Industrial Psychology : Organizational Culture

Organizational Culture :

·      Like every individual is different, so is every organization.

·      Simple : Organizational culture influences the behavior of people who work for the organization.

·      “Organizational culture is a system of shared assumptions, values, and beliefs, which governs how people behave in organizations. These shared values have a strong influence on the people in the organization and dictate how they dress, act, and perform their jobs. Every organization develops and maintains a unique culture, which provides guidelines and boundaries for the behavior of the members of the organization.”

Characteristics of Organizational Culture :

1.    Risk Orientation – Innovation – Let employees experiment – learn and try new ways – improve their performance

2.   Precision Orientation – Attention to Detail – Accuracy check on employees – Expectation to exact or precise

3.   Achievement Orientation – Outcome – result more important than the method to achieve them – do whatever to higher it

4.   Fairness Orientation – People – importance of how the decisions will affect employees – respect and dignity given to employees

5.    Collaboration Orientation – Teamwork – focus on team activities – leads to positive relationship b/w employees

6.   Competitiveness Orientation – Aggressiveness – to be assertive or easy going with rival companies in market – value on outperforming other companies

7.    Rule Orientation – Stability – bureaucratic – rules and predictability high – perform well in non-changing markets

Organizational Culture : Levels

·      Organizational Behavior : The most observable – behavior patterns that are linked to organization

·      Values : Determine the behavior – not as observable – difference between stated and operating values (“on paper” vs “in use”) – expressed through norms

·      Fundamental Assumptions : Innermost part – grow out of values – taken for granted and forgotten  

Organizational Culture : Types

·      According to Robert Quinn and Kim Cameron

·      Four types :

o   Clan : Family like – mentoring, nurturing – togetherness

§  Doing things together

o   Adhocracy : Dynamic – entrepreneurial – risk taking

§  Doing things first

o   Market : Result Oriented – Competition – Achievement

§  Getting it done

o   Hierarchy : Structured – Controlled – Stability – Efficiency

§  Doing it right

Organizational Culture : Functions 

·      Cooperation : Provide values and assumptions – goodwill and trust

·      Decision Making : shared beliefs – fewer disagreements - faster

·      Control : Market, Bureaucratic and Clan control mechanism

·      Communication : Similar culture can reduce miscommunication

·      Commitment : Strong culture --> Identification --> Commitment

·      Perception : Depends – others with same experience see

·      Justification of Behavior : Make sense of their behavior