An Introduction to Organisational Behaviour – Organisational Culture
❖ Organisational Culture
- “The unique configuration of norms, values, beliefs, ways of behaving and so on, that
characterise the manner in which groups and individuals combine to get things done”
(Eldridge & Crombie, 1974)
Why Culture matters?
- Is the thing that influences the growth level of the hieratical structure
- As the people who are engaged in the organisation, that have the individual assumptions
and beliefs, which informs and influence the overall collective assumptions and beliefs
that then drives behaviour
- The behaviour will affect and determines the result
- The results are measured by performance and the outcome that has been achieved from
the business strategic objective
What is organisational culture?
- At its most basic level, organizational culture is ‘the way we do things around here’ (Deal
and Kennedy, (1982)
- It encompasses the common practices, attitudes, behaviours, beliefs, and values that
are shared between organizational members and can be thought of as the ‘glue’ that
binds people together and shaping how people think and behave, and key for
organizational success.
- Culture is therefore a by-product of the sense-making, where individuals try to
understand their working environment through shared perceptions and common
experiences with their fellow workers
- The basic assumptions and beliefs which are shared by members of an organization, that
operate unconsciously, and that define in a basic “taken-for-granted” fashion an
organization’s view of itself and its environment’
Cultural Layers
- National Culture
- Regional culture
- Culture of your own assumption and beliefs
Why study organizational culture?
- Peters and Waterman argued, were defined by a strong, unified culture; a bias for action;
being close to their customers; innovation; being value-driven; and having autonomy in
decision-making
- Published in 1982, the book 'In Search of Excellence' by Tom Peters and Robert
Waterman emphasized the shared values of successful companies.
- Successful firms were defined by a strong, unified culture, a bias for action, customer
proximity, innovation, value-driven approach, and decision-making autonomy.
- The book influenced other scholars like Deal and Kennedy and Hofstede, emphasizing
the importance of organizational culture for business success.
- Tichy (1982) and Carl-Henrik Svanberg (2019) argued that a company's culture should
support its business type and strategy.
- A recent survey showed that over half of senior executives consider organizational
culture as one of the top predictors of a firm's value.
, An Introduction to Organisational Behaviour – Organisational Culture
Do strong cultures equal strong performance?
- Management consultants argue that a positive organizational culture boosts productivity
by creating a shared purpose.
- It boosts staff motivation, commitment, trust, and reduces conflict.
- It improves quality, efficiency, and morale.
- It drives collaboration, knowledge sharing, and innovation.
- Organizational culture is a predictor of organizational success or failure.
- Studies show that a supportive and encouraging culture facilitates knowledge sharing,
increasing performance.
- Deal and Kennedy (1982) and Collins and Porras (1994) support this claim, stating that
visionary companies outperform non-visionary ones by about 1,500% over sixty-four
years.
- Management gurus predicted a transformation of organizations from hierarchical control
to a culture of harmony and productivity.
- A strong culture has been the driving force behind success in American Business.
- Managers now needed to manage ‘soft' aspects of visions, values, mission, and
purpose, unifying the workplace around shared core values.
Ways of understanding organizational culture: typologies of organizational culture
- Typology is a system of identifying common traits within organizations.
- It provides a quick overview of an organization and allows comparison with others.
- No single 'best culture'; managers should align the culture with the external
environment.
❖ Organisational Culture
- “The unique configuration of norms, values, beliefs, ways of behaving and so on, that
characterise the manner in which groups and individuals combine to get things done”
(Eldridge & Crombie, 1974)
Why Culture matters?
- Is the thing that influences the growth level of the hieratical structure
- As the people who are engaged in the organisation, that have the individual assumptions
and beliefs, which informs and influence the overall collective assumptions and beliefs
that then drives behaviour
- The behaviour will affect and determines the result
- The results are measured by performance and the outcome that has been achieved from
the business strategic objective
What is organisational culture?
- At its most basic level, organizational culture is ‘the way we do things around here’ (Deal
and Kennedy, (1982)
- It encompasses the common practices, attitudes, behaviours, beliefs, and values that
are shared between organizational members and can be thought of as the ‘glue’ that
binds people together and shaping how people think and behave, and key for
organizational success.
- Culture is therefore a by-product of the sense-making, where individuals try to
understand their working environment through shared perceptions and common
experiences with their fellow workers
- The basic assumptions and beliefs which are shared by members of an organization, that
operate unconsciously, and that define in a basic “taken-for-granted” fashion an
organization’s view of itself and its environment’
Cultural Layers
- National Culture
- Regional culture
- Culture of your own assumption and beliefs
Why study organizational culture?
- Peters and Waterman argued, were defined by a strong, unified culture; a bias for action;
being close to their customers; innovation; being value-driven; and having autonomy in
decision-making
- Published in 1982, the book 'In Search of Excellence' by Tom Peters and Robert
Waterman emphasized the shared values of successful companies.
- Successful firms were defined by a strong, unified culture, a bias for action, customer
proximity, innovation, value-driven approach, and decision-making autonomy.
- The book influenced other scholars like Deal and Kennedy and Hofstede, emphasizing
the importance of organizational culture for business success.
- Tichy (1982) and Carl-Henrik Svanberg (2019) argued that a company's culture should
support its business type and strategy.
- A recent survey showed that over half of senior executives consider organizational
culture as one of the top predictors of a firm's value.
, An Introduction to Organisational Behaviour – Organisational Culture
Do strong cultures equal strong performance?
- Management consultants argue that a positive organizational culture boosts productivity
by creating a shared purpose.
- It boosts staff motivation, commitment, trust, and reduces conflict.
- It improves quality, efficiency, and morale.
- It drives collaboration, knowledge sharing, and innovation.
- Organizational culture is a predictor of organizational success or failure.
- Studies show that a supportive and encouraging culture facilitates knowledge sharing,
increasing performance.
- Deal and Kennedy (1982) and Collins and Porras (1994) support this claim, stating that
visionary companies outperform non-visionary ones by about 1,500% over sixty-four
years.
- Management gurus predicted a transformation of organizations from hierarchical control
to a culture of harmony and productivity.
- A strong culture has been the driving force behind success in American Business.
- Managers now needed to manage ‘soft' aspects of visions, values, mission, and
purpose, unifying the workplace around shared core values.
Ways of understanding organizational culture: typologies of organizational culture
- Typology is a system of identifying common traits within organizations.
- It provides a quick overview of an organization and allows comparison with others.
- No single 'best culture'; managers should align the culture with the external
environment.
