BLOG – 10 – Organizational Culture

 

BLOG – 10 – Organizational Culture

Figure 1 - Organizational Culture

The culture of a company determines how employees should conduct themselves. Leaders build shared views and values, which are then conveyed and reinforced through numerous techniques, ultimately impacting employee perceptions, behaviors, and understanding.

 An organization's culture is defined as a set of shared views, values, and assumptions among its members (Schein, 1985). 

“Any leader or manager who needs to improve the organizational effectiveness of his or her institution should be able to diagnose the organizational culture” (Gamage, 2006).

Types of Organizational Cultures

1.         Clan Culture.

Clan culture is more common in traditional organizations than in digital ones. Because these businesses are frequently family-owned, employees are frequently nurtured through interpersonal connections or mentoring programs. Naturally, all of this is done to give the impression of a truly extended family.

 

2.         Hierarchical Culture.

Traditional organizations have hierarchical cultures as well. Businesses are highly structured, with authority and decision-making concentrated at the top. As a result, decisions are made solely by the Executive Managers. Other employees may feel unappreciated and helpless as a result. While this style of organizational culture is frequently incredibly efficient, it is not conducive to innovation or creativity.

 

3.         Market Culture

Market culture is geared toward scaling digitally perception enterprises. As a result, this culture is particularly results-oriented, rewarding winners and valuing internal competition. As a result, all staff are expected to be on their "Game." Those that continuously excel are rewarded financially or given opportunities for advancement.

4.         Adhocracy Culture.

An adhocracy focused on innovation is associated with digital enterprises and encourages risk-taking. Everyone, regardless of their position, is encouraged to engage in this less structured culture because you never know where the next brilliant idea will come from!

 

Seven Characteristics of Organizational Culture

1.         Viability

Financial stability is essential for viability; thus, businesses must be financially sound.

 

2.         Relationships

The majority of businesses want their employees to get along. As a result, they encourage open communication among team members, as well as employee and customer satisfaction.

 

3.         Performance

This level is all about success. For instance, pride in product or service performance and quality. Companies want to make their mark at this level, and people want to be a part of it.

4.         Evolution

Technology is always changing nowadays. As a result, people's current habits may alter tomorrow. Companies at this level are constantly adjusting, learning, and training their staff.

 

5.         Alignment

This trait elevates the art of cultivating healthy connections. Above all, this trait emphasizes the development of an internal community that is enthusiastic about what they do and open with one another.

 

6.         Collaboration

A corporation can form strategic connections if it has discovered its actual sense of purpose. Most organizations require "skin in the game" in order to develop these relationships.

 

7.         Contribution

Companies take actions at this level to secure a better planet for future generations. Reduce their company's carbon footprint, recycle, or choose a cause, for example. In a nutshell, contribution refers to a company's social obligation (Mahmutovic, Jasko, 2021).

 

Conclusion

Every Organizations has differently designed cultures for their value. If the organizational culture is flexible, employees will be engaged with the culture and behave accordingly while providing their maximum performances.

 

References… 

Gregory, B.T., Harris, S.G., Armenakis, A.A. and Shook, C.L., 2009. Organizational culture and effectiveness: A study of values, attitudes, and organizational outcomes. Journal of business research, 62(7), pp.673-679.

Mahmutovic, Jasko, 2021. SurveyLegend. [Online]
Available at: https://www.surveylegend.com/research/types-of-organizational-culture/
[Accessed 07 May 2022].

Meško Štok, Z., Markič, M., Bertoncelj, A. and Meško, M., 2010. Elements of organizational culture leading to business excellence. Zbornik radova Ekonomskog fakulteta u Rijeci: časopis za ekonomsku teoriju i praksu, 28(2), pp.303-318.