Why Organization Culture Is so Critical?

One of the most important building blocks for a highly successful organization or an extraordinary workplace is 'organizational culture'. It is commonly defined as a set of shared beliefs, truths, assumptions and values that operate in organizations. We have to think about the organization culture in our organization because culture is 'behind the scenes' of what happens in the day-to-day life of organizations and employees. Culture is everywhere. It directly impacts what happens or does not happen in organizations. In other words, organizations will ultimately get only as far as their organizational cultures take them.

Something is driving the development of our culture and sustaining it. If we want to address issues related to our culture, we must focus on the key elements that support its creation and sustenance. Organizations are more than what they appear to be on the surface. Behind products, policies, services and rewards are the ingredients that determine the results of an organization. It is believed that organizational culture is a primary determinant separating 'champion' from 'also-ran' organizations.

Organizational cultures are highly visible in the sense that they facilitate adaptation to the external environment as well as integration of internal processes. Adaptation and integration suggest differences in environmental conditions and a degree of organizational-environmental fit. Culture can limit strategic options significantly and, consequently, restrict the organization's ability to assess and adapt to certain environments. As a result, it is becoming increasingly difficult for organizations to separate their strategic change from cultural change. These facts once again support the need to bridge the existing endeavor with different level of activities. This next step must be driven from top down.

To do so, organizations must analyse their cultures and manage within their cultural boundaries. They must change their cultures if the fit between culture and environment is found inappropriate. In order to manage effectively within boundaries or to change cultures, leaders and managers must learn to perceive the types of systems with which they are working.

Successful leadership depends on an ability to create or to maintain a shared reality because cohesive groups evolve from shared reality and meaning. Shared reality and meaning will be created or maintained only when leadership and management is consistent with some desired direction. In other words, culture cannot be controlled. It can only be influenced by leadership and managerial behaviour.

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