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What Is “Organisational Culture”, And Why Is It Important For Managers To Have A Thorough Understanding Of Their Organization’s Culture?

940 words - 4 pages

Organisational culture became popular in the 1980’s after the publication of Peter and Waterman’s best-selling book “In search of excellence”. It was made evident that company success had a strong correlation with organisational culture, thus competitive advantage for business. The concept of organisational culture is vastly growing in management and a subject of various research. According to the “Business dictionary” Organisational culture is defined as “The values and behaviours that contribute to the unique social and psychological environment of an organisation.”
Cultures initiate when and external or internal problem is created and therefore the companies response to these encounters. ...view middle of the document...

It plays a more important role, than the rules and regulations in managing an organisation. There are three levels of organisational culture as follows: Artefacts, Expressed values and Underlying assumptions. Culture can be seen on both a visible level and a deeper invisible level consisting of the values and understandings held by an organisation. Visible artefacts are the things we can observe in an organisation, such as: the dress code, office layout, ceremonies or physical symbols. Expressed values are a deeper level of culture and are the values held at a conscious level and can be exposed within language and stories members use to express their understanding or experience of the organisation. Even deeper are the subconscious assumptions and thoughts embedded in the assumptions and beliefs that guide behaviour without members being aware. This influences the way members of business treat their customers and employees and on a larger scale the larger community, and thus the organisations performance in quality, care and safety. Organisational culture is unique to each and every company however, organisations within the same industry may often reveal similar characteristics. A strong culture alone is not enough, the relationship with the external environment is critical for organisations; research at Harvard on 207 US films examined this correlation. Without the ability to adapt to an ever-changing external environment, organisations can be damaged and fatal.
In 1996, “Google” became the most popular search engine, with over one billion searches a day and 10,000 employees by 2009. The company views improving user experience before money making. Their mission statement, “To organise the world’s information and to make it universally accessible and useful”. “Google” was ranked number one, “Best place to work for” by fortune magazine in 2007 and this is no shock with the organisation culture, and emphasis on keeping employees happy. Organisation culture in the company provides a relaxed and friendly environment, including “Staff video games, childcare, doctors and gyms. This unique environment, encourages workers...

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