In the post COVID-19 era, organisational culture is a point of vigorous debate among business leaders. In this heated debate, the only points of agreement among pundits seems to be that organisational culture exists, and it plays a crucial role in shaping behaviour in organisations. So, what is organisational culture?
Let’s start by defining organisation
Organisation refers to a collection of people, who are “organised” to pursue defined objectives. It is also a social system which comprises of all formal human relationships.
And culture?
Culture is defined as shared patterns of behaviours and interactions, cognitive constructs and understanding (social system) that are learned by socialisation. Thus, culture can be seen as the growth of a group identity fostered by social patterns unique to the group.
The traditional definition of organisational culture
Culture is how organisations do things. It is consistent, observable patterns of behaviour in an organisation. It consists of underlying beliefs, assumptions, values, and ways of interacting that contribute to the unique social and psychological environment of an organisation.
But culture is also…
1. A jointly shared description of an organisation.
Individuals in an organisation tend to go through a process of “sense making” which can be viewed as process of creating a shared awareness and understanding out of the different perspectives and varied interests of those different individuals.
It is a process of “sense-making” which is defined as a collaborative process of creating shared awareness and understanding out of different perspectives and varied interests of individuals.
2. About “the story”.
It is a story and a carrier of meaning in which people in the organisation are embedded with, and the values and rituals that reinforce that narrative.
3. The organisation’s immune system.
Culture is a form of protection that has evolved from situational pressures. It can prevent “wrong thinking” and “wrong people” from entering the organisation in the first place.
4. Shaped by the main culture of the society we live in and shared commonalties.
It overlaps with the broader culture of the societies in which it operates. There can be sub-cultures that form when people of common situations, identities, or job functions gather around their own interpretations of the dominant company culture.
5. Dynamic.
An organisation is a living culture that can adapt to the reality as fast as possible. They shift, incrementally and constantly, in response to external and internal changes. It also opens the possibility that culture change can be managed as a continuous process rather than through big shifts (often in response to crises).
6. Never monolithic.
There are many factors that drive internal variations in the culture of business functions (e.g. finance vs. marketing) and units (e.g. a fast-moving consumer products division vs. a pharmaceuticals division of a diversified firm).
7. A product of compensation.
It is powerfully shaped by incentives. The best predictor of what people will do is what they are incentivised to do. Examples of incentives consists of monetary rewards, non-monetary rewards such as status, recognition, and advancement. Similarly, culture is also shaped by sanctions to which members of the organisation are subject.
8. The civilisation in the workplace.
It is a social system. Culture is responsible for promoting and reinforcing “right” thinking and behaving, while sanctioning “wrong” thinking and behaving. It is a set of behavioural “norms” that are upheld and reinforced.
If you would like to know more about how to build effective change management programs that strongly considers organisational culture, focuses on the individuals in your organisation and uses proven strategies/tools to guide individuals through changes (i.e. a new technology implementation, an office move, or an acquisition) get in touch with me and I am happy to have chat over a coffee.
Written By Ashan Kulatunga