Organizational Culture

Organizational Culture
Organizational Culture is the pattern of shared values,
beliefs, and assumptions considered to be the
appropriate way to think and act within an organization
Culture provides stability to an organization and gives
employees a clear understanding of the way things are
done in the organization
It sets the tone for how organizations operate and how
individuals within the organization interact. Thus, it has
an impact on the employees who work for the firm.
Culture is shared by the members of the organization and
helps them solve and understand the things that the
organization encounters, both internally and externally.

Characteristics of Organizational Culture
• Innovation and Risk-taking
• Attention to detail
• Outcome orientation
• People orientation
• Team orientation
• Control
• Aggressiveness and Competition
• Stability
• Management Support
• Individual Responsibility
• Integration among units

Types of Organizational Culture
Every organization is different, and all of them have a
unique culture to organize groups of people.

Types of Organizational Culture
1. Clan Culture – Friendly working environment similar
to a large family, where people have a lot in common.
Leaders are seen as mentors or father figures and
organization is held together by loyalty and tradition.
2. Adhocracy Culture - Dynamic and creative working
environment, where employees are innovators and
take risks. The organization promotes individual
initiative and freedom.
3. Market Culture - People are competitive and focused
on goals. Leaders are tough and have high
expectations. The emphasis on winning keeps the
organization together. Reputation and success are
most important.

Types of Organizational Culture
4. Hierarchy Culture - Formalized and structured work
environment, where procedures decide what people
do. Leaders are efficient in coordination and
organization and ensure smooth functioning of their
organization.

Functions of Organizational Culture
• Boundary-defining role as it creates distinction
between one organization and others.
• Conveys a sense of identity to organization members.
• Helps create commitment to something larger than an
individual’s self-interest.
• Enhances stability as it helps hold the organization
together by providing appropriate standards for what
employees should say and do.
• Control mechanism that guides and shapes the
attitudes and behaviour of employees
• Serves as a code of conduct

Barriers of Organizational Culture
Barriers of
Organizational
Culture
Barrier to
Change
Barrier to
Diversity
Barrier to
Acquisitions and
Mergers

Creating and Maintaining Effective Culture
Disseminate Information
Be a Role Model
Code of Conduct
Reward Ethical Behaviour
Penalty to Violators
Consider Work-Life Balance
Fairness and Transparency

Thank You
Dr. Parveen Nagpal
www.linkedin.com/in/dr-parveen-kaur-nagpal-82965b15