Organizational culture

Organizational culture is a system of shared beliefs &

attitudes that develop within an organization & guides the
behaviour of its members. It is also known as "corporate
culture", & has a major impact on the performance of
organization & especially on the uality of work life
e!perienced by the employees. Organizational culture
"consists of the norms, values & rules of conduct of an
organization as well as management styles, priorities, beliefs
& inter"personal behaviours. #ogether they create a climate
that in$uences how well people communicate, plan & make
decisions".
Organizational culture is a set of beliefs, assumptions,
values, shared feelings & perceptions which in$uence the
actions & decisions taken by the organizational members.
%or e.g., if the culture encourages innovativeness, any
problem will make people take initiative & risks, & try out
new ways of doing things. On the other hand, if the
organizational culture is security oriented, the same problem
situation would cause people to start looking for rules,
procedures as a mode of response.
&ach & every organization has a culture that in$uences
the behaviour of the employees toward colleagues,
supervisors, subordinates, clients, competitors, etc. Internal
environment of an organization is often referred to
organizational climate. #his makes one organization uniue'
such di(erences are found in various kinds of employees in
terms of personal characteristics of members such as their
values, needs, attitudes, e!pectations, and stay in
organization. )hen considered collectively, the actions of
the individuals become more meaningful for viewing the
total impact upon the climate & determining the stability of
the work environment. It should be noted that the climate is
to be viewed from a total system perspective. )hile there
may di(erences in climates within departments these will be
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integrated to a certain e!tent to denote overall
organizational climate.
Concept of organizational culture:-
+ulture consists of beliefs & behaviour. It is cultivated
behaviour in the sense that it is learnt from the other
members of the society. Organizational culture is the totality
of beliefs, customs, traditions & values shared by the
members of the organization. Organizational culture stresses
on sharing of norms & values that guide the organizational
members, behaviour. #hese norms & values are clear
guidelines as to how employees are to behave within the
organization& their e!pected code of conduct outside the
organization.
Nature of organizational culture:-
#he main features of organizational culture are as follows-"
*. .ike an individual, every organization has its own
personality.
/. #he personality of the organization de0nes the internal
environment of an organization.
1. It di(erentiates an organization from the others.
2. It is relatively enduring or stable over time.
3. It e!ercises a signi0cant in$uence on the attitudes,
behaviour & performance of organizational members.
Elements of organizational culture- "
%ollowing are the elements of organizational culture-"
*. Individual autonomy- In this the individuals have
responsibility, freedom & opportunities of e!ercising
initiative that an individual has in the organization.
/. Structure- In this the organization creates objectives,
performance e!pectations & authority relationships.
1. Management support- In this the managers provide
clear communication, assistance, warmth & support to
their subordinates.
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2. Identity- In this the members identify with the
organization as a whole rather than with their particular
work group or 0eld of professional e!pertise.
3. Performance reward system- 4eward system of an
organization includes increase in salary, promotions
etc., is based on employee performance rather than on
seniority & favouritism.
5. is! tolerance- In this employees are encouraged to
be innovative, aggressive & risk taking.
ole " signi#cance of organizational culture-
&ach organization is recognized by its culture. )henever
people name an organization, the culture attached to the
organization is immediately recalled. One organization is
di(erent from other organizations because of cultural values,
beliefs & norms. %ollowing are the functions performed by
organizational culture-"
*. Organizational culture creates the boundary beyond
which no employees are allowed to go. #hey
automatically observe the organizational standards &
norms of behaviour.
/. 6n organization is well recognized by its culture. #he
culture of an organization provides its stability. 7eople
like to continue with the organization. &mployees,
customers, 0nancers & other related persons like to
remain with the organization.
1. #he social recognition of the organizational culture
makes the organization grow & develop in all ways.
2. Organizational culture acts as a motivator that guides &
controls the employees. 8atis0ed employees get more
spirit & enthusiasm for performing their jobs.
3. #he attitude & behaviour of the employees are directed
towards the achievement of goals through a sound
culture. 9isciplined employees make other employees
disciplined & well"behaved.
5. +ulture gives rise to a positive attitude & behaviour
which are again an addition to culture. +ulture leads to
good behaviour & good behaviour makes good culture
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which is useful for better behaviour. :oth employees &
the organization enjoy culture.
$ey C%aracteristics of Corporate Culture:
*. Innovation and is! &a!ing- #he degree to which
employees are encouraged to be innovative and take
risks.
/. 'ttention to (etail- #he degree to which employees are
e!pected e!hibit precision, analysis and attention to
detail.
1. Outcome Orientation- #he degree to which
management focuses on results or outcomes rather than
on the techniues and processes used to achieve those
outcomes.
2. People Orientation- #he degree to which management
decisions are take into consideration and the e(ect of
outcomes on people within the organization.
3. &eam Orientation- #he degree to which work activities
are organized around teams rather than individuals.
5. 'ggressiveness- #he degree to which people are
aggressive and competitive rather easy going.
;. Sta)ility- #he degree to which organizational activities
emphasize maintaining the status uo in contrast to
growth.
&ypes of organizational cultures: " %ollowing are the
types of organizational cultures-"
*. 'ut%oritarian " participative culture- " In the
authoritarian culture there is centralization of power with
the leader & obedience to orders & discipline are stressed.
6ny obedience is punished severely to set an e!ample to
others. #he basic assumption is that the leader knows
what is good for the organization & he always acts in its
interests.
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/. Mec%anistic " organic cultures- " #he mechanistic
organizational culture has the values of bureaucracy & so
is also called ":ureaucratic +ulture". Organizational jobs
are created around narrow specializations & people think
of their careers mainly within these specialization. #here is
a great deal of departmental loyalty. #his sort of culture
resists change & innovation. In organic culture formal
hierarchy of authority, departmental boundaries, formal
rules & regulations & prescribed channels of
communications are found. &mphasis is on task
accomplishment, team work, and free $ow of
communication < formal & informal. #here is an
understanding within the sta( like at the of problems,
threats & opportunities the organization is facing &
willingness to take part in solving the problems. #he
culture stresses $e!ibility, consultation, change &
innovation.
1. Su)-culture " dominant culture- " &ach department of
an organization may have its own culture representing a
sub"culture of the system. 6n organizational culture takes
place when there is an integration of all the departments.
)ithin any given unit the tendency for integration &
consistency will be assumed to be present, but it is
perfectly possible for coe!isting units of a larger system to
have cultures that are independent & even in con$ict with
each other.
Creation of culture
Organization culture provides the members with a sense
of organizational identity & generates a commitment.
#hough ideas that become part of culture can come from
anywhere within the organization, an organization,s culture
generally beings with the leader who implements particular
ideas & values as a vision, philosophy or business strategy.
)hen these ideas & values lead to success, they become
institutionalized & give shape to an organizational culture.
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+reation of an organization culture is a very lengthy &
complicated process. +ulture has 1 levels. =amely-"
*. 6rtifacts.
/. :eliefs & >alues.
1. 6ssumptions.
*. O)serva)le artifacts- " #hese are the symbols of
culture in the physical & social work environment & are
most visible. %ollowing are the things found in artifacts-"
?i* Organizational %eroes- " 6s a re$ection of the
organization,s philosophy, concerns the behaviour of top
e!ecutives & their leadership styles. #hese leaders become
the role models of an organization,s culture. #hey represent
what the company stands for & reinforce the values of the
culture.
?ii* Ceremonies " rites- " +eremonies & rites tell about
activities that are done on important occasions. @embers of
the organization who have achieved success are recognized
& rewarded on such occasions. 6nnual convocations at
colleges & universities where degrees, diplomas & medals
are distributed to the students are re$ections of culture in
educational institutions. #hese ceremonies bond
organization members together. 8uch ceremonies as
company picnics, retirement dinners, encourage
interpersonal communication & togetherness.
?iii* Stories- " 8tories about organization,s heroes are
powerful tools to reinforce cultural values throughout the
organization. #hese stories tell about cultural network &
remind employees as to why we do things in a certain way.
?ivA Cultural sym)ols: " 8ymbols tell about organizational
culture. +ertain code of dress or company,s logo can re$ect
its values. 8ome of the material artifacts created by an
organization might also speak of its cultural orientation.
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/+ S%ared values- " >alues are re$ected in the way
individuals actually behave. >alues re$ect an organization,s
beliefs as to what should be & what should not be. >alues
are those principles & ualities that shape our thinking &
behaviour. >alues can be of / types. =amely-"
?iA Instrumental values- " 6re beliefs that certain
behaviours are appropriate at all times irrespective of the
objectives or outcomes.
?iiA &erminal values:" 6re beliefs that certain more tangible
objectives are worth striving for & the objectives become
more important than the behaviour in achieving such
objectives.
>alues are emotionally charged. %or e!ample, @ahatma
Bandhi in promoting hand"woven khadi as against te!tiles
produced by technologically sophisticated machinery,
e!pressed values of human survival.
,+ Common assumptions- 6ssumptions are the most
fundamental level of an organization,s culture. #hese are
deeply held beliefs which are not objectively observed. %or
e!ample, an organization may establish values based on 1
basic assumptions. =amely-"
?iA 7eople are basically good. #his assumption is re$ected in
the company,s emphasis on trust.
?iiA 7eople are willing to learn, grow & achieve if they are
given proper opportunities. #his assumption is re$ected in
the company,s e!tensive training programs.
?iiiA 7eople are motivated by the challenging work. #his
assumption is re$ected by the process of common goal
setting & goal achievement by participation of members.
Maintaining a culture: "
-+ Selection process: " #he main purpose of selection
process is to select right type of person for the right job.
;
)hen for a given job / or more candidates with identical
skills & abilities are available then the 0nal selection is
in$uenced by how well the candidate 0ts into the
organization. It is by selecting the candidates who can
match the organizational culture, the management can
think of maintaining organizational culture.
.+ 'ctions of top management: " :esides managerial
vision the actions of the top e!ecutives also have a major
impact on the organizational culture. #hrough what they
say & how they behave, senior e!ecutives establish norms
that help the organization to take risks, how much
freedom managers should allow their subordinates, what
actions will pay o( during promotions & other rewards.
,+ &%e Socialization process: #he 8ocialization process
through which the employees are proselytized about the
customs and traditions of the organization is known as
socialization. It is the process of adaptation by which new
employees are to understand the basic values and norms
for becoming CacceptedD members of the organization.
8ocialization is a process made up of three stages-
o Pre-arrival- #he 0rst stage, pre"arrival, encompasses
all the learning that occurs before a new member joins.
o Encounter: In the second stage, encounter, the new
employee sees what the organization is really like and
confronts the possibility that e!pectations and reality
may diverge.
o Metamorp%osis: In the third stage, metamorphosis,
the relatively long"lasting changes take place. #he new
employee masters the skills reuired for hisEher job,
successfully performs hisEher new roles, and makes the
adjustments to hisEher work groupDs values and norm.
C%anging a culture:
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*. Clarify values: >alues are the foundation of
organizational culture. 6ny culture change must being
with clarity about what leaders in the organization value
and how those values will drive success. Gelp leaders
identify their personal values and create connections
between their personal values and the organizationDs
values.
/. einforce t%e vision: >ision should answer the uestion
Hwhere are we goingI. 8uccessful culture change does
not reuire a new vision. )hat is reuired is to ensure
that the vision paints an inspiring picture of the future that
draws on the values embraced by leaders in the
organization. @ake sure everyone in the organization is
clear on the vision and values < and how those elements
lead to the success of the organization as a whole.
1. Empower )e%aviors aligned to values and vision-
+hanging behaviors, particularly leader behaviors, is the
key driver achieving a culture change. :ehaviors create
e!periences for the people in organizations. #hose
e!periences are the day"to"day reality of the culture.
9e0ning the behaviors is critical. &ven more critical is
removing the obstacles to aligned behavior.
2. 'lign conversations up and down the organization- Bet
people talkingJ .eaders should be discussing values,
vision and behavior < and their link to organizational
success. +ommunication is key and leader driven
communication is critical. #hese conversations should be
woven through team organizational meetings, team
meetings, and one to one performance conversations.
3. &arget e/ort on high impact areas- )eave the values
based culture into high impact organizational structures.
#his may be your compensation plan, behavioral
competency model, performance management process,
and E or interviewing process. #hink about training for
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your managers in the speci0cs how to lead in a values
based culture.
5.Emp%asize success, reward change- 7ublicize your
success. @ake sure you communicate major HwinsI back
to the organization. #his builds momentum and converts
the doubters. 6lso, ensure that recognition is aligned to
your values. #hink about formal programs as well as
individual recognition.
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