Organizational culture refers to the shared attitudes, beliefs, customs, and written and unwritten rules that guide employee behavior within an organization. There are four main types of organizational culture: power culture, role culture, task culture, and person culture. An ideal organizational culture establishes goals through participation, makes decisions collaboratively, and supports both organizational and individual needs. Studies have shown that organizational culture has a strong impact on employee performance, behavior, and motivation, and effective cultures with shared values and teamwork can increase organizational performance and productivity.
Organizational culture refers to the shared attitudes, beliefs, customs, and written and unwritten rules that guide employee behavior within an organization. There are four main types of organizational culture: power culture, role culture, task culture, and person culture. An ideal organizational culture establishes goals through participation, makes decisions collaboratively, and supports both organizational and individual needs. Studies have shown that organizational culture has a strong impact on employee performance, behavior, and motivation, and effective cultures with shared values and teamwork can increase organizational performance and productivity.
Organizational culture refers to the shared attitudes, beliefs, customs, and written and unwritten rules that guide employee behavior within an organization. There are four main types of organizational culture: power culture, role culture, task culture, and person culture. An ideal organizational culture establishes goals through participation, makes decisions collaboratively, and supports both organizational and individual needs. Studies have shown that organizational culture has a strong impact on employee performance, behavior, and motivation, and effective cultures with shared values and teamwork can increase organizational performance and productivity.
Introduction “Being a great place to work is the difference between being a good company and a great company” -Brian Kristofek, President and CEO, Upshot
People often think of culture simply as something that anthropologists
study when they visit exotic places and analyze the native’s people behavior. What does culture have to do with the realities of life in an organisation ?Until someone has worked for a couple of different organisations one cannot learn the enormous difference culture makes . (Harris & Hartman, 2006) After understanding that each and every organisation has a different and unique culture organisational culture can be defined as the outcome of an organisation’s experiences, philosophy, as well as the values that guide member behaviour. The culture of an organization is expressed by performance of the employees. Culture is based on shared attitudes, believes, customs, and written and unwritten rules that have been developed over time and considered valid.
The practices, principles, policies and values of an organisation form its
culture. The culture of an organisation decides the way employees behave amongst themselves as well as the people outside the organisation. Handy in 1985 popularised four organisational types, which link culture and the structure of the organisation.
Power Culture: This type of culture has a central force or power
controlling the whole system like a web. The center of the web is known as power-center from where the power radiates. In this type of culture faster decision are possible, though the quality of the decision can be questioned.
Role Culture: This culture is based on defined jobs, rules, procedures
etc. This culture is dependent on logic and rationality and its strength lies in the functions and specialists. This type of culture gives clarity to the individuals about what is expected of them, but on the other hand, they also might discourage creativity. Task Culture: This culture is team or project oriented. This culture mainly focus on problem-solving by pooling the required resources and people from various part of the firm on a temporary basis.
Person Culture: Here an individual acts the power source. The
organisation here is the supporting element. Person culture can be found when individuals are required to exercise talents, skills or abilities that can not be transferred easily to others. (Parikh & Gupta, 2010)
An ideal organizational culture should be the one in which
The organization’s goals are established and reviewed periodically
through the participation of all individuals and group in the organization. Decisions are made collaboratively by the people who must live with the decision. Behavior is supportive of the organization’s goals and purposes. The organization should be supportive of the needs of individual employees. Individuals and groups need to be respectful to each other. Superiors and subordinates are expected to have high level of trust and confidence for each other. Cooperation and teamwork should exist at all levels in one organization. Methods of reinforcement used are primarily rewards and participation. Employees should be cost conscious. Information needs to go to right places. Downward and upward communications are accepted with an open mind. Changes are initiated to improve performance and goal attainment. Changes should be received and accepted openly. Individuals should feel pride for themselves and their employer. The time individuals spend performing tasks is related to the contributions of the tasks toward the achievement of the organization’s goals. Individuals are motivated through enjoyment from achieving the organization’s goals. Conflict is not seen as a destructive force but as a potentially constructive activity. An organization where risks are necessary, endangered individuals and groups are given support. An ideal organisational culture may seem unrealistic at the first place and in many situations it probably is. A management’s role is to as much of the mentioned points as is possible. The mission is to build an ideal organizational structure first. Then the mission statement should be decided and declared. The mission statement should include the products or services the company is offering, the target audience, the stakeholders, the responsibilities and goals of the organization. (Harris & Hartman, 2006)
Having understood what organisational culture now we will be
discussing about its impact on employees performance, behaviour, and motivation:
In 1984 Denison scrutinized the characteristics of organisational culture
and tracked the performance using the data from 34 American firms over a period of five years. As per Reichers and Schneider (1990), stated that culture researchers have committed various studies to the definitions of culture, relatively few researchers have been contributed in culture and performance research. Only reason for doing this was the complexity in operational concept of the culture construct. Kotter and Heskett in 1992 stated the relationship between long-term organisational performance and economic performance across more than 200 organisations. (Shahzad et al., 2012)
These studies claim that organisational culture is strongly attached to
performance of employees. The figure describe the percentage difference between the net income of firms with performance enhancing culture and without performance enhancing culture, which proves the effect of culture on the increase in net income of the organizations within given study period.
In an effective organizational culture, employees share the organization’s
values and beliefs (Schein, 2010). When employees share the organization’s value, they can perform better to achieve the organization’s objectives (Denison, 1990). Study findings in the area of organizational culture showed that effective organizational culture includes shared values and common purpose to create a sense of teamwork in the organization (Flamholtz & Randle, 2011). Members of the organization use an effective organizational culture to develop teamwork and knowledge sharing culture (Wiewiora, Murphy, Trigunarsyah, & Brown, 2014). Schein (2010) indicated that managers with an effect organizational culture encourage teamwork to improve performance in the organization. Teamwork is an essential factor to achieve common organizational objectives. In an effective organizational culture, business managers and employees work together to improve performance and productivity in the organization (Childress, 2013). Eaton and Kilby (2015) noted that effective organizational culture is important to motivate and retain competent employees in the organization. (Tedla, 2016)
Most of us think of organisational culture as this nebulous, squishy
reality that we hope is as healthy as we’d like it to be. From time to time disturbing behaviors and situations crop up, and we deal with them. Some companies treat these like a whack-a-mole game rather than undertake a careful examination of root cause. There are three consistent stumbling blocks that prevent leaders from grabbing the bull by the horns and managing their culture before it manages them. (Lund, 2018) There are some Conclusion