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Organizational Culture refers to the values, beliefs and customs of an organization. Whereas organizational structure is relatively easy to draw and describe, organizational culture is less tangible.

There have been numerous studies in this area.

1 Influences on Organizational Culture

National Culture is an important influence in culture. Hofstede demonstrated that there are regional differences, and the following broad categories are suggested for Europe:

The Members of the organisation bring their own individual experiences, beliefs and values.

Work-groups within the organisation have their own interactions and behaviours which impact on the wider organisation.

Task Culture can be imported. That is to say, for example, that computer technicians will have expertise, language and behaviours gained independently of the organisation, that set them apart from colleagues, and yet that influence the culture of the organisation.

Senior Management may determine a Corporate Culture. They may wish to impose corporate values and standards of behaviour that specifically reflect the objectives of the organisation.

2 Strong/Weak Cultures

Strong Culture is said to exist where staff respond to stimulus because of their alignment to organisational values.

Conversely, there is Weak Culture where there is little alignment with organisational values and control must be exercised through extensive procedures and bureacracy.

Where culture is strong - people do things because they believe it is the right thing to do - there is a risk of another phenomenon, Groupthink. This is a state where people think so alike that they do not challenge organisational thinking, and there is a reduced capacity for innovative thought. This could occur, for example where there is heavy reliance on a central charismatic figure in the organisation, or where there is an evangelical belief in the organisation's values.

By contrast, bureacratic organisations may miss opportunities for innovation, through reliance on established procedures.

Innovative organisations need individuals who are prepared to challenge the status quo - be it groupthink or bureaucracy, and also need procedures to implement new ideas effectively.

3 Classifying Organisational Culture

Several methods have been used to classify organisational culture. Some are described below:

3.1 Hofstede

Hofstede demostrated that there are national and regional cultural groupings that affect the behaviour of organisations.

Hofstede identified four characteristics of culture in his study of national influences:

3.2 Deal and Kennedy

Deal and Kennedy defined organisational culture as the way things get done around here. They measured organisations in respect of:

Using these parameters, they were able to suggest four classifications of organisational culture:

The Tough Guy Macho Culture. Feedback is quick and the rewards are high. This often applies to fast moving financial activities such as brokerage, but could also apply to policemen or women, or athletes competing in team sports. This can be a very stressful culture in which to operate.

The Work Hard/Play Hard Culture is characterised by few risks being taken, all with rapid feedback. This is typical in large organisations which strive for high quality customer service. They are often characterised by team meetings, jargon and buzzwords.

The Bet your Company Culture, where big stakes decisions are taken, but it may be years before the results are known. Typically, these might involve development or exploration projects, which take years to come to fruition, such as could be expected with oil exploration or aviation.

The Process Culture occurs in organisations where there is little or no feedback. People become bogged down with how things are done not with what is to be achieved. This is often associated with bureaucracies. Whilst it is easy to criticise these cultures for being over cautious or bogged down in red tape, they do produce consistent results, which is ideal in, for example, public services.





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