ORGANISATIONAL CULTURE STUDY NOTES
CONTENTS
1. Organization culture
2. Organization power and politics
3. Organizational effectiveness
4. Organization development
5. Organization sustainable resource use
ORGANIZATION CULTURE
MEANING AND DEFINITION
Culture refers to the complex whole which includes knowledge, belief, art, morals, law, custom, and other
capabilities and habits acquired by man in a society. Two terms are key to the concept culture: history and
shared phenomenon. With regard to the first, it may be started her cultural mores of a society are passed on
from generation-to-generation. The second of a key term which is basic to culture implies that the cultural
ethos are shared among the members of a society
Organizational culture (or corporate culture) has been defined as the philosophies, ideologies, values,
assumptions, beliefs, expectations, attitudes and norms that knit an organization together and are shared by its
employees.
Culture deals with past and current assumptions, experiences, values, attitudes,
beliefs, expectations, customs etc. Culture relates to the informal aspects of organisations rather
than their official elements. They focus on the values, beliefs and norms of individuals in the
organization Culture is manifested by symbols and rituals rather than through the formal
structure of the organization.
The values and behaviour that contribute to the unique social and psychological environment of
an organization is called organizational culture. It refers to the system of shared meaning held
by the members that distinguishes one organization from other organization.
Features of Organisational Culture:
Shared meaning
Values and Norms
Behavioural Consistency
Descriptive
Organisational Philosophy
Clear Guidelines
Sense of Belongingness
Factors determining org. culture
Org. Founder:
Whatever impression founders create about the organization, it continues and develops for a long
period of time.
Corporate success & shared Experiences:
Corporate success for a long period develops a strong culture. If the members share common
experience, it remains in their mind forever.
Innovation & risk taking:
Innovative and risk taking employees develop a strong culture.
ORGANIZATION CULTURE Study notes Prepared by Mr. Antony Ambia Page 1
,Outcome rather than technique: Organizations whose managers focus on outcome rather
than technique, they develop strong culture.
Competitiveness:
Organizations whose employees are competitive and guided by well structured thought out sources of
organization authority are actually stronger than non-competitive.
Shared interpretation:
Organizations whose members have common perception and thinking about organizational
values, norms, they can develop a strong culture.
Functions of Organizational Culture
It distinguishes one organization from another organization. That means it creates
brand name for the organization.
It develops a sense of identity amongst its members.
It promotes commitment amongst employees to achieve oganisational goal.
It develops appropriate standard for employees & holds them together to achieve
those standard.
It provides a control mechanism for shaping the attitude & behaviour of
employees.
Transmission of organizational Culture/How is culture learnt:
Stories:
The stories be these true or false, told to the organizational members can have a
profound impact on organizational culture.
Symbols:
Examples of symbols include the size of offices, the elegance of office furnishing etc for
certain employees. The value of these symbols is that they communicate important
cultural values.
Language:
Organisations use a language in terms of specific slogan, metaphor to convey special
meaning to employees. It symbolizes what the company stands for to both employees
and society.
Rituals:
Rituals such as annual function, award ceremonies etc reinforce the key values of the
organization, which goal is imp, which people is important. The annual function
organized by the VSSUT is an example of ritual performed in an educational institution.
The following ten characteristics help us understand the nature of culture better. When these characteristics
are mixed and meshed, we get the essence of culture.
1. Individual Initiative: The degree of responsibility, freedom, and independence that individuals have.
2. Risk Tolerance: The degree to which employees are encouraged to be aggressive, innovative,
and risk-seeking.
3. Direction: The degree to which the organization creates clear objectives and performance
expectations.
4. Integration: The degree to which units within the organization are encouraged to operate in
a coordinated manner.
5. Management Support: The degree to which managers provide clear communication, assistance and support to
their subordinates.
6. Control: The number of seas and regulations, and the amount of direct supervision that is
used to oversee and control employee behavior.
ORGANIZATION CULTURE Study notes Prepared by Mr. Antony Ambia Page 2
, 7. Identity: The degree to which members identify with the organization as a whole rather than
with their particular workgroup or field of professional expertise
8. Reward System: The degree to which reward allocations are based on employee
performance criteria in contrast to seniority, favoritism, and so on.
9. Conflict Tolerance: The degree to which employees are encouraged to air conflicts and
criticisms openly.
10. Communication Patterns: The degree to which organizational communication are restricted
to the formal hierarchy of authority
11. Purpose: Culture has a purpose in terms of achieving common objectives. Perceived success
will reinforce the culture and can make it stronger.
12. Pervasive: Every individual, irrespective of religion, region, race and ethnicity has a culture.
What the person is largely influenced by the culture to which he or she is a part.
CULTURAL DIMENSIONS
Over the years, a number of cultural dimensions have been identified. The more interesting of these are as
follows:
Levels of Culture:
Three levels of culture may be distinguished. These include national culture, business
culture, and occupational and organizational cultures. All these levels influence
the effectiveness of management.
National culture: is the dominant culture within the political boundaries of the nation-state. The dominant
national culture usually represents culture of the people with the greatest population of the greatest political or
economic power. Formal education is usually taught, and business is usually conducted in the language of the
dominant culture. National culture has considerable significance for international managers who need to
manage cultural diversity.
Business culture: represents norms, values, and beliefs that pertain to all aspects of
doing business in a culture. Business culture tells people the correct, acceptable ways to
conduct business in a society. National culture impacts business culture considerably. In any society, business
closely interweave with the broader culture values, norms and beliefs. Examples include the priorities given to
age and security, the role expectations for women within a family, and expectations concerning how those
managing should behave towards subordinates
Business culture influences all aspects of work and organizational life. This includes how
managers select and promote employees, lead and motivate their subordinates, structure their
organizations, select and formulate their strategies, and negotiate with other business people,
Different occupational groups, such as physicians, lawyers, accountants and
craftspeople have distinct cultures, called occupational cultures. Occupational cultures are the
norms, values, Beliefs, and expected ways of behaving of people in the same Occupational
group, regardless of which organization they work for. The occupational culture cannot be
ignored by the manager Just because of the dominant importance of national and business
cultures.
Organizational culture: as stated earlier, represents beliefs, attitudes and norms that
knit an organization together and are shared by its employees.
There is the first level which is the observable culture. Observable culture is manifested through
symbols was physical design, dress codes, logos, gadgets, and murals. It also includes the
unique, stories, ceremonies, and corporate rituals that make up the history of the success of
ORGANIZATION CULTURE Study notes Prepared by Mr. Antony Ambia Page 3
CONTENTS
1. Organization culture
2. Organization power and politics
3. Organizational effectiveness
4. Organization development
5. Organization sustainable resource use
ORGANIZATION CULTURE
MEANING AND DEFINITION
Culture refers to the complex whole which includes knowledge, belief, art, morals, law, custom, and other
capabilities and habits acquired by man in a society. Two terms are key to the concept culture: history and
shared phenomenon. With regard to the first, it may be started her cultural mores of a society are passed on
from generation-to-generation. The second of a key term which is basic to culture implies that the cultural
ethos are shared among the members of a society
Organizational culture (or corporate culture) has been defined as the philosophies, ideologies, values,
assumptions, beliefs, expectations, attitudes and norms that knit an organization together and are shared by its
employees.
Culture deals with past and current assumptions, experiences, values, attitudes,
beliefs, expectations, customs etc. Culture relates to the informal aspects of organisations rather
than their official elements. They focus on the values, beliefs and norms of individuals in the
organization Culture is manifested by symbols and rituals rather than through the formal
structure of the organization.
The values and behaviour that contribute to the unique social and psychological environment of
an organization is called organizational culture. It refers to the system of shared meaning held
by the members that distinguishes one organization from other organization.
Features of Organisational Culture:
Shared meaning
Values and Norms
Behavioural Consistency
Descriptive
Organisational Philosophy
Clear Guidelines
Sense of Belongingness
Factors determining org. culture
Org. Founder:
Whatever impression founders create about the organization, it continues and develops for a long
period of time.
Corporate success & shared Experiences:
Corporate success for a long period develops a strong culture. If the members share common
experience, it remains in their mind forever.
Innovation & risk taking:
Innovative and risk taking employees develop a strong culture.
ORGANIZATION CULTURE Study notes Prepared by Mr. Antony Ambia Page 1
,Outcome rather than technique: Organizations whose managers focus on outcome rather
than technique, they develop strong culture.
Competitiveness:
Organizations whose employees are competitive and guided by well structured thought out sources of
organization authority are actually stronger than non-competitive.
Shared interpretation:
Organizations whose members have common perception and thinking about organizational
values, norms, they can develop a strong culture.
Functions of Organizational Culture
It distinguishes one organization from another organization. That means it creates
brand name for the organization.
It develops a sense of identity amongst its members.
It promotes commitment amongst employees to achieve oganisational goal.
It develops appropriate standard for employees & holds them together to achieve
those standard.
It provides a control mechanism for shaping the attitude & behaviour of
employees.
Transmission of organizational Culture/How is culture learnt:
Stories:
The stories be these true or false, told to the organizational members can have a
profound impact on organizational culture.
Symbols:
Examples of symbols include the size of offices, the elegance of office furnishing etc for
certain employees. The value of these symbols is that they communicate important
cultural values.
Language:
Organisations use a language in terms of specific slogan, metaphor to convey special
meaning to employees. It symbolizes what the company stands for to both employees
and society.
Rituals:
Rituals such as annual function, award ceremonies etc reinforce the key values of the
organization, which goal is imp, which people is important. The annual function
organized by the VSSUT is an example of ritual performed in an educational institution.
The following ten characteristics help us understand the nature of culture better. When these characteristics
are mixed and meshed, we get the essence of culture.
1. Individual Initiative: The degree of responsibility, freedom, and independence that individuals have.
2. Risk Tolerance: The degree to which employees are encouraged to be aggressive, innovative,
and risk-seeking.
3. Direction: The degree to which the organization creates clear objectives and performance
expectations.
4. Integration: The degree to which units within the organization are encouraged to operate in
a coordinated manner.
5. Management Support: The degree to which managers provide clear communication, assistance and support to
their subordinates.
6. Control: The number of seas and regulations, and the amount of direct supervision that is
used to oversee and control employee behavior.
ORGANIZATION CULTURE Study notes Prepared by Mr. Antony Ambia Page 2
, 7. Identity: The degree to which members identify with the organization as a whole rather than
with their particular workgroup or field of professional expertise
8. Reward System: The degree to which reward allocations are based on employee
performance criteria in contrast to seniority, favoritism, and so on.
9. Conflict Tolerance: The degree to which employees are encouraged to air conflicts and
criticisms openly.
10. Communication Patterns: The degree to which organizational communication are restricted
to the formal hierarchy of authority
11. Purpose: Culture has a purpose in terms of achieving common objectives. Perceived success
will reinforce the culture and can make it stronger.
12. Pervasive: Every individual, irrespective of religion, region, race and ethnicity has a culture.
What the person is largely influenced by the culture to which he or she is a part.
CULTURAL DIMENSIONS
Over the years, a number of cultural dimensions have been identified. The more interesting of these are as
follows:
Levels of Culture:
Three levels of culture may be distinguished. These include national culture, business
culture, and occupational and organizational cultures. All these levels influence
the effectiveness of management.
National culture: is the dominant culture within the political boundaries of the nation-state. The dominant
national culture usually represents culture of the people with the greatest population of the greatest political or
economic power. Formal education is usually taught, and business is usually conducted in the language of the
dominant culture. National culture has considerable significance for international managers who need to
manage cultural diversity.
Business culture: represents norms, values, and beliefs that pertain to all aspects of
doing business in a culture. Business culture tells people the correct, acceptable ways to
conduct business in a society. National culture impacts business culture considerably. In any society, business
closely interweave with the broader culture values, norms and beliefs. Examples include the priorities given to
age and security, the role expectations for women within a family, and expectations concerning how those
managing should behave towards subordinates
Business culture influences all aspects of work and organizational life. This includes how
managers select and promote employees, lead and motivate their subordinates, structure their
organizations, select and formulate their strategies, and negotiate with other business people,
Different occupational groups, such as physicians, lawyers, accountants and
craftspeople have distinct cultures, called occupational cultures. Occupational cultures are the
norms, values, Beliefs, and expected ways of behaving of people in the same Occupational
group, regardless of which organization they work for. The occupational culture cannot be
ignored by the manager Just because of the dominant importance of national and business
cultures.
Organizational culture: as stated earlier, represents beliefs, attitudes and norms that
knit an organization together and are shared by its employees.
There is the first level which is the observable culture. Observable culture is manifested through
symbols was physical design, dress codes, logos, gadgets, and murals. It also includes the
unique, stories, ceremonies, and corporate rituals that make up the history of the success of
ORGANIZATION CULTURE Study notes Prepared by Mr. Antony Ambia Page 3
