Organizational Culture

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25th September 2018
Blog: 08
Organizational Culture

Organizational culture is made up of shared values, beliefs and assumptions about how people should behave and interact, how decisions should be made and how work activities should be carried out. 

Organizational culture basically underlying organizational beliefs, assumptions, values and ways of interacting that contribute to the unique social and psychological environment of an organization.


The concept of culture refers to the values and meanings that influence human behavior and organizational practices, whereas competence refers to the mobilization/coordination of resources by an organization or a person.
Fig : 01


Kotter (2012) stated that Organizational culture has power to motivate employees and increase job satisfaction.

Ernst (2001) argued that the expectations of internal and external stakeholders and the culture of an organization should have to align accordingly, in order to achieve the expected organizational performance.

Watkins (2013) Stated that Culture is consistent, observable patterns of behavior in organizations. In order to achieve Organizational overall objectives and competitive advantages, individuals or the employees of an Organization need supportive organizational culture.

According to Coleman (2013) there are six components of a great corporate culture which are vision, values, practices, people, narrative and place. He further states the integrated culture is built by employees with the desire and ability to share company values and embrace those values. World’s greatest firms recruit employees who are talented and best suited for their corporate culture.

Culture also includes the organization’s vision, values, norms, systems, symbols, language, assumptions, beliefs, and habits (Needle, 2004).

Chatman and Eunyoung (2003) describe it as a system of shared assumptions, values, and beliefs which guide people to be aware of appropriate and inappropriate behavior.

References

Chatman, J. A., & Eunyoung Cha, S. (2003). Leading by leveraging culture. California Management Review, 45, 19–34; Available from: faculty.haas.berkeley.edu

Coleman, J., 2013. Havard Business Review. [Online]
Available at: https://hbr.org/2013/05/six-components-of-culture

Ernst, (2001). Corporate Culture and innovative performance of the firm.. Proceeding of the International Conference on Management Engineering and Technology, pp. 532-535.

Kotter, J. p. (2012). Corporate culture and perfofmance. New York: Free Press.

Needle, David (2004). Business in Context: An Introduction to Business and Its Environment.

Martins, E. C. & Terblanche, F., 2003. Building organizational culture that stimulates creativity and innovation. European Journal of Innovation Management, 6(1), pp. 64-74.

Watkins, M. (2013). What is Organizational culture and why should we care. Harward Business Review, Executive Education


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