Report on Positive Impacts of Organisational Culture

Introduction 2
Organizational Culture 2
Importance of Organizational Culture 5
Challenges 9
Impacts of Organization Culture 9
Organizational Culture and Organizational Performance 10
Organizational Culture and Employee Satisfaction 11
Organizational Culture and Leadership Training 12
Conclusion 13

In the recent years, the importance of organizational culture in organizations has risen as one of the prime factors in determining the success of the organizations in terms of profits as well as in building the brand image of the organization in a pro-active way. Brand image plays a major role in building a powerful image in customers’ and stakeholders’ minds and determining the effectiveness of the management and employees in the organization.
Some of the major aspects of organizational behavior can be understood by identifying and understanding the kind of corporate culture. There are a number of aspects such as leadership, values and ethics in the organization that shape the behavior as well as culture of the organization (Cohen, 1990). Effectiveness of teams in organizations and their role in shaping the outcomes for the organizational are crucial.
This report will identify the definitions and meanings that are associated to organizational culture and the various ways in which the organizational culture is influenced by the environmental factors internally as well as externally. It also puts on various aspects of the organizational culture such as its importance and the impact it has on the organizational behavior aspect of the employees. These points that are taken into consideration are completely based on the secondary sources about the subject and the relationships that have been proposed between organizational culture and various other vital aspects of the organization.
Organizational Culture
Organizational culture can be defined as the set of values and human behavior that can be associated with the organization and the environment that it renders to the people who are a part of it. Large number of researches have suggested the importance of studying organizational cultures in order to determine better managerial strategies and policies in handling people and resources (Watson, 2006). Furthermore, there also are evidences that suggest that a healthy organizational culture will help in developing strong leadership and team spirit among employees in the organization.
Some of the other major researchers have claimed that there is a very strong relationship between organizational culture and human resources of the organization. The correct perspective to look at the culture would be to make sure that the practices and aspects that have worked in the past and have attributed to the results are maintained in a positive way and at the same time, that particular culture influences the future results positively (Schein, 2004).
Organizational culture is largely multidimensional which makes the concept of organizational culture very difficult to manage and execute in an organization. Most employees in an organization tend to confuse the corporate culture of the organization with the culture that leaders try to propagate in the organization. Furthermore, there also will be a lot of dimensions in which different concepts of organizational culture will be related to each other in a positive or negative way.
Organizational culture can be the basis on which the values and goals of the organization can be communicated to the employees to a very large extent and to make sure that the organizational culture can develop in an overall manner (Pettigrew, 1979).
The other major confusion occurs between the organizational climate and organizational culture, which is often used interchangeably. While the organizational climate might just encompass the ways in which situations take place in the organization, organizational culture would describe the way in which the social and psychological exchanges would take place in the organization (Stoyko, 2009). This would also consist of the subcultures and related variations that could occur in the culture of the organization.
Organizational culture makes sure that the organizational politics as well as the climate is managed effectively, in addition to which the employees who are a part of the organization share common interests, ideas and strategies, resulting in stronger teamwork and ensuring better results for the organization.
This would also be denoted through various ways in which teamwork in the organization is influenced by the positive or negative attributes of an organizational culture and the way in which the culture has a dominating impact on the outcomes of tasks. It also becomes important for leaders and managers in an organization to take up and manage leadership roles effectively as it would help the organization in managing performance sustainability of the organization and making sure that the organizational culture along with the competitive advantage is being maintained.
As the organization keeps growing, the importance and utility of a strong organizational culture becomes more apparent (Schein, 2004). This includes the beginning of leaders’ vision and goals to be shared and worked upon by the employees in the organization and to make sure that the employees are motivated and encourage to take up initiatives and bigger roles in the organization. Some of the most accomplished organizations have made sure that proactive steps are being taken for the development and maintenance of organizational culture in the organization and to ensure that the employees who are a part of it are able to get the best out of it by adhering to it.
Over the years, there also have been researches that prove a strong relationship between organizational culture and job satisfaction along with making sure that the administrators are able to regulate the beliefs and values in which the culture is primarily based on. Further benefits for the employees are in the form of strong driving forces for culture in the organization and creating an environment that would provide the employees with a feasible and favorable atmosphere. As discussed above, organizational culture has a direct relationship on the leadership behavior and strategies, which in turn again influence job satisfaction and job engagement among the employees of the organization (Deal & Kennedy, 2000).
A strong organizational culture is said to have a strong belief system and a stringent code of conduct which would allow for the employees to be a part of a common code of conduct and set of beliefs that shape the opinion and beliefs of the employees represented as the organization’s belief as an entity.
When the employees are able to positively relate to the organizational culture, they are able to contribute to a greater extent to the organization as well as to their personal mission and goals. Whenever there is a scope of employees getting greater benefits or achieving more recognition, they tend to associate themselves more with the organization, thus bringing the job satisfaction and engagement in employees (Strange & Mumford, 2002).
Importance of Organizational Culture
Dynamic organizations have been a part of the corporate world since the concept of organizational culture and managing it efficiently through leaders and employees kicked into action. This organized had to be the organizations that managed their employees as well as brought a constant point in the practices and policies of the organization. On many levels, there are a number of ways in which the organization gets represented in the world through the culture that is built in the organization and make sure that the culture is managed effectively.
Schein (2004) has emphasized on the importance of a functional organizational culture and how a dysfunctional or unorganized culture in the organization might cause consequences that might be undesirable for the organization. Organizational culture will usually consist of the deepest beliefs and values that the employees of the organization would have along with the underlying assumptions depending upon the efficiency and mindsets of the employees regarding various systems and procedures of the organization.
Since maintaining moral and ethical behavior in organizations have become more important, it is understandable that only through establishing a strong and positive organizational culture can the organizational leaders promote and improve a strong and positive ethical and moral conduct among the employees in the organization (Paine, 1994). This directly shifts the responsibility of maintaining and conducting according to a set of values and morals important for leaders in order to set an example for the subordinates to follow.
The other major important point to consider here is that during the times when there is a dire need for the leaders as well as the other employees to work harder and achieve greater targets. It is important for the employees at this point to maintain a healthy teamwork culture and strong coordination and cooperation with each other so that the organizational culture is maintained. Furthermore, a healthy work culture could promote and motivate the employees to participate more in the tasks and activities that they would have to take up and to make sure that the targets are achieved for the organization.
The organizational culture also tends to influence the way in which the employees approach their work and tasks. This also influences the organizational politics and corporate governance to a large extent as organizations with strong culture would tend to align all the key tasks and decisions with the culture that is maintained in the organization. Similarly, these political and governing actors could also negatively impact the organizational culture in the company considering the various ethical and moral threats that the organization could be confronted with (DeLong & Fahey, 2000).
The leadership styles that would be taken up by the leaders too would be influenced by the culture that is to be brought into the organization and is to be maintained by the employees to a great extent. This is linked to the theory of leaders having the need to exhibit good qualities in order to promote the same among their subordinates and other employees in the organization.
Culture of an organization exhibits behavior similar to the behavior exhibited by the culture in societies in civilizations. It can be influenced and shaped to a very large extent in the early stages of development, however attains a state of constant stability and stagnancy after a certain level of development.
One of the most basic things that organizational culture influences is the way in which it could act as a common ground or a social middle glue which could connect and bond employees of different arenas and ethnicities together, driven towards a common goal. This makes it possible for the employees to focus on a specific goal for the organization and taking active efforts for achieving it.
It can also be observed from a number of researches that adapting to changes in the organizational culture and making improvements or additions to it can be done a lot more positively in newer and smaller firms as compared to the elder and bigger firms who already follow a certain set and pattern of principles and values. In such cases, usually the decision of taking up any strategy in the organization would be taken on the basis of the relation between the organizational goals and the change that is proposed in the culture of the organization.
This can even be attributed to the senior management in such companies in which majority of individuals are older in age and more driven towards sustainability than taking efforts for temporary improvements. Even then, the demands in the recent years have made it mandatory for organizations to go through a certain audit of their culture now and then and make changes according to it.
The behaviors, languages, traditions and various other factors that are contained in a typical culture also become the part of an organizational culture. When an organizational culture is shaped, these factors are taken into consideration and a common method that would be suitable and advantageous for fulfilling all these factors are important in this aspect. By maintaining a certain standard in the culture and by establishing standardized and regulated procedures that the organization follows, it is able to portray a good image to all kinds of customers including various stakeholders as well as internal and external clients in the market (Rusu, 2003).
Moreover, the organizational culture of an organization also plays a major role in determining competitiveness of the organization among the major competition given by the other competitors in the market. Some other factors that influence the developments of culture in the organization are the individual culture and beliefs of the employees and the kind of outlook and behavior that they have towards each other in the organization (Schein, 1990). Maintaining the culture tin the organization would also help the organizations to carry out the communication in the organization smoothly and to make sure that the disagreements and problems that arise between the employees in the organization are solved and eliminated efficiently (Serpa, 1985).
It is because of these many significances that any decision related to changes in the organizational culture or the current structure of values and beliefs that is followed by the organization. Only when a dire need is experienced by the intrinsic and extrinsic values & beliefs that the organization currently follows, should the decision of making any kind of changes to the organizational culture of the organization.
Some of the major challenges that are faced by organizations in terms of establishing the organizational culture as follows:
• Narrow mindedness about accepting another culture
• Unaccepting attitude towards organizational change
• Making members of different beliefs, backgrounds and ethnicities work as a team
• Predefined cultural frames of reference
These aspects would take the form of resistance towards any kind of change or addition to the current frame of organizational culture considering the different aspects on the basis of culture and organizational performance.
Impacts of Organization Culture
Organizational culture can be attributed and related to almost all the major impacts and consequences that might come from a successful organizational culture. In this aspect, it is necessary to understand that these impacts might be positive or negative. The behavior and actions of the employees in the organization are however largely based on this culture and its impacts. However, through many researches and studies, it has been seen and proved that the positive impacts of the organizational culture of the organization are many.
The major relationship are the ones between organizational performance, employee satisfaction, leadership training and organizational culture on the basis of the effects and impacts of the organizational culture in an organization.
Organizational Culture and Organizational Performance
In a lot of ways, a healthy and strong organizational culture can be the biggest determinant for knowing and understanding the motivation and satisfaction of the organization. Furthermore, organizational culture is influenced by a large number of internal and external factors and in turn influences a lot of internal and external entities.
In some ways, most of the aspects due to which most of the cultural differences and in turn, the performance of the organization is influenced by the people who are a part of the organization. There also are influences in the form of which the entire organizational performance may turn around due to the inculcation of attitudes and values that are a part of the corporate culture along with the organizational values that might form a healthy part of the employees’ attitude and behavior (Madu, 1994). A healthy and well-maintained organizational culture will render the employees with motivation as well as a conducive environment that they could work efficiently in and achieve goals in for the organization. As observed in a lot of examples, the influence of organizational culture can be witnessed on many aspects such as managing performance as well training for the leadership of the organization (Pettigrew, 1979). Moreover, as culture becomes a company’s identity and helps it build a brand image for themselves, the performance of the organization automatically comes down to the culture that is maintained in the organization.
Organizational Culture and Employee Satisfaction
Corporate culture is highly dynamic in the form of newer features and aspects entering the environment. However, the nature of the corporate culture in an organization is such that it remains static for a long period of time. As a result, the employees who are would in the organization are trained to carry out the tasks and activities on the basis of the culture that is prevalent in the organization. Organizations make sure that the culture of the organization is set in a way that would align the employee goals with the organizational goals. Once the employees start relating to the organizational values and beliefs and the way in which the organizational culture is designed, employees start aligning their career in the culture and if the culture is favorable to their career development, the employees attain a certain level of job satisfaction along with the organizational citizenship qualities (Manning, 1990).
When this happens, the employees tend to be more responsible about carrying out the tasks as compared to the organizations with an inappropriate culture. The culture should essentially be shaped according to the preference of the employees and management as well as make sense according to the nature of the work that the employees in the organization carry out in order to be successful in yielding results (Moran & Volkwein, 1992). As a result, employees’ goals are achieved causing progressive development in the organization and in addition to that, the organizational values and beliefs are maintained along with the organizational goals getting achieved proactively.
Major milestones are achieved easily if the employees can relate to the corporate culture and are satisfied in terms of their career progress and work expectations. This could also be largely related to the intrinsic and extrinsic motivation that the employees are provided in the corporate culture that is prevalent in the organization. In addition to this, a number of researches also stated that employee retention rate is also impacted to a large extent by the corporate culture in the organization.
Organizational Culture and Leadership Training
Organizational culture shapes all the major processes and tasks as well as the policies and procedures that are carried out in the organization. The organizational culture is generally regulated by the leaders in the organization, which is why the leaders of the organization are the ones that receive the training for any kind of minor or major change in the organization. Considering the changes and dynamics in the organizational culture over the years, it can be determined that it has become important for organizations to make sure that the leaders are motivated and adaptive to changes for sustainability (Martins & Coetzee, 2007). This proves as a very important trait when it comes to maintaining the coherence and managing the operations smoothly whenever the organization undergoes any kind of change.
In this aspect, transformational leaders are generally well-suited for the execution of organizational culture in any way because of their adaptability as well as their ability to make sure that the subordinates are able to look up to their superiors for excellence and behavioral excellence. This is attained by making sure that most of the tasks that are carried out by the employees are aligned with the organizational culture, which is supervised by the leaders (Madu, 1994). Apart from this, it also is very important for the leaders to maintain involvement among employees for the organizational culture and make sure that employees are attaining benefits as well as find a role to play in the culture.
Organizational Culture thus, plays a major role in determining a lot of aspects for the employees as well as the organization. Regulatory and Control measures along with the motivational strategies that the management of the organization follows can be correlated with the organizational culture of the organization. A positive organizational culture may influence the employee as well as the organizational performance to a very large extent and in addition to that it could also influence the employee engagement in the organization. Organizational culture if executed correctly could make sure that the employees of the organization are satisfied with their work and are able to deliver excellence for the achievement of their personal as well as the organizational goals. In addition to this, employees who are leaders in the organization play the part of regulating and controlling the organizational culture and thus maintaining the intrinsic and extrinsic environment for employees of the organization. It can thus be determined that the organizational culture plays a major role in determining success in multiple aspects for the organization.

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Posted on

March 7, 2018

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