Concept of Organizational Culture
Organizational culture is a system of shared meaning held by members that distinguishes the organization from other organizations.
Organizational culture is an idea in the field of organizational studies and management, which describes the psychology, attitudes, experiences, beliefs and values of an organization.
Organization culture is a system of shared meaning within an organization that determines, to a large degree, what employees see and how they act and respond their world.
It is 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.
Edgar Schein, defines organizational culture as: “A pattern of shared basic assumptions that the group learned as it solved 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 you perceive, think, and feel in relation to those problems.”
Importance of Organization Culture
When employees join organizations they bring with them the values and beliefs that they have been taught at their family.
Therefore, employees always reproduce home culture at organization which a manager intends to change.
In this regard, organization culture always seems a resistant factor in employee’s growth and development. It also happens for all employees in any organization.
To overcome the problems and minimize the gap created by organizational and home culture, an organizational culture must be understood.
Characteristics Of Organization Culture
- Innovation and risk taking: The degree to which employees are encouraged to be innovative and take risks.
- Attention to detail: The degree to which employees are expected to exhibit precision, analysis and attention to detail.
- Outcome orientation: The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve them.
- People orientation: The degree to which management decisions take into consideration the effect of outcomes rather than on the techniques and processes used to achieve them.
- Team orientation: The degree to which work activities are organized around teams rather than individuals.
- Aggressiveness: The degree to which people are aggressive and competitive rather than easygoing.
- Stability: The degree to which organizational activities emphasize maintaining the status quo in contrast to growth.