Organisational Culture reflects the personality of any organisation. Different cultures reflect different norms of behaviours which are determined by tasks, habits, environment and different types of personalities. There are various definitions in the literature, but in essence, Organisational culture is the sum of values, habits, and rules that influence how things get done within the organization.Generally culture is obsrved at three levels in any organisation. The first being Physical. This is observed through dress code, building, office layout, the technology used, forms, templates, systems, process, recreational and welfare facilities etc. The second level consists of Values. Values are reflected through employee behaviours. The third and deepest level is the Beliefs.
Differentiated Culture – Sub Cultures and Counter Cultures
While we are discussing about culture, it is important to understand sub cultures and counter cultures and both play a pivotal role in shaping organisational culture.
Every organization has a differentiated culture which indicates a system of sub cultures. The term “subculture” is normally associated with images of deviants, delinquents, gangs, and other nonconformists such as hippies, punk teenagers, or occult members. But subcultures also represent tolerated deviations that do not disrupt the normative solidarity of the larger culture’s values. Organizational sub cultures may be based on affiliations to various groups such as departments, workgroups like software developers, sales, customer support teams, operations and service groups, line and support functions, organisational hierarchies, such as management and executive staff; professional and occupational affiliations; socio-demographic categories such as sex, ethnicity, age, or nationality; informal groups; or even atmosphere in work groups e.g. loud and gregarious, subdued and quiet, studious and focused; styles of social interaction e.g. debating ideas, accepting direction, conforming to one voice, chattering during meetings etc.
Countercultures are often unacceptable to members of the larger organization. Members of countercultures hold discordant values and, by virtue of their membership, explicitly oppose certain aspects of the larger culture.
The main difference between cultures and sub cultures is that a culture is a unitary whole while subcultures paint a picture of multiple small cultures coexisting within the same organization.
While we are discussing about culture, it is important to understand sub cultures and counter cultures and both play a pivotal role in shaping organisational culture.
Every organization has a differentiated culture which indicates a system of sub cultures. The term “subculture” is normally associated with images of deviants, delinquents, gangs, and other nonconformists such as hippies, punk teenagers, or occult members. But subcultures also represent tolerated deviations that do not disrupt the normative solidarity of the larger culture’s values. Organizational sub cultures may be based on affiliations to various groups such as departments, workgroups like software developers, sales, customer support teams, operations and service groups, line and support functions, organisational hierarchies, such as management and executive staff; professional and occupational affiliations; socio-demographic categories such as sex, ethnicity, age, or nationality; informal groups; or even atmosphere in work groups e.g. loud and gregarious, subdued and quiet, studious and focused; styles of social interaction e.g. debating ideas, accepting direction, conforming to one voice, chattering during meetings etc.
Countercultures are often unacceptable to members of the larger organization. Members of countercultures hold discordant values and, by virtue of their membership, explicitly oppose certain aspects of the larger culture.
The main difference between cultures and sub cultures is that a culture is a unitary whole while subcultures paint a picture of multiple small cultures coexisting within the same organization.
Having different subcultures is not necessarily a bad thing. In fact its existence often induces diversity, adds vitality to various operating units. As organisations expand globally, exporting an organisation’s culture needs more than exporting formats or setting up offices and factories abroad. Globally operated organisations accept that certain aspects of corporate culture may not gel well in some countries. Thus, an amalgamation of core culture with regional sub culture is apt. The glue that binds all threads of the organisation across geographies – is the core culture built on core values- merging with different sub cultures. For instance large Groups like Tata’s have numerous companies, each having its distinct characteristics, sub cultures and yet all these companies embody the shared Tata Values and Code of Conduct. Similarly Google has different sub cultures across geography and within various teams but what binds all Googlers and their stakeholders are their ‘Ten guiding core principles’.
Ethnocentrism & Parochialism
While conducting business globally, one cannot completely avoid the existence of ethnocentrism and parochialism. Ethnocentrism and Parochial attitude is the result of interaction with a different culture.
Everybody can be accused on ethnocentrism at least once in their lives. Every dominant culture tends to think of itself as supreme and centre of the world. For example, during the reign of the Chinese empire, China believed that it was ‘The middle kingdom’ and even the Japanese, Koreans and Cambodians - all referred to China as the middle kingdom. The British Empire drew the modern world maps with the Zero longitude passing through London - thus making England as the center of the world. US today refer to non-Americans as "Aliens" - a term which shows the ethnocentric attitude.
Ethnocentrism results when managers recognize the differences in cultures - but have a tendency to think that their culture and their way of doing things is - the right way, the only way and the best way. Any deviation from their culture or from their way of doing things is seen as "distortion" or as a "mistake" or as "Wrong way".
Parochial attitude refers to a person’s inability to see cultural differences. This is exactly the opposite of ethnocentrism. Managers who are sent abroad often meet people who are also dressed in suits and speak their language - this prompts them to ignore all other cultural differences and make them think that all others are "just like us".
Apparently ethnocentrism can be both a bad and good thing. It is good to be proud of one's heritage, country, and culture. Ethnocentrism can lead to social integration and strong personal, patriotism, and group ties. However, like anything in life, extremes are bad. Therefore extreme ethnocentrism can breed racism, hate crimes, and even wars.
Ethnocentrism & Parochialism
While conducting business globally, one cannot completely avoid the existence of ethnocentrism and parochialism. Ethnocentrism and Parochial attitude is the result of interaction with a different culture.
Everybody can be accused on ethnocentrism at least once in their lives. Every dominant culture tends to think of itself as supreme and centre of the world. For example, during the reign of the Chinese empire, China believed that it was ‘The middle kingdom’ and even the Japanese, Koreans and Cambodians - all referred to China as the middle kingdom. The British Empire drew the modern world maps with the Zero longitude passing through London - thus making England as the center of the world. US today refer to non-Americans as "Aliens" - a term which shows the ethnocentric attitude.
Ethnocentrism results when managers recognize the differences in cultures - but have a tendency to think that their culture and their way of doing things is - the right way, the only way and the best way. Any deviation from their culture or from their way of doing things is seen as "distortion" or as a "mistake" or as "Wrong way".
Parochial attitude refers to a person’s inability to see cultural differences. This is exactly the opposite of ethnocentrism. Managers who are sent abroad often meet people who are also dressed in suits and speak their language - this prompts them to ignore all other cultural differences and make them think that all others are "just like us".
Apparently ethnocentrism can be both a bad and good thing. It is good to be proud of one's heritage, country, and culture. Ethnocentrism can lead to social integration and strong personal, patriotism, and group ties. However, like anything in life, extremes are bad. Therefore extreme ethnocentrism can breed racism, hate crimes, and even wars.
Shared Values
The bedrock of culture is shared values. In any firm, along with the clearly articulated company goals and values, employees are also inadvertently guided with a set of widely held informal beliefs, attitudes, behaviours and principles that develops over a period of time. Consistent, reinforced behaviors evolve into habits. And habits are a powerful force in defining how employees do their work. Rules in this definition are those policies and procedures that are generally respected and followed within the organization. All these factors combine to influence "how things are done around here." One has to go beyond merely posting Values on the wall or talking about them; one has to live them.
The bedrock of culture is shared values. In any firm, along with the clearly articulated company goals and values, employees are also inadvertently guided with a set of widely held informal beliefs, attitudes, behaviours and principles that develops over a period of time. Consistent, reinforced behaviors evolve into habits. And habits are a powerful force in defining how employees do their work. Rules in this definition are those policies and procedures that are generally respected and followed within the organization. All these factors combine to influence "how things are done around here." One has to go beyond merely posting Values on the wall or talking about them; one has to live them.
Communication is the mortar in building a strong firm culture. Reward schemes should encourage employees who embody firm's core values. Few things will undermine culture more than having leaders and managers who fail to operate by the firm's values. Managers often get blinded by impressive resumes. But it is critical to focus on candidate's personality, values, accomplishments, and work habits. Hiring for cultural fitment has assumed greater importance. That does not mean only hiring people from competitor or similar industry. Good organisations always scout talent from different walks of life and ensure that candidates are willing to espouse organisational values.
The Importance of Organizational Alignment
Organisational culture is nothing less than the basic DNA of an organization and acts as a foundation for the structures, systems, processes and actions that support business strategy. Donald Tosti and Stephanie Jackson describe two prevalent forces shaping corporate activity and results: (1) strategy and (2) culture. The Strategy path defines what needs to be done and defines guidelines for setting goals, objectives, doing activities to obtain desired results. The Culture path emphasizes how things are normally done. Culture emerges from values, practices and behaviours required to produce desired results. The best firms strive to maintain an alignment between the two paths.
The Importance of Organizational Alignment
Organisational culture is nothing less than the basic DNA of an organization and acts as a foundation for the structures, systems, processes and actions that support business strategy. Donald Tosti and Stephanie Jackson describe two prevalent forces shaping corporate activity and results: (1) strategy and (2) culture. The Strategy path defines what needs to be done and defines guidelines for setting goals, objectives, doing activities to obtain desired results. The Culture path emphasizes how things are normally done. Culture emerges from values, practices and behaviours required to produce desired results. The best firms strive to maintain an alignment between the two paths.
Conclusion
Every firm has a characteristic culture and no two are the same. Apparently, there are no right or wrong cultures, only functional and dysfunctional ones. Some organisational cultures are well defined while others evolve serendipitously. The strongest corporate cultures are designed and shaped intentionally by management and employees working together. The firm's leadership obviously exerts strong influence on its culture and often reflects some degree of the personality and values of the firm's leaders. Operating effectively with or in different cultures often requires a significant change in leadership style and behaviour. Embracing diversity helps executives learn to work with unfamiliar environments. Managing and promoting the right core culture and retaining sub cultures is the single most important challenge for leaders and employees across all levels.
Every firm has a characteristic culture and no two are the same. Apparently, there are no right or wrong cultures, only functional and dysfunctional ones. Some organisational cultures are well defined while others evolve serendipitously. The strongest corporate cultures are designed and shaped intentionally by management and employees working together. The firm's leadership obviously exerts strong influence on its culture and often reflects some degree of the personality and values of the firm's leaders. Operating effectively with or in different cultures often requires a significant change in leadership style and behaviour. Embracing diversity helps executives learn to work with unfamiliar environments. Managing and promoting the right core culture and retaining sub cultures is the single most important challenge for leaders and employees across all levels.
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