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What is Organizational Culture?
Organizational culture refers to the underlying values, beliefs,
and principles that serve as a foundation for an organization's
management system, as well as the set of management practices
and behaviours that exemplify and reinforce those basic principles.
Where do Organizational Cultures Come From?
Organizations have cultures because the conditions needed
for their creation are commonplace. Solutions that repeatedly
appear to solve problems tend to become part of the culture. The
longer the solution seems to work the more deeply it becomes embedded
in the culture.
Cultures can grow to be extremely strong, reinforced by common
values, behaviour patterns and practices, with many close connections
between deeply held assumptions and visible concrete behaviours.
Why is Organizational Culture Important?
A clear understanding of culture is important for all leaders
because it influences how organizations react to the changing
demands of the business environment. As business environments
change, leaders must anticipate the implications and actively
monitor the relationship and gaps between e environmental demands
and organizational capability.
When a gap exists, it must be addressed, not only through structural
changes, but also by paying attention to the soft side of the
organization - the values and beliefs that are at the heart of
the company; the polices na practices that bring those values
to life as actions; and the importance of ensuring that members
of the organization understand how they create value for the customer.
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