Determinants of Organizational Culture
DETERMINANTS OF ORGANIZATIONAL CULTURE
At the very onset of this topic, it is useful to distinguish determinants and dimensions of OC. Determinants are the causes, while dimensions are the components of OC. You may say, determinants are those which influence whereas dimensions are those which are influenced. Although OC refers to the internal environment of an organization, the nature of OC is determined by a variety of internal and external factors. One of the basis premises of organizational behavior is that outside environmental forces influence events within organizations. After acknowledging the dynamics of internal as well as external factors in this section, we will consider in greater detail the following seven internal factors. You will find these factors as determinants of OC in the following order: 1. Economic Condition 2. Leadership Style 3. Organizational Policies 4. Managerial Values 5. Organizational Structure 6. Characteristics of Members 7. Organizational Size
Economic Conditions
Several dimensions of OC are influenced by an organization’s position on the economic cycle. The economic condition of any organization influences whether its budget should be “tight” or “loose”. In times of prosperity- when budgets are more loose than tight – the organizations tends to be more adventuresome. On the other hand, tight budget would lead to an air of caution and conservatism within an organization. Few managers are willing to suggest new programmers (probably deserving merit) when the order from above is to exercise tight control over expenses. So, dimensions of OC like “Risk-taking”, “Control”, Progressiveness and Development” etc. are directly influenced by economic conditions.
Leadership Style
The leadership style prevailing in an organization has a profound influence in determining several dimensions of OC. The influence is so pervasive that you may often wonder whether OC is product of the philosophy and
At the very onset of this topic, it is useful to distinguish determinants and dimensions of OC. Determinants are the causes, while dimensions are the components of OC. You may say, determinants are those which influence whereas dimensions are those which are influenced. Although OC refers to the internal environment of an organization, the nature of OC is determined by a variety of internal and external factors. One of the basis premises of organizational behavior is that outside environmental forces influence events within organizations. After acknowledging the dynamics of internal as well as external factors in this section, we will consider in greater detail the following seven internal factors. You will find these factors as determinants of OC in the following order: 1. Economic Condition 2. Leadership Style 3. Organizational Policies 4. Managerial Values 5. Organizational Structure 6. Characteristics of Members 7. Organizational Size
Economic Conditions
Several dimensions of OC are influenced by an organization’s position on the economic cycle. The economic condition of any organization influences whether its budget should be “tight” or “loose”. In times of prosperity- when budgets are more loose than tight – the organizations tends to be more adventuresome. On the other hand, tight budget would lead to an air of caution and conservatism within an organization. Few managers are willing to suggest new programmers (probably deserving merit) when the order from above is to exercise tight control over expenses. So, dimensions of OC like “Risk-taking”, “Control”, Progressiveness and Development” etc. are directly influenced by economic conditions.
Leadership Style
The leadership style prevailing in an organization has a profound influence in determining several dimensions of OC. The influence is so pervasive that you may often wonder whether OC is product of the philosophy and