Organisational culture, a fundamental aspect of organisational behaviour (OB), is defined as the collective values, beliefs, norms, and assumptions shared within an organisation (Robbins & Judge, 2021). This culture profoundly influences employee behaviour, attitudes, and perceptions, thereby significantly shaping the organisation’s identity and effectiveness.
The concept of organisational culture gained prominence in the late 20th century as scholars and practitioners sought to understand the intangible elements that contribute to an organisation’s success. According to Robbins and Judge (2021), organisational culture encompasses a range of components, including artefacts, values, and basic underlying assumptions. Artefacts are the visible and tangible elements, such as dress codes, office layouts, and rituals, while values represent the shared principles and standards that guide behaviour. Basic underlying assumptions are the deeply ingrained beliefs that are often taken for granted but underpin the organisational ethos.
Influence on Employee Behaviour and Attitudes
Organisational culture plays a crucial role in shaping employee behaviour and attitudes. Employees’ understanding of what is expected of them, how they should interact with colleagues, and what behaviours are rewarded or discouraged is largely derived from the prevailing organisational culture. As noted by Cameron and Quinn (2011), a strong organisational culture can enhance employee motivation and commitment by providing a clear sense of purpose and belonging. For instance, a culture that emphasises innovation and risk-taking can encourage employees to experiment and develop creative solutions, whereas a culture that prioritises stability and control may lead to a more cautious and rule-bound approach.
Furthermore, organisational culture affects how employees perceive their work environment and their overall job satisfaction. A positive organisational culture, characterised by supportive leadership, open communication, and recognition of employee contributions, can lead to higher levels of job satisfaction and reduced turnover rates (Schein, 2010). Conversely, a toxic culture marked by internal competition, lack of trust, and poor communication can result in employee disengagement and increased turnover.
Impact on Organisational Identity and Effectiveness
The influence of organisational culture extends beyond individual behaviour to encompass the organisation’s identity and effectiveness. Organisational culture serves as a source of identity for members, fostering a sense of unity and shared purpose. As indicated by Schein (2010), culture provides a framework within which members interpret their experiences and make sense of organisational events. This shared understanding enhances cohesion and facilitates coordinated action, which is essential for achieving organisational goals.
Moreover, a strong organisational culture can be a strategic asset that contributes to competitive advantage. As posited by Barney (1986), when an organisation’s culture is valuable, rare, and difficult to imitate, it can serve as a source of sustained competitive advantage. For example, companies like Google and Apple are renowned for their innovative cultures, which have been instrumental in driving their success in the technology sector.
However, maintaining a strong organisational culture also poses challenges, particularly in the face of change. Organisational culture can be resistant to change, as deeply ingrained beliefs and practices are not easily altered. This resistance can hinder organisational adaptability and responsiveness to external pressures (Kotter, 1996). Therefore, leaders must be adept at managing cultural change, aligning cultural values with strategic objectives, and fostering an environment that supports continuous learning and development.
Organisational culture is a vital element of organisational behaviour that significantly influences employee behaviour, attitudes, and perceptions. It shapes the organisation’s identity and effectiveness, contributing to a sense of unity and purpose among members. While a strong organisational culture can enhance employee motivation, job satisfaction, and organisational performance, it also requires careful management to ensure alignment with strategic goals and adaptability to change. Understanding and cultivating a positive organisational culture is essential for organisational success in today’s dynamic and competitive business environment.
References
Barney, J. B. (1986) “Organizational Culture: Can It Be a Source of Sustained Competitive Advantage?” Academy of Management Review. 11(3), pp. 656-665.
Cameron, K. S., & Quinn, R. E. (2011) Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework. Jossey-Bass.
Kotter, J. P. (1996) Leading Change. Harvard Business Review Press.
Robbins, S. P., & Judge, T. A. (2021) Organizational Behavior. Pearson.
Schein, E. H. (2010) Organizational Culture and Leadership. Jossey-Bass.
