Understanding Organisational Culture

Decent Essays

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. This includes both culture creation and culture management. Culture creation addresses: Founder values, industry demands and early values and goals. This is maintained by: leadership, reward systems, new employees and attraction-selection attrition. It is vital that a company not only constructs their culture but preserves this through encouraging positive behaviours. Culture is not easily observable, however we can observe through: rituals, stories and language, rules and policies, physical layout and a mission statement. Culture can be measured through open ended questions, stories and scenarios, customized surveys and pre-tests, to measure the thoughts and feeling of how people see and view the organisation.
The management consulting firm Bain & Company was surveyed in 2007, and

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