Organizational culture is a widely used concept in management studies. It is employed as a research construct to measure its impact on employee or organizational performance, among other variables.
The concept of organizational culture is crucial as it helps managers and leaders comprehend the working environment of the organization.
It encompasses all types of industries and is applicable to all organizations. It is the invisible force that binds individuals together, influencing their interactions, decision-making, and pursuit of shared goals.
This article explores the concept of organizational culture, starting from its definition and significance for the functioning of the organization.
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Scholarly sources are used to understand this culture, ensuring clear academic references for the presented concepts.
This article explores the concept, starting from its definition and significance for the functioning of the organization. Scholarly sources are used to understand the culture and provide clear academic references for the presented concepts. This article aims to assist those conducting research related to the concept.
Definition of Organizational Culture
Groups of people, regardless of their size, often exhibit distinct cultural characteristics. Schneider et al. (2013)1 define it as ‘the basic assumptions about the world and the values that guide life in organizations.’
According to Warrick (2017)2, Organizational culture is shared values, beliefs, and behaviors that shape the way people work together within an organization. It encompasses the culture of the entire organization or any unit of people working together within it.
It is defined as “the set of artifacts, values, and assumptions that emerge from the interactions of organizational members.”3 It pertains to the common norms, values, and beliefs embraced by individuals within the group.4
Likewise, Sarala & Vaara (2020)5 define organizational culture as the shared values, beliefs, behaviors and practices within an organization.
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Lam et al. (2021)6 argue that organizational culture is the way in which members of an organization engage with each other and how the organization relates to its stakeholders. Hofstede (2015)7 provides another definition of organizational culture as a collective cognitive system that guides the perceptions, thoughts, and language of members within an organization.
To summarize, organizational culture is how people in a group interact and share common values and beliefs that shape the way they work together and with others.
The Significance of Organizational Culture
According to Schein (2010)8, organizational culture has two primary functions. Firstly, it allows an organization to adapt to and align with its external environment by adopting appropriate values to address external challenges and opportunities. Secondly, it fosters internal cohesion by bringing together members and enabling them to work together more effectively towards common goals.
Organizational culture is significant in various aspects, including the promotion of innovation.9 It also contributes to the sustainability, profitability, competitiveness, and innovation of the business.10,11
Additionally, it can enhance employee engagement, productivity, and satisfaction, leading to reduced turnover rates, increased innovation, and better financial performance.12 The significance of culture lies in providing employees with a positive workplace environment that meets their crucial work-related needs, enhancing their morale and ultimately contributing to improved organizational performance.
Many studies have been conducted on the impact of culture on other factors, such as its positive and negative effects on employee performance.13
Research on Organizational Culture
This article has discussed the definition and significance of organizational culture. The definition is based on reliable and indexed sources that can be used as a reference for your own research. The information presented is limited in scope, but it can be useful in supporting your research.
Organizational culture is a widely studied construct in relation to other constructs. You may choose to measure the effect or relationship between this construct and, for example, performance (employee or organizational), employee attitudes, quality management, leadership, job satisfaction and others.
The relationship between organizational culture and other constructs can be explored according to your needs. Good luck with your research!
Reference
- Schneider, B., Ehrhart, M. G., & Macey, W. H. (2013). Organizational climate and culture. Annual review of psychology, 64, 361-388 ↩︎
- Warrick, D. D. (2017). What leaders need to know about organizational culture. Business Horizons, 60(3), 395-404 ↩︎
- Keyton, J. (2011). Communication and organizational culture: A key to understanding work experiences. 2nd Ed. Sage ↩︎
- Scammon, D. L., Tabler, J., Brunisholz, K., Gren, L. H., Kim, J., Tomoaia-Cotisel, A., Day, J., Farrell, T. W., Waitzman, N. J., & Magill, M. K. (2014). Organizational culture associated with provider satisfaction. Journal of the American Board of Family Medicine : JABFM, 27(2), 219–228 ↩︎
- Sarala, R. M., & Vaara, E. (2020). Advancing organizational culture research: A review and roadmap for future research. Journal of Management, 46, 1209-47 ↩︎
- Lam, L., Nguyen, P., Le, N., & Tran, K. (2021). The relation among organizational culture, knowledge management, and innovation capability: Its implication for open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 66. ↩︎
- Hofstede, G. J. (2015). Culture’s causes: the next challenge. Cross Cultural Management, 22(4), 545-569. ↩︎
- Schein, E. H. (2010). Organizational Culture and Leadership. 4th Ed. Jossey-Bass ↩︎
- Aboramadan, M., Albashiti, B., Alharazin, H., & Zaidoune, S. (2020). Organizational culture, innovation and performance: a study from a non-western context. Journal of Management Development, 39(4), 437-451. ↩︎
- Mingaleva, Z., Shironina, E., Lobova, E., Olenev, V., Plyusnina, L., & Oborina, A. (2022). Organizational culture management as an element of innovative and sustainable development of enterprises. Sustainability, 14(10), 6289 ↩︎
- Stojanović, E. T., Vlahović, M., Nikolić, M., Mitić, S., & Jovanović, Z. (2020). The relationship between organizational culture and public relations in business organizations. Journal of Business Economics and Management, 21(6), 1628-1645. ↩︎
- arala, R. M., & Vaara, E. (2020). Advancing organizational culture research: A review and roadmap for future research. Journal of Management, 46, 1209-47. ↩︎
- Fridan, A. A. A., & Maamari, B. E. (2023). Impact of organizational positive and negative culture on employee performance. International Journal of Organizational Analysis ↩︎
