Understanding the Concept of Culture and its Impact on Organizational Values and Behaviors

Culture refers to the traditions and values followed by a group of people. It encompasses the activities and behaviors that result from these traditions and values. Institutionalization is a precursor to culture, meaning it comes before the formation of a culture. It involves creating a unique set of common and shared values that transcend and redefine the values of the founders. In an organizational setting, the founders of a company instil their values into the people they hire, shaping the early values of the organization. As the company grows and changes, it institutionalizes additional values that go beyond the original ones set by the founders.

‘Culture is not an initiative. Culture is the enabler of all initiatives.’ — Larry Senn

The Significance of Institutionalization and Organizational Culture in Shaping Employee Behavior and Job Satisfaction

This process of institutionalization is important in creating an organizational culture. The key words in organizational culture are “common” and “shared.” These values are common among a group of individuals within the organization and transcend the values of the founders. Each organization has its own unique culture, which may differ from other organizations or educational institutions. For example, joining a new company may reveal a different culture compared to the previous one. Organizations create their own code of conduct and behavior, which is influenced by their culture. This culture can be bureaucratic or compartmentalized, depending on the organization. The culture may also emphasize team working, value-driven behavior, and results versus process. These cultural elements shape the behavior of employees and affect their job satisfaction. Cultures can be classified into dominant cultures and subcultures.

Understanding the Influence of Organizational and National Cultures on Employee Behavior and Turnover Rates

Dominant cultures consist of common shared values held by most members of the organization. Subcultures, on the other hand, have additional shared values unique to specific units or departments within the organization. These cultures have a significant influence on employee behavior and can affect turnover rates. Strong cultures have widely shared values held with high intensity. They have a high degree of influence on employee behavior and can lead to reduced turnover rates. In contrast, weak cultures may have inconsistent behavior among employees. National cultures also transcend organizational cultures, meaning that when establishing a venture in another country, organizations must consider the national culture and adapt accordingly. Cultures serve several functions within organizations. They define boundaries between different organizations and give members a sense of identity. Cultures also help develop a commitment to the organization that goes beyond self-interest.

‘Culture is simply a shared way of doing something with a passion.’ — Brian Chesky, Co-Founder, CEO, Airbnb

The Significance of Organizational Culture in Shaping Employee Behavior and Job Satisfaction

They provide implicit rules and increase social system stability. Additionally, cultures shape attitudes and give meaning to appropriate behavior. Ultimately, culture can be more powerful than the declared policies of management. It can influence decision-making and ensure that the organization stays true to its established values and culture. In conclusion, organizational culture plays a crucial role in shaping employee behavior and job satisfaction. It defines the values and traditions followed by a group of people within an organization. Understanding and managing culture is essential for the success and well-being of both employees and the organization as a whole. In this discussion, we have explored the concept of organizational culture and its implications. We have seen that culture can be both a good and a bad thing, depending on how it is established and maintained.

The Costs of a Strong Culture: Barriers to Change and Limitations on Diversity and Creativity

While there are many benefits to having a strong and positive culture, there are also costs associated with it. One of the main drawbacks of a strong culture is that it can become a barrier to change. When a culture is deeply rooted and resistant to change, it can prevent necessary adaptations to business, social, and political changes. This can be detrimental to the well-being of the organization, especially in times of economic downturn or other challenging circumstances. Another downside of a strong culture is that it can lead to regimentation and cloning. When a culture is so strong that it suppresses individuality and uniqueness, it can create a workforce that behaves and thinks in a uniform manner. This can limit diversity and creativity within the organization, hindering innovation and growth. Additionally, a strong culture often strives for employee-organizational fit, even when it may be harmful to the organization.

The Impact of Organizational Culture on Adaptability, Mergers, and Leadership

This means that the culture may resist changes that are necessary for the organization’s success, in order to maintain its established norms and values. This can be problematic when the organization needs to adapt to new market conditions or industry trends. Furthermore, when two organizations with different cultures merge or undergo a takeover, the clash of cultures can destroy the chances of a successful merger. Just like a kidney transplant can be rejected by the body, the cultures of two organizations may not mesh well together, leading to conflicts and difficulties in integrating the two entities. As managers, we may be called upon to create and sustain a culture within our organizations. The founders of an organization play a major role in establishing the culture, as they impose their vision and values on all members.

The Power of Organizational Culture: Balancing Benefits and Drawbacks

They hire like-minded individuals and socialize them to think and behave in a certain way, perpetuating the desired culture. Over time, the selection and promotion practices of the founder are substituted by top management, who continue to reinforce the culture. Stories, rituals, and symbols also play a powerful role in perpetuating the established culture. These stories become a binding thread that connects employees and reinforces the values and norms of the organization. In conclusion, organizational culture can have both positive and negative effects on an organization. While a strong and positive culture can bring many benefits, it can also become a barrier to change and limit diversity and creativity. It is important for managers to be aware of the potential drawbacks of a strong culture and to strive for a balance that allows for adaptation and growth.