1. 1. Organizational culture is the behavior of humans within anorganization and
the meaning that people attach to those behaviors.Culture includes
the organization's vision, values, norms, systems, symbols, language, assumptions,
beliefs, and habits.
Organizational culture refers to the philosophies, attitudes, beliefs, behaviors and
practices that define an organization. The organizational culture may reflect
characteristics that differentiate one company from another, ranging from internal
policies and procedures to public relations and customer interactions. Organizational
culture influences the day-to-day experience of employees as well as the public
perception of a company. A company’s culture is often closely related to its brand
image, with each reinforcing and informing the other.
What do cultures do?
by SREE RAMA RAO on SEPTEMBER 15, 2008
It is already attributed to organizational cultures impact on behavior. A strong culture should be
associated with reduced turnover. In this article, we will further review the functions that culture
performs and assess whether culture can be liability for an organization.
Culture’s Functions:
Culture performs a number of functions within an organization. First, it has a boundary-defining
role; that is, it creates distinctions between one organization and other. Second, it conveys a
sense of identity for organization members. Third, culture facilitates the generation of commitment
to something larger than one’s individual self interest. Fourth, it enhances the stability of the social
system. Culture is the social glue that helps hold the organization together by providing
appropriate standards for what employees should say and do. Finally, culture serves as a sense
making and control mechanism that guides and shapes the attitudes and behavior of employees.
It is this last function that is of particular interest to us. As the following quote makes clear, culture
defines thru less of the game
Culture by definition is elusive, intangible, implicit and taken for granted. But every organization
develops a core set of assumptions, understanding and implicit rules that govern day-to-day
behavior in the workplace. Until newcomers learn the rules, they are not accepted as full fledged
members of the organization. Transgressions of the rules on the part of high level executives or
front line employees result in universal disapproval and powerful penalties. Conformity to the rules
becomes the primary basis for reward and upward mobility.
The role of culture in influencing employee behavior appears to be increasingly important in
today’s workplace. As organizations have widened spans of control, flattened structures,
introduced teams reduced formalization and empowered employees. The shared meaning
provided by a strong culture ensures that everyone is pointed in the same direction.
Who receives a job offer to join the organization, who is appraised as a high performer, and who
gets the promotion are strongly influenced by the individual organization “fit” that is, whether the
applicant or employee’s attitudes and behavior are compatible with the culture. It’s not a
coincidence that employees at Disney theme parks appear to be almost universally attractive,
clean, and wholesome looking with bright smiles. That’s the image Disney seeks. The company
selects employees who will maintain that image. And on the job, a strong culture, supported by

2. formal rules and regulation ensures that Disney theme park employees will act in a relatively
uniform and predictable way.
Culture as a liability:
The culture is treated in a non-judgmental manner and we are not saying that it is good or bad
but only that it exists. Many of its functions, as outlined are valuable for both the organization and
the employee. Culture enhances organizational commitment and increase the consistency of
employee behavior. These are clearly benefits to an organization. From an employee’s
standpoint, culture is valuable because it reduces ambiguity. It tells employees how things are
done and what’s important. But we shouldn’t ignore the potentially dysfunctional aspects of
culture, especially a strong one, on an organization’s effectiveness.
A Case:
High turnover even in the managerial ranks is fairly common in the restaurant industry. So the
fact that Bubba Gump Shrimp Co., a seafood restaurant and chain with 14 locations lost no
general managers during 2002 was quite a feat. How did the company do it? Company president
and chief executive, Scott Barnett, gives credit to Bubba’s strong culture.
He says “we believe that people make the difference. Almost every decision we make has a
people elements to it. People are discussed some might say, ad nauseam. But it is so critical to
us that we have people in the right places”.
The company is obsessed with finding individuals who will embrace the chain’s strong devotion
to food and respect for people. They have tried to create an atmosphere where people feel
respected by people in the company and by the people that run it. People need to feel they can
make a difference. Then you are empowered and that counts for a lot. There has to be integrity
about the company. People are excited about being there. If they feel they are getting some thing
and doing something they want to do and the organization is behind them, issues about long
workdays and all that become less of a problem.
A powerful device for hiring the right people at Bubba Group is the job interview. The firm calls it
a working interview. Job candidates are required to work on the floor. They greet customers at
tables, help run food, see how the kitchen operates and get a look at what working at the
restaurant is like. This gives prospective employees realistic insights into the company’s culture
and the job they will be doing. It also gives management an opportunity to see how well the
candidate fits in with staff and customers.