Organizational culture is a key factor which determines the success of an organization (Childress, 2013). Every organization has a unique organizational culture which reflects the personality of the organization (Deal & Kennedy, 2000). In business terms, organization culture is often termed as “corporate culture,” “workplace culture,” and “business culture” (Childress, 2013).
Definitions of Organizational Culture
Organizational culture is
simply defined as the way things are done in the organization (Deal &
Kennedy, 2000). Many scholars have defined the organizational culture from
different perspectives. The term increasingly modified with the changing world
day by day.
The term organizational
culture was first introduced by Jaques in 1951 (Jaques, 1951). Jaques states
the organizational culture as “the culture of the factory is its customary and
traditional way of thinking and doing of things, which is shared to a greater
or lesser degree by all its members, and which new members must learn, and at
least partially accept, in order to be accepted into service in the firm”
(Jaques, 1951, p251). Jaques’s explanation of organizational culture in a
business context describes that organizational culture enables the
organizational community to share common desires and aspirations to work
together (Jaques, 1951).
Culture is termed as an intangible asset in organizations (Itami, 1987) which can be shared, learnt, and transmitted (Beaumont, 1993). According to Schein (1985) organizational culture is described as a set of beliefs, values and assumptions shared by the community of the organization (Schein,1985). Sackman (1991) has defined organizational culture as a control mechanism which has an ability to adapt the organization towards the desired changes, increase the organization community commitment and to achieve integration between organizations (Sackman,1991).
Under this set of definitions,
organizational culture can be understood as a guideline which explains how the
organizational environment should be set up and how organizational employees should
think and act within the organization to achieve the expected goals and
objectives.
Contemporary organization
culture
The culture of the
organizations run today is radically different from how they have few decades
ago (Alvesson & Sveningsson, 2016). It has become a driving force that
pushes the company to improve the human capital and continue it to gain sustainable
competitive advantage (Sharma & Good, 2013). Generally, organizational
culture is created by the involvement of founders, management, and employees of
the relevant company (Uddin et al., 2013). Besides those to create the
organization culture in the modern world has the influence of national cultures
and traditions, economic trends, international trade, company size, and
products (Alvesson & Sveningsson, 2016).
Not like the traditional
organizational culture; the mission hypothesis and participation hypothesis are
more relevant to the culture in the modern organization. (Kathryn Baker ,2002).
The traditional culture is hierarchical basis and always engaged with an
authoritative communication style and strict policies (Jacques, 1952). But with
the awake of globalization all these characteristics have been effected to
replace with new modern model and methodologies to improve business
interactions in the cross-culture without cultural shocks (Markovic, M.R., 2002).
One of the major change in the modern organizational culture is adapting for
innovative technologies and practices (Alvesson & Sveningsson, 2016). It
also tends to use progressive policies, institutional measures and informal
approaches (Alvesson & Sveningsson, 2016). Moreover, a culture
which has the qualities of collective problem solving, maintaining high
profiles and offering the in-depth resources is contributed to their business
success (Alvesson & Sveningsson, 2016). Another significant change in the
modern organizational culture is greater employee freedom involved there (Markovic,
M.R., 2002). This contemporary organizational cultures can be seen vastly in
the top companies of the 21st century, such as Google and Apple Inc (Simoneaux
& Stroud, 2014).
Conclusion
Organizational culture has
received increasing attention from both academics and practitioners and it has
been an essential condition for organizational success and sustainable
competitive advantage (Sharma, & Good, 2013). When consider the
definitions, developed by many scholars the term can be reasonably described
that organizational culture is defined as the underlying beliefs, assumptions,
values and ways of interacting the community of people in the organization that
contribute to the unique social and psychological environment of an
organization (Childress, 2013). As a results of globalization, organizational
culture has been more modern and digitalized as well as cross-cultural
workplace (Markovic, M.R., 2002).
References
Alvesson, M. and Sveningsson, S.(2016) Changing Organizational Culture. 2nd edition. Sweden: Routledge.
Baker,
K. (2002). Organizational Culture.
Beaumont,
P.B. (1993). Human Resource Management: Key Concepts and Skills. London: Sage
Publication.
Childress,
J. R. (2013). Leverage: The CEO's guide to corporate culture [Kindle]. London: Principia Associates.
Itami, H. and Roehl, W (1987). Mobilizing Invisible Asset. Cambridge. Harvard University Press, 10 (4) 457 - 459.
Jaques,
Elliott (1951). The changing culture of a factory. Tavistock Institute of Human
Relations. London: Tavistock Publications.
Markovic,
M.R. (2002). Impact of Globalization on Organizational Culture, Behaviour and
Gender Role, North Carolina: Information Age Publishing.
Marshak
Deal T. E. and Kennedy, A. A. (2000) Corporate Cultures: The Rites and
Rituals of Corporate Life, Harmondsworth: Penguin Books.
Schein,
H.E. (1985). Organizational Culture and Leadership. San Francisco: Jossey Bass.
Sharma,
G., & Good, D. (2013). The work of middle managers: Sense making and sense
giving for creating positive social change. The Journal of Applied Behavioral
Science,
Simoneaux,
S., & Stroud, C. (2014). A strong corporate culture is key to success.
Journal of Pension Benefits. 22 (1) 51-53.
Uddin, M., Luva, R., & Hossian, S. (2013). Impact of organizational culture on employee performance and productivity: A case study of telecommunication sector in 133 Bangladesh. [case study] Bangladesh: Canadian Center of Science and Education.
Agree with you on the fact that the culture is the driving force that pushes the company to improve the human capital. A culture of an organization is considered strong, where the greater part of the employees embrace the same sorts of beliefs and values as concerned to the organization (Deal & Kennedy, 1982). A strong culture has almost considered as a driven force to improve the performance of the employees. It enhances self-confidence and commitment of employees and reduces job stress and improves the ethical behavior of the employees (Saffold , 1998).
ReplyDeleteThank you for adding more to this and further thorough knowledge and awareness of organizational culture helps to improve the ability to test the behavior of the organization that assists management and leadership (Brooks, 2006). The main purpose of this article is to understand, conceptualize and measure the relationship between corporate culture and corporate activism. Also, to examine the nature of this relationship.
DeleteAccording to the classification approach, organizational cultures correspond to a range of ideal types that can be reflected by two or more variables. One of the best known studies based on this approach belongs to Hofstede (1980) who used data gathered from IBM employees from over 40 countries. The author identified four dimensions of organizational culture: power distance, uncertainty avoidance, individualism/collectivism and masculinity/femininity. Later, Hofstede (1998:238) defined organizational culture as a concept that has the following features:
ReplyDelete• “holistic (describing a whole which is more than the sum of its parts);
• historically determined (reflecting the history of the organization);
• related to the things anthropologists study (like rituals and symbols);
• socially constructed (created and preserved by the group of people who togheter form the
organization);
• soft, and;
• difficult to change”.
Compared to the qualitative approach, the quantitative approach generates a number of quantitative methods that can be used to measure the corporate culture. There were many questionnaires developed based on the classification approach that have the advantage compared to the qualitative approach of covering large samples at lower cost. (Sackman, 1991)
Thanks for sharing your view, further the qualitative and quantitative research parameters are complementary and can be used together to gain a more complete understanding of corporate culture (Yauch and Steudel, 2003). The most appropriate "interpretation" methods and techniques for a dynamic view of corporate culture. It enjoys interaction, role-playing, "observing" physical spaces and artifacts, and "listening" to gossip and talk within organizations. Corporate culture can be considered a network of conversations: the way employees see the world and the way they talk about it to themselves and others shape the environment of an organization. Trading information and ideas is not trivial, it builds trust and close relationships (Stambor, 2006) and helps employees develop trusting relationships and nurture social bonds (Gianesini 2009).
DeleteHi Eranga, I would like to add this, Corporate culture shares shared meanings that form the basis for communication and mutual understanding. If these functions are not accomplished satisfactorily, culture significantly reduces the effectiveness productivity of an organization. This is why it is important for human resource specialists to understand the concept of corporate culture and how it affects organizations (Armstrong, 2014, 120). According to Armstrong, understanding corporate culture is the strategy for achieving the goals of the organization.
ReplyDeleteHi Ranga, agree with that understanding corporate culture is the strategy for achieving the goals of the organization further corporate culture is the set of values, customs, norms, traditions, attitudes, and behaviors of individuals in a society (Armstrong, 2009). Attitude patterns are largely due to what society has done before and how successful it has been. This leads us to the ultimate origin of a social culture known as the founders of culture or the early founders of culture (Schein, 1983).
DeleteAs defined by Deal and Kennedy (1982), the Organization culture, also called as Corporate culture is ‘the way we do things around here’. It comprises of unwritten rules, values, norms, beliefs, attitudes and assumptions that employees follow to get things done. Furnham and Gunter (1993) states the following characteristics in organizational culture;
ReplyDelete1. Difficult to define as it differs for each organization
2. Multidimensional, with many different components at different levels
3. Not dynamic - Does not change all the time
4. Takes time to establish and therefore time to change.
It’s significant because culture has an impact on how employees behave within the organization (Armstrong, 2010).
Thanks Sonali, opinions that established culture is good or bad (Furnham and Gunter, 1993) cannot be clearly agreed upon. According to the Armstrong (2002), who argues that there is only one adequate or appropriate corporate culture. Whether it is appropriate depends on when it was developed or when it happened. However, can’t not agree with his statement that there are no universal rules for managing corporate culture.
DeleteWhilst agreeing with what you have stated, organizational culture is a kind of social environment of the organization and reflects some hidden patterns of employee and leadership behaviors in the organization. Harrison (1972) has also presented a model of culture, known as "Harrison’s Model of Culture", that divides organizational cultures into four main categories, namely: role, task, power, and person culture. One of these cultures might dominate the entire organization or different cultures may exist in various parts of the firm, what might suit some organization (or department) may not be applicable in the same manner to another. (Naoum, 2011)
ReplyDeleteAdding more to your comments, Harrison’s (1972) approach will help you understand why some organizations were more comfortable than others. Although Handy chooses to talk about culture, he shows structures related to his cultural types. This may be due to the difficulty of drawing something as scattered as culture, but it also confirms that culture and structure are intertwined.
DeleteQuite simply, culture is the biggest lever that any organization has to drive performance. It’s the bottom line and a leading indicator for almost every other performance metric. A Culture First company recognizes that if you take care of the culture, then the customer experience and profits will take care of themselves.- Didier Elzinga, CEO
ReplyDeleteAdding more to your comments, strategies and culture are among the key levers to the exclusion of top leaders in a never-ending quest to maintain organizational viability and productivity and the strategy presents a formal logic for the company’s objectives and further culture expresses goals through values and beliefs and directs activities through shared assumptions and group norms (Boris et al, 2018).
Delete"Culture is how organizations ‘do things’.” — Robbie Katanga
ReplyDeleteCulture is consistent, observable patterns of behavior in organizations. Aristotle said, “We are what we repeatedly do.” This view elevates repeated behavior or habits as the core of culture and deemphasizes what people feel, think or believe. It also focuses our attention on the forces that shape behavior in organizations, and so highlights an important question: are all those forces (including structure, processes, and incentives) “culture” or is culture simply the behavioral outputs?
Adding more to your comments, Robbie Katanga further describe culture is the quiet social order of an organization and it shapes attitudes behaviors in a wide range and lasting ways. defines what cultural norms are encouraging, discouraging, accepting or rejecting in a group. when appropriate a culture lined up with personal values, drivers and interests can unleash tremendous things nurture the energy levels and capacity of the organization for a common goal to prosper.
DeleteHodgetts and Luthans (2003), state that different attributes that are associated with the culture of organization as organizational culture. Culture may define as system of ordinary values which can be estimated that people describe the similar organization culture even with different background at different levels within the organization (Robbins & Sanghi, 2007). As per Stewart (2010), Organization’s norms and values have a strong effect on all of those who are attached with the organization. The complete knowledge and awareness of organizational culture will help to improve the ability to examine the behaviour of organization which assists to manage and lead (Brooks, 2006).
ReplyDeleteAdding more to your comments, Pettigrew (1979) argues that organizational cultures based on cognitive systems help explain how employees think and make decisions and further noted the different levels of culture based on multiple beliefs, values and assumptions that determine the path for companies to run organization.
DeleteHi Eranga, Interesting reading. Organizations culture have been conducted since 1940's but they were sparse and scattered unit the "Cooperate -culture boom "of the 1980's.During the last decade the interest in organizational culture from practitioners in particular continues to be relatively high(Alvsson 2013)
ReplyDeleteHi Madura, agree with that there has been a relatively high level of interest in corporate culture over the past decade, especially from professionals, as organizational leaders often talk about the extraordinary nature of their company cultures and see their domains as special places to work further organizations like Disney and Nordstrom have a reputation for their unique cultures and are rare (SHRM, 2020).
DeleteAdding more to your statement that according to Armstrong (2014)Organizational or corporate culture is the pattern of values, norms, beliefs, attitudes and assumptions that may not have been articulated but shape the ways in which people in organizations have and things get done. ‘Values’ refer to what is believed to be important about how people and organizations behave. ‘Norms’ are the unwritten rules of behavior.
ReplyDeleteAgree with that, further corporate culture reflects the thinking and behavior of individuals who are difficult to quantify and even more difficult to influence and change. To make any difference, it is necessary to create the right environment, where orders or regulations are not enough (Killman et al., 1985). Implementing the desired corporate culture involves a change in the role of managers, especially in establishing corporate behavior and maintaining progress in the current context, and includes activities that affect the development of all aspects of corporate culture (Mitrović et al, 2014).
DeleteOrganizational culture defines the boundaries of acceptable action and signals what work should be done and how that work is to be carried out to be a significant figure in the industry(Rune, 2005).
ReplyDeleteThank you for adding more to the post, further global competence refers to "the qualities that enable individuals to perform their work outside of their national and organizational culture" (Jokinen, 2004,201). These skills require "having an open mind and actively trying to understand the cultural norms and aspirations of others, acquiring this knowledge to interact, communicate and work effectively outside of one's environment" (Hunter et al, 2006,17).
Delete
ReplyDeleteOrganizations are now faced with increased competition, globalization, mergers, acquisitions, alliances and various work departments. If these are not properly managed, it could lead to the derailment of the company’s efforts at survival. As indicated in a recent international study by (Dixon, 2005) which found out that 30% of mergers and acquisitions fail because of mismanagement of culture (Oteng, E et al. 2014). In the journey toward success, organization’s culture defines its goals, values, standards and the true nature and personality of the organization (Oteng,E et al. 2014).
Hi Asitha, agree with that and further Jokinen (2004) defines global competence as “qualities that enable individuals to perform their job outside their own national as well as organizational culture " (Jokinen , 2004,201) According to Hunter, White and Godbay (2006:), these skills " having an open mind while actively seeking to understand cultural norms and expectations of others, leveraging this gained knowledge to interact, communicate and work effectively outside one’s environment " (Hunter et al, 2006,17).
DeleteIn a recent article in Harvard Business Review, the writers said that, Organizational culture is the collective effect of the common beliefs, behaviors, and values of the people within a company. Those norms within any organization regulate how employees perform and serve customers, how they co-operate with each other, whether they feel motivated to meet goals, and if they are sincerely into the company's overall mission. How are employees getting their work done? Independently or collaboratively? Do employees feel inspired, committed, and engaged, or annoyed, overworked, and underappreciated? (Groysberg, Lee, Price & Cheng, 2018)
ReplyDeleteAdding more to your comment, because the concept is complex, we cannot use a single definition for culture. Hence some of the modern definitions given by various authors decades ago. For example, proposed the oldest definition of culture, further culture is a complex whole that includes knowledge, beliefs, art, morality, law, customs, and other abilities and habits that man has acquired as a member of society (Tyler, 1871). There are more than four slightly broader definitions of Herskowits culture. Decades ago, culture was suggested as part of the man-made environment (Herskowits, 1955). When trying to interpret his definition, we can talk about objective culture e.g. tables, computers, trains and subjective culture e.g. standards, roles, values (Herskowits, 1955).
DeleteHi Eranga, According to Furnham & Gunter (1993), Culture represents the ‘social glue’ and generates a ‘we-feeling’, thus counteracting processes of differentiations that are an unavoidable part of organizational life. Organizational culture offers a shared system of meanings which is the basis for communications and mutual understanding. If these functions are not fulfilled in a satisfactory way, culture may significantly reduce the efficiency of an organization.
ReplyDeleteAdding more to your comment, culture is the social glue that helps keep an organization together by setting appropriate standards for what employees have to say or do (Funkhouser, 2020). Funkhouser (2020) states the following characteristics in organizational culture;
Delete• It has the role of defining boundaries.
• It brings a sense of identity to the members of the organization.
• One facilitates it to generate commitment to something bigger than one’s personal ambition.
• It increases social system stability.
• It serves as a "sensing" and control mechanism that guides and shapes the attitudes and behaviors of employees.
Among many definitions out there for organizational culture, O’Donnell and Boyle (2008) defined it as a collection of shared values, norms, beliefs and attitudes. Also, Schein (2004) explains it as a framework of shared assumptions which have been a result of past experiences in adapting and integrating.
ReplyDeleteAdding more to your comment, O’Donnell and Boyle (2008) further advanced this framework by adding two axes: (i) Vertical - Flexibility versus control and (ii) Horizontal - Internal verse external environment. The vertical axis refers to how the organization's system retains their employees in a straightforward or more flexible manner and the horizontal axis, on the other hand, is like a competitor against the internal environment of the organization and the external environment outside the organization (Baki et al, 2018).
DeleteWhen an organization faces a crisis, its leaders must formulate a plan to alleviate the danger posed. Successfully thwarting the crisis validates the plan and it becomes a shared value of the organization. When a similar crisis arises in the future, the organization will reuse the plan to avert catastrophe and right the ship. After repeated success, the value becomes an underlying assumption of the organization (Schein – 2010)
ReplyDeleteThank you Asanka for your comments on my blog and I should further mention, these underlying assumptions are the basic core of all corporate culture which are difficult to know and understand because they are rarely expressed and to determine the assumptions of an organization, one must immerse oneself in the organization and its culture (Schein, 2010).
DeleteThe topic of organizational culture is increasingly understood as a company asset that can be used to increase business performance. While important, organizational culture is a slippery concept to concretely define (Tharp, 2009).
ReplyDelete