The Effects of Organizational Culture


Organizational culture is the shared values, beliefs, and norms that define how people behave in an organization. This translates into the way people interact with each other, as well as with the outside world. The effects of culture can be positive or negative. Depending on the nature of the organization, a specific type of culture may affect the ability of the business to operate.

The study of organizational culture has gained importance in recent years. Various investigators have come up with different definitions of this concept. There are many different factors that contribute to the development of an organization’s culture. While some of these factors are obvious, such as a firm’s position in the industry, others are more subtle.

One of the most important factors is how employees perceive the organization. They have a vested interest in having a say in the organization’s culture. They also want to have the opportunity to develop and progress in the organization. They feel they have a strong bond with the organization and a sense of belonging. This can lead to a high level of adoption of the organization’s culture.

Another factor to consider is the role of power in the organization. Some cultures focus on concentrating power within a small group. This can result in rapid decision-making, as well as a lack of bureaucracy. However, there are also cultures that emphasize the need for teamwork and trusting relationships. In these cases, there are also fewer rules.

Other factors that influence organizational culture are the social environment of the organization. The work environment should be a positive, supportive environment that promotes employee growth and advancement. While a positive workplace can improve employee morale and productivity, it can also create obstacles that can hinder the growth of the business.

A highly innovative culture encourages innovation and creative problem-solving. Likewise, these types of organizations value customer satisfaction and seek to constantly improve their products. This can help an organization to compete in a competitive market.

Symbols, verbal artifacts, and physical artifacts are all examples of tangible aspects of the organization’s culture. For example, a parking space can be a symbol of power, while a saga of the organization can reveal its history and values. This can be studied using questionnaires or interviews with members.

Another example is the organizational motto. The motto sets the direction and aspirations of the organization. While this is usually used as a slogan, it also serves as an effective tool for defining the organizational culture. Often, the motto is based on the values of a particular department, team, or project.

The most important trait in an organizational culture is its values. These values are the shared attitudes, assumptions, and habits that guide the behavior of members. This includes personal and professional values, as well as local values. They are also a subset of organizational norms. In addition, these values are often incorporated into the organizational mission statement.

Some examples of organizational values include honesty, transparency, and commitment to compliance. These behaviors will help an organization maintain a positive image and mitigate risk.