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Culture is a term we generally use to group together or sum up a set of social factors we can’t quite put our finger on, such as traditions, behavior patterns, attitudes, beliefs and commonalities. We usually think of culture in terms of nations or communities. However, the concept has more recently been applied to organizations as a way of understanding how social processes impact performance. An understanding of how culture is created and reinforced in organizations can help managers predict the human impacts of change and the consequences for strategy.
What is Organizational Culture?
The theory of organizational culture, pioneered by such thinkers as Tom Peters[1] and Geert Hofstede[2] in the 1980s, offered an alternative understanding of how organizations operate. Theorists turned their attention away from such rational factors as organizational functions and processes to socially constructed patterns of behavior, how these form, and what they mean for organizations.
Organizational culture is …
… ‘the unique configuration of norms, values, beliefs, ways of behaving and so on that characterize the manner in which groups and individuals combine to get things done’.[3]
… ‘the collective programming of the mind that distinguishes the members of one organization from another’.[4]
To date, organizational culture remains a popular perspective, albeit one that lacks a standard definition. Common terms, however, tend to emerge from the myriad of descriptions, a few of which have been collated in the diagram below:
Although there remains no common definition, theorists do agree that organizational culture is influenced by a multitude of factors. The history of the organization and the societal culture in which the organization is situated are sited as major influences. Other important factors include the structures of power and control within the organization, its vision and mission, and the type of business conducted.
Can We ‘see’ Organizational Culture?
Although organizational culture can seem to be an intangible concept, it still manifests itself through a number of different channels. These are symbols, heroes, rituals, practices and values, which are visible to those within and outside the organization. Geert Hofstede compiles these in his model of organizational culture below:
Copyright © Geert Hofstede. Reproduced with permission from: Geert Hofstede & Gert Jan Hofstede, ‘The “Onion”: Manifestations of Culture at Different Levels of Depth’, in Cultures and Organizations: Software of the Mind (New York, McGraw-Hill, 2005), figure 1.2.
Symbols
Words, gestures, pictures and objects, such as logos, speeches, cars and titles that carry complex meanings for the people within the organization. Symbols appear on the outer layer of the diagram as they are the most easily eroded or replaced.
Heroes
People who are associated with the organization, either at the present time or in the past, who act as role models for current employees. They may be leaders, strong personalities or respected individuals who portray admired values and behaviors.
Rituals
Activities undertaken within the organization which may not be essential for achieving organizational objectives, but act to consolidate cultural values and social acceptance within the group. They are often celebrations, such as reward ceremonies and special events, or rites such as training programs or office parties.
Practices
Practices are how symbols, heroes and rituals are made visible to outsiders. Although visible to anyone, they only hold meaning and significance to those within the organization. For example, stories of key events or people.
Values
Values refer to the innate beliefs held by individuals and groups that influence how they behave and act. Values can be defined as ‘a broad tendency to prefer certain states of affairs over others’ so that specific modes of conduct are personally or socially preferable to others.[5] Values deal with such things as good and evil, decent and indecent, rational and irrational, moral and immoral. An individual’s values are programmed early on in life and are very much influenced by society, which makes them very difficult to change. Individuals will generally only behave in a way that is in accordance with their values. Therefore organizations, and especially change programs, can keenly feel the impact if a strategy contradicts people’s values.
Cultural Web
Johnson and Scholes[6] expand on Hofstede’s model in their cultural web. Here, they again attempt to represent the behavioral manifestations of culture and offer a way of understanding how culture is generated and reinforced:
Adapted from: Gerry Johnson, Kevan Scholes & Richard Whittington, Exploring Corporate Strategy, Seventh Edition (Pearson Education Ltd 2005). Exhibit 4.11 ‘The Cultural Web’ p 202.
As well as the symbols and rituals described by Hofstede above, Johnson and Scholes factor in the following elements to their model of culture:
Routines
Routines are coupled with rituals in the cultural web, as culture is generated and reinforced not only by the more significant events that take place within organizations, but also the day-to-day tasks and practices.
Stories
Stories are the tales told by members of the organization to one another, to outsiders or new recruits. They portray important events, successes and disasters from the organization’s history, and so reinforce what is important to the organization.
Power Structures
Power structures within organizations determine where the sources of power lie. The people or groups that hold the power establish the core values and beliefs that influence culture. They can also reinforce the culture by putting in place systems to encourage the desired behavior, e.g. performance management systems.
Control Systems
Control systems clearly demonstrate what is important to the organization. Additionally, measurement and reward systems influence the behavior of individuals and can, therefore, be used to encourage a certain culture. For example, rewards given for volume of sales, are likely to reinforce a competitive culture.
Organizational Structure
The structure of an organization reflects the power systems and important roles and relationships that serve to foster particular cultures. For example, a flat structure is more likely to promote a culture of collaboration and teamworking than a hierarchical structure.
The paradigm at the center of the web is the assumptions that exist within an organization – ‘the way things are done around here’. These assumptions represent collective experience of organizational life, and are usually the parts that people find most difficult to identify and explain. The behaviors observed in other elements of the cultural web are encapsulated and reinforced in these assumptions.
Conclusion
It is often assumed that what the organization writes down, in terms of its mission, values, objectives and strategies, represents the culture of the organization. However, more often than not, these represent the aspirations of senior management rather than what actually takes place.[7] Power structures, control systems and organizational structures are powerful influencers of culture, but it is the behavior of people on a day-to-day basis that really defines what the culture is.
It is important to remember that culture is a messy concept. So many factors combine to create culture that it can be very difficult to define and even more challenging to influence. But it is an important consideration for strategy, as collective experience can either drive or constrain change.
[1] Tom Peters and Robert Waterman, In Search of Excellence (Warner Books, 1988).
[2] Geert Hofstede, Culture's Consequences International Differences in Work-Related Values (Beverly Hills London Sage, 1980).
[3] Eldridge and Crombie (1974) cited in Andrew Brown, Organizational Culture, Second Edition, (Prentice Hall, 1998) p7.
[4] Geert Hofstede, Culture’s Consequences:Comparing Values, Behaviors, Institutions, and Organizations Across Nations, (Sage Publications, 2001).
[5] Geert Hofstede (2001) p 5.
[6] Gerry Johnson, Kevan Scholes & Richard Whittington, Exploring Corporate Strategy, Seventh Edition (Pearson Education Ltd 2005).
[7] Andrew Brown, Organizational Culture, Second Edition (Prentice Hall, 1998).
References[1] Tom Peters and Robert Waterman, In Search of Excellence (Warner Books, 1988).
[2] Geert Hofstede, Culture's Consequences International Differences in Work-Related Values (Beverly Hills London Sage, 1980).
[3] Eldridge and Crombie (1974) cited in Andrew Brown, Organizational Culture, Second Edition, (Prentice Hall, 1998) p7.
[4] Geert Hofstede, Culture’s Consequences:Comparing Values, Behaviors, Institutions, and Organizations Across Nations, (Sage Publications, 2001).
[5] Geert Hofstede (2001) p 5.
[6] Gerry Johnson, Kevan Scholes & Richard Whittington, Exploring Corporate Strategy, Seventh Edition (Pearson Education Ltd 2005).
[7] Andrew Brown, Organizational Culture, Second Edition (Prentice Hall, 1998).
