10.1 - Organizational Culture
Enroll to start learning
You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.
Interactive Audio Lesson
Listen to a student-teacher conversation explaining the topic in a relatable way.
Defining Organizational Culture
🔒 Unlock Audio Lesson
Sign up and enroll to listen to this audio lesson
Today's topic centers on Organizational Culture. Can anyone explain what they think it means?
Is it about the way people behave in a workplace?
Exactly! Organizational culture is the **shared values, norms, beliefs**, and **practices** that shape how individuals act in an organization. Think of it as the organization's 'personality'. Can anyone give me examples of what might shape this culture?
I think the leadership style influences it a lot!
Very good point! Leadership style can indeed reflect and reinforce the culture. Who can recall these characteristics we discussed?
Shared values seem to be really important.
Absolutely! Shared values guide what's considered important within an organization.
To remember the characteristics, think 'NSS-V' for Norms, Symbols, Stories, and Values. Let's move forward to the types!
Types of Organizational Culture
🔒 Unlock Audio Lesson
Sign up and enroll to listen to this audio lesson
Let’s discuss the different types of organizational culture based on Handy’s Model. Who remembers them?
I think there’s Power Culture and Role Culture?
Correct! We have Power Culture, Role Culture, Task Culture, and Person Culture. Each serves a unique function. Could anyone explain Power Culture?
It’s when decision-making is centralized.
Right! Power radiates from the center. Now, what about Role Culture?
It has clear roles and a structured hierarchy.
Exactly! Let’s remember these types with the acronym 'PRTP' - Power, Role, Task, Person. Shall we explore Schein’s levels next?
Schein’s Three Levels of Culture
🔒 Unlock Audio Lesson
Sign up and enroll to listen to this audio lesson
Now, let’s discuss Schein’s Three Levels of Culture. What can you all tell me about artifacts?
They are things we can see, like office layout or dress code.
That's right! Artifacts are visible aspects. Can someone discuss espoused values?
Those are the official statements about what the company stands for.
Well said! Now what about basic assumptions?
They are deep beliefs that drive how we think and act, and we often don’t realize they’re there.
Correct! Basic assumptions are unconscious yet powerful. Remember 'AEB' for Artifacts, Espoused Values, and Basic Assumptions to recall Schein’s framework.
The Importance of Organizational Culture
🔒 Unlock Audio Lesson
Sign up and enroll to listen to this audio lesson
Let’s move on to why organizational culture is important. Who can share reasons as to why culture matters?
It helps employees feel a sense of belonging and identity.
Yes! A strong culture can enhance commitment and alignment with organizational goals. Can anyone offer more examples?
It could drive innovation or reinforce stability within the company.
Exactly! Culture can influence behavior consistently across departments. Remember, a positive culture is crucial for tech-driven workplaces, especially for B.Tech CSE professionals!
To help remember the significance, think 'CBA' for Commitment, Belonging, and Alignment.
Introduction & Overview
Read summaries of the section's main ideas at different levels of detail.
Quick Overview
Standard
This section delves into the definition of organizational culture, exploring its characteristics, types according to Handy's model and Schein's levels, and its significance in fostering employee identity, commitment, and consistent behavior, especially in technology-driven environments.
Detailed
Organizational Culture
Organizational culture is described as the shared values, norms, beliefs, and practices within an organization that influence how its members interact and behave. Often referred to as the organization's 'personality,' it shapes not only task performance and decision-making but also interpersonal relationships.
Key Characteristics
- Shared Values: Common beliefs that drive organizational priorities, such as innovation or teamwork.
- Norms: Informal rules guiding acceptable behaviors amongst members.
- Symbols: Elements like logos, rituals, attire, and language that reflect organizational principles.
- Stories and Myths: Narratives that convey the organization's identity, often centered on historical successes or pivotal moments.
- Leadership Style: The approach to leadership that can embody and reinforce culture, such as participative versus authoritarian.
Types of Organizational Culture (Handy’s Model)
- Power Culture: Centralized power impacting decision-making.
- Role Culture: Defined roles building a structured hierarchy.
- Task Culture: Focus on teams solving specific challenges with a flexible approach.
- Person Culture: Individual expertise emphasized, typical in consultancy settings.
Schein’s Three Levels of Culture
- Artifacts: Observable elements such as dress codes and office setup.
- Espoused Values: Officially stated norms, strategies, and goals of the organization.
- Basic Assumptions: Deep-rooted, often unconscious, beliefs and perceptions.
Importance of Organizational Culture
Organizational culture is essential as it:
- Fosters employee identity and belonging.
- Enhances commitment and alignment with organizational objectives.
- Encourages consistent behaviors across different units.
- Drives innovation or maintains stability depending on the type of culture.
Youtube Videos
![Organizational Culture Explained [2025]](https://img.youtube.com/vi/6uLN9dVfOBI/mqdefault.jpg)
Audio Book
Dive deep into the subject with an immersive audiobook experience.
Definition of Organizational Culture
Chapter 1 of 5
🔒 Unlock Audio Chapter
Sign up and enroll to access the full audio experience
Chapter Content
Organizational culture is defined as: "The shared values, norms, beliefs, and practices that shape how people behave and interact in an organization." It serves as the "personality" of the organization and influences how tasks are performed, how decisions are made, and how people relate to each other.
Detailed Explanation
Organizational culture refers to the set of shared values, norms, beliefs, and practices within an organization. Think of it as the organization's personality, which affects everything from decision-making to interpersonal relationships among employees. A company's culture determines how employees behave, how they collaborate, and even the methods they use to solve problems. For example, a culture that emphasizes teamwork will encourage collaboration among employees, while a culture focused on individual excellence may lead to more competitive behaviors.
Examples & Analogies
Imagine two different schools. One school prioritizes teamwork in projects, encouraging students to work together and share ideas, representing a collaborative culture. The other school might celebrate individual achievements and competition, teaching students to strive for personal accolade. Similarly, in businesses, the culture shapes the way employees think and act.
Characteristics of Organizational Culture
Chapter 2 of 5
🔒 Unlock Audio Chapter
Sign up and enroll to access the full audio experience
Chapter Content
• Shared Values: Common beliefs that guide what is important (e.g., innovation, teamwork).
• Norms: Informal rules that dictate acceptable behavior.
• Symbols: Logos, rituals, dress codes, and language that represent organizational values.
• Stories and Myths: Narratives about past successes, leaders, or crises that build a sense of identity.
• Leadership Style: Reflects and reinforces culture (e.g., participative vs. authoritarian).
Detailed Explanation
Organizational culture is made up of various elements: 1. Shared Values are the core principles that everyone in the organization agrees upon, such as emphasizing innovation or teamwork. 2. Norms are informal expectations that dictate how employees behave within the organization. 3. Symbols include all the visual or cultural markers of the organization, such as logos or dress codes, that communicate its values. 4. Stories and Myths illustrate pivotal moments in the organization's history, helping to bond members and create a shared identity. 5. Leadership Style affects how culture is expressed in practice, whether through a collaborative or an authoritarian approach.
Examples & Analogies
Consider a well-known tech company like Google. Their culture values innovation and collaboration, which is reflected in their open office spaces, casual dress code, and norms encouraging creative projects. The stories of Google’s founders and their journey from a small project to a tech giant reinforce these values, motivating employees to contribute to the company's mission.
Types of Organizational Culture (Handy’s Model)
Chapter 3 of 5
🔒 Unlock Audio Chapter
Sign up and enroll to access the full audio experience
Chapter Content
- Power Culture: Centralized decision-making, power radiates from the center.
- Role Culture: Clearly defined roles and responsibilities, structured hierarchy.
- Task Culture: Teams formed to solve specific problems, flexibility is key.
- Person Culture: Individual expertise is prioritized; common in consultancies.
Detailed Explanation
Handy’s Model identifies four primary types of organizational culture: 1. Power Culture emphasizes central control, where decision-making is concentrated at the top. 2. Role Culture features a clear hierarchy and defined roles for members, leading to predictable behavior. 3. Task Culture is dynamic and project-oriented, focusing on teamwork and flexibility to address specific challenges. 4. Person Culture, often found in consultancies, values individual expertise and gives autonomy to experts in their fields. Different cultures can drive how effectively an organization responds to challenges.
Examples & Analogies
Think of a sports team: A soccer team's coach represents a Power Culture by making all the game decisions, while the players position themselves according to a clear Roles Culture. In contrast, a startup might embody a Task Culture as team members rapidly adapt to changing market conditions, and a consultancy team might display a Person Culture by allowing experienced consultants to lead discussions based on their unique insights.
Schein’s Three Levels of Culture
Chapter 4 of 5
🔒 Unlock Audio Chapter
Sign up and enroll to access the full audio experience
Chapter Content
- Artifacts – Visible and observable elements (dress code, office layout).
- Espoused Values – Stated norms, strategies, and goals.
- Basic Assumptions – Deeply ingrained beliefs and perceptions (often unconscious).
Detailed Explanation
Schein’s model breaks down culture into three levels: 1. Artifacts are the visible signs of culture, like office layout or dress codes. These are easily observable but may not fully represent deeper cultural meanings. 2. Espoused Values are the stated principles and values that an organization claims to uphold—like its mission statement. 3. Basic Assumptions are the underlying beliefs and values that are deeply ingrained in the organization and often go unexamined. They dictate how members of the organization perceive and respond to their environment.
Examples & Analogies
Imagine visiting a multinational company. You might notice open floor plans and casual dress codes—these are the artifacts. If the company claims to prioritize innovation and creativity, that would represent their espoused values. However, if employees routinely follow strict processes that stifle creativity, the real force behind their behaviors may reveal basic assumptions that prioritize risk aversion over innovation.
Importance of Organizational Culture
Chapter 5 of 5
🔒 Unlock Audio Chapter
Sign up and enroll to access the full audio experience
Chapter Content
• Enhances employee identity and belonging.
• Increases commitment and alignment with organizational goals.
• Drives consistent behavior across departments.
• Promotes innovation or reinforces stability, depending on culture type.
Detailed Explanation
Organizational culture holds great significance as it contributes to various facets of the workplace: 1. It helps employees identify with the organization, fostering a sense of belonging. 2. A strong culture increases commitment, making employees more likely to align with the goals of the organization. 3. Culture creates consistency in behavior across different departments, ensuring that all members work toward the same outcome. 4. Depending on its nature, culture can either promote innovation or reinforce stability—some cultures encourage new ideas, while others favor tried-and-true practices.
Examples & Analogies
Consider two hospitals: One has a culture that prioritizes patient care innovation, encouraging staff to suggest new methods and practices, while the other sticks rigidly to established protocols. The innovative hospital will likely attract and retain employees who value creativity and initiative, fostering a sense of belonging and commitment, contrasting with the other hospital where employees may feel stifled by a lack of change.
Key Concepts
-
Organizational Culture: The collective environment shaped by shared values, norms, and beliefs.
-
Schein’s Levels: Framework to analyze culture from surface elements (artifacts) to deeper, unconscious beliefs (basic assumptions).
-
Characteristics of Culture: Include shared values, norms, symbols, and leadership style.
-
Types of Culture: Handy's model categorizes cultures into Power, Role, Task, and Person.
Examples & Applications
Example of a company with a Power Culture: A startup where decisions are made quickly by the founder.
Example of Task Culture: A tech team coming together to work flexibly on a project aimed at solving customer problems.
Memory Aids
Interactive tools to help you remember key concepts
Rhymes
In an org where culture blooms, beliefs and values guide the rooms.
Stories
Imagine a ship sailing through rough seas. The captain’s values and the crew’s norms guide how they navigate challenges together.
Memory Tools
To remember Schein’s levels, think 'A-B-E' - Artifacts, Basic Assumptions, and Espoused Values.
Acronyms
Use 'SVNS' to remember the characteristics
Shared Values
Norms
and Symbols.
Flash Cards
Glossary
- Organizational Culture
The shared values, norms, beliefs, and practices that shape how people behave and interact in an organization.
- Shared Values
Common beliefs that guide what is important in an organization, such as innovation or teamwork.
- Norms
Informal rules that dictate acceptable behavior within the organization.
- Artifacts
Visible and observable elements of culture, such as office layout and dress codes.
- Espoused Values
Stated norms, strategies, and goals of the organization.
- Basic Assumptions
Deeply ingrained beliefs and perceptions that influence how members of an organization operate.
- Handy’s Model
A framework categorizing organizational culture into four types: Power, Role, Task, and Person.
Reference links
Supplementary resources to enhance your learning experience.