Organizational culture is the beliefs, values, and assumptions which influences the behavior of an individual in an organization. The culture of an individual can be identified with performance, dress and cooperation in the organization. The organization culture can also be defined as the communication styles between the levels of organization, and the leadership styles. Organizational culture makes greater change in the employee performance and level of motivation. To become a part of a cooperative environment the employees work harder to achieve organizational goals. It is also known as corporate culture. It also shows emotional response and repetitive e habitat. Companies create organizational culture on behalf of leaders and the leaders communicate with followers and show a path according to the corporate culture. The leaders should always motivate the followers according to the culture of the organization. If the employee gets sufficient motivation then they start to perform well and which results in the successful achievement of organizational goals.
IMPACT OF CULTURE ON ORGANIZATION
The best organization will have quality culture. Everyone in the organization committed and practices to improve the quality of culture. High quality of culture also results in an improved working environment. Culture creates an environment in the organization which helps to influence the long-term plan which results to achieve the vision of the organization. Identification of culture results in impact on organizational performance, employee engagement, increase of customer service, and also decreases retention of customers.
RENSIS LIKERT’S ORGANIZATIONAL CULTURE
Rensis Likert was a famous social psychologist and he developed the management systems in the 1960s. He divided the organizational culture into four:
- Exploitative Authoritative
- Benevolent Authoritative
- Consultative Authoritative
- Participative Authoritative
In this system the decisions are made by top level managers due to lack of trust towards employees. And the employees will not be delicate with any power, the communication always be from top to bottom there will be any two-way communication. The managers always impose the roles and decisions on employees. Managers motivate employees with punishment and try to make fear in them. There will be no communication between employees and also no teamwork.
Benevolent authoritative system is the same as an exploitative system. Decisions are made by managers but the employees were treated by rewards by the top level or the person superior to the manager. Superiors will have trust on employees than the managers. There will be communication between the superiors and employees. Although there is communication the employees cannot recommend any suggestions or ideas. With this system employees become more productive.
This system is different from Exploitative and Benevolent systems because in the Consultative system the managers trust their employees or subordinates. And also the managers ask the team for suggestions and ideas. In this system the communication is at a high level and they were included at the time of decision making. In this system the employees were motivated with incentives. As a part of motivation the employees get more freedom which helps them to work more productively and achieve the goals.
Likert argues that this is the most satisfying system for the employees. In this system the management completely trusted their employees and also they participated in the decision taking process. There will be no restriction for communicating between the team members and management. The organization following this system also conducts discussions with their employees for the development of their firm. There will be no competition between employees and rewards are common in this system. With this system employees get better confidence and power to make their organization success and goal achievable.