Organizational Culture - An Aspect of Organizations

Running head: ORGANIZATIONAL CULTURE - AN ASPECT OF ORGANIZATIONS
ORGANIZATIONAL CULTURE - AN ASPECT OF ORGANIZATIONS
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1ORGANIZATIONAL CULTURE - AN ASPECT OF ORGANIZATIONS
Every organization has certain values and behaviors that contribute to an organization’s
unique social and psychological environment. The social and psychological environment of an
organization plays a vital role in the growth and development of the organization (Alvesson &
Sveningsson, 2015). It is essential for the organization to consider the culture of an organization
to make the organization a safe place for the employees and avoid unnecessary problems in the
organization. Organizational culture is essential as it is determining the members of the
organization share factor in the success of an organization for its values, ideologies, principles
and beliefs. Many employees spend a substantial amount of their time at their workplace,
interacting with each other. Therefore, since not everybody comes from different cultural and
demographic background, organizational culture becomes a crucial factor. Due to the importance
it holds, it is the main focus of the paper. In a similar discourse, the paper aims to discuss the
concept of organizational culture along with its significance of the concept in every business.
Organizational culture:
Organizational culture can be defined as a complex set of values, assumptions, beliefs
and symbols that define the way a firm may conduct their business. According to organizational
culture, culture has pervasive effects on an organization as an organization’s culture determines
the relevant employees, suppliers, customers and competitors as well as defines the ways a firm
will interact with the mentioned vital factors (Senge, 2014). In the contemporary era, the concept
of organizational culture blurs the traditional distinction between the culture of an organization
and its structure and strategy. It is for these specific attributes of a firm directly manifests the
cultural assumptions about the kind of business an organization is in and the ways it conducts its
business. Organizational culture include the expectations, experiences, values, philosophy of the

2ORGANIZATIONAL CULTURE - AN ASPECT OF ORGANIZATIONS
organization which creates its self-image, interactions with the outer world, inner workings and
future expectations (Ferrell, 2016). It is highly based on shared attitudes, customs and unwritten
and written rules that develop over time and are considered to be valid. It is also known as
corporate culture as it manifests the ways organization conduct their business, treat their
customers, employees and people associated with the group. The organizational culture
represents the extent of freedom in decision making, creating ideas and expressing the ideas of
the organization. Also, an organization’s culture represents the organization’s flow of power and
information through its hierarchy along with the way each member of the organization is
committed towards the collective objective.
Significance of organizational culture:
Culture plays a vital role in every aspect of human society as it impacts everything from
performance to the way an organization perceives the media. There are several significances of
the organizational culture in the business that could be perceived from the definition discussed
above. The reason organizational culture is important is discussed below:
The culture of an organization defines the company’s internal and external identity.
According to Belias and Koustelios (2014), organizational culture defines the organization and
every member of the organization in terms of the way it conducts its business, and the way team
interacts with the outside world. Therefore, the way it does business reflects the organizational
culture. An organization that holds high values when it comes to customer, employees and its
principles, it is considered as an added advantage. The organizational culture will reverberate
across all aspects of the business since it represents the way the organization conducts its
business. Although culture is intangible, it is yet palpable interpreting as the total of ideologies,