ORGANIZATIONAL CULTURE

Organizational culture: Organizational culture is the collective behavior of humans who are part of an
organization and the meanings that the people attach to their actions. Culture includes the organization values, visions, norms, working language, systems, symbols, beliefs and habits. Organizational culture can also be referred to as a system of shared meaning held by the members that distinguishes the organization from other organizations. Culture can be analyzed at two levels. At the surface level are visible artifacts, which include things such as manner of dress, patterns of behavior, physical symbols, organizational ceremonies and office layouts. Visible artifacts are all things one can see, hear and observe by watching the members of the organization. At a deeper, less obvious level are values and beliefs, which are not observable but can be discerned from how people explain and justify what they do. Members of organization hold some values at conscious level. These values can be interpreted from the stories, language, and symbols organization members use to represent them. Organizational culture is concerned with how employees perceive the characteristics of an organizations culture.

Characteristics of organizational culture:

1) Innovation and risk taking- The degree to which the employees are encouraged to be innovative and take risks. 2) Attention to detail- The degree to which employees are expected to exhibit precision, analysis, and attention to detail. 3) Outcome orientation- The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve them. 4) People orientation- The degree to which management decision takes into consideration the effect of outcomes on people within the organization. 5) Team orientation- The degree to which work activities are organized around teams rather than individuals. 6) Aggressiveness- The degree to which people are aggressive and competitive rather than easygoing. 7) Stability The degree to which organizational activities emphasize maintaining the status quo in the contrast to growth. Each of these characteristics exists on a continuum from low to high. Appraising the organization on these characteristics, then, gives a composite picture of the organizations culture. This picture becomes the basis for the feelings of shared understanding members have about the organization, how things are done in it and the way members are supposed to behave.

Types of organizational cultures:

Studies suggest that the right fit between the culture, strategy and the environment is associated with the four categories or types of culture. Adaptability culture: - The adaptability culture emerges that requires fast response and high risk decision making. Managers encourages values that support the organizations ability to rapidly detect, interpret, and translate signals from the environment into new

behavior responses. Employees have the autonomy to make decisions and act freely to meet new needs, and responsiveness to customers is highly valued. Managers also actively create change by encouraging and rewarding creativity, experimentation and risk taking. Achievement culture:The achievement culture is suited to organizations concerned with serving specific customers in the external environment but without the intense need for flexibility and rapid change. This results- oriented culture values competitiveness, aggressiveness, personal initiative and willingness to work long and hard to achieve results.

Involvement culture:The involvement culture emphasizes an internal focus on the involvement and participation of employees to adapt rapidly to changing needs from the environment. The culture places high value on meeting the needs of employees and the organization may be characterized by a caring, family like atmosphere. Managers emphasize values such as cooperation, consideration of both employees and customers, and avoiding status differences.

Consistency culture:The consistency culture uses an internal focus and a consistency orientation for a stable environment. Following the rules and being thrifty are valued, and the culture supports and rewards a methodological, rational, orderly way of doing things. Each of these four categories of culture can be successful. In addition, organizations usually have values that fall into more than one of these categories.