Apart from customers, an organization also needs to focus on the environment (internal and external) as well as its core values and beliefs.Ĭharacteristics of Organizational Culture It was Lou Gerstner, the former Chief Executive Officer (CEO) of IBM, who reversed this attitude and helped to develop a more customer-centric culture in the company. The company was operating under the misconception that customers needed the company more than they needed the company. history, due to the wrong attitude of the management. IBM registered huge losses of around US $8.10 billion in 1993, which was more than any company had ever lost in the U.S. This can be illustrated with the help of an example. The attitude of people plays an important role in the formation of organizational culture. A proper understanding of culture enables employees to improve organizational performance by solving problems quickly. It is reflected in the values adopted by the organization’s management, approaches to people management, and relationships with shareholders, the government, society, customers, etc. Organizational culture generally evolves from the vision and actions of a leader, influential individuals in organizations, work ethics, organizational policies, etc. In the words of Edgar Schein, organizational culture is a pattern of shared basic assumptions that the group learned as it solved its problems that have worked well enough to be considered valid and is passed on to new members as the correct way to perceive, think, and feel in relation to those problems. In other words, organizational culture can be defined as the pattern of shared values, beliefs, assumptions, and working habits of people within an organization.Īccording to Gareth Morgan, organizational culture is defined as the set of beliefs, values, and norms, together with symbols like dramatized events and personalities that represent the unique character of an organization, and provide the context for action in it and by it. The culture of an organization represents common perceptions shared by its employees. 8 Role of Leaders in Changing Organisational Culture.7 Impact of Organisational Culture on Performance and Satisfaction.3.6 Aggressiveness or Competitive Orientation.3.5 Teamwork (Collaboration Orientation). ![]() 3.3 Emphasis on Outcome (Achievement Orientation).3 Characteristics of Organizational Culture.
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