Organizational culture


 

Organizational culture 

Figure 01

Organizational culture is a system of values, beliefs, and behavior patterns that subconsciously drive members of the organization to make each choice and decision (Ortega-Parra & Sastre-Castillo, 2013). Schneider et al. (2013) indicated organizational culture as the norms that members of an organization perceive as their work environment, and these norms influence how members behave and adapt to achieve organizational goals. Organizational culture is the way that organizational members interact with each other and other stakeholders (Simoneaux & Stroud, 2014). Yirdaw (2016) indicated organizational culture as the glue which combines the nonhuman resources with the human resources in an organization to build teamwork and good performance.

 “Organizational culture is the distinctive norms, beliefs, principles, and ways of behaving that combine to give each organization its distinct character” (Arnold, 2005). Schein (1985) also defines organizational culture as “a pattern of basic assumptions invented, discovered, or developed by a given group as it learns to cope with 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 to perceive, think, and feel about those problems”.

 

Four types of organizational culture

The best-known classification of types of organizational culture is the Competing Values Framework. Kim Cameron and Robert Quinn at the University of Michigan identified four distinct types of organizational culture.

·         Adhocracy culture – the dynamic, entrepreneurial Create Culture.

·         Clan culture – the people-oriented, friendly Collaborate Culture. 

·         Hierarchy culture – the process-oriented, structured Control Culture.

·         Market culture – the results-oriented, competitive Compete Culture.

 Functions of Organizational Culture

Brown (1998) states the following functions of organizational culture:

Conflict reduction - A shared culture fosters uniformity in perception, problem description, issue and opinion appraisal, and action preferences. 

Coordination and control - Culture facilitates organizational coordination and control procedures in part because it encourages uniformity of outlook.

Reduction of uncertainty - Adopting a cultural mindset reduces anxiety by simplifying the workplace, making decisions easier, and making reasonable action appear feasible.

Motivation - An appropriate and unified culture may provide employees with a sense of belonging and loyalty, as well as create beliefs and values that motivate them to succeed.

Competitive advantage - Strong culture improves the organization’s chances of being successful in the marketplace.                

As per Armstrong and Taylor (2014), organizational culture can be described in terms of values, norms, artifacts, and management or leadership style. 

Values 

Values are beliefs in what is best or good for the organization, as well as what should or should not occur. An organization's 'value set' may be recognized solely at the highest levels, or it may be shared throughout the company, in which case the company is said to be value-driven.

Norms 

People are told what they should do, say, believe, and even wear based on societal norms. They are passed down through the generations by word of mouth or behavior, and they can be enforced by people's emotions when they are broken.

 Artifacts 

Artifacts are the visible and tangible aspects of an organization that people hear, see, or feel and which contribute to their understanding of the organization’s culture. Artifacts can include such things as the working environment, the tone, and the language used in e-mails, letters, and people addressing each other. Artifacts can be very revealing. 

Management style 

The way managers engage with people, their management, or leadership style is an important aspect of an organization's culture. Every manager has his or her unique style, but organizational culture may impact this, resulting in a prevalent management style that indicates a behavioral norm for managers that is widely accepted and adopted.

Conclusion

In a corporate group, organizational culture can be considered an essential ingredient of organizational performance and a source of sustainable competitive advantage.

It was found that organizational culture has a strong impact on organizational performance. Empirical evidence further showed that lack of cultural integration between member companies was a primary cause of failure in corporate groups. Therefore, it is ascertained that cultural enhancement would result in performance enhancement.

References: 

Brown, A. (1998) 'organizational Culture', 2nd ed., London: Financial Times Pitman Publishing. 

https://www.achievers.com/blog/organizational-culture-definition/ [Accessed 03 May 2022]

https://www.aihr.com/blog/types-of-organizational-culture/ [Accessed 03 May 2022]

https://www.mbaknol.com/strategic-management/role-and-functions-of-organization-culture-in-an-organization/ [Accessed 03 May 2022]

 

 

 

 

Comments

  1. Organizational culture will assist in the recruitment of exceptional candidates as well as the retention of top employees. Employee engagement is higher in companies with good organizational culture. A negative organizational culture will encourage employees to look for work elsewhere, whereas a strong culture will keep them in the company. good one

    ReplyDelete
  2. A positive corporate culture will attract the best job candidates and keep them engaged as workers. It takes a lot of time and effort to build a winning company culture that truly reflects your beliefs and aligns with your overall objective. All the best.

    ReplyDelete
  3. Organizational culture is an important and essential aspect in terms of employee performance and employee retention.Your article provides a clear understanding about the impact of Organizational culture. Good job Nishantha

    ReplyDelete
  4. Organizational culture affects all aspects of your business, from punctuality and tone to contract terms and employee benefits. Good blog

    ReplyDelete
  5. Organizational culture is defined as the underlying beliefs, assumptions, values, and ways of interacting that contribute to the unique social and psychological environment of an organization.
    Very good explanation.

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  6. As discussed, organisational culture is very important in shaping employees and their attitudes. HRM plays a major role in managing the culture in an organisation. Aligning all employees to the culture will help in achieving organisational success. Good article.

    ReplyDelete
  7. The recruitment of excellent candidates as well as the retention of top personnel will be aided by organizational culture. Employee engagement is higher in organizations with a positive culture. Employees who work in a negative organizational culture will leave, but those who work in a positive culture will stay. excellent

    ReplyDelete
  8. A market culture is common in sales dominated industries such as distribution agencies or car sales business. Depending on the organizational culture, how HR managers make decisions regarding the human resource in achieving its goals varies. Great article in gaining more knowledge regarding the organization cultures of a company.

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  9. The beliefs, expectations, and practices that govern and shape the activities of all team members make up organizational culture. Consider it a collection of characteristics that define the organization. This creates uniqueness from other organizations as you clearly described in this article. Well done.

    ReplyDelete
  10. In sales-driven businesses like distribution agency or vehicle sales, a market culture is widespread. How HR managers make decisions about human resources in accomplishing corporate goals differs depending on the company culture. Excellent article for learning more about a company's organizational culture.

    ReplyDelete
  11. One of the most significant aspects of a successful business is its solid organizational culture which contributes for the employee engagement and employee retention. In an organization with a solid culture, its employees have a clear idea regarding how they should act and they know that it is expected response in the organization
    The organization's culture has a direct impact on the performance of its employees by a way of employee engagement , employee retention etc. You have explained functions of organizational culture and it’s affects to the performance of an organization. Great article. All the best.

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  12. This comment has been removed by the author.

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  13. A market culture is prevalent in sales-driven organizations such as distribution agencies or vehicle dealerships. Depending on the company culture, HR managers make different judgments about human resources in order to achieve corporate goals. This is an excellent post for understanding more about the organizational culture of a company.

    ReplyDelete
  14. An organization's culture has a direct impact on its own performance. This brief essay has explained the significance of corporate culture. Article summary and key subject for further discussion. Good initiative..

    ReplyDelete
  15. As you mentioned, Organizational culture refers to a company's mission, objectives, expectations and values that guide its employees. Businesses with an organizational culture tend to be more successful than less structured companies because they have systems in place that promote employee performance, productivity and engagement.

    ReplyDelete

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