ORGANIZATIONAL CULTURE

Introduction
Culture is generally defined as the way of doing things
in a particular society.
ORGANISATIONAL CULTURE is a collection of shared
values and beliefs in an organisation
Organisational culture is not something that is written
down or easily stated.
Organisational culture refers to values, beliefs, and
norms of people/workers in an organisation.
It is an intangible mixture of rules, relationships, value,
customs etc. which taken together describe the
distinctive feel of the organisation.

Introduction

Characteristics from which it is possible to

develop an understanding of an
organisations culture are:
Mission

statement
Behaviour patterns interaction within the
organisation and between the organisation and
its stakeholder
Distribution of authority and decision-making
Organisation structure
Nature of leadership

Introduction

Values

of the organisation.
Entrepreneurial spirit degree of innovation,
competitiveness, flexibility and drive for
excellence of the organisation.
Receptiveness to embrace change proactive
(anticipating and planning for change) or
reactive (coping with change as and when it
arises)

Classification of organizational culture

Power Culture
Within a power culture, control is the key
element. Decisions in an organisation that
display a power culture are centralised
around one key individual.
- Control is exercised from the centre by the
selection of key individuals.
- There are few rules and procedures.
- Decisions taken largely on the balance of
influence.
Eg: small and medium entrepreneurial
organizations

Role Culture
In a role culture, organisations are split into
various functions and each individual within the
function is assigned a particular role.

Rests on the strength of strong organizational

pillars
Eg: The functions of specialists: Finance,
purchasing, production

Role or job description is often more important

than the individual and position.

Task Culture
A task culture refers to a team based
approach to complete a particular task.
- Job oriented or project oriented
- Seeks to bring together the right resource
and people, and utilizes the unifying
power of the group.
- Influence is widely spread and based
more on expert power than on position or
personal power.

Person Culture
-The focus of the organisation is the
individual or a particular aim.
- The individual is the central focus and any
structure exists to serve the individuals
within it.
- Individuals have almost complete autonomy
and any influence over them is likely to be
on the basis of personal power.
Eg: Groups of Architects, doctors ect.

Levels of Culture
Level 1 Artifacts:
This includes physical space and layout, the
technological output, written and spoken language
and overt behavior of group members.
Level 2 Norms and values:
Cultural learning reflects someones original values.
Level 3 Basic underlying assumptions:
Implicit assumptions that actually guide behavior
and determine how group members perceive, think
and feel about things.

Organisational culture and performance

Does organisational culture affect the

organisations performance?
Good culture is good for business
Culture has three functions: Corporate

culture is deeply embedded form of social

control that influences employee decisions and
behaviours
Corporate culture is the social glue that bonds people
together and makes them feel part of the
organisational experience
Corporate culture assists the sense-making process
e.g. organisational events
(McShane and Von Glinow, 2003)

Development of Organizational Culture

History
The reason, and manner in which, the
organization was originally formed.
Primary function and technology
Nature of the technological process and
methods of undertaking work, which in turn
also affect structure and culture.
Goals and objectives
The combination of objectives and resultant
strategies will influence culture and may
itself be influenced by changes in culture.

Size
A rapid expansion, or decline in size and rate
of growth and resultant changes in staffing
will influence structure and culture.
Location
It can also affect the nature of services
provided, the sense of boundary and
distinctive identity and opportunities for
development.
Management & Staffing
Top executives can have considerable
influence on the nature of corporate culture.