Rupert Murdoch recently claimed that he should not be held accountable for the actions of some of his employees. This stems from allegations that one of his organizations was responsible for practicing unethical behaviors. As a well respected and highly competitive businessman, some have said that the organizational culture that he created promoted unethical behaviors. Research has shown that leaders play an integral role in the development of organizational culture. As such, the role of organizational culture cannot be underestimated in the workplace.
Organizational culture can be defined as the shared beliefs, values, perceptions and expectations of individuals within an organization. For example, the manner of communication, normative behaviors and policies are just a few aspects of organizational culture. More important than the definition, however, are the outcomes of culture. Organizational culture has been linked to financial performance, employee satisfaction and customer satisfaction. Furthermore, culture is associated with innovation, creativity and has been strongly tied to organizational behavior.
One of the many examples of success stemming from a highly innovative organizational culture is Southwest Airlines. Over the past few decades, they have been able to remain profitable in a competitive industry primarily due to their emphasis on developing their organizational culture.
Therefore, it is critical that management periodically examine the consequences of the culture that is being infused into the organization. Bear in mind that this does not mean a measurement of the organizational culture must be taken, but rather an active fostering of development and ensures it matches the overall values and mission of the organization.
Also to note, there is no “right” or “wrong” culture. Rather, the industry, organizational climate and desired outcomes can shape the culture. When the culture is aligned with organizational values, this sets a firm and proper foundation on which success can be built. Organizational culture can be portrayed in many different ways. What are some of the ways organizational culture is demonstrated in your company?
