THEORY AND MANAGEMENT OF ORGANISATIONS

Definitions
A theory is a set of statements or principles devised to explain a group of facts or
phenomena especially those that have been repeatedly tested or widely accepted
and can be used to make predictions about a natural phenomenon

Theories are analytical tools for understanding, explaining and making predictions
about a given subject matter.

There are various definitions for the term management and these include the
following;
 According to Harold Koontz, Management is the art of getting things done
through and with people in formally organised groups."
 According to Henri Fayol, ‘To manage is to forecast and to plan, to organise,
to command, to co-ordinate and to control.’
 Management is the process of designing and maintaining an environment in
which individuals working together in groups efficiently to accomplish
organizational goals (Heinz and Harold)
 Management is the process of planning, organizing and controlling efforts of
organization and using all organizational resource to achieve organizational
goals (Stoner and Freeman)
 Management is also defined as the art and science of getting things done
through others ( people)
According to Mary Parker Follet, management is the art of getting things done, the
definition emphasizes that management is an inherent skill and as an art
management is not necessarily an inborn quality. It’s about actions that achieve
concrete results
As a science, management is an accumulated body of knowledge. It is a subject in
its own right with principles, concepts and theories. It is a systematic study that
attempts to explain cause –effect aspects of organizational life. It involves the
application of scientific methodology, statement of problem, observation and
recording. Management is however not an exact science since it deals with human
beings whose behaviors are often unpredictable and complex. More so
organization environments are often volatile that the same rules may not always
apply.

Management is an individual or a group of individuals that accept responsibilities

to run an organisation. They Plan, Organise, Direct and Control all the essential
activities of the organisation. Management does not do the work themselves. They
motivate others to do the work and co-ordinate (i.e. bring together) all the work for
achieving the objectives of the organisation.

Main features/ characteristics of management

1. Continuous and never ending process.

2. Getting things done through people.
3. Result oriented science and art.
4. Multidisciplinary in nature.
5. A group and not an individual activity.
6. Follows established principles or rules.
7. Aided but not replaced by computers.
8. Situational in nature.
9. Need not be an ownership.
10.Both an art and science.
11.Management is all pervasive.
12.Management is intangible.
13.Uses a professional approach in work.
14.Dynamic in nature.

Management functions
Functions of management in reference to Luther Gullick’s acronym of
“PODSCORBing POSDCORB is an acronym which means Planning, Organizing,
Staffing, Directing,Coordinating, Reporting and Budgeting which was first coined
in a paper on administrative management that was written for the Brownlow
Committee by Luther Gulick and Lyndall Urwick. POSDCORB can be used as a
systematic framework for efficiently executing business processes in an
organization or by an individual

 Planning, that is working out in broad outline about the things that need to be
done and the methods for doing them to accomplish the purpose set for the
enterprise
 Organizing, that is the establishment of the formal structure of authority
through which work subdivisions are arranged, defined, and co-ordinate for the
defined objective
 Staffing, that is the whole personnel function of bringing in and training the
staff and maintaining favorable conditions of work
 Directing, that is the continuous task of making decisions and embodying them
in specific and general orders and instructions and serving as the leader of the
enterprise
 Co-ordinating, that is the important duty of interrelating the various parts of the
work
 Reporting, that is keeping those to whom the executive is responsible informed
as to what is going on, which thus includes keeping himself and his
subordinates informed through records, research, and inspection
 Budgeting, with all that goes with budgeting in the form of planning,
accounting and control.

Three Levels of Management and their roles

1. Strategic or Administrative or Top Level of Management

2. Tactical or Executive or Middle Level of Management.
3. Operational or Supervisory or Lower Level of Management.

Strategic or Administrative or Top Level of Management

The Top Level Management consists of the Board of Directors (BOD) and the
Chief Executive Officer (CEO). The Chief Executive Officer is also called General
Manager (GM) or Managing Director (MD) or President. The Board of Directors
are the representatives of the Shareholders, i.e. they are selected by the
Shareholders of the company. Similarly, the Chief Executive Officer is selected by
the Board of Directors of an organization.

The main role of the top level management is summarized as follows;

1. The top level management determines the objectives, policies and plans of the
organization.
2. They mobilizes (assemble and bring together) available resources.
3. The top level management does mostly the work of thinking, planning and
deciding. Therefore, they are also called as the Administrators and the Brain of
the organization.
4. They spend more time in planning and organizing.
5. They prepare long-term plans of the organization which are generally made for
5 to 20 years.
6. The top level management has maximum authority and responsibility. They are
the top or final authority in the organisation. They are directly responsible to the
Shareholders, Government and the General Public. The success or failure of the
organization largely depends on their efficiency and decision making.
7. They require more conceptual skills and less technical Skills.

Tactical or Executive or Middle Level of Management.

The Middle Level Management consists of the Departmental Heads (HOD),

Branch Managers, and the Junior Executives. The Departmental heads are Finance
Managers, Purchase Managers, human resource managers, production manager,
program’s managers etc. The Branch Managers are the head of a branch or local
unit. The Junior Executives are Assistant Finance Managers, Assistant Purchase
Managers, etc. The Middle level Management is selected by the Top Level
Management.

The middle level management emphasize more on following tasks:-

1. Middle level management gives recommendations (advice) to the top level

management.
2. It executes (implements) the policies and plans which are made by the top level
management.
3. It co-ordinate the activities of all the departments.
4. They also have to communicate with the top level Management and the lower
level management.
5. They spend more time in coordinating and communicating.
6. They prepare short-term plans of their departments which are generally made
for 1 to 5 years.
7. The middle Level Management has limited authority and responsibility. They
are intermediary between top and lower management. They are directly
responsible to the chief executive officer and board of directors.
8. Require more technical skills and less conceptual skills.

Operational or Supervisory or Lower Level of Management

The lower level management consists of the Foremen and the Supervisors. They
are selected by the middle level management. It is also called Operative /
Supervisory level or First Line of Management

The lower level management performs following activities:-

1. Lower level management directs the workers / employees.

2. They develops morale in the workers.
3. It maintains a link between workers and the middle level management.
4. The lower level management informs the workers about the decisions which
are taken by the management. They also inform the management about the
performance, difficulties, feelings, demands, etc., of the workers.
5. They spend more time in directing and controlling.
6. The lower level managers make daily, weekly and monthly plans.
7. They have limited authority but important responsibility of getting the work
done from the workers. They regularly report and are directly responsible to
the middle level management.
8. Along with the experience and basic management skills, they also require
more technical and communication skills.
Meaning of organization.
An organization is an entity where two or more persons work together to achieve a common goal
An organization is a social system consisting of individuals and groups that work together to
achieve an objective
Organization is a pattern of relationships through which people, under the direction of managers,
pursue their common goals
An organization is a group of two or more people related and coordinated in manner to achieve
an objective
An organization is a set of offices related to each other by rules, lines of communication and
authority.
Organizations are open systems in that they receive inputs from the environment and transform
them into outputs that go back to the environment. The inputs are information, raw materials,
people, minerals etc
Illustration of an organization

9.
Inputs Transformation Outputs
 10.
Raw materials  Social  Goods and
 Human resource interactions services
11.
 Financial  Technology  Waste
12.
resources  Marketing  Job
 13.
Equipments  organising performan
 information ce
14.  Profits
 losses

Inputs from the environment conversion Outputs into

environment

When organizations are set up, there is need to specify the mission, vision and objectives and
these help to streamline organization work.
A mission statement is a brief general statement describing an organization’s main purpose. The
mission statement provides the rational for its goals, objectives and actionsA
vision is basically an inspiration setting out a vision for the future that can give a better sense
of where you are going.
Objectives are desired end results of an activity stated more specifically than a goal
 A goal is a statement that clearly identifies what you want, how you will get it and when you
will get it. Organization goals spell out what an organization seeks to achieve by its
existence and operation. Goals are predetermined and describe future results toward which
present efforts are directed. These goals can describe what the company plans to accomplish
in terms of market share, growth and profitability. Goals may also be set for internal
measurement like expanding staff or boosting employee morale. Businesses should aim to
have goals that are specific, measurable, attainable, relevant and timely. There are many
benefits to setting goals.
Basic features of an organization
 People
 Division of labour
 Source of a authority
 Relationships
 People management (substitution of personnel, transfers, promotions, recruitment and
retirement)
 Goal oriented
 Identified boundaries
 Long life span
 Deliberate structure
 Cooperation
 Rules and regulation

ORGANISATIONAL THEORY

a) Organizational theory is the sociological study of the structures and operations

of social organizations, including companies and bureaucratic institutions.
Organizational theory includes the analysis of the productivity and performance of
organizations and the actions of the employees and groups within them.

In other words, the organizational theory studies the effect of social relationships
between the individuals within the organization along with their actions on the
organization as a whole. Also, it studies the effects of internal and external
business environment such as political, legal, cultural, etc. on the organization.

The Structure of organization, functions and methods of all types of public authori
ty engaged in administration, whether national, regional or local and executive.

SCIENTIFIC MANAGEMENT THEORY BY F.W. TAYLOR

Scientific Management, also called Taylorism, is a theory of management that analyzes and
synthesizes workflows. Its main objective is improving economic efficiency, especially labor
productivity. It was one of the earliest attempts to apply science to the engineering of processes
and to management

One of the earliest of these theorists was Frederick Winslow Taylor. He started the Scientific
Management movement, and he and his associates were the first people to study the work
process scientifically. They studied how work was performed, and they looked at how this
affected worker productivity. Taylor's philosophy focused on the belief that making people work
as hard as they could was not as efficient as optimizing the way the work was done.

In 1909, Taylor published "The Principles of Scientific Management." In this, he proposed that
by optimizing and simplifying jobs, productivity would increase. He also advanced the idea that
workers and managers needed to cooperate with one another. This was very different from the
way work was typically done in businesses beforehand. A factory manager at that time had very
little contact with the workers, and he left them on their own to produce the necessary product.
There was no standardization, and a worker's main motivation was often continued employment,
so there was no incentive to work as quickly or as efficiently as possible.

Taylor believed that all workers were motivated by money, so he promoted the idea of "a fair
day's pay for a fair day's work." In other words, if a worker didn't achieve enough in a day, he
didn't deserve to be paid as much as another worker who was highly productive.

With a background in mechanical engineering, Taylor was very interested in efficiency. While
advancing his career at a U.S. steel manufacturer, he designed workplace experiments to
determine optimal performance levels. In one, he experimented with shovel design until he had a
design that would allow workers to shovel for several hours straight. With bricklayers, he
experimented with the various motions required and developed an efficient way to lay bricks.
And he applied the scientific method to study the optimal way to do any type of workplace task.
As such, he found that by calculating the time needed for the various elements of a task, he could
develop the "best" way to complete that task.

These "time and motion" studies also led Taylor to conclude that certain people could work more
efficiently than others. These were the people whom managers should seek to hire where
possible. Therefore, selecting the right people for the job was another important part of
workplace efficiency. Taking what he learned from these workplace experiments, Taylor
developed four principles of scientific management. These principles are also known simply as
"Taylorism".

Four Principles of Scientific Management

Taylor's four principles are as follows:

1. Replace working by "rule of thumb," or simple habit and common sense, and instead use
the scientific method to study work and determine the most efficient way to perform
specific tasks.

2. Rather than simply assign workers to just any job, match workers to their jobs based on
capability and motivation, and train them to work at maximum efficiency.

3. Monitor worker performance, and provide instructions and supervision to ensure that
they're using the most efficient ways of working.

4. Allocate the work between managers and workers so that the managers spend their time
planning and training, allowing the workers to perform their tasks efficiently.

Advantages and disadvantages of scientific management

Enhanced production: The scientific management theory is responsible for enhanced

production as it concentrates on steady improvements in business operations. There is fruitful
cooperation between managers and workers and hence enhanced team work is achieved. The
harmonious relationship between the management and workers assists in production in the
organization.

Ability to control: The best part of scientific management theorists is that the managers are able to
have good control over production. Employees become specialists in their field as they do the same
task repeatedly; this makes it easy for the manager to have control over employees.

Decreases inaccuracy: Inaccuracy is decreased as the theory is based on experiment and

observation for context-specific solutions. With better planning and decision making, accuracy is
achieved. Decreased autocracy: The theory stimulates the management to adopt a positive
relationship with leadership. Cooperation amongst employees and managers enhances democracy in
workplace. Hence there is decreased autocracy by following scientific management theory.
Cost of production is reduced: The mechanization and latest use of technology in production of
goods enhances productivity. Since there is enhanced large scale production, there is a decrease in
per unit cost of production.

Pay system: With the theory piecework pay system is followed, where payment is monitored based
in piecework. Here incentive is considered in order to enhance productivity and provide high wages
for employees. With a higher productivity, there is an increase in wages for employees. The
differential incentive plan provides higher wages to efficient workers. By this way the standard of
living of the employees are made better.

Quick decision making: Planning ahead of time and prompt decision making are few good aspects
of scientific management theory.

.Benefit to customers: With the help of scientific management theory there is triple benefits for the
consumers. Consumers pay fewer prices and are able to get best quality products. They are also able
to attain better living standards.

Efficiency increased: They follow early working method and control where a management
methodology is developed for the purpose of training, selecting and supervising them in a close
manner. Since scientific selection and training methods are followed, it leads to a workforce which is
best and enhances efficiency. Efficiency is also increased with standardization of techniques, tools,
equipment and materials. The workers are also benefitted with development and scientific training as
they are able to enhance their competency and knowledge.

Best use of resources and development: With the scientific techniques followed, there is better
utilization of resources this in turn leads to increased productivity. Wastage and inefficiency of all
means are eradicated with the theory. Also with the help of scientific investigation it leads to
technological development. They also follow other quantitative techniques and modern studies are
based.

Beneficial to the nation: With the help of scientific management theory there is enhanced beneficial
aspects for the nation. Some of them are increased production and less cost of production, industrial
harmony and peace, every phase of society meets high standard of living, the national income is
enhanced, and there is also quick industrial development with this theory. The role of Scientific
management theory plays a crucial part in developing the nation.
Less production time: Work in lesser time is achieved with scientific management theory. The
operations regarding productions are pre-established and lead to less production delays.

Worker instructions: With the assistance of this theory, work is carried out in a systematic manner
according to pre-determined plans. Complete guidance and instructions are provided to workers in
order to carry on with work as planned in advance.

Good working conditions: A proper atmosphere for working and conditions are developed with
scientific management theory. Proper working schedules are followed with ventilation; adequate
lighting, rest pauses, with proper safety, and other facilities are provided to patients.

Owners and investors benefitted: Large scale production and enhanced productivity moves
forward for enhanced turn overs and more profit for investors. High profits can be reaped for self-
financing so that the concern has a sound financial base.

Avoids labor and management disputes: Since there is a healthy relationship and cooperation
between management and labors, hence they have a cordial and harmonious relationship with one
another. By this way, industrial disputes are reduced and peace in an industry is achieved.

Mental revolution is a concept evolved by Taylor for development of mutual trust, understanding,
and confidence between management and labor.

Disadvantages of Scientific Management Theory:

The following mentioned are few limitations or disadvantages of scientific management.

Requires huge capital: The theory requires an investment of huge capital and is considered as a
costly system. The establishment of work study, planning department, training of workers, and
standardization requires more money.

Management takes control: The management takes complete responsibility related to control and
planning of work place activities. Since the managers take up control of the employees, they lack
creativity, another reason of this is that since they repeat the same task, their chore is meaningless,
monotonous, and tedious which reduces employee motivation.
Planning reduces productivity: Though the capability to plan ahead is an advantage, the downside
of planning is that it makes work inflexible and ridged and may lead to carelessness and
dissatisfaction. This is directed to less productivity.

Demotivating approach: With the application of scientific approach of management, the

employees are focused on how well they perform their job and their statistics and results are
produced along with a time frame. With this result, the employees may feel underestimated and also
feel alienated which may direct them to absenteeism.

Overly bureaucratic: Over bureaucratic activity may be a major disadvantage in any organization.
A bureaucratic and strict organization may make the employees feel dissatisfied and this may lead to
high staff turnover rates and may affect productivity. New staffs must be trained in order to adapt to
new changes in the sector which leads to wastage of productivity time.

Mechanistic: The theory follows a specific approach for organizations and the employers gain
control over the workers. This activity makes work mechanistic and treats the workers like
machines. The theory focuses on efficiency, where workers were viewed as robots to speed up work.
The workers lose skill level and autonomy work level; they aren’t beneficial for state of the art
working conditions.

Not suitable for teams: Scientific management theory doesn’t work fruitful for teams and groups
as they have the capability to abuse and exploit human beings which may lead to conflicts. There is
no scope for individual preference with this theory.

Functional foremanship was followed by Taylor, where the workers were required to report to eight
bosses. By this way, the unity of command was broken, where the worker needs to report to just one
boss. When there is no unity of command, there is confusion and disorder in the organization.

Work division: By applying scientific management theory there is a separation of work such as in
planning any function and executing them. Since management takes complete responsibility, there is
a reduction in workers role into rigid and adherence procedures where, the workers have no idea.

Avoids bargaining: Since the scientific approach follows piece work pay system, there is not
chance for any realistic bargaining regarding the wage rates, as the tasks are timed, measured and
rated scientifically.
Loss: There are more chances for financial loss as there are more changes that take place within the
organization.

Unemployment: With the application of this theory, men are replaced by machines which in turn
lead to unemployment. By this way, fewer employees are required and many are chucked out from
work.

Adverse effects: The scientific management theory pushes workers to rush to complete their work
and complete work within stipulated time. By this way there is adverse effect on the health of the
workers.

Stress: With managerial decisions, there is strictness and stress for managers as they need to take
responsibility for having complete control over workplace. By this way, there is pressure influenced
in the work place for the workers too. Productivity and profitability was given importance which
lead to exploitation of employees and they associated in trade unions. This led to the mistrust
amongst employees and management.

Wrong assumption: According to Frederick Winslow Taylor theory of motivation, employees

do not naturally enjoy work and they require close observation and control. Taylor’s assumed that
workers focused and was motivated by means of financial gains. But the real truth is that the
employees aren’t motivated by finance aspects but by non-finance incentives such as social needs
and more.

Follows narrow application: The scientific management theory focuses on a narrow application.
They are applied only at times when there is quantitative measuring of the employees. The theory is
applied only for certain factories where the performance is measured in a quantitative manner. The
theory is not adopted in service sector as here the performance is not measured in a quantitative
manner.

Time consuming: The scientific management theory is considered time consuming as it requires
complete reorganizing and mental revision of the organization. The theory when adopted needs more
time for standardization, study and specialization, or else at time of overhauling, the workers suffer.

BUREAUCRATIC THEORY
Bureaucracy definition: “Bureaucracy is an organisational structure that is characterised by many
rules, standardised processes, procedures and requirements, number of desks, meticulous
division of labour and responsibility, clear hierarchies and professional, almost impersonal
interactions between employees”.

At the end of the 19th century, it was German sociologist and author of The Protestant Ethic and
the Spirit of Capitalism (1905), Max Weber who was the first to use and describe the term
bureaucracy. This is also known as the bureaucratic theory of management, bureaucratic
management theory or the Max Weber theory.

Max Weber defines bureaucracy as a highly structured, formalized, and also an impersonal
organization. He also instituted the belief that an organization must have a defined hierarchical
structure and clear rules, regulations, and lines of authority which govern it. Bureaucratic theory
stressed strict rules and aorganisation’s distribution of power.

He believed bureaucracy was the most efficient way to set up an organisation, administration
and organizations. Max Weber believed that Bureaucracy was a better than traditional structures.
In a bureaucratic organisation, everyone is treated equal and the division of labour is clearly
described for each employee.

Principles of bureaucratic theory

1)   Job specialization: – Jobs are divided into simple, routine and fixed category based on
competence and functional specialization.
2)    Authority hierarchy: – Officers are organized in a hierarchy in which higher officer
controls lower position holders i.e. superior controls subordinates and their performance of
subordinates and lower staff could be controlled.
3)    Formal selection: – All organizational members are to be selected on the basis of technical
qualifications and competence demonstrated by training, education or formal examination.
4)    Formal rules and regulations: – To ensure uniformity and to regulate actions of
employees, managers must depend heavily upon formal organizational rules and regulations.
Thus, rules of law lead to impersonality in interpersonal relations.
5)  Impersonality: – Rules and controls are applied uniformly, avoiding involvement with
personalities and preferences of employees. Nepotism and favoritism are not preferred.
6)      Career orientation: – Career building opportunity is offered highly. Lifelong employment
and adequate protection of individuals against arbitrary dismissal is guaranteed. Here managers
are professional officials rather than owners’ units they manage. They work for a fixed salary
and pursue their career within the organization.

Features of Bureaucratic Organization

From the principles of bureaucratic organization we can find these characteristics or features of
Bureaucratic Organization are as follows:-

 High degree of Division of Labor and Specialization.

 There is a well-defined chain of command.
 It follows the principle of Rationality, Objectively and Consistency.
 The relationship among the member of the organization is Formal and Impersonal
relations. And it’s based on positions and not on personalities.
 Rules and Regulations are well defined and it indicates the duties and rights of the
employees. These rules apply to everyone from to bottom of the organization and must be
strictly followed.
 Selection and Promotion are based on Technical qualifications.
 Only Bureaucratic or legal power is given importance.

Criticism of Bureaucratic Organization

Bureaucratic Management Approach of Max Weber also has some fault-lines and received
criticism for it.

 The emphasis only on rules and regulations.

 There will be unnecessary delay in decision-making due to formalities and rules of
Bureaucratic Organization.
 Coordination and communication hampered because of too much formality and rules.
 Bureaucracy involves a lot of paperwork and has just too much level of authority which
results in a lot of wastage of time, effort and money. Not ideal for efficiency.
 Because of its too much formality, a Bureaucratic approach is not suitable for business
organizations. The bureaucratic model may be suitable for government organizations.
 Too much importance is given to the technical qualifications of the employees for
promotion and transfers. Dedication and commitment of the employee are not considered.
 Limited scope for Human Resource (HR). No importance is given to informal groups and
neither any scope is given to form one.
Max Weber’s bureaucratic approach worked as a solution to problems of traditional
administrative systems. But it was not the prefect or “close to perfect” solution. The bureaucratic
structure gives all the importance and power to the top-level management.
Types of organizations
The formal and informal organisations
Formal organisation is meant the pattern of behaviour and relationship that is
deliberately and legitimately planned for the members of an organisation. Where as
informal organisation is meant the whole pattern of actual behaviour the way
members of the organisation really do behave – insofar as this actual behaviour
does not coincide with the formal plan.
 The Characteristics of Formal Organisation
 It has a clearly defined structure of activities which is predetermined by the
top management.
 A formal organisation is relatively stable.
 A formal organisation grows and expands.
 The organisation structure is based on division of labour and specialisation.
 The structure is based on the jobs to be performed and not according to
individuals who are to perform jobs.
 The organisation does not take into consideration emotional aspect. It is
deliberately impersonal.
 The authority and responsibility relationships created by the organisation
structure are to be honoured by every one.
 Organisational charts are usually drawn. All the positions from General
Manager down to lower levels appear on the formal chart of the
organisation.
The Characteristics of Informal Organisation
 Generally a society evolves its own unwritten laws, beliefs and controls
regarding what is desirable behaviour and what is undesirable. This is what
an informal organisation also does. People think and act alike in groups and
this continuous cooperation gives rise to common values and common codes
 of behaviour.
 It forces the members of the group to observe the common rules. It is a very
effective organisation to impose penalties on or punish those who violate
these rules.
 The leadership in it is also informal.
 There is stratification also within an informal organisation, which is based
on several factors.
Functions of Informal Organisation
 Communication of unintelligible facts, opinions, suggestions and suspicions
which cannot easily pass through formal channels
 Minimises excessive clicks of political influence
 Self-discipline of the group
 Makes possible the development of important personal influences in the
organization

ORGANISATIONAL CULTURE
The concept of culture has been derived from anthropology where it is defined in
so many ways. Culture is nothing but the combination of knowledge belief, art,
morals, law, custom and other capabilities and habits acquired by man in a society.

Orgnisational Culture may also be called corporate culture has been defined as the
philosophies, ideologies, values, assumptions, beliefs, expectations, attitudes and
norms that an Orgnisation together and are shared by its employees.

Orgnisational Culture is the set of assumptions beliefs, values, and norms that are
shared by an Organisation members.

Thus Orgnisational Culture is a set of characteristics that are commonly shared

and norms which are known as abstract elements of the culture or externally
oriented characteristics like products, buildings, and dresses etc. which are known
as material elements of the culture.

Organizational culture is the set of assumptions, beliefs, values and norms that are
shared by the members of an organization. It may be consciously created by its key
members, or it may have simply evolved over time. It represents a key element of
the work environment in which employees perform their jobs. A culture may exist
across an entire organization, or it may refer to the environment within a single
division, branch, plant, or department. The idea of organizational culture is
somewhat intangible, for we cannot see it or touch it, but it is present and
pervasive. Like the air in a room, it surrounds and affects everything that happens
in an organization. Because it is a dynamic systems concept, culture is also
affected by almost everything that occurs within an organization. They give an
organizational identity to employees – a defining vision of what the organization
represents. They are also an important source of stability and continuity to the
organization which provides a sense of security to its members.

Characteristics of Cultures
Each organization has its own history, patterns of communication, systems and
procedures, mission statements and visions, stories and myths which, in their
totality, constitute its distinctive culture. Cultures are also relatively stable in
nature. Most organizational cultures have historically been rather implicit rather
than explicit. A defining characteristic of most culture is

Characteristics of organizational cultures

- Distinctive
- Stable
- Implicit
- Symbolic
- Integrated
- Accepted
- A reflection of top management