Organizational Culture

 

It is the patterns, beliefs, habits, assumptions and attitudes of the employees that may have not been defined by the organization but describe the way people behave in an organization and how the work is done (Armstrong & Taylor, 2020).

Organizations have shared systems of meanings that have become the basis for communications and mutual understandings (Furnham & Gunter, 1993).

It is basic assumptions which are invented, discovered or developed by a group of people to cope with problems (Shein, 1990).

Figure 1:The Components of Organizational Culture (Author Developed, 2022)

Harrison (1972) point out four different organizational cultures.

·         Power-oriented – competitive, responsive to personality rather than expertise.

·         People-oriented – consensual, management control rejected.

·         Task-oriented – focus on competency, dynamic

·         Role-oriented – focus on legality, legitimacy and bureaucracy

Figure 2 :Types of Organizational Cultures (AIHR, 2022).

According to Cameron & Quinn (2011) there are four Organizational cultures,

1.       Adhocracy culture - the dynamic, entrepreneurial Create Culture.

2.       Clan culture – friendly people-oriented culture

3.       Hierarchy culture – process-oriented culture

4.       Market culture – result oriented, competitive culture

Groysberg, et al. (2018) discuss about below other types of organzational culture,

1.       Purpose culture – Company leaders and employees share values of changing the world and ensuring global resources are shared with needed.

2.       Learning organizational culture – Focuses on research, innovation, creativity, learning and development. Tesla company is a good example for having a learning culture.

3.       Enjoyment organizational culture – Having fun and trying to do more than making money.

4.       Results organizational culture – Clearly defined goals and target driven culture.

5.       Authority organizational culture – Is defined by strong leadership and confident employees.

6.       Safety organizational culture – Highly concerned about safety of the organization and employees. Take calculated risks to achieve targets.

7.       Order organizational culture – Is usually defined by rules, procedures and where employees have very defined roles.

8.       Caring organization culture – Will be characterized by an environment that cares for its employees and where there may be strong engagement and loyalty.

Outline

Organizational culture has significant impact on how company approach the business and its brand maintenance and achieving organizational objectives. HR strategies may directly impact the organizational culture and it could be use in beneficial way to enhance the organizational performances.

Small Clip on Organizational Culture

References

AIHR, 2022. 12 Types of Organizational Culture and HR’s Role in Shaping It. [Online]
Available at: aihr.com/blog/types-of-organizational-culture/
[Accessed 02 September 2022].

Armstrong, M. & Taylor, S., 2020. Armstrong’s handbook of human resource management practice. London: Koganpage.

Cameron, K. S. & Quinn, R. E., 2011. Diagnosing and Changing Organizational Culture. 3rd ed. San Fransisco: Jossey - Bass.

Furnham, A. & Gunter, B., 1993. Corporate Assesment. s.l.:Routledge.

Groysberg, B., Lee, J., Price, J. & Cheng, . J. Y.-J., 2018. The Leader’s Guide to Corporate Culture. Harvard Business Review.

Harrison, R., 1972. Understanding your organization’s character. Harvard Business Review, pp. 119-128.

Shein, E. H., 1990. Organizational culture. American Psychologist, Issue 45, pp. 109-119.