ORGANIZATION CULTURE (OC)
Organization culture refers to a set of some commonly experienced stable characteristics of an organization which constitutes the uniqueness of that organization and differentiates it from others. Each organization has its unique set of characteristics and properties. The psychological structure of organization and their sub-units is usually referred to as Organizational Culture. Culture is a commonly experienced phenomenon. Organizational culture is a relatively uniform perception held of the organization, it can distinguish one organization from another and it integrates individual, group and organization system variables.
PERCEIVED CHARACTERISTICS OF CULTURE AND CLIMATE
The abstract concept of culture and operational concept of climate basically refer to the perceived personality of an organization in very much the same sense as individuals have personality. Just as any culture has some do's and don'ts, similarly each organization has a culture that influences the behavior of employees towards clients, competitors, colleagues, supervisors, subordinates and strangers.
It should be noted that Organizational Culture or Organizational Climate (OC) is the perceived aspects of an organization’s internal environment, but within the same organization there may be very different OCs. Personal characteristics such as “Values, Needs, Attitudes and Expectations” determine the manner in which an individual is likely to perceive the various aspects of the internal working environment of the organization.
DIMENSIONS OF ORGANIZATIONAL CULTURE
Each organization has its unique set of characteristics and properties. In the last two decades, extensive studies have been conducted which have helped us to identify some key factors of OC. Some of these common dimensions are described below:
- Individual Autonomy: It is the degree to which employees are free to manage themselves; to have considerable decision making power; and not to be continually accountable to higher management. This refers to the individual's freedom to exercise his or her responsibility.
- Position Structure: It is the degree to which objectives of the job and methods for accomplishing it are established and communicated to the individual by supervisors.
- Reward Orientation: This refers to the degree to which an organization rewards individuals for hard work or achievement
- Consideration, Warmth and Support: This refers to the extent of stimulation and support received by an individual from other organization members. In other words, if there is a sense of team spirit among the members of an organization, the OC is likely to be perceived as considerate, warm and supportive.
- Conflict: This refers to the extent of conflict present between individuals and the willingness to be honest and open about interpersonal differences.
- Progressiveness and Development: This aspect refers to the degree to which organization conditions foster the development of the employees, allow scope for growth and application of new ideas and methods.
- Risk Taking: The degree to which an individual feels free to try out new ideas and otherwise take risks without fears of reprisal, ridicule or other form of punishment, indicate the risk-taking dimension of OC. This dimension is akin to "cautious" versus "venturesome" quality of an organization.
- Control: This dimension refers to the degree to which control over the behavior of organizational members is formalized. In a highly bureaucratic organization, control systems are well defined. In a low-control organization, most of the controls are self-regulated, i.e., individuals monitor their own behavior. You can think of this dimension as "tightness" versus "looseness" of an organization.
INFLUENCERS/DETERMINANTS OF ORGANIZATIONAL CULTURE
Organizational Culture is determined by a variety of internal and external factors where internal factors are specific to the organisation while external factors refer to a number of societal forces.
Organizational Culture is determined by a variety of internal and external factors where internal factors are specific to the organisation while external factors refer to a number of societal forces.
Determinants are the causes or influencers that will influence the dimensions or Components of OC. Outside environmental forces influence events within organizations. The following determinants are discussed here.
7 basic Internal determinants: The below seven basic internal factors can determine the internal environment of an organisation.
7 basic Internal determinants: The below seven basic internal factors can determine the internal environment of an organisation.
1. Economic Condition: The dimensions of OC like "Risk-taking", "Control", "Progressiveness and Development" etc. are directly influenced by economic conditions.
2. Leadership Style: The leadership style prevailing in an organization has a profound influence in determining several dimensions of OC. We can have varied leadership styles [visibly (A) haracterized by authoritarian style with high power motivation (B) Democratic style with affiliation motivation (C) Goal directed style with achievement motivation]. Each leadership style can have varied profound impact on dimensions of organizational culture.
3. Organizational Policies: Specific organizational policies can influence a specific dimension of OC to quite an extent. For example, if the company policy states that layoffs will be used only as a last resort to cope with business downturn, then it would, in general, foster an internal environment that is supportive and humanistic.
4. Managerial Values: The values held by executives/leaders have a strong influence on OC because values lead to actions and shape decisions. Values add to perceptions of the organization as impersonal, authoritarian, formal, informal, hostile or friendly.
5. Organization Structure: The design or structure of an organization affects the perception of its internal environment. According to Rensis Likert,all organisations can be classified into four major groups mentioned below
System 1 - Exploitative Authoritative
System 2 - Benevolent Authoritative (Authoritative, but caring)
System 3 - Consultative
System 4 - Participative
Each organization structure will have varied effects on how employee experience below attributes;
- How much confidence is shown in subordinates?
- Where is responsibility felt for achieving organisation goals?
- How well superiors know problems faced by subordinates?
- How much covert resistance to goals is present?
- At what levels are decisions formally made?
- Is there an informal organisation resisting the formal one?
6. Characteristics of Members: Personal characteristics of the members of an organization also affect the climate prevailing in the organization. For example an organization with well educated, ambitious and younger employees is likely to have a different OC than an organization with less educated, and less upwardly mobile, older employees.
7. Organizational Size: In a small sized organization it is much easier to foster a climate for creativity and innovation. In a large organization it is easier to have a more authoritative kind of management with stress on vertical distribution of responsibilities.
External Determiners - Social Forces: You may have noticed at least two changes which are taking place in our society.
7. Organizational Size: In a small sized organization it is much easier to foster a climate for creativity and innovation. In a large organization it is easier to have a more authoritative kind of management with stress on vertical distribution of responsibilities.
External Determiners - Social Forces: You may have noticed at least two changes which are taking place in our society.
- Educational level of employees of all categories is rising.
- Societal values toward recreational and leisure activities are becoming stronger.