Characteristics, Functions & Types Of Organizational Culture

Organizational culture is the way people in a company think; A good culture keeps employees happy and productive, while a bad one can cause problems.

At the root of any organization’s culture is a set of core characteristics that are valued by members of an organization.

In this article, we will explore Characteristics, Functions & Types Of Organizational Culture.

Characteristics Of Organizational Culture

The following are the Characteristics Of Organizational Culture:

Innovation

Some organizations encourage their employees to be creative and generate ideas. However,r other organizations expect employees to strictly go by the rules laid down in the company’s manual.

Stability

Some organizations emphasize maintaining the status quo. That is, they prefer to maintain a stable and predictable work environment. On the other hand, some organizations encourage change and resist too much stability.

People Orientation

It is the degree to which the management takes into consideration the effect a decision will have on its people before a decision is made. For example, Infosys Technologies views its employees as assets and decisions are made only after considering what impact it will have on its “assets”.

Results Orientation

It is the degree to which management focuses on results or outcomes rather than the methods used to obtain the results. For example, Reliance Industries is often described as a result-oriented company.

Easygoingness

In some organizations the work atmosphere is relaxed and laid back whereas in some organizations the work atmosphere is charged, aggressive and competitive. For example, Public sector banks in India have a very easygoing attitude towards work.

Attention to detail

It is the degree to which employees in the organization are expected to show precision, analysis and attention to detail.

Team orientation

It is the degree to which work activities are organized around teams rather than individuals. For example, most software development companies emphasize a team approach towards work.

Each of these characteristics exists in varying degrees in different organizations. This is what makes each organization’s culture unique and different from the other.

Functions of Organizational Culture

Culture plays several important functions in organizations. While there are some clear benefits of organizational culture, there are also some negative outcomes of organizational culture on its effectiveness. The following are the Functions of Organizational Culture:

Sense of identity

Organizational culture creates a sense of identity among the employees. Employees develop a feeling of being part of something special. They thus experience a sense of belongingness to the organization.

For example, employees of Tata Companies are extremely proud of being a part of the Tata family.

The more strongly an organization’s perceptions and values are defined, the more strongly the employees associate themselves with the organization’s mission and feel a vital part of it.

 Commitment to the organization’s mission

A strong organizational culture motivates employees to think beyond their narrow personal interests. Culture reminds people what their organization is all about and encourages greater commitment to the organization’s goals and mission.

Appropriate standards of behaviour

Organizational culture guides the words and deeds of the employees. It conveys to the employees what kinds of behaviour are acceptable or unacceptable in the organization. Culture tells the employee what they should or should not do in a given situation. Thus organizational culture is an important force influencing behavior.

Types of Organizational Culture

The presence of organizational culture is usually uniform across the organization. However, this does not mean that there will not be subcultures within any given culture. Most large organizations have a dominant culture and several subcultures operating within them. Following are the Types of Organizational Culture:

Dominant Culture

 Dominant culture refers to the core values that are shared by a majority of the organization’s members. The dominant culture is the core values and dominant beliefs that are generally shared throughout the organization.

When we talk about organizational culture, we are referring to the dominant culture prevailing in the organization.

Subcultures

Subcultures are minicultures within an organization. These mini-cultures operate within the larger, dominant culture. Subcultures are usually an outcome of occupational, professional, or functional differences (type of work done) or geographic distances.

For example, the marketing department may have a subculture uniquely shared by members of that department. Members of subcultures share additional values along with the core values of the organization as a whole.

Although organizations have their own unique cultures, they may be classified into one of the following four categories:

Academy

Organizations with this kind of culture hire new college graduates and train them in a wide variety of jobs. Such an organizational culture provides the employees with opportunities to master different jobs.

For example, Hindustan Lever is frequently described as the training ground for future CEOs. CEOs of many large companies have spent the initial years of their career with Hindustan Lever before moving on.

Club

Organizations that are highly concerned with getting people to fit in and be loyal are referred to as clubs. In such organizations, one’s age and experience are highly valued. For example, members of the Indian Air Force.

Baseball team

In such cultures, employees tend to be entrepreneurs who are willing to take risks and are handsomely rewarded for their success. Such cultures usually have star employees who are very talented and highly paid but are willing to leave the organization if they are offered a better deal.

Fortress

The fortress type of culture exists in organizations that are facing hard times and fighting for their survival. employees who enjoy the challenge of fighting with their backs against the wall and do not mind the lack of job security enjoy working in this kind of culture.

An organisation may have a combination of cultures operating at the same time. The types of organisational culture may also change over time.

So, these were the Characteristics, Functions & Types Of Organizational Culture, If you have any suggestions to improve this post, please share them in the comments.