Organizational culture refers to culture related to organizations including schools, universities, not-for-profit groups, government agencies, and business entities. Alternative terms include corporate culture and company culture. The term corporate culture emerged in the late 1980s and early 1990s.[1][2] It was used by managers, sociologists, and organizational theorists in the 1980s.[3][4]
Organizational culture influences the ways in which people interact, the context within which knowledge is created, the resistance they will have towards certain changes, and ultimately the way they share (or the way they do not share) knowledge.
Definition
Culture is the organization's immune system. – Michael Watkins
What Is Organizational Culture? And Why Should We Care? – Harvard Business Review
(Slightly differing) definitions abound, without consensus. Some examples:
The simplest might be from Deal and Kennedy who defined organizational culture as "the way things get done around here".[5]
According to Jaques, "the culture of the factory is its customary and traditional way of thinking and doing of things, which is shared to a greater or lesser degree 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".[6]
Schein defined it as including a shared "pattern of basic assumptions" that group members acquired over time as they learn to cope with internal and external organizationally relevant problems.[7]
Ravasi and Schultz characterized it as a set of shared assumptions that guide behaviors.[8] It is also the pattern of such collective behaviors and assumptions that are taught to new organizational members as a way of perceiving, thinking, and feeling.[9]
Flamholtz and Randle suggested that organizational culture can be seen as "corporate personality".[13] They define it as it consisting of the values, beliefs, and norms which influence the behavior of people as members of an organization.[14]
Ravasi and Schultz[15] and Allaire and Firsirotu[16] claim that organizational culture represents the collective values, beliefs and principles of organizational members. It is influenced by factors such as history, type of product, market, technology, strategy, type of employees, management style, and national culture. Culture includes the organization's vision, values, norms, systems, symbols, language, assumptions, environment, location, beliefs and habits.[17][18][19][20] Gallup reported that just 22% of U.S. employees feel connected to their organization's culture.[21]
Hofstede defined organizational culture as "the collective programming of the mind which distinguishes the members of one organization from another."[22]
History
Jaques introduced the concept in his 1951 book The Changing Culture of a Factory.[23] The book was a published report of "a case study of developments in the social life of one industrial community between April, 1948 and November 1950".[6] The case involved a publicly-held British company engaged principally in the manufacture, sale, and servicing of metal bearings. The study concerned itself with the description, analysis, and development of corporate group behaviors.[24]
Analysis
Researchers have proposed myriad dimensions individually and in combination as useful for analyzing organizational culture. Examples include external/internal, strong/weak, flexible/rigid, and many others.
Insularity
Culture can be externally focused, aiming to satisfy customers, investors, and partners. Alternatively, they can be internally focused, aiming to satisfy employees, comply with union-imposed rules, or to meet conduct standards around issues such as diversity, equity, and inclusion.[25] Many organizations lie between such extremes, attempting to balance the two sets of constraints.
Strength
Any type of culture can be strongly or only tacitly supported. A strong culture is characterized by reinforcing tools such as ceremonies and policies to instill and spread it.[26] The intent is to secure group compliance.[27]
Flamholtz and Randle state, "A strong culture is one that people clearly understand and can articulate. A weak culture is one that employees have difficulty defining, understanding, or explaining."[28] Weak culture creates little alignment, so that control must be exercised through explicit procedures and bureaucracy.
Researchers generally report that organizations having strong cultures are more successful.[29][30]
Organizational culture is used to control, coordinate, and integrate distinct groups across the organization.[31]Differences in national cultures must be addressed.[32] Such differences include organizational structure and manager/employee relationships.[33]
Groupthink
Janis defined groupthink as "a mode of thinking that people engage in when they are deeply involved in a cohesive in-group, when the members' strivings for unanimity override their motivation to realistically appraise alternative courses of action."[34] This is a state in which even if group members have different ideas, they do not challenge the group. Groupthink can lead to lack of creativity and decisions made without critical evaluation.[35] Hogg and separately Deanne et al. stated that groupthink can occur, for example, when group members rely heavily on a charismatic figure or where members evince an "evangelical"[36][37] belief in the organization's values. Groupthink can also occur in groups characterized by a friendly climate conducive to conflict avoidance.
The so-called five monkeys experiment
Since the late 1960s, the so-called 'Five Monkeys Experiment' that serves to exemplify the adverse effects of unquestioned traditions has become part of management lore.
...as we examine existing systems in an effort to install and upgrade to new systems, we find processes that make no sense but are executed nonetheless. Upon closer inspection, almost invariably, the person performing the process explains, "I don't know why I do this. It's just the way it's always been done.
The alleged experiment included five monkeys that - even though they were replaced one by one in the course of the experiment - remembered initial random collective punishment for an indivuals action and kept sanctioning divergent behaviour from any monkey in the group:[39]
It appears that this story has been made up to great parts and twisted the original experimental setup to fit the purpose of highlighting the effects of encrusted traditions in organizations.[40]
Rigidity
Kotter and Heskett define an adaptive culture as characterized by managers who pay close attention to their constituencies, especially customers, initiating change when needed, and taking risks. They claim that organizations with adaptive cultures perform better.[11]
Bullying manifests in workplaces that allow employees of higher status to harass those of lower status. This generally requires support or at least forbearance from company leaders.[41] Bullying can cascade down the organizational hierarchy as supervisors experiencing bullying display the same behavior to their subordinates.[42]
Indicators
Healthy cultures address members' concerns about the well-being of the organization. Whistleblowing, particularly when it damages a company's reputation, is considered to be a sign of a dysfunctional corporate culture, indicating that internal methods of addressing problems are inadequate.[43]
Role of communication
Promulgating a corporate culture requires effort, typically from leaders, but potentially throughout the organization. Among the many types of communication that affect organizational culture are:[44]
Metaphors such as comparing an organization to a machine or a family.[45][46]
Rites of integration: strengthen ties across individuals and groups
Reflexive comments, explanations, justifications, and criticisms of actions:
Plans: comments about anticipated actions
Commentaries: comments about action in the present
Accounts: comments about an action or event that has already occurred
Intended effects
Numerous outcomes have been associated either directly or indirectly with organizational culture. A healthy and robust organizational culture is thought to offer various benefits, including:[47]
Competitive edge derived from innovation and customer service
A Harvard Business School study reported that culture has a significant effect on an organization's long-term economic performance. The study examined the management practices at 160 organizations over ten years and found that culture can impact performance. Performance-oriented cultures experienced better financial results. Additionally, a 2002 Corporate Leadership Council study found that cultural traits such as risk taking, internal communications, and flexibility are important drivers of performance. Furthermore, innovativeness, productivity through people, and other cultural factors cited by Peters and Waterman in In Search of Excellence also have positive economic consequences.
Denison, Haaland, and Goelzer reported that culture contributes to the success of the organization, but not all dimensions contribute equally. Effects differed across nations, implying that organizational culture is rooted in national culture.[51]
Culture change
Cultures are not static and can evolve over time, either organically or through intentional change efforts by management.[52] Culture change may be attempted to reduce member turnover, influence behavior, make improvements to the organization, reset objectives, rescale the organization, and/or achieve specific results.[53]
Stages
Organizational cultures have been reported to change in stages. One group proposed five stages:[54]
Life sucks (a subsystem severed from other functional systems like tribes, gangs and prison—2 percent of population);
My life sucks (I am stuck in the Dumb Motor Vehicle line and can't believe I have to spend my time in this lost triangle of ineffectiveness—25 percent of population);
I'm great (and you're not, I am detached from you and will dominate you—48 percent of population);
We are great, but other groups suck (unification around more than individual competence—22 percent of population) and
Life is great (3 percent of population).
Obstacles
Existing culture can hinder change efforts, especially where members understand the roles that they are supposed to play. Marquis et al. claimed that 70% of all change efforts fail because of the members. Organizational culture, and the structures in which they are embedded, often exhibit substantial inertia.[55]
Methods
Change methodologies include Peter Senge's concept of a "learning organization" expressed in The Fifth Discipline or Directive Communication's "corporate culture evolution".
Changing culture takes time. Members need time to get used to the new ways. Organizations with a strong and specific culture are harder to change.[56]
Prior to introducing a cultural change, a needs assessment can characterize the existing culture. This involves some mixture of employ surveys, interviews, focus groups, observation, customer surveys, and other internal research. The company must then describe the new, desired culture, and then design a change process.
Cummings and Worley offer six guidelines for cultural change, in line with the eight distinct stages mentioned by Kotter.[57][58]
Formulate a strategic vision (Kotter stage 1, 2, and 3). A clear vision of the firm's new strategy, shared values and behaviors provides direction for the culture change.[59]
Display top-management commitment (stage 4). It is important to understand that culture change must be managed from the top of the organization, as senior management's willingness to change is an important indicator.[59] Leadership must be strongly in favor of the change to implement the change. De Caluwé and Vermaak provide a framework with five different ways of thinking about change.[60]
Model change at the highest level (stage 5). In order to show that management wants the change, the change has to be visible and notable. Leadership needs to express the values and behaviors to be realized. It is important that leadership acknowledge the strengths of the current culture; it must be made clear that the culture needs adjustments rather than radical changes.[5][61][62][63][64] This process may include creating committees, task forces, and/or value managers. Change agents communicate the new culture. They must embody courage, flexibility, interpersonal skills, organization knowledge, and patience. These individuals must be catalysts, rather than dictators.[65]
The fourth step is to modify the organization to support change. This includes identifying systems, policies, procedures and rules accordingly. This may include changes to accountability systems, compensation, benefits/reward structures, and recruitment and retention programs.
Select and socialize newcomers and expel deviants (stage 7 and 8).[58] A way to implement a change is to connect it to organizational membership. People may have to be selected and terminated in terms of their fit with the new culture.[66] Encouraging employee motivation and loyalty is key and creates a healthy culture. Change managers must be able to connect the desired behavior and organizational success. Training must be provided to employees.
Develop ethical and legal sensitivity. Changes in culture can lead to tensions between organizational and individual interests, which can create legal problems for practitioners. This is particularly relevant for changes in integrity, control, equitable treatment and job security.[66] An evaluation process monitors progress and identifies areas that need further development. This step surfaces obstacles and resistant members, and acknowledges and rewards improvement, which encourages change. It may be necessary to incorporate new change managers, such as outside consultants. People often resist change, leaving it to leadership to convince people that gains outweigh losses. Besides institutionalization, reification is another process that tends to occur in strong cultures. The organization may come to be regarded as a source of pride, and even unique. The organization's members develop a strong bond that transcends material returns, and begin to identify with it, turning the organization into a sort of clan.
Research and models, cultural dimensions
Several methods have been used to classify organizational culture. While there is no single "type" of organizational culture and organizational cultures vary widely across organizations, researchers have developed models to describe different indicators of organizational cultures.
Hofstede looked for differences between over 160 000 IBM employees in 50 countries and three regions of the world, searching for aspects of culture that influence business behavior. He emphasized awareness of international differences and multiculturalism. Cultural differences reflect differences in thinking and social action, and in "mental programs", a term Hofstede used for predictable behavior. Hofstede related culture to ethnic and regional differences, but also to the influence of organizations, professional, family, social and subcultural groups, national political systems, and legislation.[67]
He suggested that changing "mental programs" involves changing behavior first, which then leads to value change. Though groups such as Jews and Gypsies have maintained their identity through centuries, their values reflect adaptation to the dominant cultural environment.
Hofstede described national and regional cultural groupings that affect the behavior of organizations and identified four dimensions of culture (later five[68]) in his study of national cultures:
Power distance – Societies adopt various approaches to social inequality. Although invisible, inside organizations' power inequality of the "boss-subordinate relationships" is functional. "According to Mulder's Power Distance Reduction theory subordinates will try to reduce the power distance between themselves and their bosses and bosses will try to maintain or enlarge it", but societies expect differences in power levels to exist.[69]
Uncertainty avoidance is a way of coping with uncertainty. Society copes using technology, law and religion/ritual, along either a rational (technology, law) or non-rational (religion/ritual). Hofstede cited rituals including memos and reports, some parts of accounting systems, parts of planning and control systems, and the invocation of experts.
Individualism vs. collectivism – disharmony of personal and collective interests.[70] Hofstede raised the idea that society's expectations of Individualism/Collectivism are reflected by members. Collectivist societies have more emotional dependence; when in equilibrium an organization is expected to show responsibility to members. Individualist societies more often expect self-reliance. Some cultures have features of both.
Masculinity vs. femininity – reflects whether a certain society emphasizes stereotypical male or female cultural values, gender roles and power relations.
Long- versus shortt-term orientation[68] – "The long-term orientation dimension can be interpreted as dealing with society's search for virtue. Societies with a short-term orientation generally have a strong concern with establishing the absolute Truth. They are normative in their thinking. They exhibit great respect for traditions, a relatively small propensity to save for the future, and a focus on achieving quick results. In societies with a long-term orientation, people believe that truth depends very much on situation, context and time. They show an ability to adapt traditions to changed conditions, a strong propensity to save and invest, thriftiness, and perseverance in achieving results."[71]
These dimensions help define the effect of national cultures on management, and can be used to adapt to local needs.[72]
Daniel Denison
Denison's model assessed culture along four dimensions. Each divides into three sub-dimensions:[73]
Mission – Strategic Direction and Intent, Goals and Objectives and Vision
Adaptability – Creating Change, Customer Focus and Organizational Learning
Involvement – Empowerment, Team Orientation and Capability Development
Work-hard, play-hard – Feedback: rapid; risk: low. Stress come from work quantity rather than uncertainty. High-speed action leading to high-speed recreation. Examples: Restaurants, software companies.[74][75]
Macho – Feedback: rapid; reward: rapid; risk:high. Stress comes from risk and potential reward loss/gain. Short-term focus. Examples– police, surgeons, sports.
Process culture – Feedback: slow; reward: slow; risk: low. Low stress, plodding work, comfort and security. Stress comes from internal politics and bureaucracy. Examples: banks, insurance companies.[5][74]
Bet-the-company culture – Feedback: slow; reward: slow; risk: high. Stress comes from high risk and long payoff intervals. Detailed long-term planning. Examples: aircraft manufacturers, oil companies.
Artifacts, values, and tacit assumptions
Schein claimed that culture is the most difficult organizational attribute to change, outlasting products, services, founders and leadership and all physical attributes. His model considers culture as an observer, characterized in terms of artifacts, values and underlying assumptions.[10]
Schein's model considers attributes that can be experienced by the uninitiated observer – collectively known as artifacts. Included are facilities, offices, furnishings, visible awards and recognition, informal dress codes, member interactions with each other and with outsiders, and company slogans, mission statements and other creeds.
Artifacts are physical elements that convey cultural meaning. Denison described artifacts as the tangible aspects of culture shared by members of an organization. Verbal, behavioral and physical artifacts are the surface manifestations of organizational culture.[73] Technology and art exhibited by members of an organization are examples of physical artifacts. Rituals (myths, stories, and sagas) are artifacts that convey organizational history and influence member understanding of values and beliefs.
Values direct individual behavior such as loyalty and customer orientation. Acceptance of stated values underlies impressions about trustworthiness and supportiveness, while also informing member behavior. This can be assessed by member interviews and surveys.
Tacit assumptions are elements of culture that are not explicitly identified by members. Some elements may be taboo to discuss. Members may not have conscious knowledge of them. Nevertheless, they can influence member behavior. Interviews and surveys do not reveal them—much more in-depth assessment is required.
This model can enable understanding seemingly paradoxical behavior. For instance, an organization can profess high aesthetic and moral standards in terms of values, while violating those values should they conflict with tacit assumptions.
External adaptation and internal integration
Schein claimed that the two main reasons why cultures develop in organizations are external adaptation and internal integration. External adaptation helps an organization to flourish by affecting its culture. An appropriate culture holds the potential for generating sustained competitive advantage over external competitors.
Internal integration is an important function for establishing essential social structures and aiding socialization at the workplace. Culture-shaping factors include:[10][clarification needed]
External environment
Industry
Size and nature of the organization's workforce
Technologies the organization uses
The organization's history and ownership
Organizational structure, organizational culture
Organizational structure is linked to organizational culture. Harrison described four types of culture:[76]
Power culture – concentrates power among a small group or a central figure and its control radiates from its center like a web. Power cultures need few rules and little bureaucracy, but swift decisions can ensue.
Role culture – authorities are delegated within a defined structure. These organizations form hierarchical bureaucracies, where power derives from personal position and rarely from expertise. Control is by procedures (which are highly valued), strict role descriptions and authority definitions. These organizations have consistent systems and are predictable. This culture is often represented by a "Roman Building" with "pillars". These pillars represent the functional departments.
Task culture – teams are formed to solve particular problems. Power is derived from the team with the expertise to complete a task. This culture uses a small team approach, where people are highly skilled and specialized in their own area of expertise.[77] Additionally, these cultures often feature multiple reporting lines found in a matrix structure.
Person culture: formed where all individuals believe themselves superior to the organization. It can become difficult for such organizations to operate, since the concept of an organization suggests that members are like-minded individuals who pursue common organizational goals. Some professional partnerships operate well as such cultures, because each partner brings a particular expertise and clientele to the group.
Cultural web
Johnson described a cultural web, identifying elements that can be used to describe/influence organizational culture:[78]
The paradigm – What the organization is about, what it does, its mission, its values.
Control systems – Processes that monitor activity. Role cultures have vast rule-books. Power cultures rely on individualism.
Organizational structure – Reporting lines, hierarchies, and the way that work flows through the organization.
Power structures – Who makes the decisions, how widely spread is power, and on what is power based?
Symbols – Organizational logos and designs, including symbols such as parking spaces and executive washroom keys.
Rituals and routines – Management meetings, board reports,...
Stories and myths – narratives about people and events that convey values
These elements may overlap. Power structures may depend on control systems, which may exploit rituals that generate stories that may or may not be true.
Schemata
Schemata are knowledge structures derived from experience that simplify behavioral choices by providing a way to think about events. Schemata are created through interaction with others.[79]
Harris described five categories of in-organization schemata necessary for organizational culture:
Self-in-organization schema – individual self-concept relating to the organization, including personality, roles, and behavior
Individual-in-organization schema – memories, impressions, and expectations of others
Organization schema – a subset of individual schema: generalized perspective on others
Event-in-organization schema – knowledge of social events
These schemata represent an individual's knowledge of the organization. Culture results when individual schemata become shared across an organization, primarily through organizational communication, reflecting shared knowledge and meaning.
Reciprocity
Adam Grant, author of Give and Take, highlights norms of reciprocity in analyzing culture. He distinguishes giver, taker and matcher cultures.
Givers – employees operate by "helping others, sharing knowledge, offering mentoring, and making connections without expecting anything in return"
Takers – "get as much as possible from others while contributing less in return" and winners are those who take the most and are able to build their power even at the expense of others.
Matchers – match giving with taking, and trade favours mostly in closed loops.[80]
In a study of the US intelligence system, giver cultures had the greatest group effectiveness.[80]
Frank claimed that "many organizations are essentially winner-take-all markets, dominated by zero-sum competitions for rewards and promotions". In particular, when leaders implement forced ranking systems to reward individual performance, giver cultures give way to taker or matcher cultures. Awarding the highest-performing individual within each team encourages a taker culture.[80]
Entrepreneurial
McGuire's model predicted revenue from new sources. An entrepreneurial organizational culture is a system of shared values, beliefs and norms, valuing creativity and tolerance, believing that innovating and seizing market opportunities are solutions to problems of survival and prosperity, environmental uncertainty, competition, and expects members to behave accordingly.[81][82]
People and empowerment focused
Value creation through innovation and change
Attention to basics
Hands-on management
Doing the right thing
Freedom to grow and to fail
Commitment and personal responsibility
Emphasis on the future
Financial impact
Flamholtz identified and validated a model of organizational culture that drives financial results.[83] The model defines five dimensions:[84]
treatment of customers
treatment of people
performance standards and accountability
innovation and change
process orientation.
Flamholtz reported on the impact of organizational culture on financial performance.[85] He claimed that organizational culture is an asset in the conventional accounting sense.[86]
Variable, process
Smircich described two approaches to studying organizational culture: as a variable and as a process.[87] The former could be external or internal, encompassing values, norms, rituals, structures, principles, assumptions, and beliefs.[88] National culture influences that variable.
Driskill and Brenton claimed that culture could be understood as shared cognition, systems of shared symbols, and as the expression of unconscious processes.[88]
Traditional – views culture through stories, rituals, and symbols
Interpretive – views culture through a network of shared meanings (members sharing subjective meanings)
Critical-interpretive – views culture through a network of shared meanings as well as through power struggles created by competing meanings.
Rosauer observed organizational culture to be emergent – an incalculable state that results from the combination of various ingredients. In "Three Bell Curves: Business Culture Decoded",[89] he outlined three ingredients that he claimed guide business culture:
employee (focus on engagement)
work (focus on eliminating waste increasing value)
customer (focus on likelihood of referral)
Improving these areas brings leadership, employees, work and customers together, improving culture and brand.[89]
Mitroff and Kilmann (1975):[91] Sensation thinking, Sensation feeling, Intuitive thinking, and Intuitive feeling
Sethia and Von Gilnow in 1985:[92] Caring, Apathetic, Integrative, and Exacting
Deal and Kennedy (1982):[93] organizational environment, core beliefs, heroes of the culture, folklore, myths, rites, rituals of culture, and the cultural network
Ouchi and Jaeger (1978):[94] type A (allows some decision making), J (tribal control), and Z (tribal decision making)
Instruments
Organizational Cultural Profile
O'Reilly, Chatman and Caldwell developed a model based on the belief that cultures can be distinguished by values. Their Organizational Cultural Profile (OCP) is a self-reporting tool that distinguishes eight categories:
Innovation
Supportiveness
Stability
Respect for People
Outcome Orientation
Attention to Detail
Team Orientation
Aggressiveness.
The instrument can measure how culture affects performance, as it discerns persons most suited to an organization and such organizations have an effective culture. Takeda claimed that such instruments can measure both person-situation fit and person-culture fit.[95] Such measurements assess the level of compatibility between employees and companies. Employee values are measured against organizational values to predict employee turnover.[96][97]
Organizational Culture Assessment Instrument
Cameron and Quinn developed the Organizational Culture Assessment Instrument (OCAI) that distinguishes four culture types, based on the Competing Values Framework.[98]
Competing values can be assessed along dimensions of flexibility/stability and internal/external focus – they reported these to be the most important in influencing organizational success. These dimensions enable a quadrant of four culture types:
Cooke defined culture as behaviors that members believe are required to fit in and meet expectations. The Organizational Culture Inventory measures twelve behavioral norms grouped into three culture types:[99]
Constructive cultures – Members are encouraged to interact with people and approach tasks in ways that help them meet their higher-order satisfaction needs.
Passive/defensive cultures – Members believe they must interact with people in ways that will not threaten their own security.
Aggressive/defensive cultures – Members are expected to approach tasks forcefully to protect their status and security.
COVID-19 impact
The pandemic led many organizations to incorporate limiting spread into their cultures as a collective responsibility. Responses focused on requiring vaccines, hygiene, and masking.
In Asia, mask-wearing was part of several national cultures predating the pandemic.[100] This was driven by experience with prior flus in Asia, such as Spanish flu, Hong Kong flu, Avian flu, and Swine flu, in addition to SARS, as well as various affronts to air quality such as volcanic eruptions.[101]
Somers categorized cultures based on whether the need of the individual or the group was foremost. He used behaviors such as mask-wearing to measure collectivism vs individualism.[102] Cultures otherwise rated "strong" were relatively resistant to change during the pandemic.[103] However, strong cultures that emphasized innovation were more willing to change.
Mandated interventions could be seen by members either as attempts to protect them or to as attempts to exert control despite limited effectiveness, depending on how they were presented.[104]
Digital tools such as videoconferencing, screen-sharing, file sharing, shared document authoring, digital whiteboards, and chat groups became widely accepted, replacing in-person meetings. The reduced amount of face-to-face communications may have impacted organizational cultures. New members, lacking face time with others, experienced difficulty in adapting to their organization's culture. The loss of face-time affected existing employees as well, directly weakening cultures, in addition to the indirect effects that strengthened or weakened cultures as organizations reacted in various ways to the pandemic. Some members felt disengaged and expandable rather than essential, alienated, and exhausted.[105]
Sull and Sull reported that employees rated their leadership higher given honest/open communication, integrity, and transparency more than in preceding years. Also, employers and leaders giving more attention to employees' welfare had a positive impact on cultural adherence.[106] Chambers claimed that this was a short-term response rather than a culture change.[107]
Deloitte argued that employees displayed greater sense of purpose, inspiration, and contribution. Also, leaders became more tolerant of employees' failure because of a significant increase in experimentation and risk-taking.[108]
Daum and Maraist claimed that sense of purpose relates to customers and the society of which employees are part. They compared hospitals and retail shops. The former had a greater sense of purpose during the pandemic, while the latter had less.[109]
Critical views
Criticism of "organizational culture" began in the early 1980s.[4] Most criticism comes from writers in critical management studies who for example express skepticism about functionalist and unitarist views. They stress the ways in which these assumptions can stifle dissent and reproduce propaganda and ideology. They suggest that organizations do not embody a single culture (diversity), and cultural engineering may not reflect the interests of all stakeholders.
Parker suggested that many of the assumptions surrounding organizational culture are not new. They reflect a long-standing tension between cultural and structural (or informal and formal) versions of organizations. Further, it is reasonable to suggest that complex organizations might have many cultures, and that such sub-cultures might overlap and contradict each other. The neat typologies of cultural forms found in textbooks rarely acknowledge such complexities, or the various economic contradictions that exist in capitalist organizations.[110]
Smircich criticized theories that attempt to categorize or 'pigeonhole' organizational culture.[3][111] She applied the metaphor of a plant root to represent culture, saying that it drives organizations rather than vice versa. Organizations are the product of their organizational culture, which shapes behavior and interaction. While Schein's underlying assumptions are that beliefs, perceptions, thoughts, and feelings are taken for granted and can be observed and considered the ultimate source of values and action. However, such assumptions undermine attempts to categorize and define organizational culture.[112]
In the US, corporate culture can legally be found to be a cause of injuries and a reason for fining companies, such as when the US Department of LaborMine Safety and Health Administration levied a fine of more than US$10.8 million on Performance Coal Co. following the Upper Big Branch Mine disaster in April 2010. This was the largest fine in the history of this agency.[113]
Subcultures
Groups within the organization may act according to their own subcultures that are not fully aligned with that of the organization as a whole. For example, computer technicians will have expertise, language and behaviors gained independently of the organization, but their presence can influence the culture of the larger organization.
Shadow side
Egan and Tate speak of organizations having a "shadow side",[114] which Egan defined as:
All those things that substantially and consistently affect the productivity and quality of the working life of a business, for better or worse, but which are not found on organisation charts, in company manuals, or in the discussions that take place in formal meetings.[115]
Tate describes the shadow side as the "often disagreeable, messy, crazy and opaque aspects of [an] organisation's personality".[114]
Lifestyle (sociology)– Interests, opinions, behaviours, and behavioural orientations of an individual, group, or culturePages displaying short descriptions of redirect targets
Organizational dissent– expression of disagreement or contradictory opinions about organizational practices and policiesPages displaying wikidata descriptions as a fallback
Organizational learning– Academic discipline; examines how goal-driven social entities add and create knowledge
Organizational psychology– Branch of psychologyPages displaying short descriptions of redirect targets
Organizational studies– Academic fieldPages displaying short descriptions of redirect targets
Precarious work– non-standard employment poorly paid, insecure, unprotected, and cannot support a householdPages displaying wikidata descriptions as a fallback
Psychological capital– tool used for measuring psychological outcomes, initiated by Fred LuthansPages displaying wikidata descriptions as a fallback
Three circles model– model for the interaction between the managerial culture, the workplace culture and the surrounding culturePages displaying wikidata descriptions as a fallback
Tick-box culture– Bureaucratic and external impositions on professional working conditions
Working class culture– Culture and life of wage workersPages displaying short descriptions of redirect targets
Industrial and organizational psychology "focuses the lens of psychological science on a key aspect of human life, namely, their work lives. In general, the goals of I-O psychology are to better understand and optimize the effectiveness, health, and well-being of both individuals and organizations." It is an applied discipline within psychology and is an international profession. I-O psychology is also known as occupational psychology in the United Kingdom, organisational psychology in Australia and New Zealand, and work and organizational (WO) psychology throughout Europe and Brazil. Industrial, work, and organizational (IWO) psychology is the broader, more global term for the science and profession.
Within the realm of communication studies, organizational communication is a field of study surrounding all areas of communication and information flow that contribute to the functioning of an organization. Organizational communication is constantly evolving and as a result, the scope of organizations included in this field of research have also shifted over time. Now both traditionally profitable companies, as well as NGO's and non-profit organizations, are points of interest for scholars focused on the field of organizational communication. Organizations are formed and sustained through continuous communication between members of the organization and both internal and external sub-groups who possess shared objectives for the organization. The flow of communication encompasses internal and external stakeholders and can be formal or informal.
Edgar Henry Schein was a Swiss-born American business theorist and psychologist who was professor at the MIT Sloan School of Management. He was a foundational researcher in the discipline of organizational behavior, and made notable contributions in the field of organizational development in many areas, including career development, group process consultation, and organizational culture. He was the son of former University of Chicago professor Marcel Schein.
Gerard Hendrik (Geert) Hofstede was a Dutch social psychologist, IBM employee, and Professor Emeritus of Organizational Anthropology and International Management at Maastricht University in the Netherlands, well known for his pioneering research on cross-cultural groups and organizations.
Workplace politics is the process and behavior that in human interactions involves power and authority. It is also a tool to assess the operational capacity and to balance diverse views of interested parties. It is also known as office politics and organizational politics. It involves the use of power and social networking within a workplace to achieve changes that benefit the individuals within it. "Organizational politics are self-serving behaviors" that "employees use to increase the probability of obtaining positive outcomes in organizations". Influence by individuals may serve personal interests without regard to their effect on the organization itself. Some of the personal advantages may include:
Organizational behavior or organisational behaviour is the: "study of human behavior in organizational settings, the interface between human behavior and the organization, and the organization itself". Organizational behavioral research can be categorized in at least three ways:
In cross-cultural psychology, uncertainty avoidance is how cultures differ on the amount of tolerance they have of unpredictability. Uncertainty avoidance is one of five key qualities or dimensions measured by the researchers who developed the Hofstede model of cultural dimensions to quantify cultural differences across international lines and better understand why some ideas and business practices work better in some countries than in others.According to Geert Hofstede, "The fundamental issue here is how a society deals with the fact that the future can never be known: Should we try to control it or just let it happen?"
Power distance is the unequal distribution of power between parties, and the level of acceptance of that inequality; whether it is in the family, workplace, or other organizations.
A toxic leader is a person who has responsibility for a group of people or an organization, and who abuses the leader–follower relationship by leaving the group or organization in a worse condition than it was in. Good and bad leadership styles can propagate downwards in an organisation, and there may therefore be little support to be gained by reporting toxic leadership upwards in the hierarchy.
Onboarding or organizational socialization is the American term for the mechanism through which new employees acquire the necessary knowledge, skills, and behaviors to become effective organizational members and insiders. In standard English, this is referred to as "induction". In the United States, up to 25% of workers are organizational newcomers engaged in onboarding process.
Diversity, in a business context, is hiring and promoting employees from a variety of different backgrounds and identities. Those characteristics may include various legally protected groups, such as people of different religions or races, or backgrounds that are not legally protected, such as people from different social classes or educational levels. A business or group with people from a variety of backgrounds is called diverse; a business or group with people who are very similar to each other is not diverse.
Talent management (TM) is the anticipation of required human capital for an organization and the planning to meet those needs. The field has been growing in significance and gaining interest among practitioners as well as in the scholarly debate over the past 10 years, particularly after McKinsey's 1997 research and the 2001 book on The War for Talent. Although much of the previous research focused on private companies and organizations, TM is now also found in public organizations
Cross-cultural psychology attempts to understand how individuals of different cultures interact with each other. Along these lines, cross-cultural leadership has developed as a way to understand leaders who work in the newly globalized market. Today's international organizations require leaders who can adjust to different environments quickly and work with partners and employees of other cultures. It cannot be assumed that a manager who is successful in one country will be successful in another.
Hofstede's cultural dimensions theory is a framework for cross-cultural psychology, developed by Geert Hofstede. It shows the effects of a society's culture on the values of its members, and how these values relate to behavior, using a structure derived from factor analysis.
Global leadership is the interdisciplinary study of the key elements that future leaders in all realms of the personal experience should acquire to effectively familiarize themselves with the psychological, physiological, geographical, geopolitical, anthropological and sociological effects of globalization. Global leadership occurs when an individual or individuals navigate collaborative efforts of different stakeholders through environmental complexity towards a vision by leveraging a global mindset. Today, global leaders must be capable of connecting "people across countries and engage them to global team collaboration in order to facilitate complex processes of knowledge sharing across the globe" Personality characteristics, as well as a cross-cultural experience, appear to influence effectiveness in global leaders.
Individualistic cultures are characterized by individualism, which is the prioritization or emphasis of the individual over the entire group. In individualistic cultures people are motivated by their own preference and viewpoints. Individualistic cultures focus on abstract thinking, privacy, self-dependence, uniqueness, and personal goals. The term individualistic culture was first used in the 1980s by Dutch social psychologist Geert Hofstede to describe countries and cultures that are not collectivist, Hofstede created the term individualistic culture when he created a measurement for the five dimensions of cultural values.
Cultural communication is the practice and study of how different cultures communicate within their community by verbal and nonverbal means. Cultural communication can also be referred to as intercultural communication and cross-cultural communication. Cultures are grouped together by a set of similar beliefs, values, traditions, and expectations which call all contribute to differences in communication between individuals of different cultures. Cultural communication is a practice and a field of study for many psychologists, anthropologists, and scholars. The study of cultural communication is used to study the interactions of individuals between different cultures. Studies done on cultural communication are utilized in ways to improve communication between international exchanges, businesses, employees, and corporations. Two major scholars who have influenced cultural communication studies are Edward T. Hall and Geert Hofstede. Edward T. Hall, who was an American anthropologist, is considered to be the founder of cultural communication and the theory of proxemics. The theory of proxemics focuses on how individuals use space while communicating depending on cultural backgrounds or social settings. The space in between individuals can be identified in four different ranges. For example, 0 inches signifies intimate space while 12 feet signifies public space. Geert Hofstede was a social psychologist who founded the theory of cultural dimension. In his theory, there are five dimensions that aim to measure differences between different cultures. The five dimensions are power distance, uncertainty avoidance, individualism versus collectivism, masculinity versus femininity, and Chronemics.
Entrepreneurial leadership is "organizing a group of people to achieve a common goal using proactive entrepreneurial behavior by optimising risk, innovating to take advantage of opportunities, taking personal responsibility and managing change within a dynamic environment for the benefit of [an] organisation".
Trompenaars's model of national culture differences is a framework for cross-cultural communication applied to general business and management, developed by Fons Trompenaars and Charles Hampden-Turner. This involved a large-scale survey of 8,841 managers and organization employees from 43 countries.
Corporate DNA refers, in business jargon, to organizational culture. It is a metaphor based on the biological term DNA, the molecule that encodes the genetic instructions in living organisms.
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1 2 Farish, Phillip (1982). "Career Talk: Corporate Culture". Hispanic Engineer (1). The term "Corporate Culture" is fast losing the academic ring it once had among U.S. manager. Sociologists and anthropologists popularized the word "culture" in its technical sense, which describes overall behavior patterns in groups. But corporate managers, untrained in sociology jargon, found it difficult to use the term unselfconsciously.
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Further reading
Barney, Jay B. (July 1986). "Organizational Culture: Can It Be a Source of Sustained Competitive Advantage?". Academy of Management Review. 11 (3): 656–665. doi:10.5465/amr.1986.4306261.
Black, Richard J. (2003) Organizational Culture: Creating the Influence Needed for Strategic Success, London UK, ISBN1-58112-211-X
Bligh, Michelle C (2006). "Surviving Post-merger 'Culture Clash': Can Cultural Leadership Lessen the Casualties?". Leadership. 2 (4): 395–426. doi:10.1177/1742715006068937. S2CID146156535.
Boddy, C. R. (2011) Corporate Psychopaths: Organizational Destroyers, Palgrave Macmillan
Hartnell, C. A.; Ou, A. Y.; Kinicki, A. (2011). "Organizational Culture and Organizational Effectiveness: A Meta-Analytic Investigation of the Competing Values Framework's Theoretical Suppositions". Journal of Applied Psychology. 96 (4): 677–694. doi:10.1037/a0021987. PMID21244127.
Jex, Steven M. Jex & Britt, Thomas W. (2008) Organizational Psychology, A Scientist-Practitioner Approach, John Wiley & Sons, ISBN978-0-470-10976-2.
Kleinbaum, Rob and Aviva (2013). Creating a Culture of Profitability, Probabilistic Publishing, ISBN978-0-9647938-9-7.
Markus, Hazel (1977). "Self-schemata and processing information about the self". Journal of Personality and Social Psychology. 35 (2): 63–78. doi:10.1037/0022-3514.35.2.63.
O'Donovan, Gabrielle (2006). The Corporate Culture Handbook: How to Plan, Implement and Measure a Successful Culture Change Programme, The Liffey Press, ISBN1-904148-97-2
Papa, Michael J., et al. (2008). Organizational Communication Perspectives and Trends (4th Ed.). Sage Publications.
Phegan, B. (1996–2000) Developing Your Company Culture, A Handbook for Leaders and Managers, Context Press, ISBN0-9642205-0-4
Sopow, E. (2007). Corporate personality disorder. Lincoln Neb.: iUniverse.
Luthans, F. & Doh Jonathan, P. (2015). "International Management, Culture, Strategy and Behavior" (9th ed.). Mc Graw Hill
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