6. Organizational Culture
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Organizational culture is the pattern of shared values and beliefs that influence how members of an organization interact and makes decisions. It encompasses various types, including clan, adhocracy, market, and hierarchy cultures, each with its own characteristics and management styles. The culture serves multiple functions such as creating identity, enhancing stability, guiding behavior, and can also present barriers to change and diversity.
6. Organizational Culture
- 2. Organizational Culture Organizational Culture is the pattern of shared values, beliefs, and assumptions considered to be the appropriate way to think and act within an organization Culture provides stability to an organization and gives employees a clear understanding of the way things are done in the organization It sets the tone for how organizations operate and how individuals within the organization interact. Thus, it has an impact on the employees who work for the firm. Culture is shared by the members of the organization and helps them solve and understand the things that the organization encounters, both internally and externally.
- 3. Characteristics of Organizational Culture • Innovation and Risk-taking • Attention to detail • Outcome orientation • People orientation • Team orientation • Control • Aggressiveness and Competition • Stability • Management Support • Individual Responsibility • Integration among units
- 4. Types of Organizational Culture Every organization is different, and all of them have a unique culture to organize groups of people.
- 5. Types of Organizational Culture 1. Clan Culture – Friendly working environment similar to a large family, where people have a lot in common. Leaders are seen as mentors or father figures and organization is held together by loyalty and tradition. 2. Adhocracy Culture - Dynamic and creative working environment, where employees are innovators and take risks. The organization promotes individual initiative and freedom. 3. Market Culture - People are competitive and focused on goals. Leaders are tough and have high expectations. The emphasis on winning keeps the organization together. Reputation and success are most important.
- 6. Types of Organizational Culture 4. Hierarchy Culture - Formalized and structured work environment, where procedures decide what people do. Leaders are efficient in coordination and organization and ensure smooth functioning of their organization.
- 7. Functions of Organizational Culture • Boundary-defining role as it creates distinction between one organization and others. • Conveys a sense of identity to organization members. • Helps create commitment to something larger than an individual’s self-interest. • Enhances stability as it helps hold the organization together by providing appropriate standards for what employees should say and do. • Control mechanism that guides and shapes the attitudes and behaviour of employees • Serves as a code of conduct
- 8. Barriers of Organizational Culture Barriers of Organizational Culture Barrier to Change Barrier to Diversity Barrier to Acquisitions and Mergers
- 9. Creating and Maintaining Effective Culture Disseminate Information Be a Role Model Code of Conduct Reward Ethical Behaviour Penalty to Violators Consider Work-Life Balance Fairness and Transparency
- 10. Thank You Dr. Parveen Nagpal www.linkedin.com/in/dr-parveen-kaur-nagpal-82965b15