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When we say that an organization has a certain type of culture , what do we mean? Organizational culture is a system of shared values, norms, and assumptions that guides members’ attitudes and behaviors and influences how they perceive and react to their environment. These assumptions are usually taken for granted by organizational members, and are taught to new members as they are socialized into the group.
An organization’s culture is reflected in how it gets work done and how employees interact with each other. It takes a long time for a culture to evolve, and a long time to change it. When culture supports business strategy, the firm can become high performing.
Cultures are made up of formal and informal practices , artifacts, espoused values and norms, and assumptions. Organizational culture is the key to organizational excellence and the function of leadership is the creation and management of culture.