ORGANISATIONAL CULTURE

 

ORGANISATIONAL CULTURE

It’s an assemblage of norms, guidelines and practices that guides the actions of the people in the organization. The organizational structure holds enough power to determine the success and failure of a company. Organizational culture is usually misunderstood as something written in policy documents, nevertheless, it refers to the virtues of the organization and behavior of those working there. The head of the organization’s response to a problem or the old employees interacting with the new ones can be cited as a perfect example of organizational culture.

Four types of organizational cultures –

• Adhocracy culture – Organizations having this culture are known to be flexible and don’t go by bureaucratic policies. The main aim is innovation at a high pace.
• Clan culture – The word “clan” refers to a group of people closely related or sharing common interests.
• Hierarchy culture – This culture works with a proper chain of command. Levels of authority and procedures are its main elements.
• Market culture – The emphasis this culture is customer satisfaction and high profit margins. It also aims at staying ahead of the competition.

Importance – From a company’s punctuality to its ability to surpass crisis, everything is covered under organizational culture. Apart from the strength, a company’s organizational structure also indicates the employee satisfaction level and is an important factor that an employee considers while deciding whether to leave the company or stay. From a tech company like google to a dairy company like amul, all have to maintain an appropriate and positive organizational culture in order to achieve their goals constantly.

Characteristics of a good organizational culture –

• In a good organizational culture the objectives and goals of the employees and the organization are directed in the same way.
• Work recognition and appreciation are also necessary for the proper working of an organization. It could be in form of promotion or non-monetary incentives.
• Trust among the employees is another indicator of a good organizational culture. The employees should be able to rely on each other and trust each other for work.
• When the organizational culture of a company is good the employees are able to perform better and thus, overall good performance of the employees leads to high profits which is one of the main goal of any company.
• Employees should work together as team and keep the interests of the team before their own. Teamwork is necessary.
• An organization having good culture can adapt to the external and internal changes in a much easier way than otherwise. Business environment is dynamic and changes occur continuously. Therefore, it is necessary to adapt to those changes an develop with time.
• An organization with good culture has innovative approach. It is an effort to make optimum use of resources and come out with the best possible result and developing the way to work.
• Psychological safety is important, it could be in the form of job security or freedom to pitch in ideas. An employee would never be able to perform to the best of his abilities unless he/she knows that they can freely give in their ideas. Making the employees feel that they are an integral part of the organization also contributes to the psychological safety.