What is organizational culture and how does it develop.

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    What is organizational culture and how does it develop.


    Culture can be defined as a common perception by the organization’s members.

    Cultures develop using some version of the following steps:

    Founder’s influence.

    Initial core group who shares a common vision with the founder.

    Founding core group creates the organization.

    Common history is developed with the addition of others.


    Organizational culture refers to the shared values, beliefs, norms, behaviors, and practices that characterize an organization and guide how its members interact and work together. It’s essentially the “personality” of an organization and influences how employees perceive their workplace, make decisions, and engage with their tasks and colleagues. Organizational culture plays a significant role in shaping employee attitudes, behavior, and overall performance, and it can have a profound impact on an organization’s success and effectiveness.

    Organizational culture develops through a combination of various factors and processes:

    1. Leadership: The behavior and values exhibited by the organization’s leaders significantly influence the culture. Leaders serve as role models, and their actions and decisions set the tone for the entire organization.

    2. Founding Values and Beliefs: The original values and beliefs of the organization’s founders often lay the foundation for the culture. These initial principles can persist and shape the culture even as the organization evolves.

    3. Hiring and Selection: Organizations tend to hire individuals who align with their existing culture. Over time, this creates a reinforcing cycle where new employees adopt and perpetuate the established cultural norms.

    4. Socialization and Training: New employees are introduced to the organization’s culture through orientation programs, training sessions, and interactions with more experienced colleagues. This process helps newcomers understand the expected behaviors and values.

    5. Organizational Communication: How information is shared within an organization can impact its culture. Transparent communication promotes trust, while a lack of communication can lead to misunderstandings and resentment.

    6. Rewards and Recognition: The way employees are rewarded and recognized for their efforts can reflect the organization’s cultural priorities. Aligning rewards with desired behaviors reinforces the culture.

    7. Organizational Structure: The organization’s structure and hierarchy can influence how information flows and how decisions are made. This, in turn, affects how employees interact and collaborate.

    8. Adaptation to Change: As an organization faces challenges and adapts to changes in its environment, its culture may also evolve. The ability to adapt while retaining core values is crucial for long-term success.

    9. External Influences: Factors external to the organization, such as industry trends, societal norms, and economic conditions, can impact its culture.

    10. Crisis and Significant Events: How an organization responds to crises or significant events can reveal aspects of its culture and influence its future development.

    11. Employee Feedback and Participation: Encouraging employee feedback and involving them in decision-making can contribute to a more inclusive and collaborative culture.

    12. Mergers and Acquisitions: When organizations merge or acquire others, their cultures often mix and evolve, creating a new cultural identity.

    Organizational culture is both complex and dynamic, as it continuously evolves based on internal and external influences. Nurturing a positive and healthy culture requires ongoing attention, alignment with organizational goals, and a commitment to fostering an environment that promotes employee engagement, innovation, and shared values.

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