13 Role and Functions of Organizational Culture

Orgainzational culture can have many functional effects on organizations and their management. It is an important determinant of managerial practices. It is the foundation of a film’s success. Organizational cultures attract attention, convey a vision, and typically honor high producing and creative individuals.

What is the role of Organisational culture?
What is the role of Organisational culture?

By recognizing and rewarding these persons, organizational cultures are identifying them as role models to emulate.

Organizational culture is the social glue that helps hold the organization together by providing appropriate standards for what employees should say and do.

What are the Role and Functions of Organizational Culture?

Organizational culture performs a number of functions within an organization. These are as follows:

1. Provides a Sense of Identity

Organizational culture conveys a sense of identity for organization members

Many are known as a fun place to work that values employee satisfaction and customer loyalty over corporate profits.

2. Generates Collective Commitment

Organizational culture facilitates the generation of commitment to an organization’s mission which is larger than one’s individual self-interest.

When there is a strong, overarching culture, people feel that they are part of that larger, well-defined whole.

Firms with good culture may be committed to the highest quality of customer service.

3. Reinforces Values and Behaviours

Organizational culture clarifies and reinforces standards of behavior.

It guides employees with words and deeds.

Thus, it is especially useful to newcomers. In this sense, organizational culture provides stability to behavior.

It also reinforces the values in the organization.

It helps employees understand why the organization does what it does and how it intends to accomplish long-term goals.

Related: Best Ways to Build Up Employee Morale in the Workplace.

4. Promotes Social System Stability

Organizational culture enhances the stability of the social system.

Social system stability reflects the extent to which the work environment is perceived as positive and reinforcing and the extent to which conflict and change are effectively managed.

5. Gives Members a Clear Vision

An organizational culture gives its members a clear vision of the organization’s mission.

It also presents a consistent image to its markets, customers, and clients.

Over time, this image can give an organization a competitive advantage by building commitment to its products or services.

6. Defines Rewards and Sanctions

Organizational cultures define the rewards and sanctions that managers can use.

Rules develop about how good performance will be rewarded and about what sanctions will be levied for poor performance.

Organizational cultures differ in the way they use reward systems.

How to Develop Powerful Training Strategy for Employees.

7. Integrates Subsystems and Processes

Organizational culture also helps integrate organizations’ subsystems and processes.

The integration lets the organization coordinate its various actions effectively.

Common language develops within a culture, helping communication.

8. Defines Boundaries of Group

Organizational culture defines boundaries of group and criteria for inclusion in the group.

Well-defined group boundaries enhance members’ identification with the group and the group’s work.

Strong groups support and help members get their work done.

9. Defines Rules for Power and Relationships

Organizational cultures define rules for power, rules for social stratification, and the ways in which social status is determined.

importance of organizational culture
importance of organizational culture

Some accord social status and power to people of high achievement. Others base staus and power on seniority.

The nature and quality of peer relationships and interpersonal interactions are also defined by the organization’s culture.

10. Develops an Ideology

The last organizational culture function is the development and communications of an ideology that defines what the organization is all about.

An ideology is a set of overarching values that collect all the basic assumptions embedded in the organization’s culture.

An ideology is a guide to action. It is communicated to the newcomers.

11. Serves as a Control Mechanism

Organizational culture also serves as a control mechanism for shaping behavior.

Norms that guide behavior are apart of the culture.

12. Other Functions

  1. Organizational culture is an important source of stability and continuity to the organization.
  2. It helps newer employees interpret what goes on inside the organization.
  3. It helps stimulate employee’s enthusiasm for their tasks.
  4. It expresses the rules of the game for getting along and getting things done and ways of interacting with outsiders.
  5. It defines organizational goals.

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