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Definition Of Organisational Culture And Its Importance

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Organisational Culture

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What Is Organizational Culture? And Why Should We Care?

• Michael D. Watkins

What leaders need to know to change orgs for the better.

If you want to provoke a vigorous debate, start a conversation on organizational culture. While there is universal agreement that (1) it exists, and (2) that it plays a crucial role in shaping behavior in organizations, there is little consensus on what organizational culture actually is, never mind how it influences behavior and whether it is something leaders can change.

• Michael D. Watkins is a professor of leadership and organizational change at IMD , a cofounder of Genesis Advisers , and the author of The Six Disciplines of Strategic Thinking .

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Organisational culture: what is it and how does it affect organisational effectiveness?

An organisation’s culture can play a significant role in determining the organisation’s success – or its failure. This is because organisational culture determines everything from how decisions are made to how employees feel and behave within the organisation.

Built on a foundation of organisational values, and reflecting the behaviours of its leaders, an organisation’s culture is effectively the personality of the organisation or business. How does it treat people? What sorts of practices, processes, and policies does it prioritise? These are important questions, because the culture an organisation develops can help to deliver on performance and organisational goals, strategic objectives, and can even influence employee recruitment and retention. In short: a strong culture is a powerful asset within any business – and a dysfunctional organisational culture can significantly stunt its success. 

So what exactly is organisational culture? A commonly used definition comes from Daniel R. Denison, a professor of organisation and management who co-wrote a paper called Toward a Theory of Organisational Culture and Effectiveness with Aneil K. Mishra. Denison says that organisational culture is “the underlying values, beliefs, and principles that serve as the foundation for an organisation’s management system, as well as the set of management practices and behaviours that both exemplify and reinforce those basic principles.” 

According to the Chartered Institute of Personnel and Development (CIPD) , the UK association for human resource management professionals, organisational culture “matters because it offers a way for employees to understand their organisation, to voice their views, and to develop connections and common purpose.”

What are the different types of organisational cultures?

Organisational cultures can be broken down into several different categories. For example, the Competing Values Framework outlines four classifications for organisational culture and leadership.

• Adhocracy culture . Also known as the create culture, adhocracy culture is commonly seen in entrepreneurial businesses. A blend of ad hoc and bureaucracy, adhocracy is focused on flexibility and innovation.
• Clan culture . Also known as the collaborative culture, this organisational culture is focused on people first.
• Hierarchy culture . Hierarchy culture is also known as control culture, and is process-oriented, with clear structures and procedures in place for everyone from entry level employees to high-level stakeholders.
• Market culture . Market culture is driven by results, and is also known as compete culture. It’s driven by profitability, a competitive advantage, and the organisation’s bottom line.

The Harvard Business Review , meanwhile, identifies eight different types of corporate cultures.

• Caring cultures , which are focused on collaborative relationships, teamwork, a good work-life balance, and mutual trust. 
• Purpose cultures , which are focused on idealism and altruism. 
• Learning cultures , which are characterised by creativity and innovation among team members.
• Enjoyment cultures , which feature lighthearted working environments.
• Results cultures , which are driven by achievements, and are focused on outcomes and business performance.
• Authority cultures , which are defined by strength and decisiveness in decision-making as well as competitive work environments.
• Safety cultures , which are risk-conscious and focused on planning and preparedness.
• Order cultures , which are focused on respect, structure, and shared norms. 

What are the main factors that influence organisational culture?

There are several schools of thought when it comes to organisation culture, what shapes it, and what influences it.

For example, Edgar Schein , Professor Emeritus at the MIT Sloan School of Management, argued that organisational culture had three levels:

• artefacts , which are the organisational attributes that can be seen and heard by anyone. For example, the appearance of offices and décor, how employees dress, and how they interact with others.
• values , which are cultural elements that are explicitly stated: mission statements, slogans, corporate values and behaviours, and so on. 
• basic assumptions , which are the common beliefs that evolve within the organisation and form a pattern while never being explicitly articulated or challenged.

Others, such as Professor Geert Hofstede – a social psychologist – developed an organisational culture model with six factors:

• Organisational effectiveness . Is the organisation means-oriented or goal-oriented? Is it primarily focused on what it achieves, or how it achieves it?
• Customer orientation . Is the organisation internally driven or externally driven?  
• Level of control . Is the organisation easygoing or strict in terms of work discipline?
• Focus . Are employees within the organisation locally focused on their immediate boss or team, or professionally focused?
• Approachability . Does the organisation operate as an open system or a closed system? 
• Management philosophy . Is the organisation employee-oriented or work-oriented? 

Understanding the impact of organisational culture

How does the culture of an organisation impact organisational change.

An organisation’s culture can directly influence its response to organisational change. This is significant, with the CIPD pointing out that an “effective approach to managing change is vital because evidence indicates that few change initiatives are successful. This failure can have a great impact on an organisation, both in their market position and the engagement and retention of employees.”

With people and culture being the single biggest drivers of organisational change success, it’s obvious that a dynamic, change-receptive culture is key to ensuring the success of any organisational change programmes.

How does the culture of an organisation impact individual and organisational performance?

It’s clear that organisational culture has a large part to play in driving the effectiveness of the organisation – and the individual – however, research to establish firmer links between culture and organisational performance, or employee performance outcomes, is still ongoing.

“There’s speculation that culture affects organisational performance, and some organisations have put great effort into changing their culture and structure to improve this,” reports the CIPD. “However, while managing organisational culture is increasingly seen as a necessary part of governance and management practice, research evidence on the link between organisational culture and performance is weak.”

That said, in his recently published book Win from Within: Build Organisational Culture for Competitive Advantage , James Heskett highlights the correlations between organisational culture and employee loyalty, productivity, and creativity.

And according to Tom Peters, who co-wrote the 1980s strategic management book In Search of Excellence , says that culture drives in behaviour , and that in turn, organisational behaviour “has direct impact on the bottom line, costs, revenue streams, level of productivity, customer satisfaction, even the brand – every aspect of the business is affected.”

Additionally, Jennifer A. Chatman and other academics have written extensively on the topic of leadership, its impact on organisational culture – and the impact on performance. For example, in a publication titled The Promise and Problems of Organisational Culture: CEO Personality, Culture, and Firm Performance , Chatman and others found that “CEO personality affects a firm’s culture and that culture is subsequently related to a broad set of organisational outcomes including a firm’s financial performance, reputation, analysts’ stock recommendations, and employee attitudes.”

How does the culture of an organisation impact the organisation’s ability to innovate?

There are a number of organisational culture styles that encourage – or inhibit – innovation. For example, both the adhocracy and learning cultures place a strong emphasis on innovative behaviours and outcomes, while a hierarchy culture or order company culture are more likely to favour tried-and-true processes and procedures that restrict innovation and new ideas.

How does the culture of an organisation impact the organisation’s ability to compete?

Much like innovation, organisational competitiveness can be directly influenced by the organisation’s culture and its core values. Market culture, for example, is often referred to as compete culture, and is focused primarily on market competitiveness.

Models for improving corporate culture and organisational effectiveness

Regardless of whether a leader is focused on corporate culture and performance, or the culture and performance within a health care setting – or anything in between – there are a number of different models, methods, and leadership styles that can be used to create a set of shared values and a strong organisational culture.

One example is Dr. John Kotter’s eight-step process for leading change . Another is the McKinsey 7-S framework .

Help shape the culture of your organisation

You could advance your career in management and leadership with the 100% online MBA Leadership from Lincoln International Business School at the University of Lincoln. This degree has been created for ambitious professionals who want to fast-track their career progression, and because it’s studied part-time and fully online, you can learn around your current work and personal commitments.

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• Introduction

Culture as organizational personality

Manifestations of organizational culture, organizational culture and change.

organizational culture

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• Table Of Contents

organizational culture , conventionally defined as the ensemble of beliefs, assumptions, values, norms, artifacts , symbols, actions, and language patterns shared by all members of an organization . In this view, culture is thought to be an acquired body of knowledge whose interpretation and understanding provide the identity of the organization and a sense of shared identity among its members. This approach assumes clarity and organizationwide consensus among members and discounts ambiguity .

However, organizational culture can also be viewed from at least two other perspectives. A different perspective centres not on the whole but rather on the consensus reached within the different subcultures of the organization, which often conflict with each other. Outside the confines of the subcultures, ambiguity and inconsistency exist organizationwide (e.g., where members may say one thing and do another).Yet another approach discounts consensus and consistency as defining characteristics of culture and focuses on ambiguity as the essence of culture. Here, agreement and disagreement are constantly changing and no stable organizationwide or subculture consensus exists.

Understanding and interpreting organizational culture is important, as it affects organizational development, productivity, and learning at all levels. The underlying cultural assumptions can both enable and constrain what an organization is able to do.

Organizational culture has been referred to as an organization’s psychological assets. It can be viewed as holistic (or more than the sum of its parts), historically determined (a collection of rituals and symbols), socially constructed (or created and preserved by the group who form it), and difficult to change. A culture contains patterns of assumptions that lead to behaviours that work for the organization. Many of those assumptions are underlying, unquestioned, and forgotten and may, for the most part, be unconscious to organization members. Even so, such collective beliefs shape organizational behaviour. Therefore, people’s actions and preferences may not always be their own but, rather, are largely influenced by socialization processes based in the culture or subcultures of the organization to which they belong. Behaviours are controlled by the beliefs, norms, values, and assumptions rather than being restrained by formal rules, authority, and the norms of rational behaviour. As a result, an organization’s “personality” may be more important to performance and motivation than the exercise of rewards and sanctions.

Culture can manifest itself in a number of ways. Visible, but often indecipherable, are the behavioral regularities in the way people interact. Examples include the language used, customs and traditions practiced, and rituals employed in a wide variety of situations. Next and also visible are those publicly announced principles and values the group claims to be trying to achieve and the ideologies and broad policies that guide a group’s actions. They may represent a formal philosophy presented to employees and stakeholders alike as well as the implicit rules for getting along in the organization (“the way we do things around here”). Also included in that level is the climate or the feeling conveyed by the group in physical layouts and the way members interact with each other, stakeholders, and outsiders. Less-visible manifestations include habits of thinking; shared mental models that guide perceptions, thought, and language used by the group; and shared meanings and symbols that include ideas, feelings, and images that may not be appreciated consciously by members.

An organization’s culture can be strong or weak, functional or dysfunctional. In an organization with a long history, stories and heroes may more strongly reflect its values. For instance, in organizations with strong cultures , such as the military and others with long traditions, the indoctrination of its members is standard and enduring; values are continuously reinforced in terms of rituals, symbols, and rules or expectations for patterns of behaviour. Those features of culture are internalized throughout a person’s membership in the organization and perhaps beyond. In such organizations, when its members are faced with uncertainty, they can often make decisions without direction and take action consistent with the mission. Conversely, strong cultures can inhibit organizational transformation where greater flexibility and adaptation are required to respond to changes in the external environment .

Organizations need to be agile and able to adjust to the rapid and exceedingly high degrees of technological change in order to maintain their effectiveness. Organizational change may require cultural change. Therefore, recognition and understanding of the patterns of basic underlying assumptions that guide behaviour in an organization are essential.

What is an organisational culture?

• in Blog , Human Resources , Organisational Change , Organisational Development , Research by David Wilkinson

People talk a lot about ‘organisational culture’ and changing the organisational culture. But what is an organisational culture?

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The definition of organisational culture

There are several different definitions of organisational culture (1)

These definitions range from the simple – “It’s the way we do things around here”(2)

to the more complicated such as Schien’s definition of culture:

“a pattern of shared basic assumption that have been 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 valid and therefore to be taught to new members as the correct way to perceive, think and feel in relationship to those problems”(3)

Schien’s definition of an organisational culture tends to be the most widely adopted in research.

Inferred and invisible

The idea of a ‘Culture’ is actually a metaphor. It is an image or understanding that is symbolic of something that we can’t actually access directly. Culture isn’t something you can see or touch, rather we infer it from the behaviours, conversations, words, images, clothes, artefacts, art, decisionand other patterns we notice within any defined group of people, an organisation for example. In effect the culture of an organisation is the inferred and invisible curriculum and customs of that group of people.

Shared attributes of an organisational culture

When you look across the range of definitions we find that there are some things that are shared between these ideas of what a culture comprises. Things like shared:

1. Beliefs, 2. Values, 3. Norms of behaviour, 4. Routines, 5. Traditions, 6. Sense-making 7. Perspectives

Through a lens

One popular way of understanding what a culture is, is that is it is the lens through which the people in an organisation perceive or view, understand, interpret and make sense of the world around them (4). As a result it is also the sense through which they make decisions and do things. One study (5) found that culture is not just what we infer from what we observe a group of people, but it is also the shared ‘cognitive and symbolic context’ within which they exist.(6)

The mental idea concept of a culture is also one of the lenses through which we view and evaluate the organisation in question.

What this means

What this means is that the culture tends to shape and define our thoughts and actions. It shapes what we think about, how we think and the rationale we use to explain things.

Does that mean that everyone is the same in a culture, that they all think alike and do the same thing?

No not at all.

There are likely to be a wide range of people who fit into that culture. This includes people who are more modal (more of an example of the culture) or more peripheral (less of an example of the culture).

Over the next few Thursday / Friday posts I will explore organisational culture, what it is, what it does and importantly the latest research on how to change it.

(My DPhil (PhD)  research at was focussed on acculturation – how people learn to become like something. For example, how does someone join the police and in a fairly short period of time; become like, act like, sound like, almost smell like a police officer? It is an informal and usually unconscious learning process.)

1. Alvesson M: Cultural perspectives on organisations. 1995, Cambridge University Press 2. Balogun J, Hailey V: Exploring strategic change. 2004, London: Prentice Hall 3. Schien E: Organisational Culture and Leadership. 1995, San Francisco: Jossey-Bass 4. Konteh FH, Mannion R, Davies H: Clinical governance views on culture and quality improvement. Clinical Governance: An International Journal. 2008, 13 (3): 200-207. 10.1108/14777270810892610. 5. Scott T, Mannion R, Marshall M, Davies H: Does organisational culture influence health care performance? A review of the evidence. J Health Serv Res Policy. 2003, 8 (2): 105-117. 10.1258/135581903321466085. 6. Parmelli, E., Flodgren, G., Beyer, F., Baillie, N., Schaafsma, M. E., & Eccles, M. P. (2011). The effectiveness of strategies to change organisational culture to improve healthcare performance: a systematic review. Implementation Science, 6(1), 33

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David Wilkinson

David Wilkinson is the Editor-in-Chief of the Oxford Review. He is also acknowledged to be one of the world's leading experts in dealing with ambiguity and uncertainty and developing emotional resilience. David teaches and conducts research at a number of universities including the University of Oxford, Medical Sciences Division, Cardiff University, Oxford Brookes University School of Business and many more. He has worked with many organisations as a consultant and executive coach including Schroders, where he coaches and runs their leadership and management programmes, Royal Mail, Aimia, Hyundai, The RAF, The Pentagon, the governments of the UK, US, Saudi, Oman and the Yemen for example. In 2010 he developed the world's first and only model and programme for developing emotional resilience across entire populations and organisations which has since become known as the Fear to Flow model which is the subject of his next book. In 2012 he drove a 1973 VW across six countries in Southern Africa whilst collecting money for charity and conducting on the ground charity work including developing emotional literature in children and orphans in Africa and a number of other activities. He is the author of The Ambiguity Advanatage: What great leaders are great at, published by Palgrave Macmillian. See more: About: About David Wikipedia: David's Wikipedia Page

a very succinct and clear view of culture, i always had the counter culture elements in a culture that help reinforce the culture vs the counter culture elements . how to deal with this can be a challenge especially in a change context.

Always a great read David; thank you 🙂

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What is Organizational Culture? Understanding and Driving a Strong Culture

Kristin Ryba

July 14, 2022 | 6 minute read

So what is organizational culture? And how can you harness company culture to engage employees, improve performance, and make your company a great place to work?

In this article, we’ll answer what organizational culture is, why it matters, and how you can build a strong and engaging culture.

What is organizational culture?

Organizational culture is the way that organizations get things done. It’s how we make decisions, how we communicate, and how we celebrate employees. It’s the daily actions, attitudes, and behaviors that individually and collectively make up our organization.

Why is organizational culture important?

Your company culture impacts everything within your organization. It can help or hinder you, depending on how intentional you are with it. An engaging organizational culture helps you:

• Attract high quality talent
• Boost employee engagement
• Increase employee retention
• Strengthen employee performance
• Adapt to change
• Accelerate business outcomes

Your workplace culture is a key driver of the employee experience. It can have a positive, negative, or neutral effect on key business metrics like retention, recruitment, and engagement.

65% of millennials rank a strong workplace culture as more important than salary.

Workplace culture matters to prospective employees . For millennials, it matters more than money! A positive and engaging culture can help you attract top talent.

Employees who say their culture is positive are 3.8x more likely to be engaged.

Company culture and employee engagement are inextricably linked. If you want to improve employee engagement, take a look at your culture.

An engaging culture connects, equips, and empowers employees to do their best work.

Employees who say their culture has improved since the pandemic are 2.9x more likely to be highly engaged.

Workplaces have been through a lot of change since the pandemic—and so have their employees and cultures. Employees have taken notice of improvements in those organizations that have been intentional about shaping their culture in this new world of work.

Disengaged employees are 2.6x more likely to leave their company for a better culture.

Company culture and engagement are sticky factors that make employees want to stay. A Glassdoor survey says 7 in 10 employees would look for a job elsewhere if their workplace culture were to weaken. Culture is a critical retention strategy.

70% of high-performing organizations agree or strongly agree that culture is what drives their success on organizational and business outcomes.

There’s a reason company culture has become a top priority for leaders— especially leaders at high-performing organizations . They understand the connection between culture and success.

How organizational culture has changed

Workplace culture has historically been defined as organizational norms, rituals, and values. But how employees perceive company culture has changed.

35% of employees say their culture has changed dramatically since the start of the pandemic.

As the workplace has shifted since the pandemic, culture has shifted too. Some employees say it's changed for the better—others say for the worse. Whether or not you’re actively investing in your culture, someone or something is shaping it. 

It’s important for leaders to keep a pulse on company culture to ensure they’re driving the right changes at the right times.

1 in 3 employees has neutral or negative perceptions of their organization’s culture.

Many organizations have successfully navigated turbulent pandemic times and have adapted to remote and hybrid work. However, about a third of employees have poor perceptions of their workplace culture. This is a tough number to swallow considering the connection between culture, employee engagement, and employee retention.

50% of employees experience culture most strongly through their organization’s approach to employee performance.

In today’s employee-driven work environment, the way you manage performance has a strong impact on engagement and culture. Building a high performance culture is key. 

Our workplace culture research shows that how managers create alignment, communicate, recognize, and give feedback all shape how employees experience your culture.

Only 28% of employees experience culture most strongly through the physical workspace.

Many leaders have expressed thoughts about the importance of the physical workspace on culture. But our research shows it’s least important to how employees experience culture.

Remote and hybrid employees are more favorable toward workplace culture.

Remote and hybrid work environments are becoming the norm—and this shift has impacted employee perceptions of culture . 70% of remote and hybrid workers believe their company has a strong and positive culture, compared to 65% and 58% of on-site employees, respectively.

Tips for shaping culture in a remote/hybrid work environment

Culture cannot and will not look the same as it once did. Forward-thinking, adaptable leaders need to shape their culture strategies with remote and hybrid employees in mind. These 10 strategies, backed by our research, will help you build an engaging culture for all employees .

• Listen to your employees through surveys
• Evolve your approach to employee performance
• Make culture part of your business strategy
• Promote activities that build connection
• Recognize and celebrate your employees
• Find opportunities to deepen understanding of your mission and values
• Rethink how you onboard employees
• Develop your managers to thrive with remote and hybrid teams
• Consider new ways of communicating and collaborating
• Prioritize flexibility and autonomy

Learn more about shaping company culture in a remote work environment >>>

Why leaders are responsible for organizational culture

WeWork describes culture as an employee-powered concept . It truly takes every person inside your organization to build an engaging and successful culture.

But employees say leaders and managers are primarily responsible for creating and shaping culture. Culture starts at the top. Leaders should clearly define culture, communicate about it regularly, set a good example, and tie business outcomes to company values. This will empower all employees to develop, practice, and evolve cultural norms.

Tips for developing a strong organizational culture

Rome wasn’t built in a day, and neither is your culture. A positive, culture-centric organization takes time to develop. 

To cultivate the kind of culture that inspires action, engages employees, and drives performance, you need to approach it thoughtfully and intentionally.

An article by the Harvard Business Review describes culture as dynamic —shifting incrementally and constantly in response to change. This requires a flywheel approach to collecting feedback, analyzing it, and acting on your culture. 

Ask: Gather employee feedback on culture.

You can’t rely on your gut to understand your culture. You need to ask employees about their experiences at work—they’ll tell you what they think and what they need from you. Collecting their feedback will help you understand what’s working and what’s not. 

To develop an employee listening strategy that helps you measure and improve your culture , you should gather feedback at many milestones in the employee journey. 

Don’t simply rely on your annual employee engagement survey. Supplement your listening with regular pulse surveys and employee lifecycle surveys to capture feedback at key moments like onboarding and exits.

Not sure what to ask? Here are some recommendations for employee survey questions about culture : 

• The work I do contributes to fulfilling our organization’s mission.
• I see behaviors displayed across our organization that are consistent with our company’s core values.
• I have a good understanding of our organization’s mission, values, and goals.
• Our organization constantly looks for ways to improve products and services.
• The pace of work at our organization enables employees to do a good job.

Our culture supports employees’ health and wellbeing.

Aha: Analyze your culture regularly.

Once you’ve got some data from your employee feedback, dig into it. Don’t analyze the feedback in a silo—connect it to other data and metrics like turnover and performance conversations. The goal is to paint a picture of what’s happening across the organization.

Figure out what an engaging culture should look like and plan goals and initiatives to get there.

Act: Develop a culture action plan.

Show employees you are committed to improving your culture by making meaningful changes that better the employee experience and help everyone reach their goals. When your employees are successful, you will be successful too. 

A healthy culture drives employee engagement first and foremost. When you evaluate “how work gets done” at your organization, try to understand how each aspect could impact employee engagement. You want to ensure employees feel connected to their work, team, and organization through your culture strategies.

Find the right tools to help you improve your culture.

A robust employee engagement, performance, and people analytics platform will outline the big picture behind your culture and help you understand where to focus and when. 

With the right tools, you can uncover deep insights, measure employee perceptions, and create a thriving culture. Here are the top benefits of a robust culture platform: 

• Understand employee perceptions of culture
• Explore culture metrics and trends 
• Recognize employee success
• Create conversations around culture 
• Align employees and teams by elevating what matters

How Quantum Workplace can help

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Organizational Culture Essay

A Critical Approach towards an Integrative Dynamic Framework for Understanding and Managing Organizational Culture Change

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• Intentionally develop a transparent, clear, friendly, genuine, effective, and consistent communication strategy at all levels of the organization about performance enhancement and the role of culture. For example, scheduling regular sessions during which two-way communication is encouraged, plans are clarified, rumors are exposed and resolved, and answer questions are dealt with.
• Introduce policies that will build and enhance motivation and participation throughout the organizational culture change process. Participatory approach centered on flexibility and adaptability would trigger unwavering buy-in at all levels of the organization.
• Recognizing the importance of a defined culture on employees’ sociability and solidarity, and how it affects their performance bearing in mind that employees are the core asset of any organization. As such care, sensitivity and diplomacy should be practiced in good faith and beyond a reasonable doubt.
• The importance of considering the fit or match between strategic initiatives and organizational culture when it comes to determining how to embed a culture that produces a competitive advantage.
• That any organizational culture requires continuous monitoring and assessment to ensure effective management. This should be consistent with the design and implementation tools of the intended organizational culture change and management.
• A Framework for Achieving Organizational Culture Change ... (n.d.). Retrieved from https://journals.tdl.org/llm/index.php/llm/article/viewFile/7216/6408
• A Process Model of Organizational Change in Cultural Context. (n.d.). Retrieved from https://www.scribd.com/document/209972652/A-Process-Model-of-Organizational-Change-in-Cultural-ContextHartnell,
• C. A., Ou, A. Y., & Kinicki, A. J. (1970, January 01). Organizational culture and organizational effectiveness: A meta-analytic investigation of the competing values framework's theoretical suppositions. - Semantic Scholar. Retrieved from https://www.semanticscholar.org/paper/Organizational-culture-and-organizational-Hartnell-Ou/0d6f960dd2dd653aaaeab9ade231795832519587Kz5016b.
• (n.d.). Hatch1993.pdf - The Dynamics of Organizational Culture... Retrieved from https://www.coursehero.com/file/29816418/Hatch1993pdf/
• Managing Cultural Change in a Corporation - Nano Tools for Leaders. (n.d.). Retrieved from https://executiveeducation.wharton.upenn.edu/thought-leadership/wharton-at-work/2014/09/managing-culture-change/
• Organizational culture and change management practice in ... (n.d.). Retrieved from http://erepository.uonbi.ac.ke/bitstream/handle/11295/75848/Wanjohi_Organisational culture and change management practice in the Kenyan media industry.pdf?sequence=4&isAllowed=y
• Organizational culture: The case Turkish construction of ... (n.d.). Retrieved from https://www.researchgate.net/profile/Heyecan_Giritli/publication/235298321_Organizational_culture_The_case_of_Turkish_construction_industry/links/0deec52273369335da000000.pdf
• ReadingLists. (n.d.). Retrieved from https://anglia.rl.talis.com/items/93DE3759-29C1-43A2-34AF-04B13E116A34.html
• The role of transformational leadership in enhancing organizational innovation: Hypotheses and some preliminary findings. (2003, October 13). Retrieved from https://www.sciencedirect.com/science/article/pii/S104898430300050X
• Umuteme, O. (n.d.). EXPLORING THE IMPORTANCE OF AN INTEGRATIVE APPROACH IN ANTICIPATING AND MANAGING ORGANISATIONAL CULTURE. Retrieved from http://www.academia.edu/36273387/EXPLORING_THE_IMPORTANCE_OF_AN_INTEGRATIVE_APPROACH_IN_ANTICIPATING_AND_MANAGING_ORGANISATIONAL_CULTURE

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The Importance of Organizational Culture Essay

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What is organizational culture and why is it essential for a healthy and strong organization that works efficiently? The organizational culture essay below answers these questions. It focuses on the characteristics and benefits of the issue.

Introduction

Organizational culture is an important aspect of achieving organizational success. Every manager should strive to develop an organizational culture that will facilitate easy transformation of the organization through change embracement y employees. However, managers face challenges such as change resistance by employees.

Resistance to change is caused by fear of learning new skills, fear of new and additional responsibilities, fear of power shift, leadership, or management, and fear of stress that results from change (Hirschhorn ,2002). Organizational culture and change is most valuable to an aspiring manager because it they form the basis of organizational success.

They determine employees’ job satisfaction, motivation, and commitment towards achievement of organizational goals and objectives. Developing an appropriate organizational culture that guarantees success is difficult. However, aspiring managers should strive towards developing it because without it, organizational success remains a mirage.

Why Is Organizational Culture Important?

Managers should work towards introducing change in the organization to hasten achievement of organizational goals (Hirschhorn, 2002). Resistance to change by employees is the main challenge encountered by managers during the process of introducing change. However, with an appropriate strategy, managers can introduce change effectively and efficiently without causing chaos.

According to Hirschhorn (2002), change can be successfully introduced using three different campaign strategies. These include political, marketing, and military campaigns. The three campaigns combine different strategies to facilitate introduction of change in an organization.

Political campaign facilitates development of change initiatives through formation of a coalition that supports and guides change initiative (Hirschhorn, 2002).

A marketing campaign focuses on employee’s feelings and attitudes towards change by explicating potential benefits of embracing and executing change. On the other hand, a military campaign facilitates channeling of management’s attention and time to the change initiative (Hirschhorn, 2002).

Organizational culture determines level of employee job satisfaction, which is an ingredient of organizational success. Organizational culture affects employees’ attitudes, behaviors, and performance at the workplace. One of the characteristics of an efficient organizational culture is a satisfying workplace. A satisfying workplace is one of the strategies implemented by managers to improve job satisfaction.

To improve job satisfaction, management reform is necessary (Yang and Kasssekert, 2009). Examples of such reforms include Titl5 Exemption, contracting out, and managing for results. Under Title 5 exemption, managers should strive towards increasing managerial prudence in improving efficiency of human resource management (Yang and Kasssekert, 2009).

They should include performance rewards, introduction of simple hiring procedures, and workforce restructuring. On the other hand, contracting out is important because it reduces costs, improves quality of service delivery, increases efficiency, and increase job satisfaction (Yang and Kasssekert, 2009).

In addition, mangers should create an environment that encourages employees to trust in the leadership of the organization. Performance appraisal should strive towards improving employees’ performance and not victimizing them.

According to Kegan and Lahey (2001), it is important for managers to understand why employees resist change in order to introduce it without causing chaos. They argue that change to resistance is because of a phenomenon referred to as competing commitment. Effective management strives towards assisting employees subdue limitations that prevent them from embracing change.

This includes involving employees in diagnosing causes of immunity to change (Kegan and Lahey, 2001). Competing commitments are both a problem to employees and managers. Eradicating resistance to changes starts with uncovering employees’ competing commitments.

One aspect of competing commitments is assumptions. Employees need to realize that assumptions determine their reality and should strive to question them (Kegan and Lahey, 2001).

Employee empowerment is another factor that contributes to a strong organizational culture. However, without an effective work environment and good leadership, employee empowerment is impossible. Empowered employees are committed to achieving organizational goals by improving performance and embracing innovation (Fernandez and Moldogaziez, 2012).

Benefits of employee empowerment include quick retraction from errors, learning from mistakes, and development of innovative ways of service delivery (Fernandez and Moldogaziez, 2012). Empowered employees work harder and smarter thus improving performance. They thus exhibit flexibility in task execution.

Change is also important in enhancing employee performance because of the uncertainty of the modern business environment. Therefore, change is an important aspect of ensuing organizational adaptability to change. Employees must be able to adapt to change to enhance organizational survival and sustainability (Fernandez and Moldogaziez, 2012).

Change encourages innovation because it introduces new ways and procedures of doing things. It is imperative for managers to introduce change in the organization to encourage innovation and achievement of organizational goals.

Organizational culture and change are important aspects of achieving organizational success. They are valuable to aspiring managers in the public sector because of several reasons. They encourage innovation, improve employee performance, and enhance the efficiency of an organization. A strong organizational culture enhances job satisfaction among employees.

On the other hand, change encourages innovation, which helps an organization survive in the highly uncertain modern business environment. Employee empowerment and job satisfaction are core factors that determine level of organizational success. Any aspiring manager should focus managerial efforts towards creating a strong organizational culture and introducing change in the organization.

Fernandez, S., and Moldogaziev, T. (2012). Using Employee Empowerment to Encourage Innovative Behavior in the Public Sector. Journal of Public Administration and Theory , 13, 1-33.

Hirschhorn, L. (2001). Campaigning for Change. Harvard Business Review , 12(4), 98- 104.

Kegan, R., and Lahey, L. (2001). Real Reason People Won’t Change. Harvard Business Review , 4(3), 84-92.

Yang, K., and Kasssekert, A. (2009). Linking Management Reform with Employee Job Satisfaction: Evidence from Federal Agencies. Journal of Public Administration and Research Theory , 20, 413-436.

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Essay about Organizational Culture

Organizational culture influences many aspects of workplace life. A workplace with strong beliefs, values, behaviors, ideas and expectations define an organization. Well-communicated beliefs, values, ideas and expectations influence employee's behavior and determine how employees communicate with others throughout the organization, thus defining the organization's culture. Over the years, the topic of organizational culture has been studied in many disciplines from anthropology to sociology. A prominent theorist of organizational culture, Edgar Schein (2004), provided the following general definition of organizational culture: A pattern of shared basic assumptions that was learned by a group as it solved its problems of external …show more content…

Opposite of economical approach is the organizational development approach. This approach focuses on the culture of the organization while developing the employee's competencies. Organizational development approach is intended to development the employee's commitment to the organization (Hellriegel, 2004). In our efforts to find more effective ways to reward employees, we developed a committee to review our performance evaluation and merit increase procedures. The purpose of this committee was to evaluate the procedures and make recommendations for improvement. By taking this approach, the employees have developed a sense of commitment to the organization and a sense of value as an employee. Once an approach has been identified, there are several elements that can be modified or changed that will impact the organization's culture. These elements include changing 1) what managers and teams pay attention to, 2) how crisis are handled, 3) criteria for recruiting new members, 4) criteria for promotion, 5) criteria for allocating awards, and 6) organizational rites and ceremonies (Hellriegel, 2004). To implement a change to culture, organizations can change the criteria for recruiting new employees. For instance, typically our recruitment procedures included advertising externally and internally for a period of two weeks for open positions. We have been unsuccessful at

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Organizational culture shapes and reinforces certain employee attitudes and behaviors by creating a system of control over employees.

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The Importance Of Culture And Organizational Culture

The organization culture as a leadership concept has been identified as one of the many components that leaders can use to grow a dynamic organization. Leadership in organizations starts the culture formation process by imposing their assumptions and expectations on their followers. Once culture is established and accepted, they become a strong leadership tool to communicate the leader 's beliefs and values to organizational members, and especially new comers. When leaders promote ethical culture, they become successful in maintaining organizational growth, the good services demanded by the society, the ability to address problems before they become disasters and consequently are competitive against rivals. The leader 's success will depend to a large extent, on his knowledge and understanding of the organizational culture. The leader who understands his organizational culture and takes it seriously is capable of predicting the outcome of his decisions in preventing any anticipated consequences. What then is organizational culture? The concept of organizational culture has been defined from many perspectives in the literature. There is no one single definition for organizational culture. The topic of organizational culture has been studied from many perspectives and disciplines, such as anthropology, sociology, organizational behavior, and organizational leadership to name a few. Deal defines organizational culture as values,

Research Theme for Buss4 2013

Organisational culture describes the values, beliefs and behaviours which provide norms for the environment of an organisation (Anon., 2012). The culture of an organisation sets out to provide structure for employees within a business and often culture shows to be a strong factor in certain organisations. Edgar Schein, a culture theorist explains that the definition of organizational culture must be general otherwise factors may be eliminated which may contribute to culture within a business. (Anon., 2007). Culture impacts on the working procedures in which a business performs and effects the way in which the organisation is run on a daily basis.

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ORGANIZATIONAL CULTURE, or CORPORATE CULTURE, comprises the attitudes, experiences, beliefs and 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.

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What is Organization Culture? Every corporation has a way it does things, its own values, beliefs, etc. in management terms this is called organizational culture. Organization culture defines the employee’s beliefs, attitudes and behaviors. It outlines what is rejected, accepted, discouraged and encouraged in a company. An organization can have either a good or bad culture . A good culture means the organization most likely thrives due to positive attributes within it. A bad culture on the other hand leads to poor performance, low morale, reckless at work, etc. Simply put organization culture is nothing more than the way a company has organized itself over the years to solve the problems and challenges presented to them. Culture sets the standard …show more content…

A company cannot have a coherent culture without people who share its values or are willing to embrace those values. So what role do they have in organization culture? • Promote company culture- Employees have a role to promote a good company culture. As brand ambassador they have a part to play in portraying the positive attributes of the company they work for. They should know the positive values, behaviors and practices that ensure a conducive environment to work in and follow them religiously. By playing this role they will make themselves and the business thrive. This role can be as simple as being patient with a difficult client. • Creating and reviewing Organization Culture- Employees have a role to create the kind of culture they would like to work from. For example, if they want a friendly and open system everyone has part to play in ensuring that all feel welcome to say what they want and can be helped incase they need help. Employees also have a role in improving a business culyture where they see it necessary. While HR might not always have the power to change the culture outright, it does have the ability to influence leadership to steer the culture in the right direction and nurture an environment where employees enjoy coming to work and performing their

Qlt1 Task 1

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Organizational culture is the foundation for organizations to strive and maintain success. Its structure of standards, include planning of human resources, management, health and safety, and the like. Organizations depend on these tactics to gain revenue, marketing strategies, and satisfaction of employees, and build relationships. Management should also be involved to create positive work environments, demonstrate great attitudes, and effective communication to its employees. The organizational culture at Walgreens is based on a variety of components within the organization.

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If employees are not familiar with the company’s goals and what the company is expect from them they won’t be able to perform good. Successful organizational culture requires a team work. Johnson should establish the espoused values of the company. These are the stated values and norms that are preferred by the company (Kreitner, 2013, p.63). Johnson should set the basic assumption which values employees (Kreitner, 2013, p.65).

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The importance of organizational culture: We can define the Organizational culture as a system of beliefs and shared values about what’s appropriate and important in an organization it also includes relationships and feelings externally and internally. Every organization’s values are supposed to be unparalleled and are widely shared and reflected in daily practice, relevant to the strategy and organization purpose. It is necessary to understand the culture of the workplace setting as well. This is where the human resources management policy is very important because it reflects and reinforces organizational values and culture. Alphabet games wants to increase the small games and survive the big profitability The Developers are struggling to control escalating costs, technological progress and consumer demands and economic conditions all combined to challenge business models and strategic positioning.

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Most closely related to operations, the decisions can determine how staff are needed and what attributes they will need in order to execute their tasks. Adversely, HR management may generate limits to options available to operations. Perhaps the most important part of the transformation process is human labor. HR management ensures workers are correctly suited to their jobs and ensures all tasks are completed within the business. Communication of decisions made by operations on how to produce a product affects decisions made by HR management with regards recruiting, training and termination of employment contracts.

Analysis Of The Corporate Culture Of Red Bull

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Essay On Workplace Culture

There are many different definitions of workplace culture. Charles Handy an Irish author/philosopher specialising in Organisational Behaviour and Management famously said that, “Culture is the way we do things around here,” but if someone was on the outside looking in how would you explain that to them. Would you have to be working there a long time yourself before you could see “how things work around here”. Because culture in an organisation is what makes it unique, it’s the personality, the attitudes, and the way we interact and relate to each other these are the things that attract the best and Brightest talent to a company. So, if an organisation has a “strong, positive, clearly defined and well communicated culture with strong core values” (Deloitte) that company is onto a winner.

Swot Analysis Of Hospital

CHAPTER 1 INTRODUCTION: 1.1 Industry Profile: The health care industry is also called as medical industry or health sector. The health care industries are one of the fast-developing industries in the world. It is one of the economical segment, which offers medicines, drugs and various other services for treating the patients. This sector is considered as the social sector and is monitored by the State and Central Government.

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• Organization
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