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Organizational Culture Organizational culture Organizational culture encompasses values and behaviours that "contribute to the unique social and psychological environment of an organization".[1] According to Needle (2004),[2] organizational culture represents the collective values, beliefs and principles of organizational members and is a product of such factors as history, product, market, technology, strategy, type of employees, management style, and national culture; culture includes the organization's vision, values, norms, systems, symbols, language, assumptions, environment, location, beliefs, and habits. Business executive Bernard L. Rosauer (2013) developed what he refers to as an actionable definition of organizational culture: "Organizational culture is an emergence – an extremely complex incalculable state that results from the combination of a few simple ingredients. In "Three Bell Curves: Business Culture Decoded"[3] Rosauer outlines the three manageable ingredients he says guides the culture of any business. Ingredient #1 – Employee (focus on engagement) #2 The Work (focus on eliminating waste increasing value) waste #3 The Customer (focus on likelihood of referral). The purpose of the Three Bell Curves methodology is to bring leadership, their employees, the work and the customer together for focus without distraction, leading to an improvement in culture and brand. Reliance of the research and findings of Sirota Survey Intelligence,[4] who has been gathering employee data worldwide since 1972, the Lean Enterprise Institute,[5] Cambridge, MA, and Fred Reichheld/Bain/Satmetrix research relating to NetPromoterScore.[6] Ravasi and Schultz (2006) wrote that organizational culture is a set of shared assumptions that guide what happens in organizations by defining appropriate behavior for various situations.[7] It is also the pattern of such collective behaviors and assumptions that are taught to new organizational members as a way of perceiving and, even, thinking and feeling. Thus, organizational culture affects the way people and groups interact with each other, with clients, and with stakeholders. In addition, organizational culture may affect how much employees identify with an organization.[8] Schein (1992), Deal and Kennedy (2000), and Kotter (1992) advanced the idea that organizations often have very differing cultures as well as subcultures.[9][10][11] Although a company may have its "own unique culture", in larger organizations there are sometimes co-existing or conflicting subcultures because each subculture is linked to a different management team. Contents Usage Strong and weak Healthy Management of culture Bullying culture Culture of fear Tribal culture Personal culture National culture Multiplicity Effects Change Mergers and cultural leadership Corporate subcultures Legal aspects Critical views Research and models Hofstede O'Reilly, Chatman, and Caldwell Daniel Denison Deal and Kennedy Edgar Schein Bernard L. Rosauer Gerry Johnson Edgar Schein Stanley G. Harris Charles Handy Kim Cameron and Robert Quinn Robert A. Cooke Constructive cultures Passive/defensive cultures Aggressive/defensive cultures Adam Grant Stephen McGuire Elements Ethical frameworks and evaluations of corporate culture See also References Notes Further reading External links Usage Organizational culture refers to culture in any type of organization including that of schools, universities, not-for-profit groups, government agencies, or business entities. In business, terms such as corporate culture and company culture are often used to refer to a similar concept. The term corporate culture became widely known in the business world in the late 1980s and early 1990s.[12][13] Corporate culture was already used by managers, sociologists, and organizational theorists by the beginning of the 80s.[14][15] The related idea of organizational climate emerged in the 1960s and 70s, and the terms arenow somewhat overlapping.[16][17] If organizational culture is seen as something that characterizes an organization, it can be manipulated and altered depending on leadership and members.[18] Culture as root metaphor sees the organization as its culture, created through communication and symbols, or competing metaphors. Culture is basic, with personal experience producing a variety of perspectives.[18] The organizational communication perspective on culture views culture in three different ways: Traditionalism: views culture through objective things such as stories, rituals, and symbols Interpretivism: views culture through a network of shared meanings (organization members sharing subjective meanings) Critical-interpretivism: views culture through a network of shared meanings as well as the power struggles created by a similar network of competing meanings Strong and weak Strong culture is said to exist where staff respond to stimulus because of their alignment to organizational values. In such environments, strong cultures help firms operate like well-oiled machines, engaging in outstanding execution with only minor adjustments to existing procedures as needed. Conversely, there is weak culture where there is little alignment with organizational values, and control must be exercised through extensive procedures and bureaucracy. Research shows[citation needed ] that organizations that foster strong cultures have clear values that give employees a reason to embrace the culture. A "strong" culture may be especially beneficial to firms operating in the service sector since members of these organizations are responsible for delivering the service and for evaluations important constituents make about firms. Organizations may derive the following benefits from developing strong and productive cultures: Better aligning the company towards achieving its vision, mission, and goals High employee motivation and loyalty Increased team cohesiveness among the company's various departments and divisions Promoting consistency and encouraging coordination and control within the company Shaping employee behavior at work, enabling the organization to be more ficientef Where culture is strong, people do things because they believe it is the right thing to do, and there is a risk of another phenomenon, groupthink. "Groupthink" was described by Irving Janis. He defined it as "a quick and easy way to refer to a mode of thinking that people engage when they are deeply involved in a cohesive in-group, when the members' strivings for unanimity override their motivation to realistically appraise alternatives of action." (Irving Janis, 1972, p. 9) This is a state in which even if they have different ideas, they do not challenge organizational thinking, and therefore there is a reduced capacity for innovative thoughts. This could occur, for example, where there is heavy reliance on a central charismatic figure in the organization, or where there is an evangelical belief in the organization's values, or also in groups where a friendly climate is at the base of their identity (avoidance of conflict). In fact, groupthink is very common and happens all the time, in almost every group. Members that are defiant are often turned down or seen as a negative influence by the rest of the group because they bring conflict. Healthy Organizations should strive for what is considered a "healthy" organizational culture in order to increase Culture is the organization’s immune system. - Michael Watkins productivity, growth, efficiency and reduce What Is Organizational Culture? And Why Should We Care? - counterproductive behavior and turnover of employees. A Harvard Business Review variety of characteristics describe a healthy culture, including: Acceptance and appreciation for diversity Regard for and fair treatment of each employee as well as respect for each employee's contribution to the company Employee pride and enthusiasm for the organization and the work performed Equal opportunity for each employee to realize their full potential within the company Strong communication with all employees regarding policies and company issues Strong company leaders with a strong sense of direction and purpose Ability to compete in industry innovation and customer service, as well as price Lower than average turnover rates (perpetuated by a healthy culture) Investment in learning, training, and employee knowledge Additionally, performance oriented cultures have been shown to possess statistically better financial growth. Such cultures possess high employee involvement, strong internal communications and an acceptance and encouragement of a healthy level of risk-taking in order to achieve innovation. Additionally, organizational cultures that explicitly emphasize factors related to the demands placed on them by industry technology and growth will be better performers in their industries. According to Kotter and Heskett (1992),[11] organizations with adaptive cultures perform much better than organizations with unadaptive cultures. An adaptive culture translates into organizational success; it is characterized by managers paying close attention to all of their constituencies, especially customers, initiating change when needed, and taking risks. An unadaptive culture can significantly reduce a firm's effectiveness, disabling the firm from pursuing all its competitive/operational options. Healthy companies are able to deal with employees' concerns about the well-being of the organization internally, before the employees would even feel they needed to raise the issues externally. It is for this reason that whistleblowing, particularly
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