Chapter-6
Organizational
Culture
Organizational Culture
Organizational culture is defined as the shared values, principles, beliefs, norms and practices that shape the
behavior of individuals within an organization.
It represents the collective identity of the organization, influencing how employees think, act and make
decisions.
It defines the proper way to behave within the organization.
Organizational culture is the sum of values and rituals that serve as a glue to integrate the organization’s
members.
Organizational culture is often reflected in the company’s mission, vision, symbols and traditions, and it plays a
key role in shaping the work environment, employee behavior and overall success of the organization.
Importance of Organizational Culture
Organizational image
Healthy workplace relation
Onboarding
Talent retention and performance
Responsive to change
Source of innovative work behavior
Changing Organizational Culture
Reasons for change in work culture
Change in management
Financial Reason
Changing clients/customers
Employee attitude
Guidelines for cultural change
Formulate a clear strategic vision
Display executive commitment
Model cultural change at the highest levels
Modify the organization to support change
Select and socialize newcomers and terminate deviants
Develop ethical and legal sensitivity
Strengthening Organizational Culture
Leaders involvement in day-to-day work
Recognize employees
Practice excellent customer service
Constant communication