Organizational Culture: Factors, Models, and Characteristics, Study notes of Organization Behaviour

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Lecture 7

Organisational Culture.

BBA 420

Organisational Theory &

Behaviour

University of Lusaka

Learning Objectives

After studying this topic, students should be

able to understand the following concepts:-

• Organisational Culture

• Models of Organisational Culture

• Types of Organisational Culture

• Determinants of Culture

• Importance of Organisational Culture.

• Factors Affecting Organisational Culture

Definition of Organisational

Culture

Organization culture has been defined, by

scholars in varied ways and numerous definition

of culture have been proposed. A few of these

insights are:

 Porter, Lawler & Hackman (1975) identify

organization culture as:

 “A set of customs and typical patterns of

ways of doing things. The force,

pervasiveness and nature of such model,

beliefs and values vary considerably from

organization to organization. Yet it is assumed

that an organization that has any history at all

has developed some sort of culture and that this

will have a vital impact on the degree of success

Definitions (2)

 Edgar H. Schein (1984) defines organization

culture as:

“A set of basic assumptions that a given group has

invented, discovered or developed in learning to

cope with its problems of external adaptations and

internal integration that have worked well enough

to be considered valid, and therefore, to be taught

to new members as a correct way to perceive,

think and feel in relation to these problems.”

 According to Daniel R. Denison (1990):

“Organization culture refers to the underlying values,

beliefs and principles that serve as a foundation for

organization’s management systems, as well as the

set of management practices and behaviors that both

Characteristics of Organisation

Culture

Amarchand (1992) identified the following seven

distinct characteristics of organization culture.

Culture is Learned, Rooted in the traditions of the

organization, Shared by the people of the

organization, Transgenerational, Cumulative,

Symbolic in nature and Multifaceted (i.e. it is

composed of several elements put together)

A critical examination of the deliberations presented

above seems to suggest that culture determines the

important issues within the organization. It

identifies the principal goals, work methods and

behaviours, work rules, individual interaction

patters in which they address each other and the

ways in which personal relationships are conducted.

Subcultures in Organisations

Sinha (1980) identified that in complex

organizations there may be subcultures,

which may be different from each other.

Different units of a corporate body may

develop different subcultures.

In the same organization, finance,

production, marketing, personnel and

maintenance groups may hold different

values and world-views and hence, while

sharing parts of the organization culture,

these may have different specific patterns.

Characteristics of Organization’s culture:

J. Chatman & Caldwell has

suggested the following seven

primary characteristics that

capture the essence of an

organization’s culture:

1. Innovation and Risk

Taking -The degree to which

employees are encouraged to

be innovative and take risks.

2. Attention to detail -The

degree to which employees are

expected to exhibit precision,

analysis, and attention to

detail.

3. Outcome Orientation -The

degree to which management

focuses on results or outcomes

rather than on the techniques

and processes used to achieve

these outcomes.

4. People Orientation -The

degree to which management

decisions take into

consideration the effect of

outcomes on people within the

organization.

5. Team Orientation -The

degree to which work activities

are organized around teams

rather than individuals.

6. Aggressiveness -The

degree to which people are

aggressive and competitive

rather than easy going.

7. Stability -The degree to

which organizational activities

emphasize maintaining the

status quo in contrast to

growth.

Edgar Schein model of organization culture According to Edgar Schein, Organizations do not adopt a culture in a single day, instead it is formed in due course of time as the employees go through various changes, adapt to the external environment and solve problems. They gain from their past experiences and start practicing it everyday thus forming the culture of the workplace. The new employees also strive hard to adjust to the new culture and enjoy a stress free life.

Schein believed that

there are three levels

in an organization

culture.

1.Artifacts

2.Values

3. Assumed Values

Edgar Schein Model Explained

1. Artifacts - The first level is the characteristics of the organization which can be easily viewed, heard and felt by individuals collectively known as artifacts. The dress code of the employees, office furniture, facilities, behavior of the employees, mission and vision of the organization all come under artifacts and go a long way in deciding the culture of the workplace.

2. Values - The next level according to Schein which constitute the organization culture is the values of the employees. The thought process and attitude of employees have deep impact on the culture of any particular organization. What people actually think matters a lot for the organization? The mindset of the individual associated with any particular organization influences the culture of the workplace. 3. Assumed Values - The third level is the assumed values of the employees which can’t be measured but do make a difference to the culture of the organization. There are certain beliefs and facts which stay hidden but do affect the culture of the organization. The inner aspects of human nature come under the third level of organization culture. Organizations where female workers dominate their male counterparts do not believe in late sittings as females are not very comfortable with such kind of culture. Male employees on the other hand would be more aggressive and would not have any problems with late sittings. The organizations follow certain practices which are not discussed often but understood on their own. Such rules form the third level of the organization culture.

Systems Theory - by Ludwig von

Bertalanffy

 (^) The systems approach offers a holistic approach, but also emphasises the interdependence between the different subsystems and elements in an organisation, which is regarded as an open system (French and Bell, 1995).  (^) The organisation system model explains the interaction between the organisational subsystems (goals, structure, management, technology and psycho-  The patterns of interaction between people, roles, technology and the external environment represent a complex environment which influences behaviour in organisations.

Dimensions of Culture By Martins

 (^) Mission and vision (determines personnel's understanding of the vision, mission and values of the organisation and how these can be transformed into measurable individual and team goals and objectives). External environment (determines the degree of focus on external and internal customers and also employees' perception of the effectiveness of community involvement).  (^) Means to achieve objectives (determines the way in which organisational structure and support mechanisms contribute to the effectiveness of the organisation).  (^) Image of the organisation (focuses on the image of the organisation to the outside world and whether it is a sought-after employer).  (^) Management processes (focuses on the way in which management processes take place in the organisation. It includes aspects such as decision making, formulating goals, innovation processes, control processes and communication).  (^) Employee needs and objectives (focuses on the integration of employees' needs and objectives with those of the organisation as perceived by employees/personnel). Interpersonal relationships (focuses on the relationship between managers and personnel and on the management of conflict).  (^) Leadership (focuses on specific areas that strengthen leadership, as perceived by personnel).

Handy’s Model of

Organisational Culture

Professor of

occupational

psychology Roger

Harrison and

philosopher and expert

on organisational

behaviour Charles

Handy designed a

model which sets out

four basic

organisational types.

The model is known as

the ‘Handy and Harrison

Model of Organisational

In this paragraph we

are going to briefly

look at four types of

organisational

cultures; power,

role, task and

person cultures were

described by Charles

Handy in his 1981

book Understanding

Organisations.