AC 2.1 Meaning of organizational culture and why it is crucial to foster appropriate and effective workplace culture.
Organizational culture refers to a set of underlying beliefs, assumptions, values, and expectations that shape the actions and behaviors of individuals in the organization (Juneja, 2022). Notably, a good organizational culture exemplifies positive traits and enhances organizational performance. On the other hand, a dysfunctional organizational culture is a barrier to organizational success. Charles handy argues that all organizations have an organizational culture that may differ regarding power, task, persons, and roles.
Power cultures are characterized by single individuals influencing decisions and strategy. On the other hand, role structures follow specific functional structures with individuals understanding their jobs and hierarchies and prioritizing efficiency, accountability, and accuracy. On the other hand, hierarchy cultures closely resemble role cultures because they are highly structured and prioritize efficiency, stability, and effectiveness.
Organizational culture has numerous benefits for the organization. For instance, it affects factors such as employee motivation and efficiency at work. When the organizational culture aligns with employees, they are more likely to feel comfortable, valued, and supported. This leads to improved motivation at work and job satisfaction and can help promote retention.
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