Page 59 - eBOOK ORGANISATIONAL BEHAVIOUR FULL REPORT (eISBN)

CHAPTER 7: ORGANIZATIONAL CULTURE

7.1 Definition of Organizational Culture

Organization culture is defined as “a system of shared meaning held by members that

distinguishes the organization from other organization” (Robbins and Judge, 2009). It is a set

of assumptions, beliefs, values and norms shared by everyone in an organization. In other

words, people working in same organization display the same behavior as they share the
same values, norms and beliefs. The unique part of an organization culture is that every

organization has its own culture that differentiates it from other organization.

7.2 Functions of Culture

Below are the functions of culture:

● It creates distinctions between one organization and others.
● It conveys a sense of identity for organization members.

● It facilitates commitment to something larger than individual self-interest.

● Enhances the stability of the social system. Culture is the social glue that helps hold the
organization together by providing standards for what employees should say and do.

● It is a sense-making and control mechanism that guides and shapes employees’ attitudes

and behavior.

● Increase employee commitment and loyalty because if their sense of pride and emotional

attachment to certain core values.
● Facilitates the decision making by reducing disagreements about which promises should

prevail since there is greater sharing of beliefs and values.

● Facilitates the communication process because employees speak a common language and
share same values which provides clues to interpret messages.

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