Functions & Elements of Organizational Culture (Management-1 09April 2021)

Functions & Elements of Organizational Culture

 

Functions of Organizational Culture

a. Providing Sense of Identity to its Employees – This indicates that organizational culture is based on a unique collection of norms that gives the employees a feeling of belonging with the organization.

 

b. Enhancing Commitment towards Organization – This indicates that when the employees relate well with the values, beliefs, and philosophies of an organization, their commitment towards the organization increases.

 

c. Defining the Standard of Behaviour – This indicates that various norms, processes, procedures, rules, and regulations define the acceptable and unacceptable behaviour of employees. Thus, organizational cultural defines the standard behaviour of its employees.

 

d. Acting as a Binding Force – This indicates that the organizational culture acts as a bond between the employee and the organization. Thus, it acts as a force that joins the two with one set of goals and purposes.

 

Main Elements Organisational Culture

i. Individual Autonomy – The degree of responsibility, freedom and opportunities of exercising initiative that individuals have in the organisation.

 

ii. Structure – The degree to which the organisation creates clear objectives, performance expectations and authority relationships.

 

iii. Management Support – The degree to which managers provide clear communication, assistance, warmth and support to their subordinates.

 

iv. Identity – The degree to which members identify with the organisation as a whole rather than with their particular work-group or field of professional expertise.

 

v. Performance Reward System – The degree to which reward system in the organisation like increase in salary, promotions etc. is based on employee performance rather than on seniority, favouritism and so on.

 

vi. Risk Tolerance – The degree to which employees are encouraged to be innovative, aggressive and risk-taking.

 

vii. Conflict Tolerance – The degree of conflict presents in relationships between colleagues and work-groups as well as the degree to which employees are encouraged to air conflict and criticisms openly.

 

viii. Communication Patterns – The degree to which organisational communications are restricted to the formal hierarchy of authority.

 

ix. Outcome Orientation – The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve these outcomes.

 

x. People Orientation – The degree to which management decisions take into consideration the impact of outcomes on people within the organisation.