Universal Journal of Management and Social Sciences
Vol. 2, No.9; September 2012
Connotation of Organizational Culture – Models and Categories (A Review)
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*Dr. Muhammad Tariq Khan , Dr. Naseer Ahmed Khan , Sheraz Ahmed , & Mahfooz Ali
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Head, Department of Management Sciences University of Haripur, PAKISTAN, Postmaster General, Pakistan
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Post, Rawalpindi, PAKISTAN, Lecturer, Department of Management Sciences University of Haripur, PAKISTAN
*tariq_phd@yahoo.com
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Abstract
Organizational culture is the pattern of beliefs, values and learned ways of coping with experience that have
developed during the course of an organization’s history, and which tend to be manifested in its material
arrangements and in the behaviors of its members”. Organizational culture is therefore to an organization
what personality is to an individual. Focus of this paper is to define and elaborate the organizational culture
highlighting its different models and categories.
Introduction
Culture is what a group learns over a period of time as that group solves its problems of survival in an external
environment and its problems of internal integration. Such learning is simultaneously a behavioral, cognitive,
and an emotional process. But organizational culture as a concept has a fairly recent origin Schein (1990).
Trefry (2006) narrated that organizational culture has been one of the most influential concepts and biggest
management buzzwords of the last several decades. Organizational culture is “the pattern of beliefs, values
and learned ways of coping with experience that have developed during the course of an organization’s
history, and which tend to be manifested in its material arrangements and in the behaviors of its members”.
This suggests that organizational culture is articulated in the organization in order to shape the way in which
its members should behave. However, this pattern of values, norms, beliefs, attitudes, principles and
assumptions that gives the organization its unique character may be unwritten or non-verbalized behavior that
describes the way in which things get done. Manetje & Martins quoted (referring Johnson 1990) that
organizational culture is therefore to an organization what personality is to an individual. Focus of this paper is
to define and elaborate the organizational culture highlighting its different models and categories.
History of Concept of Organizational Culture
According to Schein (1990) organizational culture as a concept has a fairly recent origin. Although
psychologists have been using the concepts of, "group norms" and "climate" for a long time, the concept of
"culture" has been explicitly used only in the last few decades. Organizational "climate," by virtue of being a
more salient cultural phenomenon, lent itself to direct observation and measurement and thus has had a
longer research tradition. But climate is only a surface manifestation of culture, and thus research on climate
has not enabled us, to delve into the deeper causal aspects of how do organizations function. In the late 1940s
social psychologists interested in "action research" and leadership training freely used the concept of "cultural
island" to indicate that the training setting was in some fundamental way different from the trainees" "back
home" setting. But the concept of "group norms," heavily documented in the Hawthorne studies of the 1920s,
seemed sufficient to explain this phenomenon. In the 1950s and 1960s, the field of organizational psychology
began to differentiate itself from industrial psychology by focusing on units larger than individuals.
Wallace et al (1999) expressed that Blau and Scott were two of the first post-war management authors to
assert that all organizations consist of both formal and informal dimensions, and that it is simply not possible
to know or understand the workings of an organization without a sound understanding of its informal. It was
not until 1978, however, that the first major analysis of the informal dimension, focusing on organizational
culture and management, gained attention in the mainstream literature of organizational theory. This was
closely followed by the substantial work, which suggested that organizational cultures consist of cognitive
systems explaining how people think, reason, and make decisions. Differing levels of culture, arguing that at
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the deepest level, culture consists of a complex set of values, assumptions, and beliefs that define the ways in
which a firm conducts its business were also noted.
Trefry (2006) narrated that organizational culture has been one of the most influential concepts and
biggest management buzzwords of the last several decades. The term organizational culture appeared during
the 1960s as a synonym for organizational climate. "Corporate culture" became a common management
buzzword in the early 1980s after the publication of several popular press books. Although academic and
popular management literature have reflected interrelated themes regarding culture and its effects, the
pervasive assumption has been that organizational culture is closely related to organizational effectiveness. In
practice, ambiguity of the concept has resulted in culture being used as a proxy for various phenomena
affecting organizational performance. Thus culture often becomes a comfortably vague and all-inclusive
reason for organizational problems.
What is Organizational Culture? Its Definitions and Explanation
Trefry (2006) wrote (with reference to Durkin, 1981; Festinger, 1957; Hebb, 1954; Heider, 1958; Hirschhorn,
1987; Lewin, 1952) that the problem of defining organizational culture derives from the fact that the concept
of organization is itself ambiguous. From study of some theories (systems theory, Lewinian field theory, and
cognitive theory) came one other theoretical premise, that systems tend toward some kind of equilibrium,
attempt to reduce dissonance, and thus bring basic categories or assumptions into alignment with each other.
There is a conceptual problem, however, because systems contain subsystems, organizations contain groups
and units within them, and it is not clear over what range the tendency toward equilibrium will exist in any
given complex total system. It is enough to specify that any definable group with a shared history can have a
culture and that within an organization there can therefore be many subcultures. If the organization as a
whole has had shared experiences, there will also be a total organizational culture. Within any given unit, the
tendency for integration and consistency will be assumed to be present, but it is perfectly possible for
coexisting units of a larger system to have cultures that are independent and even in conflict with each other.
According to Manetje & Martins (2009) a basic definition of organizational culture is necessary to provide a
point of departure in the quest to understand the constructs. So they quoted definition of Brown (1998) and
Harrison (1993) with their comments. According to Manetje & Martins (2009) Brown (1998) defined
organizational culture as “the pattern of beliefs, values and learned ways of coping with experience that have
developed during the course of an organization’s history, and which tend to be manifested in its material
arrangements and in the behaviors of its members”. This suggests that organizational culture is articulated in
the organization in order to shape the way in which its members should behave. Given the various definitions
and descriptions of the concept of ‘organizational culture’, the appropriate and applicable definition for this
study is stated by Harrison (1993) as the “distinctive constellation of beliefs, values, work styles, and
relationships that distinguish one organization from another”. In other words, organizational culture includes
those qualities of the organization that give it a particular climate or feel. The distinct qualities of an
organization may manifest through four dimensions, namely power, role, achievement and support.
Manetje & Martins (2009) also quoted following definitions of organizational culture given by some other
scholars as:
“Organizational culture is a system of shared meaning held by members, distinguishing the organization from
other organizations” by Martins and Martins (2003).
“Organizational culture is the distinctive norms, beliefs, principles and ways of behaving, that combine to give
each organization its distinct character” by Arnold (2005)
These two definitions suggest that organizational culture distinguishes one organization from another.
Organizational leaders need to determine what type of culture will reflect the organizational vision and values,
identify the appropriate behavior to shape such a culture and then develop strategies to instill these behaviors
across the entire organization”.
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Srivastav (2009) also quoted definition of Schein (1992) that organizational culture represents a pattern of
shared basic assumptions learnt by the organization for solving problems related to internal integration and
external adaptation. Such a pattern of shared basic assumptions are believed to be valid and prescribed to new
organizational members as the most desirable ways for solving future problems. And Manetje & Martins
(2009) also mentioned a definition by Schein (1985) as: “organizational culture is a pattern of basic
assumptions invented, discovered, or developed by a given group as it learns to cope with its problems of
external adaptation and internal integration that has worked well enough to be considered valid, and
therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those
problems”. This description highlights that organizational culture comprises created assumptions, which are
accepted as a way of doing things and are passed on to new members of an organization. For new employees,
this would mean adaptive behavior within the organization, leading to new belief systems. This new and
adaptive behavior, instilled through organizational values and beliefs, is associated with rituals, myths and
symbols to reinforce the core assumptions of organizational culture.
Shakeel et al (2011) expressed (referring Schein, 1985; Kotter & Heskett, 1992; Liu, 1999; Rosenthal & Rosnow
1991 and Rokeach 1972) that organizational culture consists of various elements ranging from latent cognitive
components such as assumptions, values and beliefs to the more manifest elements such as artifacts and
symbols. Values, practices and behaviors, however, remain the fundamental, albeit latent, components of
organizational culture and ethics provide the core essence in the formation of these components. “Ethics refer
to the system of moral values by which the rights and wrongs of behavior”. Values are signifying enduring
beliefs in particular ways of behaving or preferences for states in the future. Not only should ethics refer to
values but, in order to secure operation, reference must be made to principles and standards regarding
behavior.
Schimmoeller (2010) also quoted Schein, (1990) definition that organizational culture might be defined as “a
common set of values and beliefs that are shared by members of an organization which influences how people
perceive, think, and act”. Schimmoeller elaborated that culture becomes a basic set of assumptions that guides
an organization’s social relationships and are moderated by an unspoken socialization process, which is often
taken for granted by vested members. Organizational performance has been directly linked to organizational
culture.
Ojo (2009) referred Morgan (1997) who described culture as “an active living phenomenon through which
people jointly create and recreate the worlds in which they live.” The culture of the organization should be
developed to support continuous improvement, improve employees’ style of performing their job and thus
develop quality awareness. According to Ojo (2009) for Morgan, the three basic questions for cultural analysts
are:
1- What are the shared frames of reference that make organization possible?
2-Where do they come from?
3- How are they created, communicated, and sustained?
Ojo (2009) revealed that organizational culture finds expression through the thoughts, intentions, actions and
interpretations of members of the organization. To operate successfully across cultures, it is important to be
able to recognize cultural differences and be adaptable.
Ojo (2009) commented referring (Titiev, 1959; Tichy, 1982; Forehand & von Gilmer (1964 and Schein 1990)
that organizational culture has been defined as the “normative glue” that holds an organization together and
suggested that culture is the set of characteristics that describe an organization and distinguish it from others.
Ojo also mentioned that Schein (1990), in a more comprehensive fashion, defined culture as values and
behaviors that are believed to lead to success and are thus taught to new members. Central to the culture
definition is the idea that culture must be learned and shared.
Yazici (2009) asserted that organizational culture is the set of values, beliefs, and behavioral norms that guide
how members of the organization get are defined work done. Many organizational factors were attributed to
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team effectiveness. Organizational context is defined as management processes, organizational culture, and
organizational systems that exist within an organization.
Christie et al (2003) expressed that culture has been identified as one of the important determinants of
business ethical decision-making. Culture influences ethical decision-making both directly and indirectly by
interacting with other variables. Bartels (1967) was the first to recognize the importance of the role of culture
in ethical decision-making in marketing. He notes that, “contrasting cultures of different societies produce
different expectations and become expressed in the dissimilar ethical standards of those societies”. According
to his model, cultural factors such as “law, respect for individuality, nature of power and authority, rights of
property, concept of deity, relation of the individual to the state, national identity and loyalty, values, customs
and mores, state of the arts, etc.” are the most basic determinants of ethical standards of a society.
Long (1997) revealed that an often-overlooked phenomenon in culture is the role that subcultures play in
shaping organizational behavior. Subcultures consist of distinct sets of beliefs, norms, and practices exhibited
by specific groups in an organization, e.g. research and development (R&D), sales, engineering, management
information system (MIS). Subcultures have characteristics that distinguish them from the firm’s overall
culture, as well as from other subcultures. For example, R&D’s values may seem focused on elegant product
features to the detriment of marketability and profits, while finance appears to value only controlling costs.
MIS, on the other hand, seems only concerned with maintaining strict adherence to its technology standards.
Organizations usually have both an overall culture and multiple subcultures. However, the influence of the
overall culture and the amount of conflict among subcultures will vary in organizations.
Ahmad (2012) expressed (referring Owens 1987; Schein, 1990; and Aycan et al., 1999) that having established
that organizational culture comprises a range of complex social phenomena; it is no surprising that scholars
have identified corporate culture as a multi-layered construct, which can be divided into layers according to
these phenomena’s observability and accessibility. Organizational culture has been defined as patterns of
shared values and beliefs over time, which produces behavioral norms that are adopted in solving problems.
The organization’s internal environment is represented by its culture and is construed by the assumptions and
beliefs of the managers and employees. Organizational Culture manifested in beliefs and assumptions, values,
attitudes and behaviors of its members is a valuable source of firm’s competitive advantage since it shapes
organizational procedures, unifies organizational capabilities into a cohesive whole, provides solutions to the
problems faced by the organization, and, thereby, hindering or facilitating the organization’s achievement of
its goals.
Three Potential Approaches for Defining Organizational Culture
THCU (2009) revealed three different approaches to defining organizational culture in the workplace. Each
approach is linked to a specific method of measuring and assessing culture and specific action steps that can
be taken to affect and improve organizational culture. These three approaches have been chosen because they
are unique for a number of reasons. One approach is strongly theoretically based (Competing Values
Framework), one is based on more practical considerations, such as limited resource situations (Three Levels
of Culture Model), and one is empirically based (Four Conditions of Culture). The three approaches presented
here are also unique in the way they work within organizations. For instance, one is focused on the
organization as a whole while another relies on the input of individual employees. It is important to note that
there is no one right way to assess organizational culture. In some cases, even a blend of approaches may work
best. These approaches are explained below.
Approach 1. The Competing Values Framework
THCU (2009) reported that Kim S. Cameron and Robert E. Quinn developed 'The Competing Values Framework
in 2006. It is a broadly applicable model that is intended to foster successful leadership; improve
organizational effectiveness; and promote value creation. It helps leaders to think differently about value
creation and shows them how to clarify purpose, integrate practices and lead people. The Competing Values
Framework has been studied and tested in organizations for more than 25 years and is used by firms as a map,
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an organizing mechanism, a sense-making device, a source of new ideas and a learning system. The Competing
Values Framework can tell if organization’s predominant culture falls into one or two of four types: the
hierarchy culture; the market culture, the clan culture; or the ad-hoc-racy culture. The predominant culture is
then explored and strategies are suggested on how to move from the baseline to a preferred future.
Approach 2. The Three Levels of Culture
THCU (2009) mentioned Edgar H. Schein’s (1999) model focused on three different levels of culture, which
move from the visible to the tacit, or invisible. The first (Artifacts) level consists of visible artifacts such as
myths, rites, stories and symbols. The second (Espoused Values) level consists of espoused values, which are
strategies, goals or philosophies that characterize a specific way of thinking within a company. The third and
most basic (Shared Tacit Assumptions) level of organizational culture consists of basic assumptions or
unconscious, often taken-for-granted beliefs, perceptions, thoughts and feelings. These basic assumptions,
such as the perception of human nature, the nature of human interaction or the basic understandings of time
or truth, are often implicit and not consciously known to employees. These levels are commented here in
detail.
Level One: Artifacts
Artifacts provide easily observable clues to the culture of the workplace. They include elements such
as the architecture, décor and space design, whether there are doors between workstations, if people dress
informally or formally, whether actions are fast-paced or careful and deliberate.
Level Two: Espoused Values
An organization’s values will shape why it functions the way it does. These values are usually learned
and adopted. For example an organization may say it believes in teamwork but the espoused value shows that
most decisions are made without involving employees.
Level Three: Shared Tacit Assumptions
Tacit assumptions are informed and influenced by the values, beliefs and assumptions of the founders and
key leaders that made an organization successful. For example, if a founder of an organization is
responsible for developing a product that responds to a high market goods and service need, he or she
may favor a highly disciplined organization. The organization may attract people who like discipline and
order, and as they succeed, they also come to take it for granted that hierarchy, discipline, and order are
the only way to run an effective organization.
Approach 3.The Four Conditions of Culture
According to report of THCU (2009) Dr. Martin Shain (2001) has identified four conditions of work (i.e. 1Control, 2-Demand, 3-Effort, and 4-Reward), which disproportionately contribute to stress and satisfaction
outcomes in employees. These conditions range from low control (having too little influence over the way you
do your daily work) and low reward (not receiving adequate recognition or feedback on performance) to high
effort (having to expend too much mental energy over too long a period) and high demand (having too much
to do in too little time over too long a period). Each condition affects employee outcomes and the ability of the
organization to meet or exceed performance indicators. For instance, low control and low reward
circumstances tend to contribute to low employee satisfaction while low reward and high effort contribute to
high stress. The working of four conditions model of Dr. Martin Shain (2001) is shown in below table/diagram.
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Universal Journal of Management and Social Sciences
The Four Conditions Effecting Culture
Low Control: having too little influence over the way you do your daily
work
Low Reward: not receiving adequate recognition or feedback on
performance
High Effort: having to expend too much mental energy over too long a
period
High Demand: having too much to do in too little time over too long a
period
Vol. 2, No.9; September 2012
Employee Outcome
Low Satisfaction
Low Satisfaction
High Stress
High Stress
Models of Organizational Culture
1-Denison Model
Ahmad (2012) mentioned in his paper with reference to Yilmaz (2008), ‘Denison’s Framework of
Organizational Culture’ (given by Denison, 2000). According to him at the core of Denison’s model are the
underlying beliefs and assumptions that represent the deepest levels of organizational culture. These
fundamental assumptions provide the foundation from which (1) more surface-level cultural components such
as values and observable artifacts – symbols, heroes, rituals, etc. – are derived, and (2) behavior and action
spring. In Denison’s model comparisons of organizations based on relatively more ‘‘surface-level’’ values and
their manifest practices are made. Such values are deemed both more accessible than the assumptions and
more reliable than the artifacts. Denison’s organizational culture model is based on four cultural traits
involvement, consistency, adaptability, and mission that have been shown in the literature to have an
influence on organizational performance. Details of the four traits of organizational culture (i.e. involvement,
consistency, adaptability, and mission) in Denison’s framework (studied by explained by many researchers
such as Likert, 1961; Becker, 1964; Ohmae, 1982; Kanter, 1983; Stalk, Saffold, 1988; Senge, 1990; Block, 1991;
Davenport, 1993; Katzenberg, 1993; Mintzberg, 1987; 1994; Hamel & Prahalad, 1994Spreitzer, 1995; Lawler,
1996; Nadler, 1998;) are given in coming lines.
2-Denison & Mishra, (1995) Model
Chao et al (2011) also reported (referring Denison & Mishra, 1995) who addressed the competitive
environment with flexibility and stability, that organizational culture can be divided into five categories i.e 1Innovative culture, 2-Adaptability culture, 3-Mission culture 4-Clan culture and 5-Bureaucratic culture,
depending on whether internal employees or external customers are the strategic focus. Categories of this
model are elaborated in coming lines.
3-Wallach Model
Chao et al (2011) quoted that based on organizational duties and attitude, towards the environment
Wallach (1983) also separated organizational structure and obligations clearly. Tasks are mostly standardized
or fixed and are based on control and authority. Accoring to Chao et al (2011) categories or of organizational
culture of Wallach model are: 1-Innovative culture, 2-Adaptability culture, 3-Mission culture, 4-Supportive
culture, 5-Clan culture and 6-Bureaucratic culture. These are discussed in following lines
Involvement culture:
Effective organizations empower their people, build their organizations around teams, and develop
human capability at all levels. Executives, managers, and employees are committed to their work and feel that
they own a piece of the organization. Here work is full of creativity and risks, and members are encouraged to
accept challenges and innovate. Individual qualities are respected, and employees who are more like
entrepreneurs and ambitious are more likely to succeed. Supportive culture: The environment is more open,
harmony, and family-like. People at all levels feel that they have at least some input into decisions, that will
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affect their work and that their, work is directly connected to the goals of the organization. The organization
highly supports and trusts the employees, values members’ participation, team-spirit and interpersonal
relationship, and encourages collaborations (Chao et al, 2011 and Ahmad, 2012).
Adaptability culture:
Ironically, organizations that are well integrated are often the most difficult ones to change. Adaptable
organizations are driven by their customers, take risks and learn from their mistakes, and have capability and
experience at creating change. They are continuously changing the system so that they are improving the
organizations’ collective abilities to provide value for their customers. So here attention is paid to the external
environment, customer demands are met through flexibility and changes, and organizations are encouraged to
detect and respond to environmental changes immediately (Chao et al, 2011 and Ahmad, 2012).
Mission culture:
Successful organizations have a clear sense of purpose and direction that defines organizational goals
and strategic objectives and expresses a vision of how the organization will look in the future. Here instead of
frequent changes, the strategic focus is paying attention to external customers, and the organizational
objective is to increase sales volume, profit, and/or market share (Chao et al, 2011 and Ahmad, 2012).
Clan culture:
Here employees are valued and looked after so that they would be committed to the organization and
participate actively in a conservative atmosphere of support and trust (Chao et al 2011).
Bureaucratic culture: Following a company’s internal policies and regulations, the focus is on the high
degree of integration and efficiency (Chao et al 2011).
Supportive culture:
Here the environment is more open, harmony, and family-like. The organization highly supports and
trusts the employees, values members’ participation, team spirit and interpersonal relationship, and
encourages collaborations (Chao et al 2011).
Consistency:
Organizations also tend to be effective because they have “strong” cultures that are highly consistent,
well coordinated, and well integrated. Behavior is rooted in a set of core values, and leaders and followers are
skilled at reaching agreement even when there are diverse points of view. This type of consistency is a
powerful source of stability and internal integration that results from a common mindset and a high degree of
conformity (Ahmad 2012).
Diagram showing categories and traits of Denison Model, Wallach Model and Denison & Mishra Model
Denison Model
Wallach Model
Denison & Mishra Model
Involvement culture
Adaptability culture
Mission culture
Consistency culture
Innovative culture
Adaptability culture
Mission culture
Supportive culture
Clan culture
Bureaucratic culture
Innovative culture
Adaptability culture
Mission culture
Clan culture:
Bureaucratic culture
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Categories of Organizational Culture
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Harrison Categories
Chao et al (2011) mentioned that Harrison (1972) divided organizational culture according to its
orientation into following four categories.
Power orientated:
Focuses on “control,” in this category it is thought that those in power always hold absolute control
over the subordinates, and any opposition is to be suppressed (Chao et al 2011).
Role orientated:
This stresses the role’s expectation and regulation, and the wish is for the organization to operate
under law and order, while the attention is on legality and responsibility (Chao et al 2011).
Task orientated:
The highest value is to reach organizational objectives, and one’s contribution towards the objectives
is determined when evaluating the values of an organization’s structure, functions and actions (Chao et al
2011).
People orientated:
An organization is designed and built to suit the members’ needs and satisfy individual needs that
cannot be achieved otherwise. Based on organizational duties and attitude towards the environment, Wallach
(1983) separated organizational structure and obligations clearly. Tasks are mostly standardized or fixed and
are based on control and authority (Chao et al 2011).
2-
THCU categories
Similarly THCU (2009) mentioned following categories of culture in the organizations:
The Hierarchy Culture
A hierarchy culture is often found in formal, structured organizations that emphasize smooth running,
stability, predictability and efficiency. These organizations rely on formal rules and policies. Because the
environment is relatively stable, tasks and functions are usually integrated and coordinated and uniformity in
products and services is maintained. Hierarchical organizations tend to rely on clear lines of decision-making
authority, standardized rules and procedures. Control and accountability mechanisms are valued as the keys to
success (THCU 2009).
The Market Culture
Market culture organizations tend to be oriented toward the external environment and are focused
on transactions with external constituencies such as suppliers, customers, contractors, licensees, unions and
regulators. Unlike a hierarchy, where internal control is maintained by rules, specialized jobs, and centralized
decisions, the market culture operates primarily through economic market mechanisms, such as monetary
exchange. Profitability, bottom-line results, strength in market niches, stretch targets, and secure customer
bases is primary objectives of the organization. Market oriented cultures are results-oriented and emphasize
winning (THCU 2009).
The Clan Culture
Clan culture is in family type organizations that emphasize shared values and goals, cohesion,
inclusion, individuality and a sense of engagement. They sometimes seem more like extended families than
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economic entities. Rather than relying on rules and procedures, clan-type firms focus on teamwork, employee
involvement programs and corporate commitment to employees (THCU 2009).
The Ad-hoc-racy Culture
The root word of ad-hoc-racy is ad-hoc, implying something temporary, specialized and dynamic. Adhoc-racies are often characterized as “tents rather than palaces” in that they can reconfigure themselves
rapidly when new circumstances arise. A major goal of an adDimensions of Organizational Culture
Manetje & Martins (2009) Harrison and Stokes (1992) define the four dimensions of organizational culture
as follows:
Power dimension:
Describes an organizational culture that is based on inequality • of access to resources. It has a single
source of power from which rays of influence spread throughout the organizational. This means that power is
centralized and organizational members are connected to the center by functional and specialist strings.
Role dimension:
This type of culture focuses mainly on job description and • specialization. In other words, work is
controlled by procedures and rules that underlie the job description, which is more important than the person
who fills the position.
Achievement dimension:
This often refers to a task culture, which entails • organizational members focusing on realizing the set
purpose and goals of the organization. The main strategic objective of this culture is to bring the right people
together, in order to achieve the organizational goals.
Support dimension:
Describes an organizational climate that is based on • mutual trust between the individual and the
organization. A support-oriented organization exists solely for the individuals who comprise it, and may be
represented diagrammatically as a cluster in which no individual dominates.
Hofstede (1980) also mentioned following four criteria, which are labeled by as dimensions; these are
Power Distance, Uncertainty Avoidance, Individualism-Collectivism, and Masculinity-Femininity (Manetje &
Martins 2009).
Organizational Culture and its Relationship with Other Management Concepts
Çiçek and Özer (2011) asserted referring (Hofstede 1980; Lim, 1995; Daft 2000 and Abu-Jarad, et. al. 2010) that
the term “culture” refers broadly to a relatively stable set of beliefs, values and behaviors commonly held by a
society (Lim, 1995). According to Hofstede (1980), organizational culture refers to the collective programming
of the mind that distinguishes the members of one organization from another. And organizational
performance is defined as the organization’s ability to attain its goals by using resources in an efficient and
effective manner (Daft 2000; Abu-Jarad, et. al. 2010).
Similarly Yafang Tsai (2011) expressed that organizational culture is described by Robbins & Coulter as the
shared values, beliefs, or perceptions held by employees within an organization or organizational unit. Because
organizational culture reflects the values, beliefs and behavioral norms that are used by employees in an
organization to give meaning to the situations that they encounter, it can influence the attitudes and behavior
of the staff. Understanding the organization’s core values can prevent possible internal conflict. In other
management fields, empirical research of organizational culture has involved the functionalist perspective,
providing impressive evidence of the role of organizational culture in improving performance. The
pervasiveness of an organizational culture requires that management recognize its underpinning dimensions
and its impact on employee-related variables, such as job satisfaction, organizational commitment, and
performance. The organization consists of the staff, with the behavior of its individual members affecting
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outcomes. The relationship of culture with other concepts (e.g. leadership behavior, job satisfaction and
Organizational Performance) of organization are elaborated below
Relationship between organizational culture and leadership behavior
Culture is socially learned and transmitted by members; it provides the rules for behavior within organizations.
The definition of organizational culture is of the belief that
can guide staff in knowing what to do and what not to do, including practices, values, and assumptions about
their work. The core values of an organization begin with its leadership, which will then evolve to a leadership
style. Subordinates will be led by these values and the behavior of leaders, such that the behavior of both
parties should become increasingly in line. When strong unified behavior, values and beliefs have been
developed, a strong organizational culture emerges. Leaders have to appreciate their function in maintaining
an organization’s culture. This would in return ensure consistent behavior between members of the
organization, reducing conflicts and creating a healthy working environment for employees (Yafang Tsai 2011).
Relationship between organizational culture and job satisfaction
Organizational culture expresses shared assumptions, values and beliefs, and is the social glue holding an
organization together. A strong culture is a system of rules that spells out how people should behave. An
organization with a strong culture has common values and codes of conduct for its employees, which should
help them to accomplish their missions and goals. Work recognition and job satisfaction can be achieved when
employees can complete the tasks assigned to them by the organization (Yafang Tsai 2011)
Relationship Between Organizational Culture and Organizational Performance
According to Çiçek and Özer (2011) it has been contended that organizational culture can enhance
organizational performance by energizing and motivating employees, unifying people around shared goals,
and shaping and guiding employee behaviors. Some researchers asserted that organizational culture could
provide a source of sustained competitive advantage for firms, particularly when it is seen as a firm-level
resource that is valuable, rare, and difficult to imitate. An organization's cultural norms strongly affect all who
are involved in the organization. Organizational culture with a development and innovation orientation had a
direct effect on a firm’s innovation performance.
Conclusion
Organizational culture is the pattern of beliefs, values and learned ways of coping with experience that have
developed during the course of an organization’s history, and which tend to be manifested in its material
arrangements and in the behaviors of its members”. From the definitions and above description it is
highlighted that organizational culture comprises created assumptions, which are accepted as a way of doing
things and are passed on to new members of an organization. For new employees, this would mean adaptive
behavior within the organization, leading to new belief systems. This new and adaptive behavior, instilled
through organizational values and beliefs, is associated with rituals, myths and symbols to reinforce the core
assumptions of organizational culture (Manetje & Martins (2009). Moreover, organizational performance has
been directly linked to organizational culture Schimmoeller (2010). It is concluded that as Organizational
culture is very much effective in managing organizations then in the words of Ojo (2009) the culture of the
organization should be developed to support continuous improvement, improve employees’ style of
performing their job and thus develop quality awareness.
48
Universal Journal of Management and Social Sciences
Vol. 2, No.9; September 2012
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