Organizational culture shapes how people think and act at work. It's the , beliefs, and that guide behavior in a company. Understanding culture is key to leading effectively and creating a positive work environment.
This section dives into what organizational culture is and why it matters. We'll explore the different levels of culture, from visible to deep-seated , and how they impact employee motivation, performance, and collaboration.
Organizational Culture: Definition and Components
Definition and Influence
Top images from around the web for Definition and Influence
Motivating an Organization | Boundless Management View original
Is this image relevant?
Shaping Organizational Culture | Boundless Management View original
Is this image relevant?
What Is Organizational Culture? | Principles of Management View original
Is this image relevant?
Motivating an Organization | Boundless Management View original
Is this image relevant?
Shaping Organizational Culture | Boundless Management View original
Is this image relevant?
1 of 3
Top images from around the web for Definition and Influence
Motivating an Organization | Boundless Management View original
Is this image relevant?
Shaping Organizational Culture | Boundless Management View original
Is this image relevant?
What Is Organizational Culture? | Principles of Management View original
Is this image relevant?
Motivating an Organization | Boundless Management View original
Is this image relevant?
Shaping Organizational Culture | Boundless Management View original
Is this image relevant?
1 of 3
Organizational culture represents the shared values, beliefs, assumptions, and norms shaping the behavior of individuals and groups within an organization
Functions as a powerful force influencing employee behavior, decision-making, and overall performance
Provides a sense of identity, belonging, and purpose for employees, increasing motivation and commitment
Reflects the unwritten rules and expectations guiding behavior, often described as "the way things are done around here"
Key Components
Artifacts (visible structures and processes)
Tangible elements of culture (dress codes, office layouts, rituals)
Observable manifestations of the underlying values and assumptions
Provide clues about the organization's culture to outsiders and new employees
(strategies, goals, philosophies)
Stated beliefs and principles the organization claims to follow
Often reflected in mission statements, corporate values, and public declarations
May or may not align with the actual practices and behaviors within the organization
(unconscious beliefs and perceptions)
Deeply ingrained, often unconscious beliefs guiding behavior and decision-making
Formed over time through shared experiences and problem-solving
Rarely questioned or challenged, as they are taken for granted by organizational members
Levels and Types of Organizational Culture
Levels of Culture
's model identifies three levels of organizational culture
Artifacts: visible and tangible elements (dress codes, office layouts, rituals)
Espoused values: stated beliefs and principles (mission statements, corporate values)
Misaligned or toxic cultures can lead to increased stress, conflict, and counterproductive work behaviors
Negatively impacts employee well-being and performance
Examples include cultures of fear, blame, or excessive competition (Enron)
Factors Shaping Organizational Culture
Internal Factors
Founders and early leaders establish and shape culture through their values, beliefs, and actions
Set the tone for the organization's priorities, practices, and expectations (Steve Jobs at Apple)
Their influence persists even as the organization grows and evolves
Organizational structure, size, and technology shape culture by influencing communication patterns, decision-making processes, and employee interactions
Flat structures promote collaboration and autonomy (startups)
Hierarchical structures emphasize control and stability (large, established firms)
Subcultures emerge based on factors such as department, location, or professional background
Create variations in the overall organizational culture
Can lead to conflicts or silos if not managed effectively
External Factors
Industry and competitive environment influence culture, as certain values and practices may be more prevalent or necessary for success
Fast-paced, innovative cultures in technology sectors (Silicon Valley)
Risk-averse, regulated cultures in financial services (Wall Street banks)
National culture, including societal values and norms, impacts organizational culture in multinational corporations
Influences expectations around power distance, individualism, and uncertainty avoidance
Requires adaptation and sensitivity to local cultural contexts
Mergers, acquisitions, and significant organizational changes can disrupt or alter culture
Requires careful management to ensure successful integration and adaptation
Clashes between cultures can lead to employee resistance, turnover, and reduced performance (Daimler-Chrysler merger)