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Meaning & Definition

Organizational Culture

Organizational culture, also known as corporate culture, refers to the values, attitudes, beliefs and behaviors that characterize and contribute to organization's unique social and emotional work environment. Organizational culture is unique for every organization and one of the hardest things to change and consists of written and unwritten rules that have been developed over time.

Frequently Asked Questions (FAQ's)

  1. What are the types of organisational culture?

    The four types of organisational culture are -

    The Clan Culture

    This culture is rooted in collaboration. Members share commonalities and see themselves are part of one big family who are active and involved. Leadership takes the form of mentorship, and the organisation is bound by commitments and traditions.

    The Adhocracy Culture

    This culture is based on energy and creativity. Employees are encouraged to take risks, and leaders are seen as innovators or entrepreneurs. The organisation is held together by experimentation, with an emphasis on individual ingenuity and freedom.

    The Market Culture

    This culture is built upon the dynamics of competition and achieving concrete results. The focus is goal-oriented, with leaders who are tough and demanding. The organisation is united by a common goal to succeed and beat all rivals. The main value drivers are market share and profitability.

    The Hierarchy Culture

    This culture is founded on structure and control. The work environment is formal, with strict institutional procedures in place for guidance. Leadership is based on organized coordination and monitoring, with a culture emphasizing efficiency and predictability.

  2. What are the elements of organisational culture?

    The four elements of organisational culture are -

    Purpose

    Young professionals want to be a part of solving a problem greater than themselves, so they need to understand the “why” of what they do. A strong mission statement can help a company articulate its’ “why”.

    Ownership

    Ownership refers to the practice of giving people the opportunity to be accountable for their results without requiring micromanagement, and giving people the autonomy on their own time to accomplish goals.

    Community

    This is that sense of belonging to a group of people that shares similar principles, goals, and values. Community is a place where there is camaraderie.

    Effective Communication

    Effective communication sounds like common sense, but is not such a common practice. It means ensuring consistency in processes and investing time to learn the personalities and communication dynamics of team members.

    Good Leadership

    The backbone of the cultural dynamics of any organisation, the leader has to constantly be pushing the mission, standards, community, and processes of the company. Without effective leadership, the other four elements cannot thrive.

  3. How do you understand an organisational culture?

    Organisational culture is defined as the underlying beliefs, assumptions, values and ways of interacting that contribute to the unique social and psychological environment of an organisation. Every organisation has company culture, whether intentionally cultivated or not. If you want to better understand your culture, look at your company’s priorities. These goals and initiatives reveal what your organisation values and what it does not (both explicitly and implicitly).

  4. How do you maintain organisational culture?

    Ways to maintain organisational culture are -

    Rigorous Hiring Practices

    One of the best ways to preserve company culture is to hire carefully. Be sure that your new hires aren't just qualified, but also a good fit. Make sure they fit in with the people they will be working with on a daily basis.

    Recognize Employee Achievements And Contributions

    This should always be a part of your company culture, and it helps foster loyalty and satisfaction among employees. Recognize birthdays, anniversaries and significant milestones in your people's lives.

    Get employees involved in shaping culture

    As a business grows the culture inevitably changes very quickly. In order to keep up with changing personalities, business leaders should get their employees involved in shaping the culture of their organisation at the grassroots level.

  5. Why is Organisational culture important?

    Organisational culture is important because it links the organisation's vision and values with things like employee engagement, happiness, productivity, retention rate and positive recruitment efforts and more. organisational culture can be just as important as the overall business strategy because it can either bolster or erode the organisation and it's long-term objectives.

  6. What are the biggest threats to a good organisational culture?

    Negative attitude and ego are some of the biggest threats to organisational culture. There is no place of ego at workplace. Employees who carry their ego to work find it difficult to adjust with their fellow workers eventually affecting the work culture. Lack of communication among employees is another major problem faced by organisations. Employees need to communicate with each other to discuss work, various issues and also reach to innovative solutions. Employees need to work as a single unit for better results.

  7. What is the difference between organisational & corporate culture?

    Corporate culture is more rooted in an organisation's goals, strategies, structure, and approaches to labor, customers, investors, and the greater community. It tend to emphasize ways of operating and functioning that lead to optimum profit. Different businesses and industries embody different cultural bents to meet strategies that work for them.

    Organisational culture is defined as the underlying beliefs, assumptions, values and ways of interacting that contribute to the unique social and psychological environment of an organisation.

  8. How is organisational culture related to teamwork?

    Organisational culture is often considered as the precondition of teamwork in the organisation. An organisation with a strong culture helps employees to accomplish their goals and tasks and be satisfied in their job.

  9. What are the factors that shape an organisation's culture?

    "There are several factors which affect the organisational culture -

    Nature Of The Business - The purpose, market and operations of an organisation have an impact on employees’ behavior.

    Individual working with the organisation - The employees in their own way contribute to the culture of the workplace. The attitudes, mentalities, interests, perception and even the thought process of the employees affect the organisation culture.

    The culture of the organisation is also affected by its goals and objectives. The strategies and procedures designed to achieve the targets of the organisation also contribute to its culture."

  10. What are some HR practices to ensure the continuity and success of an organisation's culture?

    HR impacts company culture and plays a key role in helping to ensure an organisation's culture stays relevant. HR also develops orientation, training and performance management programs that outline and reinforce the organisation's core values and ensures that appropriate rewards and recognition go to employees who truly embody the values. For HR leaders, it's important to recognize how culture impacts the bottom line and what steps businesses can take to periodically evaluate how their cultures are performing.

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