Organizational culture is something that is shared by all the members of an organization as its identity. It is characterized by employees working as teams under congenial working environment, their attentiveness with flexible-working practices, leadership and other management practices aimed at achieving work engagement. In addition, it is marked by the presence of support from senior leaders, vision clarity and congenial HRM policies.
Importance of organizational culture
The characteristics stated above suggest that organizational culture will reflect in positive work engagement. Transformational leadership is one of the essential components as it largely contributes to cultivation of culture unique to the organization with the four dimensions of idealized influence, inspirational motivation, intellectual stimulation and individualized consideration.
Hofstede states culture influences people’s behavior and thinking and hence it is essential to understand the culture within organizations to deal with them. According to Jim Grieves (2000), organizational development depends on the right organizational culture in order to promote humanistic values. Organizational culture is seen in two perspectives as suggested by E.C. Martins and F.Terblanche, one, functions of organizational culture and two, the influence it has on different processes in organizations. As already stated, the two aims of the functions of organizational culture are, first, the creation of a sense of identity among the employees and their commitment to the organization and second, enabling a competitive edge so that the organizational members especially the new members can understand the acceptable behavior and stability of the social system within the organization. The shared sense of culture enables effective communication and mutual understanding among the employees. If this is not achieved, the prevailing culture which can significantly reduce the organizational efficiency should be modified. For this purpose, organizations resort to different resources and processes to achieve an ideal behavioral change. The culture that plays an indirect role in behavior is enabled by the use of different tools such as strategic direction, goals, tasks, technology, structure, communication, decision making, cooperation, interpersonal relationships and others.
The importance of culture should not be ignored as otherwise the organizational efficiency will suffer. As the organization is humanistic, it should be built around people and not techniques. The right culture will, therefore, have a positive effect on employee motivation, employee morale, goodwill, productivity, and work quality. It also promotes innovation and creativity and the employee attitude in the workplace in a positive manner.