Understanding how organizations think, behave and develop
An organization’s culture can be defined as: the patterns of behavior that are encouraged or discouraged by people and systems over time Understanding the components of culture is essential for them to be managed effectively.
Overview
An organization’s culture is largely shaped by four factors: its systems, symbols, behaviors and beliefs.
• Systems are the way that people are supported. They include: planning and budgeting; performance review and reward; measurement and reporting; and learning and structure.
• Symbols are about the way resources are allocated and include issues such as: how time is spent; people promotions and exits; as well as offices, car parks and titles.
• Behaviors are the things that people do. They include: what is role modelled; meetings and conferences; and emails and other interactions with others.
• Beliefs are the intangible views, perceptions, stories, myths and legends that permeate the organization and fundamentally affect the depth, speed and quality of thinking, decisions and effort.
Six tools for managing organizational culture
There are six tools or levers to use to shape an organization’s culture:
1. Vision – a clear, compelling view of the organization’s purpose and how it will prosper. This guides the way people work.
2. Values – the mindset and behavior that characterize the way people work,
3. Practices – how the values of an organization are translated into how it acts.
4. People – the personalities, priorities, experiences and attitudes of the individuals who build and sustain the culture.
5. Narrative – the story of the business: the heritage, successes and leg-ends that shape people’s perceptions and affect their levels of engagement, excitement and action.
6. Place – where people work, their physical environment and equipment, which can significantly affect the values and behaviors of people in the organization.