The effectiveness and success of an organization is not solely measured by profitability, it can also be measured by the way business is done and how the company is perceived by both its employees and the external community. These processes and formed impressions are functions of organizational culture which may be defined in several ways.
The organization itself has an invisible quality – a certain style, a character, away are doing things – that may be more powerful than the dictates of any one person or any formal system.
culture is: A pattern of basic assumptions – invented, discovered, or developed by a group as it learns to cope with its problems of external adaptation and internal integration – that has worked well enough to be considered valid, and therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems. For our purposes, organizational culture consists of the shared values and assumptions of how its members will behave, or more specifically it can be defined as shared philosophies, ideologies, values, beliefs, assumptions, expectations, attitudes, and norms
It includes the following dimensions:
Observed behavioral regularities when people interact, such as organizational rituals and ceremonies, and the language commonly use The norms shared by working groups throughout the organization, such as ‘Ladies and Gentlemen serving Ladies and Gentlemen’, from Ritz–Carlton The dominant values held by an organization such as ‘service quality’ or ‘price leadership’ The philosophy that guides and organization’s policy towards employees and customers The rules of the game for getting along in the organization, or the ‘ropes’ that a newcomer must learn in order to become an accepted member The feeling or climate conveyed in an organization by the physical layout in which its members interact with customers or other outsiders. Note that no dimension by itself represents the culture of the organization. Taken together, however, they reflect and give meaning to the concept of organizational culture. Top management must define these attitudes, values, and expectations that they want organizational members to share.
Organizational culture is sometimes measured by organizational climate. Climate is the employee’s perception of the atmosphere of the internal environment. Organizational climate is important because the employee’s perception of the organization services the basis for the development of their attitudes towards it. Their attitudes in turn affect their behavior. Climate is concerned with the entire organization and all major subunits within it. Morale is an important part of organizational climate. Morale is a state of mind based on attitudes and satisfaction with the organization and can be affected by: Structure – the degree of constraint on members, that is, the number of rules, regulations, and procedures Responsibility – the degree of control over one’s own job Rewards – the degree of being rewarded for one’s efforts and being punished appropriately Warmth – the degree of satisfaction with human relations
Support – the degree of being helped by others and cooperation Organizational identity and loyalty – the degree to which employees identify with the organization and their loyalty to it Risk – the degree to which risk-taking is encouraged.
Organizational culture and climate are different, but related. Climate is a sharing of perceptions of the intangibles of the internal or real environment of the occupational community (i.e. both the small workgroup, such as chefs, and the larger workgroup, as in all the employees of the hotel), while culture is the values and assumptions of the ideal environment that management hopes will be instilled into all employees. Thus culture informs climate.
The terms “organizational culture” and “organizational climate” are...