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7.1.2 Culture defined through the influence of the external environment

Culture could be considered the 'fundamental character' of the organisation. That is, shared values define the fundamental character of the organisation or the 'attitude' that distinguishes the organisation from all other organisations. You could think of culture as the 'glue' that holds the organisation together.

Therefore, an organisation's culture is the sum total of its beliefs, values, philosophies and traditions. Culture is, in fact, the 'personality' or the totality of the organisation's characteristics.

In order to place organisational culture into perspective it is relevant to note the influence of the external environment. In all societies there is a subculture called the business culture . How business is conducted is not determined purely by the culture within the organisation. In many companies, the pressure of international competition causes the organisational culture to adapt to outside influences.

An organisation is embedded in external social, political, legislative, economic and technological systems. Organisations operating in different sectors have different markets, technologies and legal constraints. They have different skill and resource needs. These variations place different demands on the organisation and create differing learning environments.

Briefly skim read the Gettler reading. You should find it interesting as it examines the relationship between culture and mission statements. The next reading brings together some of our earlier topics on stakeholders, the role of management and linking to values.

Reading 7.1

Gettler , Leon (1998, October). ' Mission : possible'. Management Today , pages 14-19.

Czechowicz, Jarek (2001, April). 'Values added'. Management Today ,
pages 14-19.

Consider this

Newport News Shipbuilding has the following mission:

We shall build good ships here - at a profit if we can: at a loss if we must - but always good ships .

Cosco, J (1995, November/December). 'Down to the sea in ships'. Journal of Business Strategy , page 48.

Comment on this mission statement. What might be the impact on organisational culture?

What are the major external influences that impact on your organisation's culture?

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