readings icon presentation iconquiz iconresources icon

7.1 Defining organisational or corporate culture

Consider this

Think about the factors that keep your organisation together:

What are the shared values?

Do you believe in the mission of your organisation? Why or why not?

Do you find yourself able to make decisions knowing that your values are the same as those of your organisation?

If you were to leave your job this week what would you miss (security, friends, regular hours, challenges.)?

How does senior management speak to different staff members?

Writers have tended to use the terms corporate culture and organisational culture interchangeably. Throughout this chapter organisational culture and corporate culture is referred to as culture .

Most people seem to agree that culture exists in organisations and that it is a useful concept to study. Far fewer know exactly what it is. In general, definitions of culture tend to deal primarily with either the way we act or the way we think. At one extreme, culture may be defined as the 'way we do things around here'. For example, the attitudes and practices of managers at a particular company, perhaps one like Microsoft or Apple, may characterise it as innovative. Another company may be known to have a culture of customer service; that is, all of the employees, from top to bottom behave as though they value both internal and external customers.

Not surprisingly, managers tend to view culture primarily in terms of behaviour. After all, managers are interested in making practical changes in people's work, goals and methods.

Following are some common definitions of organisational culture:

A common perception held by the organisation's members; a system of shared meaning.

Robbins et al. 1998, page 562.

Culture is the commonly held and relatively stable beliefs, attitudes and values that exist within the organisation.

Williams, Dobson and Walters 1989, page 11.

Every organisation exists within a broader social culture and perpetuates its own internal culture. Organisational culture is an expression of the values, beliefs and assumptions that dominate the organisation. When a culture is well known, corporate symbols, such a the logo or the corporate colours, organisational customs or rituals come to stand not just for the company but for the culture that defines how an organisation conducts its business.

Your organisation's culture tells you what is important and what type of behaviour is expected. Organisational culture sets one organisation apart from other organisations. It is your organisation's distinctive 'personality'.

Organisational culture is a variable that affects organisational behaviour. In business, an understanding of the nature of business culture certainly has practical relevance. When we appreciate its nature, we can understand how it may be changed. When we know its role, we can comprehend its importance.

previous page Previous Page - Next Page next page