CHAPTER 6

ORGANIZATIONAL CULTURE AND CLIMATE

Organizational culture

Culture is the personality of the organization. Corporate culture is the total sum of the values,
customs, traditions and meanings that make an organization unique.

Corporate culture is often called ‘the character of an organization’ since it embodies the vision
of the organization’s founders.

Levels of culture

I) Artifact (visual level): This is the most visible level of culture and the creations of the
constructed physical and social environment. Examples include physical space and layout, the
technology output, written and spoken language and the overt behaviour of group members

II) Values: Beneath artifacts are values which are conscious strategies, goals and philosophies.
III) Basic Underlying assumptions: It entails unconscious beliefs, perceptions, thoughts and
feelings that provide key understanding as to why things happen the way they do. They are the
ultimate source of values and actions

Types of Organizational culture

a) Power culture

Power culture is when one person has control over everything that goes on within the
organisation. There exists central powerful figure, very few rules and systems in, fast decisions,
and personal communications. The central figure makes all decisions, like employees’ wages,
how much time employees are allowed for their holidays, who gets employed, who is made
redundant and what products are sold.

A power culture is frequently found in small entrepreneurial organizations and relies on trust,
empathy and personal communications for its effectiveness.

b) Role culture

Role culture is based on structure, with more rules to abide by and bureaucracy. Work is
decided via rules and regulations. Power is a based on level in a hierarchy, i.e. your job
position. For example a manager would have more power than a supervisor. People work to a
job description. This means that not just one person has control over the whole business, but a
number of people who have important job positions will also have important decisions to
make depending on their job role.
c) Task culture

Task culture is all about team working, when people come together to form a team in order to
work on a project. This means that people in the teams will have different skills to use in the
project. No one has greater position over anyone in this type of culture as people will have
different skills to use together in order to get the project completed. The task is key, rather
than the individual or rules. Individuals have more freedom and flexibility, where they can get
their tasks completed without being told what to do constantly. While doing the tasks, personal
power can be released by each person so that the outcome of the project will be even better.

d) Person culture

This culture is where the individual is the central focus and any structure exists to serve the
individuals within it. When a group of people decide that it is in their interest to come together
to do their own thing and share office space, equipment or clerical assistance then the resulting
organization would have a person culture, i.e. group of barristers, doctors

Individuals have almost complete autonomy and any influence over them is likely to be based
on personal power.

Importance of Organisational Culture

● It distinguishes one organization from another organization. That means it creates brand
name for the organization.

● It develops a sense of identity amongst its members.

● It promotes commitment amongst employees to achieve organisational goals.

● It develops appropriate standards for employees & holds them together to achieve those
standards.

● It provides a control mechanism for shaping the attitude & behaviour of employees.

Characteristics of organizational culture

a) Develops over time

b) Can be consciously developed by an organization’s key members

c) Intangible/ but felt as it affects and surrounds everything in an organization

d) Dynamic i.e. changes over time

e) Unique and distinctive to an organization

f) Symbolic representations of underlying beliefs and values

g) There is no best culture for an organization; depends on organization’s goals, nature,

competition and other factors in the environment
h) A reflection of top management beliefs

g) Has sub cultures within cultures

Transmission of organizational Culture/How is culture learnt:

● Stories:

The stories be these true or false, told to the organizational members can have a profound
impact on organizational culture.

● Symbols:

Examples of symbols include the size of offices, the elegance of office furnishing etc for certain
employees. The value of these symbols is that they communicate important cultural values.

● Language:

Organisations use a language in terms of specific slogan, metaphor to convey special meaning
to employees. It symbolizes what the company stands for to both employees and society.

● Rituals:

Rituals such as annual function, award ceremonies e.t.c reinforce the key values of the
organization, which goal is imp, which people are important. The annual function is an
example of ritual performed in an educational institution.

Factors determining organization culture

a. Organization Founder:

Whatever impression founders create about the organization, it continues and develops for a
long period of time.

b. Corporate success & shared Experiences:

Corporate success for a long period develops a strong culture. If the members share common
experience, it remains in their mind forever.

c. Innovation & risk taking:

Innovative and risk taking employees develop a strong culture.

d. Outcome rather than technique: Organisations whose managers focus on outcome

rather than technique, they develop strong culture.
e. Competitiveness:

Organisations whose employees are competitive are actually stronger than non-competitive
ones.
 f. Shared interpretation:

Organisations whose members have common perception and thinking about organizational
values, norms, they can develop a strong culture.

External and internal factors influencing organization’s culture

External factors (pressures) include:

a) The attitudes, values and ethics of the locality in which business is based

b) Local working practices and customs especially relating to hours of work and ways of
working c) Reputation in terms of image of the organization is the key in terms of its
acceptance or non-acceptance. Organizations that have had a bad track record and those that
have a bad or negative history will not be easily acceptable.

e) Legal factors: All organizations have to work within the laws of their locations. These exert
pressure on production methods, waste disposal, health and safety, marketing, contractual
arrangements, staff management, industrial relations etc. This is even of greater concern when
a company works across different countries with different legal codes.

f) Ethical factors: Ethical pressures arise from the nature of work carried out and from the
standards and customs of the communities in which the organization operates. An organization
will ideally need to position itself beyond reproach of any ethical issues of concern.

Internal factors (pressures)

a) Culture interactions: The interaction between the desired culture and the organization’s
structures and systems

b) Psychological contract: The expectations and aspirations of staff, and the extent to which
these are achievable and afforded by the organization

c) Leadership: Management and supervisory style and the extent to which this is supportive,
suitable to the purpose and generally acceptable to the staff

d) Employee competencies: The quality and expertise of staff and the extent to which this
enhances teamwork and cohesion amongst employees

e) Technology: The levels of technology and the extent to which affects structures, work design
and work flow

f) Organizational culture: Working customs, traditions and practices, work divisions,

specialization and allocation, unionization and other means of representation.
g) Job retention: The extent to which continuity of employment is feasible, or conversely to
which uncertainties surround future prospects for work and employment

h) Legal and ethical approach of the organization

i) The levels of commitment: From employees and management alike and the factors that
would either enhance or impact negatively on this commitment

j) Channels of communication: Methods and systems for communication and their clarity and
precision

k) Organizational procedures and regulations: The way in which an organization carries out its
business e.g. training programmes, promotions, recruitment, the control systems, measures
and reward systems

Organizational Climate
Organizational climate can be defined as ‘how it feels to work around here’.

Applied to organizations, climate can be said to relate to the prevailing atmosphere

surrounding the organisation, to the level of morale, and to the strength of feelings of
belonging, care and goodwill among members. Climate will influence the attitudes that
members of the organisation bring to bear on their work performance and personal
relationships.

The extent to which employees accept the culture of the organisation will have a significant
effect on climate. Whereas organizational culture describes what the organisation is about,
organizational climate is an indication of the employees’ feelings and beliefs of what the
organisation is about. Climate is based on the perceptions of members towards the
organisation.

Characteristics of a healthy organizational climate

■the integration of organizational goals and personal goals

■the most appropriate organisation structure based on the demands of the socio-technical
system

■democratic functioning of the organisation with full opportunities for participation

■justice in treatment with equitable HRM and employment relations policies and practices

■mutual trust, consideration and support among different levels of the organisation

■the open discussion of conflict with an attempt to avoid confrontation

■managerial behaviour and styles of leadership appropriate to the particular work situations

■acceptance of the psychological contract between the individual and the organisation
■recognition of people’s needs and expectations at work, and individual differences and
attributes

■concern for flexibility and the work/life balance