Organizational Culture

Organizational culture refers to the shared values, beliefs, practices, and norms that shape the behavior and attitudes of members within an organization. It acts as the "social glue" that holds the organization together, influencing how employees interact, make decisions, and work toward common goals (Schein, 2010). Culture manifests through various aspects, including leadership style, communication methods, and the physical work environment, creating an implicit system of expectations and standards (Deal & Kennedy, 2000).

Strong organizational cultures are often associated with enhanced performance and employee engagement, as they promote unity and direction. For instance, companies like Google and Apple have cultures that prioritize innovation, creativity, and risk-taking, aligning with their strategic focus on technological advancement (Cameron & Quinn, 2011). Conversely, a misaligned or weak culture can lead to conflicts, decreased morale, and even high turnover, as employees may feel disconnected from the organization's core values (Kotter & Heskett, 1992).

A positive organizational culture can also impact customer satisfaction, as it often translates into high-quality service and a stronger brand identity (Schneider et al., 2017). As organizations grow, maintaining a cohesive culture requires proactive management, often through training programs, leadership models, and employee engagement initiatives.

References

• Cameron, K.S., & Quinn, R.E. (2011). Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework. 3rd ed. San Francisco: Jossey-Bass.
• Deal, T.E., & Kennedy, A.A. (2000). Corporate Cultures: The Rites and Rituals of Corporate Life. Cambridge, MA: Perseus Publishing.
• Kotter, J.P., & Heskett, J.L. (1992). Corporate Culture and Performance. New York: Free Press.
• Schein, E.H. (2010). Organizational Culture and Leadership. 4th ed. San Francisco: Jossey-Bass.
• Schneider, B., Ehrhart, M.G., & Macey, W.H. (2017). Organizational Climate and Culture: An Introduction to Theory, Research, and Practice. New York: Routledge.

Factors influencing Organisational Culture

Organizational culture is shaped by multiple interrelated factors that influence its values, behaviors, and operational styles. Here are some primary factors:

1. Leadership and Management Style: Leadership directly impacts organizational culture through decision-making styles, communication, and support for employees. Leaders set the tone, influencing values and norms within the organization (Schein, 2010). For instance, transformational leaders foster cultures of innovation and collaboration, whereas authoritarian leaders may establish a culture focused on hierarchy and control (Northouse, 2019).

2. Organizational Structure: A company’s structure—whether hierarchical, flat, or matrix—affects cultural dynamics. Flat structures often promote open communication and innovation, while rigid hierarchical structures may emphasize formal procedures and roles (Jones, 2013). Structural flexibility can also impact adaptability and responsiveness to external changes (Robbins & Judge, 2018).

3. Industry and Market Environment: The industry in which a business operates often dictates competitive strategies, impacting culture. For example, tech companies prioritize rapid innovation and adaptability, fostering cultures of continuous learning. In contrast, highly regulated industries like finance may emphasize compliance and risk management (Deal & Kennedy, 2000).

4. Workforce Demographics and Diversity: Employee demographics such as age, nationality, and educational background bring unique perspectives and values, influencing an inclusive, diverse organizational culture. Companies with diverse workforces often experience higher creativity and innovation due to varied perspectives (Hofstede, 2001).

5. Company Policies and HR Practices: Policies on recruitment, training, and rewards reflect and reinforce cultural norms. HR practices promoting employee development and recognition contribute to a positive culture by motivating employees to align with organizational values (Armstrong & Taylor, 2014).

6. Founders and Organizational History: Founders’ values and beliefs often create the initial cultural framework that persists even as the organization grows. For instance, Google’s founders instilled a culture of creativity and openness that continues to influence its operations (Schein, 2010).

7. Physical Environment: The physical workspace—whether open-plan or compartmentalized—can impact interaction, collaboration, and employee morale. Environments that foster transparency and accessibility can encourage open communication and teamwork (Duffy, 2008).

References
Armstrong, M. & Taylor, S. (2014). Armstrong's Handbook of Human Resource Management Practice. London: Kogan Page.
Deal, T.E. & Kennedy, A.A. (2000). Corporate Cultures: The Rites and Rituals of Corporate Life. Boston: Addison-Wesley.
Duffy, F. (2008). Work and the City. London: Black Dog Publishing.
Hofstede, G. (2001). Culture’s Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations. 2nd ed. Thousand Oaks, CA: Sage Publications.
Jones, G.R. (2013). Organizational Theory, Design, and Change. 7th ed. Boston: Pearson.
Northouse, P.G. (2019). Leadership: Theory and Practice. 8th ed. Thousand Oaks, CA: Sage Publications.
Robbins, S.P. & Judge, T.A. (2018). Organizational Behavior. 18th ed. Boston: Pearson.
Schein, E.H. (2010). Organizational Culture and Leadership. 4th ed. San Francisco: Jossey-Bass.

Types of Organisational Culture

Organizational culture refers to the shared values, beliefs, and practices that shape the environment and behavior within a workplace. Various researchers categorize organizational cultures differently, but four widely recognized types include Clan, Adhocracy, Market, and Hierarchy cultures (Cameron & Quinn, 2011).

1. Clan Culture: Clan cultures are collaborative and family-like, focusing on mentoring, teamwork, and a sense of belonging. Organizations with this culture emphasize employee involvement and open communication. They are typically adaptive and have low levels of formalization (Cameron & Quinn, 2011). This culture is prevalent in companies prioritizing employee well-being, such as many healthcare organizations (Daft, 2020).

2. Adhocracy Culture: This culture values innovation, flexibility, and risk-taking. Organizations with an adhocracy culture encourage creativity and quick adaptability to market changes. They are less hierarchical and focus on entrepreneurship, making them common in tech and creative industries (Daft, 2020; Schein, 2010).

3. Market Culture: Market cultures are competitive and results-driven, focusing on productivity and achieving tangible outcomes. Unlike clan cultures, these organizations prioritize external positioning over internal cohesion. They tend to be structured, focusing on measurable goals and performance, often seen in sales-driven industries (Cameron & Quinn, 2011).

4. Hierarchy Culture: This culture is formal and structured, with a clear chain of command and well-defined processes. Hierarchical cultures emphasize stability, control, and efficiency, favoring a more bureaucratic approach. This type is commonly found in large, established organizations and government institutions (Schein, 2010).

References

• Cameron, K.S. & Quinn, R.E. (2011). Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework. 3rd ed. San Francisco: Jossey-Bass.
• Daft, R.L. (2020). Organization Theory and Design. 13th ed. Boston: Cengage Learning.
• Schein, E.H. (2010). Organizational Culture and Leadership. 4th ed. San Francisco: Jossey-Bass.

Organisational Culture Model

Organisational Culture Model

The Organisational Culture Model, developed by Edgar Schein, is a framework that helps explain how culture is formed and maintained within organizations. Schein's model divides organizational culture into three levels: Artifacts, Espoused Values, and Underlying Assumptions (Schein, 2010).

1. Artifacts: These are the visible and tangible aspects of an organization's culture, including its physical environment, dress code, and symbols. Artifacts are easy to observe but often difficult to interpret accurately because they are shaped by deeper cultural elements (Schein, 2010). For example, open office spaces in a tech company may represent a value of collaboration and transparency.

2. Espoused Values: This level includes the organization's stated values, beliefs, and norms. These are typically found in mission statements, employee handbooks, and corporate mottos. Espoused values represent what the organization claims to stand for, but there may be a gap between these stated values and actual practices (Hatch & Cunliffe, 2013). For example, an organization might claim innovation as a core value, but if employees are discouraged from taking risks, the espoused value is not aligned with reality.

3. Underlying Assumptions: These are the deeply embedded, unconscious beliefs that are taken for granted within the organization. Underlying assumptions form the essence of culture and influence behavior on a subconscious level, such as beliefs about human nature, time, or competition (Schein, 2010; Alvesson, 2012). For instance, an organization that assumes "employees are motivated only by financial incentives" will likely focus on performance-based rewards rather than fostering intrinsic motivation.

This model is foundational to understanding how culture impacts organizational dynamics, and it highlights the complexity of managing and changing culture. By analyzing each layer, leaders can address alignment issues between stated values and real behaviors, improving overall organizational cohesion and effectiveness.

References

• Alvesson, M. (2012). Understanding Organizational Culture. 2nd ed. London: Sage Publications.
• Hatch, M.J., & Cunliffe, A.L. (2013). Organization Theory: Modern, Symbolic, and Postmodern Perspectives. 3rd ed. Oxford: Oxford University Press.
• Schein, E.H. (2010). Organizational Culture and Leadership. 4th ed. San Francisco: Jossey-Bass.

Organizational and National cultures

Organizational culture and national culture are distinct but interrelated constructs, each influencing behavior, norms, and values within their respective scopes. Organizational culture refers to the shared values, practices, and beliefs within a company or institution, shaping the behavior of employees and the organization's internal dynamics (Schein, 2010). This culture is influenced by the company's mission, leadership style, and work practices, and varies significantly between organizations even within the same industry. National culture, on the other hand, encompasses the broader cultural values, social norms, and practices shared by citizens of a country. These values often include beliefs regarding power distance, individualism, and uncertainty avoidance, which are shaped by historical, religious, and linguistic factors unique to each nation (Hofstede, 2011).

One key difference lies in the scope and origin of each culture. National culture is deeply rooted in a country's history and social institutions, such as family and education systems (Hofstede, 1980). In contrast, organizational culture is shaped internally, often through leadership influence, organizational structure, and strategic goals (Schein, 2010). For example, a company in Japan may reflect high levels of teamwork and collectivism within its organizational culture due to the national culture's emphasis on group harmony, while an American company may emphasize individual achievement, reflecting the national value of individualism (Trompenaars & Hampden-Turner, 1998).

Moreover, flexibility and adaptability differ significantly. National culture tends to be more stable over time, influenced by generational norms and often resistant to rapid change (Hofstede, 2011). Organizational culture, however, is more adaptable and can be actively shaped or restructured by leadership decisions, mergers, or shifts in company strategy (Kotter & Heskett, 1992). For instance, a multinational company may adopt a universal set of organizational values but adapt them in ways that align with local national cultures, achieving a balance between global cohesion and local relevance.

References

• Hofstede, G. (1980). Culture's Consequences: International Differences in Work-Related Values. Beverly Hills, CA: Sage Publications.
• Hofstede, G. (2011). Dimensionalizing Cultures: The Hofstede Model in Context. Online Readings in Psychology and Culture, 2(1), pp.1-26.
• Kotter, J. P. & Heskett, J. L. (1992). Corporate Culture and Performance. New York: Free Press.
• Schein, E. H. (2010). Organizational Culture and Leadership. 4th ed. San Francisco, CA: Jossey-Bass.
• Trompenaars, F. & Hampden-Turner, C. (1998). Riding the Waves of Culture: Understanding Diversity in Global Business. New York: McGraw-Hill.