Organizational culture as a controlling devise: acculturation process of the CEO at Harness Lanka Co. Ltd.

This research in the form of a case study with grounded theory approach illustrates the culture building mechanism of the CEO and the management control function of that culture. Previous research has examined the role of organizational culture in management controls (for example, Etzioni,1961;Grugulis et al.,2000; Kunda, 1992; Ogbonna,1992). Aim of this paper is to replicate within Sri Lankan organizational context the findings of the previous research by examining the culture building process of organizational leadership and its influence on the effectiveness in establishing desired management controls. It further highlights acculturation (transfusing one culture to another) effort of the CEO in effecting behavioural controls in employees. The research site is a Board of Investment approved export-oriented Japanese investment that is managed by a Sri Lankan CEO. The case illustrates as to how elements of trust, self-control and voluntary control of employees ensure superior performance. The product is unique, as it requires extra effort of diligence and guilt-edged precision from employees. While maintaining these requirements, the employees are able to achieve performance targets easily. The management structure is also unique; CEO and workers, no managers are found in the hierarchy. This facilitates the CEO's direct involvement in building the culture that regulates behaviour of employees in the desired direction. In summary, the case illustrates the acculturation practice of the CEO in building a unique organizational culture that serves as a management control devise.