Organizational Culture Meaning and Characteristics
20/04/2020To understand the meaning of organizational culture, we must first understand the meaning of culture. “Culture is the set of important understandings that members of a community share in common.” It consists of a basic set of values, ideas, perceptions, preferences, concept of morality, code of conduct etc. which create a distinctiveness among human groups.
When we talk about culture, we typically refer to the pattern of development reflected in a society’s system of knowledge, ideology, values, laws, social norms and day to day rituals. Depending upon the pattern and stage of development, culture differs from society to society. Moreover, culture is passed on from generation to generation.
In simple words we can say that “culture is a combination of factors that are learned through our interaction with the environment during our developmental and growth years.” After understanding the meaning of culture, we will now attempt to define organizational culture.
Few Definitions of organizational culture
“The organizational culture is a system of shared beliefs and attitudes that develop within an organization and guides the behaviour of its members.”
“The corporate culture consists of the normal values and unwritten rules of conduct of an organization as well as management styles, priorities, beliefs and inters personal behaviour that prevails. Together they create a climate that influences how will people communicate, plan and make decisions.”
“Organizational culture can be defined as the philosophies, ideologies, values, assumptions, beliefs, expectations, attitudes and norms that knit an organization together and are shared by its employees.”
According to Edgar Schein, “Organizational culture can be defined as a pattern of basic assumptions-invented, discovered or developed by a given group as it learns to cope with its problems of external adaptation and internal integration-that has worked well enough to be considered valuable and, therefore, to be taught to new members as the correct way to perceive, think and feel in relation to those problems.”
All the above definitions of organizational culture stress on the sharing of norms and values that guide the organizational members’ behaviour. These norms and values are clear guidelines as to how employees are to behave within the organization and their expected code of conduct outside the organization.
Characteristics of Organizational Culture
The following characteristics help us to understand the nature of organizational culture better.
When we mix and match these characteristics, we get to the basis of culture:
- Individual Autonomy
The degree of responsibility, freedom and opportunities of exercising initiative that individuals have in the organization.
- Structure
The degree to which the organisation creates clear objectives and performance expectations. It also includes the degree of direct supervision that is used to control employee behaviour.
- Management Support
The degree to which, managers provide clear communication, assistance; warmth and support to their subordinates.
- Identity
The degree to which, members identify with the organization as a whole rather than with their particular work group or field of professional expertise.
- Performance Reward System
The degree to which reward system in the organization like increase in salary, promotions etc. is based on employee performance rather than on seniority, favouritism and so on.
- Conflict Tolerance
The degree of conflict present in relationships between colleagues and work groups as well as the degree to which employees are encouraged to air conflict and criticisms openly.
- Risk Tolerance
The degree to which, employees are encouraged to be innovative, aggressive and risk taking.
- Communication Patterns
The degree to which, organizational communications are restricted to the formal hierarchy of authority.
- Outcome Orientation
The degree to which, management focuses on results or outcomes rather than on the techniques and processes used to achieve these outcomes.
- People Orientation
The degree to which, management decisions take into consideration the impact of outcomes on people within the organization. When we appraise the organization on the basis of the above characteristics, we get a complete picture of the organization’s culture. This picture becomes the basis of shared norms, beliefs and understanding that members have about the organization, how things are done in it and how the members are supposed to behave.
Importance
Organizational culture affects all aspects of your business, from punctuality and tone to contract terms and employee benefits. When workplace culture aligns with your employees, they’re more likely to feel more comfortable, supported, and valued. Companies that prioritize culture can also weather difficult times and changes in the business environment and come out stronger.
Culture is a key advantage when it comes to attracting talent and outperforming the competition. 77 percent of workers consider a company’s culture before applying, and almost half of employees would leave their current job for a lower-paying opportunity at an organization with a better culture. The culture of an organization is also one of the top indicators of employee satisfaction and one of the main reasons that almost two-thirds (65%) of employees stay in their job.
Appreciation can take many forms: A public kudos, a note of thanks, or a promotion. A culture of appreciation is one in which all team members frequently provide recognition and thanks for the contributions of others.
Alignment comes when the company’s objectives and its employees’ motivations are all pulling in the same direction. Exceptional organizations work to build continuous alignment to their vision, purpose, and goals.
Trust is vital to an organization. With a culture of trust, team members can express themselves and rely on others to have their back when they try something new.
Resilience is a key quality in highly dynamic environments where change is continuous. A resilient culture will teach leaders to watch for and respond to change with ease.
Performance is key, as great companies create a culture that means business. In these companies, talented employees motivate each other to excel, and, as shown above, greater profitability and productivity are the results.
Teamwork encompasses collaboration, communication, and respect between team members. When everyone on the team supports each other, employees will get more done and feel happier while doing it.