Culture can be defined in different ways. Some view it in terms of things that are directly observable about the members of a company; their patterns of speech and behavior, for example. Others see it as something an organization has; a system of shared ideas, knowledge, and beliefs. To some culture is a system of shared meanings, something an organization is.
Howard Schwartz and Stanley M Davis define culture as: "A pattern of beliefs and expectations shared by the organization's members. These beliefs and expectations produce norms that powerfully shape the behavior of individuals and groups in the organization." 1These common beliefs are something an organization has, represent what the organization is, and are directly observable as they manifest themselves in the way people act and talk. In short, culture is "the way we do things around here". 2
Culture is a definition of what the company is all about. Climate, the subject of the next chapter, is a measure of the employees' perceptions about what the company is all about. Measuring climate tells us how well employees are receiving the message of what the culture is. It measures the fit between the prevailing culture and the employees' values. If employees accept the culture of the organization, the climate will be good. If they do not, the climate will be bad. Culture is a long-term matter and more difficult to change than climate.
Development of culture
A study of how a company culture develops illustrates why it is so difficult to change. It is explained by Schwartz and Davis in this way:
Culture is rooted in deeply held beliefs and values in which individuals hold a substantial investment as a result of some processing or analysis of data about organizational life. These beliefs and values create situational norms that are evidenced in observable behavior. This behavior becomes the basis for the formation of beliefs and values out of which norms flow. 3 This process is illustrated in Exhibit 12.
Characteristics
Successful companies place a great deal of emphasis on values. They have a clear idea of how their business should be run; they give time and attention to shaping these values, in light of the economic and business environment faced by the organization, and communicating these values to the employees; these values are known and shared by all who work for that company—from general manager to dishwasher.
An effective value system has certain characteristics:
- Values should be both loose and tight. That is to say, management must set a clear direction while allowing opportunity for individual initiative in moving toward that direction.
- It must emerge rather than be imposed. It should be the end product of long-term processes, not an ultimatum.
- It cannot be changed at will. Consistency should be stressed and any changes dealt with very carefully. Because change requires so much commitment and energy, management should view change as a process that will occur infrequently.
- It has a reasonably predictable life cycle. It can never be defined as tightly as a quantifiable goal. It does, however, emerge from being rather flexible, progressively becoming more rigid over time.
- It imposes choices. An emphasis on control will limit creativity.
- It can range from general management principles to reasonably specific business decisions.
- It suggests movement from where one is to where one wishes to go.
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