company surveys. Employees appeared to enjoy their relationships with peers and supervisors, suggesting collaboration. This is likely a result of the founders’ lax leadership style, which fostered trust but had very limited ownership and accountability. With such an informal culture, there is a risk of weakened internal controls and reduced operational efficiency. The absence of structure and standard operating procedures suggests deficiencies in accounting systems, such as cost tracking, budgeting, and variance analysis. Research shows that organizational culture can directly influence production (Vasumathi et al., 2025). In this instance, we see that the absence of a performance-driven culture contributes to workplace inefficiencies, such as idle machinery and slow work outcomes.
While employees expressed disappointment with pay, they also reported high job satisfaction, indicating that intrinsic motivators are more sought out than extrinsic rewards. From a cost accounting standpoint, the combination shows inefficiency: low wages typically form parallels with higher productivity, but in this case, cost allocation is ineffective. Employees mention trying to find solutions to fix problems, but it appears that managers resist change, contradicting the effort to implement positive change. Studies show that organizational culture significantly affects employees’ attitudes toward change and their willingness to engage in improvement efforts (Monyai et al., 2024).
Impact of Mass Production on Worker Attitudes
Adopting a mass production system would likely have positive and negative effects on employee attitudes. Mass production would have improved cost efficiency and operational performance. This would also reduce setup costs, improve machine use, and open the business to economies of scale. Consequently, the business would be able to begin using standard costing systems, which would help management to track variances and identify any inefficiencies in the work cycle. Research shows that structured work environments and improved systems can enhance productivity, positively affecting organizational performance (Kaviya et al., 2025).
These changes could positively affect employee attitudes over time by leading to wage adjustments due to higher production and profitability. Clearer workflows and standardized processes may also improve perceptions of organizational efficiency, further increasing confidence in management. Initially, moving to mass production might elicit negative reactions from employees due to increased stress. Newly established routines that require more oversight can cause emotional stress and resistance from workers (Castillo, 2022). Due to Craft Originalities employees, who include older, less formally educated employees, it may be a struggle, which may affect morale and reduce job satisfaction. To avoid this, the business needs to ensure that all changes are culturally aligned, as research suggests that transformational efforts affect employees’ responses (Ghazali et al., 2025). Ultimately, there would be initial declines in employee morale, but in the long term, increased production, pay, and organizational effectiveness would result in sustainability and a positive work culture.
Influence on the Rural Environment
The rural environment in which Craft Originalities operates is a significant contributor to its informal, lax culture. One major factor is that in rural communities, labor is limited, but opportunities are limited as well. This reduces the pressure from the company to offer competitive wages, implement formal systems, or adopt advanced management practices. Furthermore, the relatively low level of formal education contributes to the lack of structured systems. Employees struggled to understand basic survey terminology, indicating little to no knowledge of formal business concepts. The effects of things like budgeting implementation, variance analysis, and cost control systems.
Rural environments also reinforce relationship-based management practices, including nepotism. This could foster trust and cohesion, but it would undermine professionalism and internal controls. This increases the risk of inefficient resource allocation, oversight, and accountability. Research shows that organizational culture strongly affects production and operational outcomes, especially in manufacturing environments (Jerab, 2025). Furthermore, rural environments have limited exposure to industry-best practices and competitive benchmarking. Craft Originalities worked for years without analyzing capacity, optimizing production mix, or implementing any performance metrics. Lack of exposure to these processes contributed to inefficiency and an outdated process. Studies emphasize that organizational culture is a key driver of readiness for change and the successful implementation of new systems (Caci, et al., 2025). Overall, the rural environment fostered a stable but unsophisticated production force and culture that prioritized relationships over efficiency, limiting the companys ability to adopt modern management and accounting practices.
Conclusion
Craft Originalities’ culture is driven by strong interpersonal relationships and moderate job satisfaction, but lacks the structure, accountability, and financial discipline needed for sustainability. The survey results report on a supportive but complacent environment that limits operational efficiency and cost control. The absence of formal management systems, performance metrics, and cost analysis tools has significantly contributed to declining profitability. To achieve success, Craft Originalities must integrate structured management systems, strengthen accounting controls, and foster a culture that supports accountability, efficiency, and continuous improvement.
References
Caci L, Nyantakyi E, Blum K, Sonpar A, Schultes MT, Albers B, Clack L. Organizational readiness for change: A systematic review of the healthcare literature. Implement Res Pract. 2025 May 15;6:26334895251334536. doi: 10.1177/26334895251334536. PMID: 40385227; PMCID: PMC12084713
Castillo, C. (2022). The workers’ perspective: Emotional consequences during a lean manufacturing change based on VSM analysis. Journal of Manufacturing Technology Management, 33(9), 19-39.
Ghazali, I., Tanjung, T., Al Humdan, E., Mahmood, W. H. W., Herawan, S. G., & Sari, W. P. (2025). Cultural influences on lean manufacturing and productivity: Evidence from Malaysia. Results in Engineering, 28, 107500.
Jerab, D. (2025). Analyzing key elements of workplace culture and their influence on employee performance: Positive and negative cultural attributes. SSRN.
Kaviya, A., Arumugam, V., Vasudevan, A. et al. (2025). Analysing the impact of work environment on job motivation and quality control practices and its effect on production output in the leather industry. Sci Rep.
Mahamoud Hasan, M., Aparisi-Torrijo, S., & Gonzlez-Ladrn-de-Guevara, F. (2025). Change management and organizational performance: current key trends. Cogent Business & Management, 12(1).
Monyai, D. P., Mitonga-Monga, J., & Makhubele, B. W. (2024). Organisational culture and its influence on employees’ attitude towards organisational change in a developing country setting. International Journal of Research in Business and Social Science, 13(9), 11-21.
Vasumathi, A., Vasudevan, A., Razak, A., & Mohammad, S. I. S. (2025). An empirical study on the impact of organizational culture dimensions on employees performance through organizational support in the IT industry. Social Sciences & Humanities Open, 12, 102054. Peer 2 Cori:
Case for Analysis Craft Originalities, Inc.
Craft Originalities, Inc., was founded by Bibby Burnett in 1981. It grew into a $70 million manufacturer through informal, centralized management before facing a crisis by 2007 due to inefficient operations and the 2008 financial downturn. The company transitioned from a high-growth, informally managed entrepreneurial venture to a stagnating firm, facing a critical decline in efficiency and profitability in 2010. The new CEO Bob Burnett transitioned the company from a casual, nepotistic structure to a professional operation by introducing design capabilities, fixing production bottlenecks, and implementing financial discipline. Once the firm was taken over by the new CEO, a turnaround strategy was developed. It involved professionalizing management, introducing design-driven product development, and addressing structural inefficiencies in production to move from a survival phase to a long-term sustainability.
Question #1
The conclusions that you can draw about Craft Originalities culture assuming the survey scores are correct is that the firm operates with an informal culture that prioritizes social cohesion over operational efficiency, evidenced by high employee satisfaction despite low pay and poor communication. Febrina et al., (2021) states that employees with high intelligence can understand and realize their feelings and control stress, frustration, and social emotions. There is also resistance to change and informal nepotism, which are also evidenced by the survey scores regarding interpersonal relationships and the relaxed work pace. With scores averaging around 4.0 on a 5-point scale, suggests a culture where loyalty and internal cohesion are prioritized over aggressive performance metrics. The evidence for this culture is found within the discrepancy between social satisfaction and operational discipline. Smollan and Mooney (2024) states that the culture of an organization has the ability to contribute to the performance and wellbeing of the employee when it creates reasonable expectations and the skills and resources are provided to the employee to be successful. High social cohesion, which scored with 4.0, indicates a supportive and friendly relationship between co-workers and supervisors. Low professionalization with a score of 2.0, contrasts with poor communication scores, which suggests that while supervisors are liked, they are lacking formal management skills to provide clear direction. Compensation was fairly low with a score of 2.26, which morale was scored high, indicating that the employees value the casual, family-oriented environment, along with job security. The culture is creating a barrier for change. Majeremane and Nhete (2025) states that cultivating a strong, adaptable organizational culture is critical for increasing employee performance and organizational success. It shows that there is a lack for desire for change. Being that the firm is built on personal ties, with employees being related to each other, and move that is made by the firm could possibly be viewed as a betrayal of the community-based environment that the firm has fostered in years past. From a biblical perspective, while the community aspect of the firm aligns with brotherly love (Hebrews 13:1), the lack of order and structure may conflict with the principle of stewardship (King James Bible, 1769/2017). 1 Corinthians 14:40 states, Let all things be done decently and in order, (King James Bible, 1769/2017). A culture that prioritizes comfort over excellence may fail to properly steward the talents and resources God has provided us.
Question #2
If Craft Originalities adopted a mass production manufacturing process similar to their competitor, it would likely cause a precipitous decline with the attitude scores. Transitioning the structure to a mechanistic one will create a psychological contract breach for employees who value autonomy and social connection. The current survey shows that there is a high satisfaction with the work itself. Mass production requires work specialization and standardization. This will reduce the complex tasks to repetitive, simplified motions. Fridan and Maamari (2024) states that corporate cultures should be designed to respond to the industrys needs to facilitate daily operations to reach the expected productivity goals. Mass production often times requires rigid schedules and physical stationing that limits the informal socialization currently prevalent to Craft Originalities. Creating a process which will eliminate the human interaction which the firm is accustomed to, will erode the social fabric of the firm, causing the scores for worker relationships and supervisor treatment to plummet. In mass production, the definition of the meaningful work disappears. If the pay remains low while the work becomes more grueling and less enjoyable, the fairness scores will likely hit critical lows. A shift to mass production, similar to the competitor Saint Crafters, would reduce worker satisfaction and increase the stress due to the disruption of the artisan-focused, casual environment. Furthermore, the rural setting is a contributor to the lack of formalization through social interdependence and a preference for flexible structures. From a biblical perspective, every individual is created with unique talents (Exodus 35:31-32) and should always find dignity in their labor (King James Bible, 1769/2017).
Question #3
The rural environment might have influenced the lack of formalization and the casual work environment at Craft Originalities by embedding the firms culture in local social networks, making formalization feel unnecessary or even unneighborly. The high degree of trust between the locals allows for informal norms to substitute for written policies. A rural location, often times, means that they are the only employer in the area. Shiferaw et al., (2023) states that leaders and senior management can encourage learning of organizational practices in relation to the organizational goals and vision. Without a dense local labor market within the area, there is less pressure to adopt standardized HR policies that are common and mandatory in all firms. The lack of competition for labor within the area, allows the firm to maintain an old-fashion way of operating being that the employees have fewer benchmarks for modern work environments. Biblically, the rural setting mirrors the loving thy neighbor (Mark 12:31) was a lived reality and not a command (King James Bible, 1769/2017). The casual environment values the employees over the process or work performed.
References
King James Bible. (2017). King James Bible Online. (Original work published 1769).
Febrina,S.C., Asruti, W., & Triatmanto, B (2021). The impact of organizational culture and emotional intelligence on employee performance: An empirical study from Indonesia. The Journal of Asian Finance, Economics, and Business, 8(11), 285-296.
Fridan, A. A. A., & Maamari, B. E. (2024). Impact of organizational positive and negative culture on employee performance. International Journal of Organizational Analysis (2005), 32(9), 1850-1869.
Majeremane, R., & Nhete, A. (2025). The impact of organisational culture on employee performance: A case study of sowa town council, botswana. International Journal of Applied Research in Business and Management, 6(2)
Shiferaw, R. M., Birbirsa, Z. A., & Werke, S. Z. (2023). Entrepreneurial leadership, learning organization and organizational culture relationship: A systematic literature review. Journal of Innovation and Entrepreneurship, 12(1), 1-20.
Smollan, R. K., & Mooney, S. K. (2024). The bright side and dark side of performance expectations: The role of organizational culture and the impact on employee performance and wellbeing. International Studies of Management & Organization, 54(3), 218-237.
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