Organizational culture

Organizational culture encompasses values and behaviors that contribute to the unique social and psychological environment of a business. The organizational culture influences the way 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. Organizational culture represents the collective values, beliefs and principles of organizational members and is a product of factors such as history, 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. What Is Organizational Culture? And Why Should We Care? – Harvard Business Review Organizational culture encompasses values and behaviors that contribute to the unique social and psychological environment of a business. The organizational culture influences the way 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. Organizational culture represents the collective values, beliefs and principles of organizational members and is a product of factors such as history, 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. Ravasi and Schultz (2006) characterise organizational culture as a set of shared assumptions that guide behaviors. It is also the pattern of such collective behaviors and assumptions that are taught to new organizational members as a way of perceiving and, even thinking and feeling. Thus organizational culture affects the way people and groups interact with each other, with clients, and with stakeholders. In addition, organizational culture may affect how much employees identify with an organization. Schein (1992), Deal and Kennedy (2000), and Kotter (1992) advanced the idea that organizations often have very differing cultures as well as subcultures. Although a company may have its 'own unique culture,' in larger organizations there are sometimes co-existing or conflicting subcultures because each subculture is linked to a different management team. Flamholtz and Randle (2011) suggest that one can view organizational culture as 'corporate personality.'They define it as it consisting of the values, beliefs, and norms which influence the behavior of people as members of an organization. The term of culture in the organizational context was first introduced by Dr. Elliott Jaques in his book The Changing Culture of a Factory, in 1951. This is the published report of 'a case study of developments in the social life of one industrial community between April, 1948 and November 1950'. The 'case' is a publicly held British company engaged principally in the manufacture, sale, and servicing of metal bearings. The study is concerned with the description, analysis, and development of the corporate group behaviours. According to Dr. Elliott 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...' In simple terms, to the extent that people can share common wishes, desires and aspirations, they can commit themselves to work together. It is a matter of being able to care about the same things, and it applies to nations as well as to associations and organizations within nations. Elaborating on the work in The Changing Culture of a Factory Dr. Elliott Jaques in his concept of requisite organization established the list of valued entitlements or organizational values that can gain from people their full commitment. Together they make an organizational culture or credo: