Organizational culture

Organizational culture is defined as ‘how things are done around here’ As

employees work together, specific procedures or ways in which work is done,
problems are handled and decisions are made become established, and in time
these procedures and ways become the accepted way in which such actions are
performed.

Components of organizational culture

Assumptions. Assumptions describe what is important and how problems in the

organization are solved. These assumptions could be studied through intensive
observation, focused questions and intensive self-analysis. People are normally
unaware of these assumptions.

Values and beliefs. difficult to aware of their values and beliefs. Values can be
studied by using interviews, observation and questionnaires.

Behavioural norms. Behavioural norms are unwritten behavioural rules of which

people can be aware. These norms prescribe how people should behave in specific
situations.

Artifacts (Objectives) Artifacts are the highest level of cultural awareness and
refer to creations which are visual manifestations of other cultural levels. It
includes the observable behaviour of employees, dress, structures, systems,
policies, procedures, rules, records, annual reports and physical layout of the
organization. It is, however, difficult to judge artifacts accurately – they are not
necessarily a reliable indicator of how people behave.

IMPORTANCE OF ORGANIZATIONAL CULTURE

 It focuses attention on the human side of organizational life, and finds

significance and learning in even its most ordinary aspects.

 It clarifies the importance of creating appropriate systems of shared meaning

to help people work together toward desired outcomes.

 It requires members especially leaders, to acknowledge the impact of their

behaviour on the organization's culture.

 It encourages the view that the perceived relationship between an

organization and its environment is also affected by the organization's basic
assumptions.

 Organizational culture creates energy and momentum. The energy will

permeate the organization and create a new momentum for success.

TYPES OF ORGANIZATIONAL CULTURE

Strong Culture is said to exist where staff respond to stimulus because of their
association to organizational values. In such environments, strong cultures help
firms operate like well-oiled machines, cruising along with outstanding execution
and perhaps minor tweaking of existing procedures here and there.
Conversely, there is weak culture where there is little association with
organizational values and control must be exercised through extensive procedures
and bureaucracy.

Leader-centered Culture where all the power is concentrated on the leader. They
stressed to workers' to obey his order and work in discipline. Punishments are
imposed if disobedience or indiscipline occurs. People are more committed to
decision when they participate in the decision making process.

Participative cultures tend to emerge where most organizational members are

professionals or they presume themselves as equals.

Where core values share by majority of organizational members are termed as

dominant culture.

Subculture marked by a set of values that shared by the members of division or

department.

Mechanistic Culture exhibits the values of bureaucracy and feudalism. Direction

of authority flowing from top to the lower level and communication flows in a
prescribed channel.

In the organic culture formal hierarchies, formal rules and regulation,

communication through prescribed channel and others are not taken into
consideration. Here, much more focus on task accomplishment, team work, and
free flow of communication.

The development of organizational culture

Organizational culture develops as a result of previous crises, achievements,

successes and failures in an organization. These aspects lead to the formation of
assumptions regarding the following aspects: reality, truth, time, human nature
and human relations.

These practices include:

Selection of entry-level personnel. The first step is to select candidates whose

characteristics and values fit those of the organization. Evidence indicates that those
candidates who have a realistic job preview of the culture will turn out better.

Placement in the job. New personnel are subjected to a series of different

experiences, the purpose of which is to enable them to question the organization’s
norms and values and to decide whether or not they can accept them.

Job mastery. Once the initial cultural shock is over, the next step is that the
employee should master his or her job.

Measuring and rewarding performance. The next step of the socialization process
consists of meticulous attention to measuring operational results and to rewarding
individual performance.

Adherence to important values. The next step involves careful adherence to the
organization’s most important values. Identification with these values helps
employees reconcile personal sacrifices brought about by their membership of the
organization.

Reinforcing the stories and folklore. The next step involves reinforcing
organizational folklore. This entails keeping alive stories which validate the
organization’s culture and way of doing things. The folklore helps to explain why
the organization does things in a particular way.

Recognition and promotion. The final step is the recognition and promotion of
individuals who have done their jobs well and who can serve as role models to new
people in the organization.