Lecture 09: People & Organisations London Metropolitan University MBA Programme || Module Number: MN7181 || Lecturer: Mr Laleen Katagodage || E-Soft batch-14-Organizational Culture


Organizational Culture
Definitions of “organizational culture” are almost as numerous as those of “culture” a 1998 study identified 54 different definitions within the academic literature between 1960 and 1993. One helpful, though general, definition offered by Edgar Schein of MIT’s Sloan School of Management is that organizational culture is 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 embers as the correct way to perceive, think, and feel in relation of culture and people in the organization.

Organizational culture is a system of shared meaning held by members that distinguishes the organization from other organizations. in which culture is represented by seven distinct values (Chatman and Jehn, 1991).

 Key Characteristics of an Organizational Culture





  • Innovation and risk taking
The employees are encouraged to be innovative and take risks. In this company, employees do not have bosses in the traditional sense, and risk taking is encouraged by celebrating failures as well as successes (Deutschman, 2004).
  • Aggressiveness
The people are aggressive and competitive rather than easy-going and planning to devote the time to reducing poverty around the world, it will be interesting to see whether to bring the same competitive approach to the world of philanthropy. (Schlender, 2007).
  • Outcome Orientation
The management focuses on results or outcomes rather than on technique and process, Outcome-oriented cultures hold employees as well as managers accountable for success and utilize systems that reward employee and group output. In these companies, it is more common to see rewards tied to performance indicators as opposed to seniority or loyalty. (Nohria, Joyce and Roberson, 2003).
  • Stability.
The organizational activities emphasize maintaining the status quo in contrast to growth. These organizations aim to coordinate and align individual effort for greatest levels of efficiency. When the environment is stable and certain, these cultures may help the organization be effective by providing stable and constant levels of output (Westrum, 2004).
  • People orientation
The management decisions take into consideration the effect of outcomes on people within the organization. These organizations truly live the mantra that “people are their greatest asset.”  In these organizations, there is a greater emphasis on and expectation of treating people with respect and dignity (Erdogan, Liden and Kraimer, 2006).
  • Team orientation
The work activities are organized around teams rather than individuals. In team-oriented organizations, members tend to have more positive relationships with their coworkers and particularly with their managers (Erdogan, Liden, & Kraimer, 2006).
  • Attention to detail
The employees are expected to exhibit precision, analysis, and attention to detail and Such a culture gives a competitive advantage to companies in the hospitality industry by helping them differentiate themselves from others. company that specifies in detail how employees should perform their jobs by including photos of exactly how French fries and hamburgers should look when prepared properly (Ford and Heaton, 2001)




        CULTURE-LEADERSHIP-PERFORMANCE



Organizational Culture and HR
Organizational culture is conceptualized as shared beliefs and values within the organization that helps to shape the behavior patterns of employees (Kotter and Heskett, 1992). Gordon and Cummins (1989) define organization culture as the drive that recognizes the efforts and contributions of the organizational members and provides complete understanding of what and how to be achieved, how goals are inter-related, and how each employee could accomplish the organizational goals through HR function.

Organizational Value of Culture and Leadership
Culture reflects the values, beliefs, and behaviors that determine how employees perform and interact with each other every day. Leadership development can play a vital role in helping to accelerate, reinforce and sustain culture, and culture is definitely born in the executive suite – when leaders change their behaviors, others do too. It’s leaders who need to define the culture, communicate it to all organizational levels, and act and behave in ways that reflect and reinforce their desired outcomes.

Organizational Culture and Performance Management
The performance of employees improves by establishment of strong culture of an organization. The employee performance is the backbone of the organization as it leads to the growth and development of organization. Thus, the loyalty of employee relies upon knowledge and awareness of culture that improves behavior of organization, (Brooks, 2006). The awareness of quality helps in improving organizational and employee development. The degree of an achievement to which an employee fulfills the organizational mission at workplace is what is referred to as performance, (Cascio, 2006). 


Conclusion 
Further, this study will enhance the alignment of intending employees with the organizational belief, value, and practices, which attempt to ensure a proper match. Thereby fast-tracking human capital development within the organization, which tends to reduce labor turnover. In the same vein, the association that exists between training program and organizational value, belief, and practice implies that management or decision makers in institutions should endeavor to incorporate their belief, value and practices in the organizational culture which designed for the employees.
 
 Reference 
Brooks, I. (2006). Organizational Behaviour: Individuals, Groups and Organization. Essex: Pearson Education Limited.

Cascio, W. F. (2006). Managing Human Resources: Productivity, Quality of Life, Profits. New York: McGraw-Hill/Irwin.

Chatman, J. A and Jehn, K. A. (1991). Assessing the relationship between industry characteristics and organizational culture: How different can you be? Academy of Management Journal, 37, 522–553.

Deutschman, A. (2004, December). The fabric of creativity. Fast Company, 89, 54–62.
Erdogan, B., Liden, R. C and Kraimer, M. L. (2006). Justice and leader-member exchange: The moderating role of organizational culture. Academy of Management Journal, 49, 395–406.

Ford, R. C and Heaton, C. P. (2001). Lessons from hospitality that can serve anyone. Organizational Dynamics, 30, 30–47.

Gordon, G and Cummins, W. (1979). Managing Management Climate. Toronto, Canada: Lexington Books.

Kotter, E. H and Heskett, O. K. (1992). Culture: The Missing Concept in Organizational Studies. Administrative Science Quarterly, 4(2), 229-240.

Nohria, N., Joyce, W and Roberson, B. (2003, July). What really works. Harvard Business Review, 81, 42–52.

Schlender, B. (2007, December 10). Bill Gates. Fortune, 156, 54.

Westrum, R. (2004, August). Increasing the number of guards at nuclear power plants. Risk Analysis: An International Journal, 24, 959–961.


Comments

  1. UnknownOctober 3, 2018 at 8:23 PM

    Pls revisit yr article - para 1 - take care of years (1993?) and the information u rcvd with regard to this academic information.
    Quote
    Definitions of “organizational culture” are almost as numerous as those of “culture” a 1998 study identified 54 different definitions within the academic literature between 1960 and 993. One helpful, though general, definition offered by Edgar Schein of MIT’s Sloan School of Management is that organizational culture is 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 embers as the
    correct way to perceive, think, and feel in relation to those problems.
    Unquote.

    ReplyDelete
    Replies
    1. YvonneOctober 3, 2018 at 8:49 PM

      Thank you sir, and corrected the typo in the article.

      Delete

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