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What is organizational culture?
Organizational culture has been described as the shared values, principles, traditions, and ways of doing things that influence the way organizational members. In most organizations these shared values and practices have evolved over time and determine, to a large extent, how things are done in the organization1
Organizational culture is an idea in the field of organizational studies and management, which describes the psychology, attitudes, experiences, beliefs, and values (personal and cultural values) of an organization. It has been defined as "the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and
Different types of organizational culture
Following are the main types of organization structures found today:
In a normative organization, the organization stresses on implementing the organizational procedures in a correct way, and according to the norms and rules defined. This kind of culture is perceived to portray, a high standard of business ethics.
In contrast to normative cultures, stress is laid on satisfying the wish of their clients. In this type of organizational structure, the company sets no norms, and utmost importance is given to the needs of the client.
In this kind of culture, employees are highly skilled, and the organization provides an environment for the development and honing of employee skills. Examples of this kind of culture are hospitals, universities, large corporations, etc. Employees tend to stay with the organization and grow within it.
Baseball Team Culture
In this kind of culture, the employees are "free agents" and are highly prized. These employees find employment easily in any organization and are very much in demand. There is, however, a considerable amount of risk that is attached to this culture, as it is also fast paced. Examples of this kind of culture are advertising, investment banking, etc.
Usually the employees stay with the organization for a long time and get promoted to a senior post or level. These employees are hand picked, and it is imperative that they possess the specific skills required and desired, by the organization. Examples of this kind of organization are law firms, the military, etc.
Employees are not sure if the will be laid off or not by the organization. Very often, this organization undergoes massive changes. Few examples of this type of culture are loans and savings, large car companies, etc.
Tough-Guy Culture or Macho Culture
The most important aspect of this kind of culture is big rewards and quick feedback. This kind of culture is mostly associated with quick financial activities like brokerage and currency trading. It can also be related with activities, like a sports team or branding of an athlete, and also the police team. This kind of culture is considered to carry along, a high amount of stress, and people working within the organization are expected to possess a strong mentality, for survival in the organization.
Work Hard/Play Hard
This type of organization does not involve much risk, as the organizations already consist of a firm base along with a strong client relationship. This kind of culture is mostly opted by large organizations, which have strong customer service. The organization with this kind of culture is equipped with specialized jargons and is qualified with multiple team meetings.
Bet Your Company Culture
In this kind of culture, the company makes big and important decisions over high stakes endeavors. It takes time to see the consequence of these decisions. Companies that postulate experimental projects and researches as their core business, adopt this kind of culture. A company designing experimental military weapons for example can adopt this kind of culture.
This type of culture does not include the process of feedback. In this kind of culture, the organization is extremely cautious about the adherence to laws and prefers to abide by them. This culture provides consistency to the organization and is good for public services.
A culturally strong organization will focus on the environment it creates for its workers because that will help encourage a more efficient and productive company. Focusing on building and sustaining organizational culture shows employees that they are considered an important part of the company. This type of company generally has among the best response from its employees and thus will also have a much better chance of achieving its goals and further more improving its organizational performance.
There are five major reasons for wanting to create an appropriate and positive organizational culture for your company:
1) A strong organizational culture will attract high-level talent.
2) A strong organizational culture will help to keep your top-level talent.
3) A strong culture creates energy and momentum, which helps to allow the people to feel valued and free to express them selves.
4) A strong and successful organizational culture should alter the employees view of work. Instead of thinking of work as a place you have to go, a solid culture can make employees look forward to work.
5) A strong and positive organizational culture will help make everyone more efficient and successful.
The $256.3 billion Wal-Mart, the world's largest company, has more than 1.3 million associates worldwide and nearly 5,000 stores and wholesale clubs across 10 countries. Wal-Mart's unique culture has been shaped by the founder, Sam Walton. Sam believed that the secret of successful retailing was to give customers what they wanted. He devised a set of simple rules like 'three basic beliefs', 'ten foot rule', and 'the sundown rule' to guide the organizationââ‚¬â„¢s culture. Walton was passionate about keeping the costs of the business as low as possible. He believed that technology would distance the employees from customers. He considered unions to be a threat as they would only increase his costs.
Even after Walton's death, the senior managers are striving hard to keep the founder's core values alive in the company.