What are the determinants of an organisational culture?
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*Determinants of Organizational culture*
1.)Organizational policies -
Specific organizational policies can influence a specific dimension of OC to quite an extent. For example, if the company policy states that layoffs will be used only as a last resort to cope with business downturn, then it would, in general, foster an internal environment that is supportive and humanistic. Similarly if you are working in a company where it is agreed that the first beneficiaries of increased profit, then the OC will be characterized by High Reward Orientation and probably by High Progressiveness and Development.
2)Managerial Values
The values held by executives have a strong influence on OC because values lead to actions and shape decisions. Values add to perceptions of the organization as impersonal, paternalistic, formal, informal, hostile or friendly. You will learn more about managerial values under the topic: Managerial Ethos
3) organization structure
The design or structure of an organization affects the perception of its internal environment. For example, a bureaucratic structure has an OC much different from a System 4 organization. What is a System 4 organization? According to Rensis Likert, all organizations can be classified into four major groups, depending upon the way basic organizational processes are conducted. These major groupings are as follows:
System 1 – Exploitative Authoritative
System 2 – Benevolent Authoritative
System 3 – Consultative
System 4 – Participative
1.)Organizational policies -
Specific organizational policies can influence a specific dimension of OC to quite an extent. For example, if the company policy states that layoffs will be used only as a last resort to cope with business downturn, then it would, in general, foster an internal environment that is supportive and humanistic. Similarly if you are working in a company where it is agreed that the first beneficiaries of increased profit, then the OC will be characterized by High Reward Orientation and probably by High Progressiveness and Development.
2)Managerial Values
The values held by executives have a strong influence on OC because values lead to actions and shape decisions. Values add to perceptions of the organization as impersonal, paternalistic, formal, informal, hostile or friendly. You will learn more about managerial values under the topic: Managerial Ethos
3) organization structure
The design or structure of an organization affects the perception of its internal environment. For example, a bureaucratic structure has an OC much different from a System 4 organization. What is a System 4 organization? According to Rensis Likert, all organizations can be classified into four major groups, depending upon the way basic organizational processes are conducted. These major groupings are as follows:
System 1 – Exploitative Authoritative
System 2 – Benevolent Authoritative
System 3 – Consultative
System 4 – Participative
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Answer:
Culture is a set of particular ideas, beliefs, traditions, thoughts, and behaviors adopted by a community in a specific region.
These shared values create an impact on a group of people and create a unique environment called the organization. Families, industries, offices are some examples of organizations.
Determinants of organizational culture:
Internal factors include values of the founders, policies, wages, management, and treatment of staff.
External factors include technology, industry standards, economic conditions, and legal ramifications.
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