Theoretical Background

1. Concepts of organization culture

To understand about organization culture, we will examine the origin of the concept “organization
culture”. Prachi Juneja (2015, MSG Content Team) defines organization culture as "the beliefs and
principles of a particular organization, it has a deep impact on the employees and their relationship
amongst themselves". Besides, the definition offered by Edgar Schein of MIT's Sloan School of
Management is that organizational culture is: "a pattern of shared basic assumptions that the group
learned as it solved its problems of external adaptation and internal integration, that has worked well
enough to be considered valid and, therefore, to be taught to new members as the correct way to
perceive, think, and feel in relation to those problems.". Based on this definition, Edgar Schein
commented on the importance of organizational culture "Culture is a property of organizations and can
be thought of as the accumulated learning that a given group has acquired during its history."

2. Classification of organization culture

In 2015, Prachi Juneja's identified two types of organization culture:

- Strong Organization Culture: Strong organizational culture refers to a situation where the employees
adjust well, respect the organization’s policies and adhere to the guidelines. In such a culture people
enjoy working and take every assignment as a new learning and try to gain as much as they can.
They accept their roles and responsibilities willingly.

- Weak Organization Culture: In such a culture individuals accept their responsibilities out of fear of
superiors and harsh policies. The employees in such a situation do things out of compulsion. They
just treat their organization as a mere source of earning money and never get attached to it.

3. The role of organization culture

No two companies can have the same culture và the organizational culture of each firm will play a role
in deciding how lucrative that company is. The employees follow a certain culture in organization B
where there are employee-friendly policies and everyone follows them will make it more successful than
organization A where employees are not disciplined and pay little attention to provisions of the
company.
According to Prachi Juneja's, his model is very important for this study: it allows us to determine the
level of the role of organizational culture in a company and apply it in Hoa Phat Group
 Promote healthy competition in the workplace.

Build the brand image of the organization.

Bringing all employees to a common platform

Organization Culture Merge employees from different backgrounds

Promote healthy relationships among employ

Extract the best from each team member.

Decide how employees interact in their workpl

Table 1: The role of Organization Culture

Referencing:
1. Juneja, P., 2015. Understanding Organization and Organization Culture. [online]
Managementstudyguide.com.
Available at: <https://www.managementstudyguide.com/organization-culture.htm> [Accessed 6
December 2021].

2. Organization Culture (1988) written by Edgar H. Schein, Sloan School of Management, MIT
Link :Organization Culture