Organisational culture

 Organizational Culture and Climate

Organizational culture can be defined as the shared values, beliefs, norms, and assumptions that influence the behavior and practices of the members within an organization. It provides stability and control, helping members understand the organization’s objectives and how to achieve them. A positive organizational culture aids in resolving conflicts, overcoming barriers, and managing risks.

Elements of Organizational Culture

Organizational culture consists of both visible and invisible elements:

• Visible Elements: These are observable by outsiders, such as the dress code, office layout, and formal activities.
• Invisible Elements: These include underlying values, norms, and assumptions that are not immediately observable to outsiders but deeply influence behavior within the organization.

Key components include:

• Stories: Narratives about the organization's history or founders that reinforce cultural values.
• Rituals: Regular practices and ceremonies that embody the organizational culture.
• Symbols: Logos, company mottos, or other visual elements that represent the organization's identity.
• Language: Common terminology or jargon used within the organization.
• Practices: Established routines and behaviors that employees follow.
• Values and Norms: Fundamental beliefs and expectations about behavior.
• Assumptions: Unspoken, taken-for-granted beliefs about how things should be done.

Types of Organizational Culture

• Mechanistic and Organic Culture:
  • Mechanistic Culture: Characterized by formal rules, clear responsibilities, and a hierarchical communication structure. Emphasizes accountability and precision.
  • Organic Culture: Emphasizes social values, flexibility, and minimal formal rules. Encourages a free flow of communication and decentralized decision-making.
• Authoritarian and Participative Culture:
  • Authoritarian Culture: Power is centralized at the top, with decisions made by upper management and enforced through strict obedience and potential punishment. Common in military organizations.
  • Participative Culture: Encourages employee involvement in decision-making and goal setting. Promotes collaborative problem-solving and shared responsibility.
• Subculture and Dominant Culture:
  • Subculture: Smaller groups within the organization that have their own distinct cultures. These can be departmental or based on job functions.
  • Dominant Culture: The overarching culture that is shared by the majority of the organization. The strength and success of the dominant culture depend on the coherence and integration of various subcultures.
• Strong and Weak Culture:
  • Strong Culture: Employees exhibit loyalty, pride, and a sense of belonging. There is high productivity, low turnover, and a strong alignment with organizational goals.
  • Weak Culture: Employees lack commitment and loyalty, leading to dissatisfaction and high turnover. The organization struggles with cohesion and productivity.
• Entrepreneurial and Market Culture:
  • Entrepreneurial Culture: Encourages innovation, risk-taking, and flexibility. Employees are given the freedom to experiment and are rewarded for their performance.
  • Market Culture: Focuses on achieving specific targets and profitability. Relationships within the organization are goal-oriented, with less emphasis on social interactions.

Creating and Changing Organizational Culture

Creating Organizational Culture:

• Founder's Influence: The values and vision of the organization's founder often shape the initial culture.
• Environmental Influence: The external environment and industry standards can impact the cultural norms.
• Cultural Interchange: Interactions with other organizations can introduce new cultural elements.
• Member Contributions: Employees contribute to and evolve the culture by bringing in their values and practices.
• Situational Demand: Cultural changes can arise in response to internal or external pressures and challenges.

Changing Organizational Culture:

• Workforce Composition: Changes in the demographic or professional background of employees can influence cultural shifts.
• Mergers and Acquisitions: Combining different organizational cultures can create a new, hybrid culture.
• Planned Organizational Change: Deliberate efforts to shift the culture through initiatives and programs.
• External Influence: Adoption of practices and values from other organizations or societal trends can alter the culture.

Summary

Organizational culture is a critical factor in the success and stability of a company. Understanding its elements, types, and methods of creation and change can help leaders foster a positive environment that aligns with organizational goals and enhances overall effectiveness. By recognizing and addressing both visible and invisible elements, organizations can build a cohesive and adaptable culture that supports their strategic objectives.