Organizational Culture

Organizational culture and behavior, although different in meaning, signify two very important aspects of people management. These terms are largely related to the psychology of employees, and these two tools can be used by the management to improve the efficiency and work-rate of employees in an organization. So what is organizational culture and behavior? Let us examine both these terms one by one. Organizational Culture To understand what is organizational culture, we first need to understand what culture is. Culture is a set of values that are adopted by people who cohabit any place. For example, when we refer to a culture of a particular place (say, Mayan Culture) we are talking about the shared traits of the people who lived there, their lifestyles, their rituals, etc. If we apply this definition of culture with the prefixed word 'organization', we are referring to the rules and the underlying values of an organization that are constant and apply to all employees, without any bias or favoritism. It is the foundation of the overt and covert behavior and reactions of all people that work in an organization. Going into the depth of this subject, it is said that organizational culture and ethics can be broken up into 3 tiers on an organizational culture pyramid. The lowest tier is that of artifacts and behavior. Artifacts and behavior are the most tangible aspects of organizational culture. The physical layout of the workplace and the displayed behavior of the employees comprise this level. The next tier on the organizational culture pyramid is that of values. Values are those thoughts which influence the assumptions and behavior of employees. Hence they are tangible. The top tier on the organizational culture pyramid is that of assumptions and beliefs. This tier is the most crucial and intangible aspect of organizational culture. At the same time assumptions and beliefs are toughest to imbibe in the employees and takes time. But once the employees are in tune with the assumptions and beliefs of the organization, they stay on and impact the values and behavior of the employees. Thus we can see that it is very important that a good organizational culture is created, taught and followed. It is the responsibility of the management to create a good organizational culture through organizational leadership which is harmonious, symbiotic and realistic. A good organizational culture based on mutual respect fosters teamwork and efficiency. Organizational Behavior Organizational culture and behavior are quite interrelated as organizational culture influences behavior and vice-versa. Organizational behavior is the study of how individuals behave in an organization. It is one of the key areas in the field of management. Organizational behavior, as the name suggests, studies the behavior of individuals but is restricted to the behavior displayed by them in the organization. It deals with the overt and covert behavior of employees and their response to certain stimuli. It also studies an important branch of group and team dynamics. The point of studying organizational behavior by managers is to understand the behavior of employees, why they behave in a particular way, and look for ways in which wrong employee behavior can be improved.

Over the years several organizational behavior theories have been suggested. These theories gave the various models of organizational systems. Organizational systems have been modified over time to ensure employee satisfaction and organizational progress. Organizational behavior is the art and science which advocates that there can indeed be mutual satisfaction between employees and the management as opposed to the old notion that these two parties are always at loggerheads due to disparate visions. Organizational behavior says that a shared vision and employee motivation leads an organization towards success. This was all about organizational culture and behavior. It is interesting to know that organizational culture is a part of the vast topic of organizational behavior. After all, organizational culture too deals with the modification and improvement in organizational behavior of individuals.

Organizational Culture Like every person has his own style of behavior, his own personality; similarly the organization has a distinct culture. So exactly what is organizational culture? Organizational culture may be defined as a set of all the espoused values of the organization. The culture of the organization can be tiered into 3 levels based on their visibility and how closely they are adhered to in the organization. The first level is Artifacts and Behavior. Artifacts and behavior are the most visible components of organizational culture. They include the physical layout of the workplace and observable behavior of its employees. The next level is Values. Values are less visible than behavior but they can be seen as they influence observable behavior of the individuals working in the organization. But the top tier of organizational culture may be seen at the level of Assumptions and Beliefs. They cannot be actually seen, but they are so well ingrained in the employees that they come out quite naturally because that is the way the organization thinks. These are the strongest held components of culture as they are not influenced, but are evolved and affect behavior and values of employees of an organization. Thus these 3 components make up the personality of the organization - the organizational culture. An organizational culture is the outcome of both the management's initial beliefs and employees' adoption of those beliefs. Primary Characteristics of Organizational Culture As we can see, the unique 'behavior' of an organization can be attributed to the makeup of the values that it espouses - the organizational culture. Let us understand the primary characteristics of organizational culture that help shape up the organization's 'personality'. These are very general characteristics that every organization would have to look into, otherwise the culture would seem incomplete. Although all these characteristics are at some level a part of every company, the importance and individual interpretation of each differs from business to business, thus making each business unique in its own way. There are 7 primary characteristics of organizational culture. They are listed below.

1. Innovation and Risk Taking: Risk and returns go hand in hand. Places where you take a risk (calculated risk of course!), the chances of returns are higher. Same goes for innovation. You could either be a follower or a pioneer. Pioneering has its share of risks, but at times it can also have a breakthrough outcome for the organization. Thus, innovation and risk taking is one of the main characteristics of organizational culture defining how much room the business allows for innovation. 2. Attention to Detail: Attention to detail defines how much importance a company allots to precision and detail in the workplace. This is also a universal value as the degree of attention the employees are expected to give is crucial to the success of any business. The management defines the degree of attention to be given to details. 3. Outcome Orientation: Some organizations pay more attention to results rather than processes. It is really the business model of each business that defines whether the focus should be on the outcome or the processes. This defines the outcome orientation of the business. 4. People Orientation: This is still one of the most contentious issues in organizational culture today. How much should be the management focus on the people? Some organizations are famous for being employee oriented as they focus more on creating a better work environment for its 'associates' to work in. Others still are feudal in nature, treating employees no better than work-machines. 5. Team Orientation: It is a well established fact today that synergistic teams help give better results as compared to individual efforts. Each organization makes its efforts to create teams that will have complimentary skills and will effectively work together. 6. Aggressiveness: Every organization also lays down the level of aggressiveness with which their employees work. Some businesses like Microsoft are known for their aggression and market dominating strategies. 7. Stability: While some organizations believe that constant change and innovation is the key to their growth, others are more focused on making themselves and their operations stable. The managements of these organizations are looking at ensuring stability of the company rather than looking at indiscriminate growth. Just like having a strong personality adds character to a person, organizational culture does give a business its own special identity. It helps create cohesion among the employees as they share the primary characteristics of organizational culture and imbibes in them the spirit of team work. By Arjun Kulkarni Last Updated: 9/22/2011

Many of us do not know 'what is organizational culture?'. Organizational culture has brought about a radical change in the functioning of different organizations. It is basically the study of organizational management and studies, which includes the description of attitude, psychology, belief, experience, personal and cultural values of an organization. Like varied personalities, there are different types of organizational cultures that function, by following a method of working, that is best suited to their core business. Following are the main types of organization structures found today: Normative Culture In a normative organization, the organization stresses on implementing the organizational procedures in a correct way, and according to the norms and rules defined. This kind of culture is perceived to portray, a high standard of business ethics. Pragmatic Culture In contrast to normative cultures, stress is laid on satisfying the wish of their clients. In this type of organizational structure, no norms are set by the company, and utmost importance is given to the needs of the client. Academy Culture In this kind of culture, employees are highly skilled, and the organization provides an environment for the development and honing of employee skills. Examples of this kind of culture are hospitals, universities, large corporations, etc. Employees tend to stay with the organization and grow within it. Baseball Team Culture In this kind of culture, the employees are "free agents" and are highly prized. These employees find employment easily in any organization and are very much in demand. There is, however, a considerable amount of risk that is attached to this culture, as it is also fast paced. Examples of this kind of culture are advertising, investment banking, etc. Club Culture Usually the employees stay with the organization for a long time and get promoted to a senior post or level. These employees are hand picked, and it is imperative that they possess the specific skills required and desired, by the organization. Examples of this kind of organization are law firms, the military, etc. Fortress Culture Employees are not sure if the will be laid off or not by the organization. Very often, this organization undergoes massive changes. Few examples of this type of culture are loans and savings, large car companies, etc. Tough-Guy Culture or Macho Culture The most important aspect of this kind of culture is big rewards and quick feedback. This kind of culture is mostly associated with quick financial activities like brokerage and currency trading. It can also be related with activities, like a sports team or branding of an athlete, and also the police team. This kind of culture is considered to carry along, a high amount of stress, and people working within the organization are expected to possess a strong mentality, for survival in the organization. Work Hard/Play Hard This type of organization does not involve much risk, as the organizations already consist of a firm base

along with a strong client relationship. This kind of culture is mostly opted by large organizations which have strong customer service. The organization with this kind of culture is equipped with specialized jargons and is qualified with multiple team meetings. Bet Your Company Culture In this kind of culture, the company makes big and important decisions over high stakes endeavors. It takes time to see the consequence of these decisions. Companies that postulate experimental projects and researches as their core business, adopt this kind of culture. This kind of culture can be adopted by a company designing experimental military weapons for example. Process Culture This type of culture does not include the process of feedback. In this kind of culture, the organization is extremely cautious about the adherence to laws and prefer to abide by them. This culture provides consistency to the organization and is good for public services. One of the most difficult tasks to undertake in an organization, is to change its work culture. An organizational culture change requires an organization to make amendments to its policies, its workplace ethics and its management system. It needs to start right from its base functions which includes support functions, operations and the production floor, which finally affects the overall output of the organization. It requires a complete overhaul of the entire system, and not many organizations prefer it as the process is a long and tedious one, which requires patience and endurance. However, when an organization succeeds in making a change on such a massive level, the results are almost always positive and fruitful. The different types of organizational cultures mentioned above must have surely helped you to understand them. You can also adopt one of them for your own organization, however, persistence and patience is ultimately of the essence.