Organisational Culture

Meaning Of Culture

 Culture can be defined as complex whole which includes knowledge, belief, art, morals, law, customs and
other capabilities or habits acquired by a man in a society.
 There are 2 main concepts of culture: ‘History’and ‘Shared Phenomena’
History of society is passed on from generation-to-generation while shared phenomena are cultural ethos shared
among members of society.
 Organisational Culture

 Organisational Culture is also known as ‘Corporate Culture’

 It is defined as philosophies, ideologies, values, assumptions, beliefs, expectations, attitudes and norms that
knit an organization together and are shared by it’s members.
 Examples Of Good Organisational Culture

1. Google- Google is known for being excellent employer that has pioneered many of the perks and
advantages that startups are now known for, it’s employees are hardworking, talented and enthusiastic.
2. Netflix- Corporate Culture of Netflix is based on Principle of “People over Process”
3. DHL- It has variety of Programs such as unique integrated learning platform that fosters talent
development and also DHL looks after its employees throughout their careers.
 Examples Of Bad Organisational Culture

1. UBER- Culture in Uber is ‘aggressive and unrestrained’. Due to this poor culture, it attracted the column
of New York Times. Often employees post about discrimination they face in organization.
2. AMAZON- Although one the most successful organization of our time, Amazon is often described as
‘bruising’, ‘relentless’, and “churn and burn” by its employees due it’s poor Corporate Culture.
3. FOREVER 21- Fashion Brand famous for ripping off independent artists from industry is also sued by
their own employees multiple times due to poor culture prevailing in the company.
Features Of Organsational Culture

St Routine
o k
rie Behavior Ris g
s in
Tak
Ritu
al s Control

Corporate Structures
Communication Culture and
Patterns Symbols

Org
e anis
Purpos Stru ational
c tu r
Ceremonies e
 Culture Dimensions

National Culture

Business Culture

Organizational Occupational
Culture Culture

Management
 Levels Of Culture
Observable Culture
Surface
Aspects

Shared Values

Common
Assumptions

Deepest
Aspects
 Observable Culture

Observable Culture is manifested through symbols such as physical design, dress code, logos,
gadgets and murals.
It also includes stories, ceremonies and corporate rituals that make up history of success of
the organisation.
 Shared Values

Second Level of Culture is shared values. These are Applicable to all organizational members
and no deviation is tolerated. It is advisable that organisations have shared values which
ensure compliance.
Example of Shared Value is “Quality is the cornerstone for our success”.
 Common Assumptions

Common Assumptions stand at deepest level of culture. These are taken-for-granted.

It is very difficult to isolate these patterns, but doing so can help us in explaining why culture
invades every aspect of organisational life.
Example of Common Assumption is ‘We are Different’
Functions Of Organisational
Culture

The Guiding Function The Incentive Function

Functions

The Cohesion Function The Constraint Function

 Guiding Function

Organizational Culture can play a guiding role of value orientation and behavior orientation in each member of
entity.

It is different from traditional management system which simply focus on rigid discipline.

It emphasizes to guide the behavior of members of the enterprise from shaping organizational culture, to make
people accept common values of organization.
 Incentive Function

Positive ideas and code of conduct can form a strong sense of mission and a sustained driving
force.

Positive Culture acts as motivation for employees

Strong shared values can make a person generate a sense of identity, sense of belonging and a
sense of security.

It plays a role of mutual encouragement.

 Cohesion Function

Collective strength depends on the cohesion or ability to stay together in the organization.

The cohesion of the organization, coordination and control can be generated by ‘rigid
connections’ like system of discipline, but these are not as effective as ‘internal binder’ like
shared values, beliefs and codes of conduct.
 Constraint Function

Excellent organizational culture have binding effect on thinking and behavior of each
employee.

Thinking and Behavior of workers can be controlled after a long period of construction of
organizational culture formed with written rules and regulations and ethics and codes.