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Define Organizational Culture.. How Does It Develop

Organizational Culture encompasses the shared values, beliefs, and behaviors that define a company, influencing employee engagement and overall performance. A strong culture fosters teamwork, employee commitment, and recognition, while a lack of understanding can lead to high turnover and inefficiencies. It is shaped by various factors including leadership, shared values, socialization, and the work environment, making it a dynamic aspect of organizational success.

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6 views2 pages

Define Organizational Culture.. How Does It Develop

Organizational Culture encompasses the shared values, beliefs, and behaviors that define a company, influencing employee engagement and overall performance. A strong culture fosters teamwork, employee commitment, and recognition, while a lack of understanding can lead to high turnover and inefficiencies. It is shaped by various factors including leadership, shared values, socialization, and the work environment, making it a dynamic aspect of organizational success.

Uploaded by

lovedpeople17
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Organizational Culture refers to the shared values, beliefs, attitudes, and behaviors that

characterize a company or institution. It encompasses the norms and practices that shape how
individuals within the organization interact with each other, approach their work, and perceive
the organization’s mission and objectives. Organizational Culture is often considered the
personality of a company, influencing employee engagement, decision-making processes, and
overall performance.
How does it works?
It is important to understand your organization’s organizational culture in the workplace. It is the
glue that binds your employees to the company. Employees who understand what it means to
work for you and why they work for you will be more committed and engaged.

Lack of understanding about this often leads to increased levels of turnover and increased costs
in hiring replacements, both at the management (CEO) level or at operational levels, not just in
terms of HR cost but also the time that could have been saved had this understanding been
reached much earlier.
Organizational culture in the workplace can make or break the success of any business. A
well-planned organizational culture has been shown to increase a company’s competitiveness
greatly. Without a well-defined culture, an organization will have problems achieving its goals.

Companies with strong cultures are more successful than those without a clearly defined set of
standards. Part of this is due to quality production processes. Still, another part is because new
employees undergo a rigorous training process where they learn more about Toyota culture and
how it works and how to act according to the desired culture. This helps them become well
integrated into the larger group and understand what kind of behavior is expected of them.

In addition, a strong culture in the workplace allows employees to feel valued and respected.
This is important because when people feel like their contributions are not being recognized or
appreciated, employees contribute less motivation and effort. When people do not feel valued,
they become frustrated, making it harder for them to improve their performance.

A strong culture in the workplace also promotes teamwork. According to research, the single
most important factor determining employee commitment is participation in decision-making. In
other words, if you don’t let your workers participate in defining the company’s direction, it
becomes very hard for them to buy into your company’s values. This means that if your workers
aren’t engaged and feel as though their opinion counts in determining the company’s future,
they won’t stick around long enough to help achieve your strategic goals. Teamwork is one of
the keys to success in business. If you want your organization to succeed, it needs to foster a
team environment where people feel free to share ideas and support each other.

Organizations need to recognize and reward top performers, but there is little evidence that
performance reviews improve long-term organizational effectiveness (Zohar et al., 2008).
Furthermore, organizations should focus on improving morale instead of solely on performance
outcomes (Baum & Kramel, 2006), as poor morale undermines productivity.
Organizational culture forms through a combination of several factors:Founders and Leaders:
The values, beliefs, and behaviors of the founders and leaders shape the initial culture of the
organization.Shared Values: Over time, as employees interact and work together, they develop
shared values and beliefs that reflect what is important within the organization.Socialization and
Onboarding: New employees are socialized into the organization's culture through formal
onboarding processes, interactions with colleagues, and observing organizational
norms.Symbols and Rituals: Symbols, rituals, and ceremonies within the organization reinforce
its culture and help to communicate values and expectations.Organizational Structure: The
structure of the organization, including its hierarchy, communication channels, and
decision-making processes, can influence its culture.Work Environment: The physical work
environment, as well as factors like dress code and office layout, can contribute to the
organization's culture.External Environment: Factors such as industry trends, competition, and
societal norms can also influence organizational culture over time.Feedback and Adaptation: As
the organization evolves, feedback mechanisms and the ability to adapt to changing
circumstances play a role in shaping and maintaining its culture.Overall, organizational culture is
a complex and dynamic phenomenon that emerges from the interactions of individuals within
the organization and their broader context.

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