Organizational culture and structure interact to provide a setting that removes uncertainty about the role that an individual plays in an organization, and the acceptable behavior that should be adhered to while performing said role. In a small business environment, such as a sole proprietorship, the owner/leader must define and communicate the culture to his team in a manner that will create a team with shared values and beliefs that are in alignment with organizational goals.
In today’s business days, organizational culture is full of empowers and challenges. A culture supports tactical and operational goals can stimulate performance and glow innovation and differentiation (Brown, 2014 p.65) (F., 2014). The idea of organizational culture has its key roots in culture theory. From a journal “A Configuration Model of Organizational Culture” that organizational culture, as a construct separable from societal culture, has been subject to research for many years and different models can be found across different disciplines (Dauber, Fink & Yolles, 2012).
What is the nature and substance of organisational culture and why does it matter?
This essay will set out to define what is organisational culture, examine the main attributes that characterise it and how cultural originate and develop within it. At the same time, this essay will also assess the importance of organisational culture to the financial performance and continued survivability of firms.
Organisational theorists, depending on their school of thought, hold differing conceptions of organisational culture.
Impact of Culture in Organization
Culture can be defined as the beliefs, values and the pattern of behavior of an individual within designated areas. The culture of organizations defines shared values and behavioral expectations. Cultural issues are especially basic issues all around the globe. These issues can happen in various routes relying upon the size, area and the custom culture of that institution. Social issues happen even because of the states of mind and how each individual comprehend in diverse business environment.
As a company matures, its cultural values are refined and strengthened. The early values of a company’s culture exert influence over its future values. An organisation tries to preserve itself from external shocks. Organizational culture determines what types of people are hired by an organization and what types of people are left out. Moreover, once new employees are hired, the company assimilates new employees and teaches them the way things are done in the
The concept of organizational culture is one of the most debated topics for researchers and theorists. There is no one accepted definition of culture. People even said that it is hard to define culture and even more change it. It is considered a complex part of an organization although many have believed that culture influences employee behavior and organizational effectiveness (Kilmann, Saxton, & Serpa 1985; Marcoulides & Heck, 1993; Schein, 1985a, 1990).
Culture in the workplace can be the driving force for a business and can make or break a company when it comes down to it. Culture can be the reason one company does better than another or even survives for that matter. It is also important to understand the culture of a business to be able to thrive in the workplace environment. Think about what type of values, attitude, beliefs, and expectations you want to live by before you get a job somewhere at a business (“It’s All About Culture”2017). Is this the atmosphere you want to practically spend much of your life in? When we think about culture we think about different places of the world. Organizational culture is
Aspects of the perceived culture in an o organization, such as, level of communication among members, the level of support in regard for new innovations and technology, as well as the amount of support by upper level management all have a positive influence on the manner employees behave and interact with each other as well as how they treat consumers and suppliers. If employees emulate a manager that does not share the same values and beliefs of others within the organization, or that does not share a good work ethic, employees will not complete tasks and fail to be productive. It works as well in the opposite manner; when employees see a manager who supports a company’s mission, its goals, and business strategy, the organizational culture of the company will aide in providing a clear direction for employees to follow and strive towards. Ultimately, the culture supports desire business strategies and the overall mission of an organization, and the capacity of the culture is dependent on just how intensely employees share the values and basic assumption of the
Organizational Culture and Structure
The structure of an organization determines the allocation of roles, regulations, and responsibilities, and therefore builds a basis for the culture in an organization. There is a constant relationship between organizational structure and organizational culture that provides a theme within an organization. Both can be difficult to clearly define and distinguish when analyzing an organization. Organization culture is a perspective into the company’s personality; it provides descriptive values, principals, traditions, and a way of doing things that effect how members view the organization (Robbins, DeCenzo, & Coulter, 2013).
According to (Organic Workspaces, n. d) an organization’s culture refers to the observable, powerful forces in any organization, usually constituted by the employees’ shared values, beliefs, symbols, and behaviors. The organizational culture ideally influences its decisions and actions (Tharp, n. d). (Watkins, 2013) also defines organizational culture as a consistent and observable pattern of behavior in organizations. An organization’s culture channelizes individual decisions and actions at a subconscious level, and thus, can have a potent effect on an organization’s success. Organizational cultures facilitate the existence of a common ground for all stakeholders, particularly the employees and managers in addressing various issues within an organization. It reduces uncertainty thus providing a sense of direction and vision for the organization. Organization’s cultures can be observable in its people, processes and products as well as leadership’s embraced values in shaping its operations.