Organisational Culture

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CULTURE

Culture is defined by Charles Handy as being - “the way we do things around here”.

By this Handy means the sum total of the beliefs, knowledge, attitudes, norms and customers that prevail in an organisation.

The main components of Culture

If one had to analyse Culture in more detail, one might say that organisational culture forms in response of two major challenges that confront every organisation:

  1. External adaptation 

    which has to do with how the organisation copes with its constantly changing external environment;

  2. Internal integration 

    which has to do with the establishment of effective working relationships among the members of an organisation.

The national culture, customs and societal norms of a country also shape the cultures of organisations operating in it.

The dominant values of a national culture may be reflected in the constraints imposed on organisations by others.

For example, a country's form of government may have a dramatic impact on how an organisation does business.

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