Understanding Organizational Culture Development and Characteristics - A Comprehensive Guide

Formation and Characteristics of Organizational Culture

• Organizational culture is formed through a pattern of assumptions learned by an organization while solving its external and internal adaptation problems effectively.

• This learned pattern of assumptions is then considered valid and taught to new members as the correct way to perceive, think, and feel in relation to those problems, thereby shaping the organizational culture.

• Organizational culture is a shared and stable social phenomenon, providing stability and order to the organization's actions, similar to the stability of individual personality traits.

• Culture is deep, symbolic, expressive, and subjective, based on the history and tradition of the organization, and it is transmitted to new members to provide rules and order.

• While there may be similarities in cultural traits among organizations in the same economic sector, each organization has its own unique cultural practices based on its experiences, traditions, and history.

Formation and Characteristics of Organizational Culture

Understanding Organizational Culture Development

• Organizational culture is influenced by four main elements: symbols of the social group, language, narratives, and practices implemented by the organization.

• The concept of organizational culture emerged around 1980 as a response to the limitations of the organizational climate to define organizational behavior.

• Historically, there was an individualistic vision of human behavior in organizational psychology, which led to the need for a concept like organizational culture to understand social dynamics.

• Although organizational culture is widely discussed in organizations, there is a lack of systematic success stories in cultural transformation processes due to the complexity of understanding the underlying mechanisms.

• The formation of organizational culture is influenced by the founders, experiences and learning within the organization, social context and market conditions, and the attraction, selection, and attrition model.

• An essential aspect in understanding the development of organizational culture is learning, as culture is a result of learning processes at individual and group levels within the organization.

Understanding Organizational Culture Development

Developing Organizational Culture through Learning

• Organizational culture is fundamentally developed through learning processes.

• There are three primary forms of learning at both the individual and group levels: experience, observation, and instruction.

• Learning is essentially the acquisition of relatively stable response forms to understand the world and perform in different contexts.

• Behaviors followed by positive consequences are more likely to be repeated, while those followed by negative consequences are less likely to reoccur.

• Experience and observation are more effective forms of learning compared to instruction, as they are easier to internalize.

• Organizational culture is not only developed but also maintained through the elements of experience, observation, and instruction.

• Successful means of solving internal and external challenges become part of the organizational culture, represented through language, symbols, and practices.

• External consequences are not always necessary for behaviors to become part of organizational practices, as internalization of learned behaviors occurs over time.

Developing Organizational Culture through Learning

Understanding Organizational Culture and Transformation

• Organizational culture is developed through a learning process, with different types of learning, and is influenced by positive consequences.

• Culture is the result of experiences within an organization, which lead to the internalization of certain practices and behaviors.

• Changing organizational culture requires an understanding of its current state, explaining how it developed, and identifying the desired changes.

• Organizational culture affects labor competitiveness as it regulates organizational behavior, making certain practices more or less competitive.

• The goal is not to define a positive or negative culture, but to have the ability to adapt and change cultural practices as needed.

• An example of cultural transformation is seen in Facebook's response to changing privacy concerns, indicating the need for organizations to adapt to new realities.

Understanding Organizational Culture and Transformation

Organizational Culture and Learning Process

• Organizational culture is essential for adaptation to the new needs of the environment.

• Culture is acquired through a learning process, which occurs through direct experience, observation, and instruction.

• Socialization is the process through which culture is transmitted to new members of the organization, saving efforts and avoiding repeating the same experiences.

• Organizational culture provides order, coherence, and common practices, language, and symbols, which are essential for communication and problem-solving.

• The usefulness of organizational culture lies in knowledge management, optimizing experiences, and reducing errors.

• The culture is formed through a learning process as organizations solve internal and external challenges, reinforcing beliefs and ideas that helped in successful problem-solving.

Organizational Culture and Learning Process

Conclusion:

Understanding the mechanisms behind organizational culture development is essential for organizations seeking to adapt and thrive in dynamic environments. By grasping the formation, characteristics, and transformation of organizational culture, organizations can effectively shape their cultural practices and remain competitive in the ever-evolving market.