Organizational culture
Understanding the organizational culture of a company is essential to understanding how it operates and functions. It can have an impact on employee morale, productivity, and overall success in achieving goals.
In this article, we will explore what organizational culture is, its importance for businesses, and strategies for cultivating a positive workplace environment.
What is an organizational Culture?
Organizational culture is the shared values, beliefs, and attitudes of an organization. It defines how employees interact with each other and how they view their work environment. The culture of a company can be shaped by its core values, mission statement, leadership style, and even physical office space. A strong organizational culture helps foster employee engagement by providing a sense of purpose and belonging within the workplace.
Organizational cultures vary from business to business; some are informal, while others are highly structured. Some organizations may focus on innovation or collaboration, while others might emphasize efficiency or customer service excellence.
Regardless of the type of organizational culture, it should be designed in such a way that it helps to create an atmosphere where employees feel valued for their contributions and motivated to do their best work possible.
Importance of Organizational Culture for Businesses
Having a positive organizational culture can have many benefits for businesses, including:
• Increased productivity: When employees feel supported in their roles, they tend to perform better as there is no fear or anxiety around making mistakes or trying new ideas because failure isn’t seen as bad but rather part of learning process, which leads to higher levels of output overall
• Higher retention rates: Having a strong corporate culture makes people want to stay at your company longer, as they are more likely to find meaning in what they do if it aligns with the vision set forth by leadership, which leads them to feel fulfilled
• Improved morale: When everyone feels like they belong in the organization, morale increases significantly, leading not only improved job satisfaction but also greater creativity throughout teams, which opens up possibilities for new solutions that weren't previously thought about
• Greater trust between management and staff: with trust comes understanding so when managers take time out from day-to-day operations at least once month (or whatever works) just listen and talk with staff members, this builds stronger relationships across all levels, allowing any issues raised to be quickly addressed before becoming bigger problems
Strategies For Cultivating A Positive Workplace Environment
Creating an effective workplace environment requires both top-down support from executives and bottom-up involvement from individual employees.
• Clearly define expectations: Employees need clear direction on what is expected from them both individually and collectively so having regular check-ins, either one-on-one or in team meetings, will ensure everyone knows exactly what needs to be done when and why
• Foster open communication: communication should flow freely between all levels within organization, whether it's face-to-face conversations during lunch breaks, coffee chats, etc., weekly emails summarizing progress made since last week; monthly updates on upcoming projects, etc., these keep lines open and encourage dialogue amongst colleagues, especially those who don’t usually speak up during group settings
• Promote diversity and inclusion: Companies must create policies that promote diversity among workers, including gender equality initiatives like flexible working hours, equal pay structures, and promotion processes that are fair to all candidates regardless of race, gender, etc., as well as creating a safe space for employees to share their thoughts and feelings without judgement, which can lead more creative solutions being found when tackling problems
• Encourage collaboration. Collaboration between teams is essential in any organization, whether it’s through shared projects or working together on specific tasks. Companies should create an environment where everyone feels comfortable contributing ideas and working together towards common goals.
• Recognize and reward success: Rewarding good work with recognition such as verbal praise, awards, or bonuses will encourage employees to strive for excellence and motivate them to continue performing at high levels. It also shows the company’s appreciation for the hard work they have done, which helps foster loyalty within the workplace.
Types of organizational cultures
Organizational culture is an important factor in determining the success of any organization. It is vital to understand the different types of organizational cultures and how they can impact a business's performance. This article will provide an overview of the various types of organizational cultures, their characteristics, and their effects on organizations.
First, let us define organizational culture. It is a set of shared values, beliefs, attitudes, and behaviors that characterize an organization's internal environment. These elements are often expressed through symbols such as stories, rituals, ceremonies, and language. They impact the behavior of employees within the organization and shape how they perceive their work environment.
The four main types of organizational cultures are clan culture, adhocracy culture, market culture, and hierarchy culture. Each type has its unique characteristics, which can help determine how successful an organization will be in achieving its goals.
Clan Culture: Clan cultures emphasize strong relationships between members of the organization by promoting collaboration among employees at all levels of the business structure. This type of culture encourages team spirit and loyalty to the company while also providing opportunities for creativity and innovation from employees who feel valued by their coworkers or supervisors. In addition to these benefits for morale within the workplace, this kind of organizational climate can also lead to increased productivity since workers feel more motivated when their efforts are appreciated by others around them. Furthermore, it creates a sense of belonging amongst staff, thus reducing the attrition rate.
Adhocracy Culture: Adhocracy cultures promote flexibility in decision-making processes with less emphasis on traditional hierarchical structures or predetermined plans for operations. This allows organizations to quickly adapt to changing circumstances without having to go through cumbersome bureaucratic procedures, which could slow down progress or prevent innovative initiatives from being implemented successfully. The focus is on creative problem-solving rather than following rigid protocols, allowing companies to stay ahead in competitive markets where rapid changes may occur frequently due to external forces. Furthermore, this type of organizational structure allows companies greater agility when responding to new trends market conditions, etc., thus increasing the chances of success
Market Culture:
A market-oriented approach focuses on competition between different departments within an organization as well as externally with other organizations operating in similar industries or locations, so that each department works hard towards achieving optimal performance outcomes at any given time. This helps create a highly motivated workforce since everyone knows that there is always someone else striving for better results than them. Additionally, it enables businesses to have better control over costs because they know exactly what resources need to be allocated to each project depending on current demand levels
Hierarchy Culture:
A hierarchy-oriented approach emphasizes strict rules regarding job roles, authority, and responsibility among different layers of management and staff. This method tends to produce very structured and disciplined working environments where decisions made top-level executives trickle down lower levels accordingly without much room dissent or disagreement among teams, thereby ensuring efficiency and consistency throughout the entire organization However , one potential downside such system is that it might lack creativity because innovation not encouraged enough compared other types of organizational structures mentioned above
All four types of organizational cultures have advantages and disadvantages depending on the particular context and situation faced by the business owner or CEO deciding which one best suits or their needs long-term strategy and overall enterprise success While no single ‘best’ choice exists, choosing the right one depends largely upon individual preferences and combinations of factors like industry sector size company budget, etc
In conclusion, having a good understanding of the different types of organizational cultures can help business owners make informed decisions about how to best manage their organizations. It is important to consider all aspects of an organization's culture and its potential impact on performance. By taking into account the strengths and weaknesses of each type, businesses will be able to create an environment that fosters growth and success.
The meaning of organisational culture in leadership
“Organizational culture is a set of values and norms helping its members to understand what the organization supports, how it operates, and what it deems important.”[1]
Origins of interest in ORGANIZATIONAL CULTURE IN LEADERSHIP
The interest in organizational culture in the literature dates back to the beginning of the 1980s. Among other things, the fact that the shared way of thinking and behaving contributes to the shaping of organizational culture was emphasized then[2]. The shared way of thinking and behaving is classified as a soft factor, and soft factors more and more often become subjects of research into organizations, and particularly organizational culture.
When referring to organizational culture, many authors use the notion of the “network of meanings created by man”. For example, C. Geertz believes that an analysis of culture is not an experimental science looking for laws but an interpretative science looking for meaning[3]. Similarly, L. Smircich emphasizes the need for studying organizational culture understood as a network of meanings[4].
Organizational culture is associated with the deeply hidden organizational structure, based on assumptions, beliefs, and values held by employees. Meanings are determined as part of the socialization process within groups of different identities, which coexist in the workplace. Interactions build the world of symbols, which on the one hand ensures high stability of culture, but on the other hand makes it a bit unstable and fragile, which results from the dependence of the system on the behavior of individuals and cognitive processes[5]. “In the context of the functioning of organizations, the culture of one organization can become a source of competitive advantage in certain institutional and market conditions, the culture of a different organization makes it a perfect workplace, while the culture of yet another organization is an element promoting innovation or making it possible to develop operations on an international or even global scale.”[6]
According to C. Christensen, organizational culture is derived from human resources that, right after setting up an enterprise, form its most significant potential. As an organization develops, people cooperate, co-creating processes. After a business model of a company crystallizes, one can indicate actions that should be prioritized. Thus values appear.
When organization members start fostering them and behaving in accordance with established norms, for example by following procedures, it can be said that a unique organizational culture has been created[7].
H. Steinmann and G. Schreyögg examine organizational culture from the anthropological perspective, i.e. they assume that it is a historically formed and coherent value system and a way of thinking, together with symbols expressing them, created as a result of human interactions.
In their works, the authors claim that “enterprises develop their own patterns and orientations, which effectively leave their mark on the behavior of employees and the functioning of the enterprise. (…) Thus, organizational culture is a kind of an intellectual community, understood as the basis for the whole organizational activity.”[8]
According to the authors, organizational culture aims to reflect the way organization members perceive the world, on account of which “organization members create an image of conditions for the performance of tasks on common bases, (…) making a new organization member realize how to act in accordance with the cultural tradition.”[9]
LEADERSHIP ORGANIZATIONAL CULTURE AND NATIONAL CULTURE
National culture and organizational culture have several common characteristics; however, it has to be said that both these notions refer to different phenomena, as national values should be treated as acquired factors that are developed during childhood, while organizational values are trained factors, mainly manifested in the area of organizational practice.
The first definition of organizational culture appeared in the middle of the 20th century, and it read as follows: “The culture of the factory is its customary and traditional way of thinking and doing things, which is shared to a greater or lesser extent by all its members, and which new members must learn, and at least partially accept, in order to be accepted into service in the firm.”[10]
Organizational culture is created by units, people, and processes taking place in the organization. As such, it is not superior to the organization, as it is its internal element, a kind of imperative.
How and why does organizational culture affect leadership and organizational performance?
Organizational culture has a significant influence on the functioning of an organization, and from the perspective of effectiveness, it can serve both positive and negative functions. According to E. Schein, organizational culture has two important functions, which concern problems connected with the adjustment of external factors and problems connected with the internal functioning of the organization.
The significance of culture in an organization results from the three functions it serves in the working environment: perceptual, integrational, and adaptive functions[11].
Levels of organizational culture
E. Schein assumed that there are three levels of organizational culture:
1. Artifacts and products, i.e. visible manifestations of culture, including its language, art, architecture, and other physical objects, as well as its visible system of organization of interpersonal relationships, status levels, gender roles, and age-related roles;
2. Values and ideologies, i.e. rules, principles, norms, values, morality, and ethics, which orient both the objectives of the given society (group) and means to achieve them;
3. Basic assumptions and conditions, which the author understands as essential, usually unconscious, assumptions concerning the nature of truth and reality, human nature, relationships between people and nature, relationships between people, and the nature of time and space[12].
Organizational culture as a strategic tool for leaders
Some organizations perceive their own organizational culture as a strategic tool that is used to orient all employees and departments toward common objectives. Numerous enterprises try to create their own culture and transplant its standards and values to their employees.
Enterprises that have been functioning very efficiently for a long time are characterized by a strong corporate culture. In numerous international corporations, the culture of the parent company has a very large impact on standards and cultural behaviors at its branches in other countries. It is worth noting that communication substantially influences an organizational culture’s shaping[13].
Organizational culture and communication are linked to each other. Organizational culture has a fundamental influence on communication processes taking place inside a given organization, and, simultaneously, communication processes have an impact on the shape of organizational culture. The ability to systematically raise awareness concerning the role of communication should be the pillar for developing competitiveness in contemporary enterprises.
The success of the contemporary enterprise is, to a large extent, based on the capacity to efficiently manage communication, and knowledge and information related to this sphere constitute today's strategic resource, determining its competitive position, survival, and, above all, development[14].
M. Kostera regards organizational culture as a system of interpersonal communication. In this sense, culture offers both “audible” and “inaudible” language and provides a common image of the world, ourselves, and our role. It teaches us how to function in the world, how to evaluate what is right and what is wrong, and how to arrange the rules of social coexistence.[15]
Organizational culture as a metaphor
Metaphors have been used in management practically since its very beginning. A metaphorical analysis of organizational culture is characteristic of the discourse of the humanities.
An analytical scientific reflection on the cognitive value of metaphors within research into organizations is only related to the development of the cultural current[16]. The end of the 1970s and the beginning of the 1980s saw the rapid development of the concepts of organizational culture and culture in management.
Anthropological analyses of culture and intercultural comparative studies (mostly related to the works of Hofstede) contributed to an increased interest in values and culture in management science.
Organizational culture itself is often understood as a metaphor and described using a number of metaphors. The issue of organizational culture is considered to be on the borderline between two discourses and numerous scientific disciplines[17]. On the one hand, it is immersed in the theory of culture, which is the subject of such sciences as sociology, social psychology, cultural anthropology, cultural studies, and other humanities. On the other hand, it is also the subject of research studies in the field of management, both in terms of theory as well as methodology and pragmatism. The consequence of its interdisciplinary nature is an abundance of inspiration as well as a multiplicity of approaches, resulting in disparities and inconsistencies in many concepts of organizational culture[18]
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Organizational culture in leadership literature and bibliography
[1] R. Griffin, Podstawy zarzdzania organizacjami, PWN, Warszawa 2013, p. 117.
[2] Hofstede G., Hofstede G. J., Kultury i organizacje. Zaprogramowanie umysu, PWN, Warszawa 2007, p. 47.
[3] Geertz C., The Interpretation of Cultures, London 1975, pp. 5–39.
[4] Smircich L., Studying Organizations as Cultures, [In] Morgan G. (ed.), Beyond Method. Strategies for Social Research, Sage Publications, Beverly Hills, 1983, p. 162.
[5] Jasaphara A., Zarzdzanie Wiedz, PWE, Warszawa 2006, p. 240.
[6] Kostera M., liwa M., Zarzdzanie w XXI wieku. Jako, twórczo, kultura, WAiP, Warszawa 2010, p. 82.
[7] Christensen, C. M., Przeomowe innowacje, PWN, Warszawa 2010, pp. 243-245.
[8] Steinmann H., Schreyögg G., Zarzdzanie. Podstawy kierowania przedsibiorstwem, Oficyna wydawnicza Politechniki Wrocawskiej, Wrocaw 1992, p. 319.
[9] Steinmann H., Schreyögg G., Zarzdzanie. Podstawy kierowania przedsibiorstwem, Oficyna wydawnicza Politechniki Wrocawskiej, Wrocaw 1992, p. 320.
[10] Jacques E., The Changing Culture of a Factory, Tavistock, London 1951; Zawadzki K., Kultura organizacyjna a kreatywno pracowników; Juchnowicz M. (ed.), Kulturowe uwarunkowania zarzdzania kapitaem ludzkim, Wolters Kluwer Business, Kraków 2009, p. 452.
[11] Sikorski Cz., Zachowania ludzi w organizacji, Wydawnictwo Naukowe PWN, Warszawa 1999, pp. 249–250.
[12] Schein E.H., Does the Japanese Management Style Have a Message for American Management?, „Sloan Management Review”, No. 23, 1981, p. 64.
[13] Chmielecki M., Culture as a Barrier to Knowledge Sharing, Journal of Intercultural Management”, 2014.
[14] Chmielecki M., Culture as a Barrier to Knowledge Sharing, Journal of Intercultural Management”, 2014.
[15] Kostera M., Zarzdzanie personelem, PWE, Warszawa 1999, p. 10.
[16] Kövecses Z., Metaphor in Culture: Universality and Variation, Cambridge University Press, 2005.
[17] Chmielecki M., Komunikacja midzykulturowa w procesie zarzdzania negocjacjami, rozprawa doktorska, Spoeczna Wysza Szkoa Przedsibiorczoci i Zarzdzania, ód 2010.
[18] Sukowski., The problems of the epistemology of corporate culture, „Journal of Intercultural Management”, No. 1(1), 2009, citation Sukowski., Cultural Paradigms in Management Sciences, „Management and Business Administration. Central Europe”, Vol. 22, No. 3(122), pp. 50–57.Organizational