Business

Organizational Culture Definition

Organizational culture refers to the shared values, beliefs, and behaviors that shape the unique social and psychological environment within a company. It encompasses the company's mission, vision, and core principles, as well as the way employees interact and work together. A strong organizational culture can enhance employee engagement, productivity, and overall business performance.

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10 Key excerpts on "Organizational Culture Definition"

  • Book cover image for: Organizational Behavior
    eBook - PDF

    Organizational Behavior

    For a Better Tomorrow

    • Mitchell J. Neubert, Bruno Dyck(Authors)
    • 2021(Publication Date)
    • Wiley
      (Publisher)
    5 We can describe cul- tures by their characteristics, as well as by how consistently members agree on cultural values and assumptions and use them as a guide for behavior. 6 For example, the “people first” organizational culture at Ultimate Software is different than the “profit first” culture in many firms. The culture of an organization is important in that it can attract, motivate, and help to retain organizational members. An organization’s culture can affect how satisfied members are with their jobs, how committed they are to the organization, how innovative they are, 7 and the quality of the products and services they deliver. 8 It influences the way members manage the organization’s expenses, satisfy its customers, 9 and contribute to a shared zeal that leads to higher sales. 10 Overall, organizational cultures with high levels of internal con- sistency—that is, cultures whose different elements fit together in a way that makes sense— tend to perform better. 11 And, as we’ll see later, some evidence suggests certain types of culture are related to financial measures of profitability and growth. 12 Researchers have found it helpful to think of two basic categories of elements in an organization’s culture: (1) informal elements like basic assumptions and values, and (2) for- mal elements, including cultural artifacts and formal structures. The iceberg depicted in Figure 12.1 shows how the informal elements are usually less visible (beneath the waterline) compared to the formal elements (above the waterline). Organizational structure is the formal arrangements and linkages among members and groups that specify work activities and subtasks and allow them to be completed. Although structure is not always included in the definition of organization culture, there is Organizational culture is the set of shared assumptions, values, and experiences that influence the ways in which individuals, teams, and groups interact with one another and work toward company goals.
  • Book cover image for: Leadership and the Culture of Trust
    • Gilbert W. Fairholm(Author)
    • 1994(Publication Date)
    • Praeger
      (Publisher)
    ATTITUDES Culture also deals with attitudes, feelings, and member emotions, as well as the physical facilities of the organization. It provides and defines the emotional ambience (total surround) within which group members work. The local culture helps or inhibits what people do, why they do it, and the level of excellence attained. Culture is a part of the organi- zational ideology (the body of doctrine, myth, or symbols of a social group or movement) and, therefore, helps shape member ideas about what is right, good, and true. Culture sets the values base for the group. Values are the standards people agree on about how to measure and rate individual and group performance. Values define acceptable actions, appropriate levels of in- teractive trust, and the quality of the services or products produced. Cultural values permeate the workplace and constrain individual and team perceptions of what is proper and what is not. 76 Shaping Organizational Culture SERVICE GOALS Organizational culture in our public, private, and not-for-profit sectors share similar features. Organizational culture is based on an ideology of service coming from the values implicit and explicit in the founding doc- uments that define our nation and its institutions. Culture is also con- ditioned by agency mission and environment, but the culture is a primary determinant of group goals. It provides the standards of con- duct, defines the levels of excellence expected, and otherwise constrains and prescribes acceptable performance toward understood and mutually agreeable final products. SOCIETAL LEADERSHIP Ehrenhalt (1991) developed an interesting and evocative idea about why political leadership in America is declining. Some of his ideas also apply to business and third-sector leaders. He said America is going through a change process from leadership to openness. Ehrenhalt sees a major shift in the character, values, and purposes—the culture—of our political leadership today.
  • Book cover image for: Organizational Studies and Business Models
    ____________________ WORLD TECHNOLOGIES ____________________ Chapter- 6 Organizational Culture Organizational culture is an idea in the field of organizational studies and management which describes the psychology, attitudes, experiences, beliefs and values (personal and cultural values) of an organization. It has been defined as the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organization. This definition continues to explain organizational values , also known as beliefs and ideas about what kinds of goals members of an organization should pursue and ideas about the appropriate kinds or standards of behavior organizational members should use to achieve these goals. From organizational values develop organizational norms, guidelines, or expectations that prescribe appropriate kinds of behavior by employees in particular situations and control the behavior of organizational members towards one another. ____________________ WORLD TECHNOLOGIES ____________________ Strong/weak cultures Training meeting about sustainable design. The photo shows a training meeting with factory workers in a stainless steel ecodesign company from Rio de Janeiro, Brazil. These type of meetings are important in order to establish a strong culture in the corporation Strong culture is said to exist where staff respond to stimulus because of their alignment 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 alignment with organizational values and control must be exercised through extensive procedures and bureaucracy.
  • Book cover image for: Organizational Behavior
    • Mary Uhl-Bien, John R. Schermerhorn, Jr., Richard N. Osborn(Authors)
    • 2013(Publication Date)
    • Wiley
      (Publisher)
    Is it just another gleaming office tower or the Freedom Tower symbolizing the resilience of the American people and New York City’s ability to recover from the attacks? 28 In this sense, organizational culture is a “shared” set of meanings and perceptions. The members of most organizations create and learn a deeper aspect of their shared culture. 29 Often one finds a series of common assumptions known to most everyone: “We are dif- ferent.” “We are better at. . . .” “We have unrecognized talents.” Cisco Systems provides an excellent example. Senior managers often share common assumptions, such as “We are good stewards” and “We are competent managers” and “We are practical innovators.” Like values, such assumptions become reflected in the organizational culture. Of course, shared meanings and perceptions can create a double-edged sword. In his book How Do the Mighty Fall, consultant Jim Collins notes that organizations may begin to decline if managers share an unrealistic positive perception of them. 30 Organizational Myths In many firms, a key aspect of the shared common assump- tions involves organizational myths. Organizational myths are unproven and frequently unstated beliefs that are accepted without criticism. Often corporate mythology focuses on cause–effect relationships and assertions by senior management that cannot be empiri- cally supported. 31 Although some may scoff at organizational myths and want to see ratio- nal analysis replace mythology, each firm needs a series of managerial myths. 32 Myths allow executives to redefine impossible problems into more manageable components. Myths can facilitate experimentation and creativity, and they allow managers to govern. Managing Organizational Culture L E A R N I NG ROA DM A P DIRECT ATTEMPTS TO CHANGE VALUES • DEVELOPING SHARED GOALS MODIFYING VISIBLE ASPECTS OF THE CULTURE The process of managing organizational culture is a complex challenge of the first order.
  • Book cover image for: Organizational Studies
    The values of a corporate culture influence the ethical standards within a corporation, as well as managerial behavior. Senior management may try to determine a corporate culture . They may wish to impose corporate values and standards of behavior that specifically reflect the objectives of the organization. In addition, there will also be an extant internal culture within the workforce. Work-groups within the organization have their own behavioral quirks and interactions which, to an extent, affect the whole system. Roger Harrison's four-culture typology, and adapted by Charles Handy, suggests that unlike organizational culture, WT ____________________ WORLD TECHNOLOGIES ____________________ corporate culture can be 'imported'. For example, computer technicians will have expertise, language and behaviors gained independently of the organization, but their presence can influence the culture of the organization as a whole. Organizational culture and corporate culture are often used interchangeably but it is a mistake to state that they are different concepts. All corporations are also organizations but not all organizations are corporations. Organizations include religious institutions, not-for-profit groups, and government agencies. There is even the Canadian Criminal Code definition of organized crime as meaning a group comprised of three or more persons which has, as one of its primary activities or purposes, the commission of serious offences which likely results in financial gain. Corporations are organizations and are also legal entities. As Schein (2009), Deal & Kennedy (2000), Kotter (1992) and many others state, organizations often have very differing cultures as well as subcultures. Organizational Culture Includes Brand culture Brand culture is a company culture in which employees live to brand values, to solve problems and make decisions internally, and deliver a branded customer experience externally.
  • Book cover image for: Introduction to Human Resource Management
    eBook - ePub
    • Charles Leatherbarrow, Janet Fletcher(Authors)
    • 2018(Publication Date)
    02

    Aspects of organisational culture

    LEARNING OBJECTIVES

    After studying this chapter, you should be able to:
    • understand the concept of culture, values and norms;
    • demonstrate an understanding of how history, corporate climate, managerial style and other factors contribute to organisation culture;
    • recognise the importance of culture as a determinant of workplace behaviour;
    • understand that physical culture can act as a powerful means of creating identity within organisations;
    • understand and be able to take account of your organisation’s culture in your role as an HR practitioner.

    What is culture?

    In 1871, the anthropologist Edward Tylor defined culture as ‘knowledge, belief, art, morals, law, custom and any other capabilities and habits acquired through membership of society’. In a narrower sense the term is used to describe the differences between one society and another. In this context, according to Giddens:
    A culture is an all-pervasive system of beliefs and behaviours transmitted socially. Specifically, it consists of the sets of values and norms or rules held by a society, together with its material expressions.
    (Giddens, 1989, p30)

    KEY CONCEPT: VALUES

    A value is an ideal to which an individual subscribes. Values are learnt during the socialisation process. Individuals adopt them from the values of the society to which they belong; values have an influence on behaviour. Cultural values, as defined by Schwartz (2007, p25):
    Represent the implicitly or explicitly shared abstract ideas about what is good, right, and desirable in a society (Williams, 1970). These cultural values (eg freedom, prosperity, security) are the bases for the specific norms that tell people what is appropriate in various situations.
  • Book cover image for: Organizational Behavior
    • Mary Uhl-Bien, Ronald F. Piccolo, John R. Schermerhorn, Jr.(Authors)
    • 2023(Publication Date)
    • Wiley
      (Publisher)
    In nearly all cases, it will require looking at how people are incentivized and punished. Most culture change programs emphasize starting with the “why,” identifying desired values and behav- iors, gathering input from all levels, and then fully aligning the change with organizational systems and structures to rapidly reward the emerging culture. Culture change is a marathon rather than a sprint. It takes a long time, and consistency is key. If mistakes are made or things fall back companies need to admit the mistakes, regroup, and work again to move forward. In many ways, culture is like the wind. “When it is blowing in your direction, it makes for smooth sailing. When it is blowing against you, everything is more difficult.” 64 Like the wind, it cannot be achieved through top-down mandate. Instead, it requires creating the right kinds of flows by tapping into and changing the hearts and minds of people who live and breathe it every day. 2.3 Study Guide What is organizational culture? • Organizational culture is the shared actions, values, and beliefs in an organization that guide the behavior of its members. • Having strong culture fit is important because it makes people feel they can be themselves and partici- pate in work that is meaningful and rewarding. • Employees learn culture through socialization, which occurs through interpersonal interactions and helps people learn the expected norms, attitudes, and behaviors. • Subcultures exhibit a unique pattern of values and a philosophy that is consistent with the organi- zation’s dominant values and norms, while countercultures are groups whose patterns of values and philosophies reject those of the larger organization.
  • Book cover image for: Organizational Psychology and Organizational Behavior
    eBook - PDF

    Organizational Psychology and Organizational Behavior

    Evidence-based Lessons for Creating Sustainable Organizations

    • Steve M. Jex, Thomas W. Britt, Cynthia A. Thompson, Cynthia A Thompson(Authors)
    • 2024(Publication Date)
    • Wiley
      (Publisher)
    Prior to his current job, he was a statisti- cal consultant for the University of South Florida Muma College of Business. He received his Ph.D. in I-O Psychology from the University of South Florida in 2021. Organizational Culture and Climate 658 organizations, or by outsiders, the challenge may serve to strengthen employees’ beliefs in those basic assumptions. For example, if a new employee refuses to accept the basic assumptions that are inherent in an organiza- tion’s culture, this will typically force other employees to “bring that person into line.” In the process of doing so, the core values and assumptions may be strengthened or reaffirmed, regardless of whether that person eventually accepts them, actively resists them, or ultimately leaves the organization. It is worth noting, however, that while many organizational culture experts view culture as being highly resistant to change, as we see in Comment 12.4, there is not complete con- sensus among organizational researchers on this issue. In nearly all reviews of organizational culture over the years, one of the common assertions is that once the culture of an organization is estab- lished, it is extremely difficult to change (Ostroff et al., 2013; Schein, 2010). This is because, by definition, culture represents beliefs and assumptions that are so rarely questioned that they are not even conscious. Thus, it takes a lot of effort to get people to question basic assump- tions and, in the process, change culture. Although this is by far the dominant view- point within the literature, there is surpris- ingly little research to support this viewpoint (Ostroff et al., 2013). There is also some rea- son to believe that in some cases changing the culture of an organization may not be as difficult as people think. Wilkins and Ouchi (1983), for example, argued many years ago that the idea of organizational culture being difficult to change comes largely from cul- tural anthropology.
  • Book cover image for: Strategic Supervision
    eBook - PDF

    Strategic Supervision

    A Brief Guide for Managing Social Service Organizations

    • Peter J. Pecora, David Cherin, Emily Bruce, Trinidad de Jesus Arguello(Authors)
    • 2009(Publication Date)
    26 2 Organizational and Workgroup Culture David Cherin and David Chenot Introduction Supervisors and their work teams in social services exist and function in a cultural sea. They are surrounded by organizational culture, the values, beliefs, assump-tions, and shared behavioral norms of the organizational stakeholders and administrators that have created the policies, procedures, and structures of the organization—organizational infrastructure. Supervisors and their teams are also submerged in their own cultures: the values, beliefs, and assumptions that frame how team members see and react to each other stakeholders, administrators, and clients. Supervisors must become fluent in all aspects of culture because culture frames the professional existence of the supervisor. Existing between two cultures, organizational culture and team culture, supervisors must become experts at understanding and operating in both types of culture simultaneously. Culture, as stated earlier, is the context of work in the organization and cre-ates the environment in which services are conceived and delivered. This hand-book provides the practitioner with a critical set of skills bounded by applied knowledge. In order for these skills to be useful and the knowledge accessible, the supervisor must understand culture and become effective in mediating the cul-ture surrounding her team while facilitating the culture within her team. In order for supervisors to effectively accomplish the critical tasks highlighted in this handbook, they must understand how to navigate the cultural sea. This challenge includes mastering the ability to mediate between team and organizational cultures. Supervisors must learn to facilitate group culture in relationship to a host of associated and often influential organizational constituents including other work functioning groups in the organization.
  • Book cover image for: Vanishing Boundaries
    eBook - PDF

    Vanishing Boundaries

    How Integrating Manufacturing and Services Creates Customer Value, Second Edition

    • Richard E. Crandall, William R. Crandall(Authors)
    • 2013(Publication Date)
    • CRC Press
      (Publisher)
    The following section discusses what companies can do to change their organizational culture. Changing Organizational Culture To make changes and improvements in an organization, three elements need to be addressed: technology, structure, and organizational culture. This chapter describes Understanding Organizational Culture ◾ 369 © 2010 Taylor & Francis Group, LLC the power of culture as a key to change. Many companies do well at changing the technology when needed; they may be less adept at changing the structure. Changing the culture is often overlooked. It is that elusive element often forgotten in the change process. The good news is that culture can be changed, but it is often a slower process than changing the technology or structure of the organization. Changing organi-zational culture involves addressing a number of different focus areas, as shown in Figure 9.1 and discussed in the next section. State What You Want the Culture to Be Organizational leaders need to carefully state their vision for the company cul-ture. Such statements will appear in several formats. Because culture is a belief sys-tem followed by actions throughout the organization, it makes sense to state those beliefs in the company mission and values statements. Putting these statements on the company website is standard practice now. However, there are other places State what you want the culture to be Recognize employees formally Tell stories Unlock the power of words and phrases Change the physical cultural artifacts Implement the strategy that was proposed Take care of your employees Hire people that support the desired culture Promote an ethical culture Key Focus Areas Figure 9.1 Key focus areas in changing organizational culture. 370 ◾ Vanishing Boundaries © 2010 Taylor & Francis Group, LLC where mission statements can appear: on business cards and company letterhead, in lobby headquarters, even on coffee mugs.
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