Question
Culture forms the superglue that bonds the organisation, unites people and helps an enterprise to achieve the desired goals' (Deal and Bolman, 2017:242) An organizational
Culture forms the superglue that bonds the organisation, unites people and helps an enterprise to achieve the desired goals' (Deal and Bolman, 2017:242)
An organizational culture is difficult to highlight at a first glance just like superglue is transparent so one cannot really 'see' culture. Yet organizational culture is what makes each company unique, despite the fact that companies especially when in the same industry and field tend to become very similar in terms of structural forms, arrangements, HR policies for example due to institutional pressures (this phenomenon is called isomorphism).
Despite the similarities if you worked in different companies you would know that each company 'feels' unique, that there are specific ways of doing things, of being with co-workers, of what one can expect or not from one's boss and colleagues, how one can behave, what one is allowed to say or ask in certain circumstances, etc etc. these subtle specific elements make each company unique in the way it feel to work there and and its specific ways of doing things: these subtle elements in their entirety constitute the organizational culture. A basic but clear definition of organizational culture is the following: the customary and traditional way of doing things, which is shared to a greater or lesser degree by all members, and which new members must learn and at least partially accept in order to be accepted into service in the firm’ (Jacques, 1952:251).
How do you learn an organizational culture?
An organizational culture is learned through socialization processes inside and outside organizations.Examples of processes of socialization include: everyday interactions, mimicking others, making mistakes and being corrected (nicely or by being reprimanded would indicate a different type of culture, for example), asking questions, engaging in dialogues, formal learning events (inductions, training), etc. A strong organizational culture exists when there is a high degree of homogeneity in, and of, commitment to organizational values. Culture weakens if it is not widely shared or there is little commitment to it. Organizations usually contain sub-cultures (or cultures within cultures) based, for example, on different departments or functions or specific occupational practices and values, for example, while an hospital might have a very strong organizational culture based on care for patients and attention to details the way the nurses and doctors understand and put those values into practice might be very different based on the occupational and societal values that impinge on the organizational values.
Key elements of Organizational Culture And Schein's Model
An organizational culture is constituted by the values and symbols that are important in an organization. It is supported by specific myths and stories about the company and its people and reproduced through rituals and ceremonies you find many examples from different companies in the Deal and Bolman Textbook in Chapter 12 and 13.
MIT Prof. Donald Schein has studied organizational culture for over three decades. See the iceberg model of organizational culture and the video below that introduces for you Prof. Schein's model on org. culture based on visible artifacts, shared values and , and then the shared assumptions that might or might not be consciously held by employees that consists of their deeper taken-for-granted beliefs.
From the eighties onwards, management scholars concentrated more and more on culture as a way to develop competitive advantage. The key idea was that culture could be designed through change programs to develop a strong corporate culture that was shared by all employees and consistent throughout also for the customers. A strong culture based on clear goals, mission, values and then practices and procedures that embed, reinforce and support those values throughout, from organizational design, to work flow, to command structures, to recruitment, training and development and learning processes would fully harmonise all the different units, departments with their different needs and wants. Senior Management Teams (SMTs) are the official leaders who have a central role in the design and management of the desired corporate culture. Read the fascinating Harvard Business Review Leader's Guide to Corporate Culture
The Senior Management Team (SMT) often with the help of consultants and management experts tries to change an organizational culture to create a strong corporate culture that can become a key asset and a real competitive advantage in creating value for the company. They do so by designing and supporting a positive culture that helps harmonizing all the different employees, teams and units to constantly and effectively achieve organisational goals. So clarifying these goals, making sure that they are fully expressed in a clear mission and vision for the organization, that the objectives are shared and their specific meanings understood by all, and that there is consistency through the organisation in terms of supportive structures of communications, HR policies, learning tools and control mechanisms is imperative. Google is a canonical example of such positive way of designing, fostering and managing a strong corporate culture.
Enron was one of the most successful companies yet in 2001 all is mighty power could not save it from bankruptcy. It was a corporate scandal with huge repercussions thousands of people lost their savings, the reputations of esteemed people and companies (like Arthur Anderson) was destroyed and deep re-thinking of corporate governance, accountability processes and structures and even the rules and regulations on corporate corruptions and wistleblowing were part of the aftermath of the ENRON debacle. While ENRON's failure was based on a number of issues including inappropriate control systems, and corporate governance. But another fundamental reason for its failure was its toxic organizational culture and how it was fostered and supported by ENRON leadership, its SMT. This article gives you an insight on ENRON organizational culture, click the following: Ivey Business Journal: ENRON CASE
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