Creating an Organisational Culture

How Values and Beliefs Define Business Behaviour

© Jo Lamb-White

Sep 23, 2008
Understanding what makes an organisation 'tick' can be hard to pin down but it is critical to business performance.

Organisational culture is developed through a web of intricate, open and strong systems, processes and beliefs. It is a system of shared, known and well-communicated values, which produce an identity and characteristics. This ‘way of life’ makes it unique when compared to other organisations. They may have similar qualities but each organisation will have its own particular shape and preference in the way it behaves.

What Is Organisational Culture?

Edgar Schein identified three levels of organisation culture, which can operate at the same time:

  • Material, Symbolic and Behavioural – this first level is easy to see but hard to understand by an outsider
  • Values – the second level defines how things ‘should’ be as compared to how they are at present. A strong organisational culture will promote what is considered the appropriate behaviour in response to particular circumstances.
  • Basic Assumptions and Beliefs – this level defines the cultural foundation, it guides and constructs the organisational reality at ground level

Strong business cultures will have all three levels present. The more members of the workforce who accept, use and talk the language of the culture the stronger it will be. In doing so this forcefully influences the attitudes and actions of the organisation as a whole.

What Does an Organisational Culture Do?

An organisational culture yields an identity, which is recognisable externally as well as internally. It is the distinctive ‘character’ of the organisation which is promoted through its workforce and their actions.

It also sets boundaries, ‘the way things are done around here’, and creates a sense of community through a common understanding.

Finally, it shapes the way the members of the organisation think - about themselves, each other and organisational life.

How Is an Organisational Culture Built and Maintained?

An organisational culture is dependent on the leader/founder of the business. This individual will exert personal influence; provide direction and shape the organisational strategy and value base.There are a number of key processes to create and build a positive organisational culture:

  • Recruitment – selecting the right person who is able to contribute to the organisational aims and objectives
  • Induction – The introduction of the norms, values and beliefs for all new employees
  • Communication– using multiple forms of media (written, verbal, body language) a good manager will impart meaning and substance to maintain the ongoing understanding and implementation of corporate values.

Every business has a culture – good or bad – but the key is in ensuring that it contributes, impacts and positively critical to performance and productivity.

References

Peters, T and Waterman, H In Search of Excellence (1982),Harper & Row, New York

Schein, E Organisational Culture and Leadership (1986), Jossey-Boss, San Fransisco


The copyright of the article Creating an Organisational Culture in Workplace Culture is owned by Jo Lamb-White. Permission to republish Creating an Organisational Culture in print or online must be granted by the author in writing.




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