Why organizational culture is important?

Why organizational culture is important?

Maintaining a culture based on a set of characteristics which are in line with the business strategy and organisational structure will lead to a successful organization. A good organisational culture will make employees feel engaged and differentiate you from your competitors.

More importantly, it also attracts more talent.

 

Even though some people think of organisational culture as the result of the organization's people and processes, which cannot be controlled or quantified, the truth is, it is unexpectedly tangible (Kalaiarasi & Sethuram, 2017).

 

Characters of a successful organizational culture 

 

Collective effect of the common beliefs, behaviours, and values of the people within a company can be called as Organizational culture. Those norms regulate how employees perform and serve customers, whether they feel motivated to meet goals, and if they are sincerely into the company's overall mission. (Groysberg et al., 2018)

 

Layers of culture (Weiner, 2018)

 

How organizational culture develops

 How organizational culture develops (Schein, 1990) 

 

The components of organizational culture

Organizational culture can be described in terms of values, norms, artefacts and management or leadership style (Armstrong, 2014).

Values

Beliefs in what is best for the organization and what should happen are called as values. The stronger the values the more they will influence behaviour.

Norms

These are the unwritten rules of behaviour, which provide informal guidelines on how to behave. Norms tell people what they are supposed to be doing, saying, believing, and even wearing.

Artefacts

Artefacts are the visible and tangible features of an organization that people see, hear and which contribute to their understanding of the organization’s culture.

Management style

The method managers use to deal with people – their management or leadership style – is a significant part of the culture of an organization. 

 

How to Make Your Company Culture More Like Google and Pixar (Puhala, 2014)

 

Conclusion

The culture within an organization is very important, playing a large role in whether it is a happy and healthy environment in which to work. In communicating and promoting the organizational ethos to employees, their acknowledgement and acceptance of it can influence their work behavior and attitudes

References

Groysberg, B., Lee, J., Price, J., & Cheng, J. (2018). The Culture Factor. Retrieved from https://hbr.org/2018/01/the-culture-factor.

 

Kalaiarasi, Ms & Sundaram, Sethuram. (2017). Literature Review on Organization Culture and Its Influence. 9-14.

Panmore Institute, (2020) Starbucks Corporation’s Organizational Culture & Its Characteristics [online] Available from http://panmore.com/starbucks-coffee-company-organizational-culture [Accessed: 05 June 2020].

Schein, E. H. (1990)‘Organizational Culture’,American Psychologist, Vol. 45, No.2, pp.109-119.

Weiner, Y. (2018). 99 Totally Serious Ways To Create A Great Work Culture. Retrieved from https://medium.com/thrive-global/99-totally-serious-ways-to-create-a-great-work-culture-e7d093bdad23.