ORGANIZATIONAL CULTURE

ORGANIZATIONAL CULTURE INCLUDES

“The organizational culture of a company constitutes a number of different values and attitudes that dictate the way people working for that company, act and think, and serves as an important tool in promoting unity and teamwork.”

• It determines through the organization’s Rituals, Beliefs, Values, Means, Norms and Language.

• As a result the culture of an organizational is a sense of identify – ‘who we are’, ‘what we stand for’ and ‘what we do’.

• In short, organizational culture is the way in which ‘things are done in the organization.

• Organizational culture is a system of shared assumptions, values, and beliefs, which governs how people behave in organizations.

• These shared values have a strong influence how they dress, act, and perform their jobs.

ORGANIZATIONAL CULTURE TYPES

The basic types of organizational culture are:

1. Bureaucratic
2. Clan
3. Market
4. Entrepreneurial

1. BUREAUCRATIC CULTURE

• In this type of culture the behavior of employees is governed by formal rules and standard operating procedures.

• Such a culture perpetuates stability.

• Organizations with bureaucratic culture tend to produce standardized goods and services, examples:
  • Government ministries
  • Fast food establishments

2. CLAN CULTURE

• In a clan culture the behavior of individuals are shaped by tradition, loyalty, personal commitment, extensive socialization and self-management.

• A clan culture achieve unity through socialization.

• Long-term employees serve as mentors.

• Members are aware of the organization’s history and have an understanding of the expected manner of conduct and organizational style.

• Members share feeling of pride in membership.

• Peer pressure to adhere to important norms is strong.

3. MARKET CULTURE

In a market culture, the values and norms reflect the significance of achieving measurable and demanding goals mainly concerning those that are financial and market-based.

• Companies with a market culture tend to focus on:
  • Sales growth
  • Profitability
  • Market share

• In a market culture the relationship between individuals and the organization is contractual (previously agreed).

• Individuals are responsible for their performance; whereas the organization promises specific rewards for levels of performance.

• Managers are not judge on their effectiveness as role models or mentors: but on monthly, quarterly, and annual performance goals based on profit.

4. ENTREPRENEURIAL CULTURE

Organizations existing in the context of an entrepreneurial culture are characterized by high levels of risk taking and creativity.

There is a commitment to experimentation, innovation, and being on the leading edge