Organizational culture can be defined as "the way we do things around here" and as basic assumptions that a group develops to solve problems. It is a soft aspect carried in people's minds that influences how they interpret and judge what is right or wrong. A strong culture can positively impact organizational performance by directing employees towards goals, strengthening cultural influence on behavior, and creating cultural homogeneity. Key elements of organizational culture are values, communication, networks, and heroes. Its functions are providing identity, commitment, stability, and understanding. Challenges to organizational culture include pressure from internationalization, developing human resources, balancing stability and adaptation, and facilitating relationships and sharing.

1. Info6510
(6)Organizational Culture
By: Dr. Nabhan AlHarrasi

2. Definition
• “the way we do things around here”
• “A pattern of basic assumptions invented,
discovered or developed by a given group as
it learns to cope with its problems of external
adaption and internal integration that has
worked well enough to be considered
valuable and, therefore, to be taught to new
members as the correct way to perceive,
think and feel in relation to those problems”

3. The nature of Organizational
Culture
• It is a soft aspect of an organization, the details
of which are carried in people’s minds, and even
though they may not be aware of doing so, they
use this information to interpret what surrounds
them, for example to judge whether something
is right or wrong, appropriate or inappropriate.

4. The nature of Organizational
Culture
Basic Assumptions
Values & Beliefs
Creations

5. The effects of culture on
Organizational Performance
• Culture in generally a strong effect on people’s
behaviour
• Researchers believe that culture is a key
component in the performance of a successful
companies.
• Performance can be influence by:
1. Culture direction: the extent to which an
organization’s culture helps it achieve it goals
2. Culture strength: the influence of a culture on the
behaviour of organizational members.
3. The homogeneity of an organization's culture

6. Four elements of Organizational culture
Organizational
Culture
Values
Communication
Culture
Networks
Organizational
Heroes

7. Functions of Organization’s
Culture
• Organizational Identity
• Collective Commitment
• Stability of the system
• Understanding what is going On

8. Challenges
• Pressure from internationalization on
Organizational culture
• The development of human resources
• Stability
• Adaptation
• Relationships between members
• Sharing of ideas and decision