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.
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.
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]
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ReplyDeleteOrganizational 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.
ReplyDeleteVery good explanation.
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.
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ReplyDeleteA 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.
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ReplyDeleteAs 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.
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