Factors that Make Organisation Dynamic-A Living, Growth Being

Organisational Culture and Climate 

The number of studies of organisational culture is steadily increasing. Such studies have used different terminology, and the same terms have been used in different meanings. There is a need to clarify some terms, and evolve common understanding of their use. 

The various terms used in the context of organisational culture are : values, ethics, beliefs, ethos, climate, environment, culture. Ethics refers to normative aspects, what is socially desirable. 

Values, beliefs, attitudes and norms are interrelated. Interaction between beliefs and values result in attitude formation (attitudes = beliefs x values) and then produce norm. Values and beliefs are the core, while attitudes are the next layer, followed by norms or behaviour. When these get "institutionalized", or accumulate and integrate, we have social phenomena. 

The culture-related concepts can also be seen as multilevel concepts. The core (first level) are the values which give distinct identity to a group. This is ethos of the group. The Random House Dictionary defines ethos as "the fundamental character or spirit of culture . . .  dominant assumption of a people or period". The second level concept is that of "climate" which can be defied as the perceived attributes of an organisation and its subsystem as reflected in the way it deals with its members, groups and issues. The emphasis is on perceived attributes and the working of the subsystems. 

The third level concept relates to the effect of the "climate". The Random House Dictionary defines atmosphere as a "~isthct  Quality" and environment as "affecting the existence or development of someone or something".  The concept of atmosphere can be proposed as one related to the effect of the climate. The fourth level concepts is that of "culture".  The cumulative beliefs, values and assumptions underlying transactions with nature and important phenomena, as reflected in the artifacts, rituals, etc. Culture is reflected in the ways adopted to deal with phenomena. 

The above explanation thus, points out that just as individuals and personalities do so does organisations. It is found that organisation, like people, can be characterized in terms like rigid, friendly, warm, imitative, or conservative. These traits, in turn, can be used to predict attitudes and behaviours of the people within the organisation. There is a systems variable in organisations that, while hard to define or describe precisely, nevertheless exists and which employees generally describe  in common terms. We call this variable  "organisation culture". Just as tribal cultures have token and taboos that dictate how each members will act towards fellow members and outsiders, organisations have culture that govern how members behave. There seems to be wide agreement that organisational culture refers to a system of shared meaning held by members that distinguish the organisation from other organisations. This system of shared meaning is, on closer analysis, a set of key characteristics that the organisation values. There appears to be ten characteristics that, when mixed and matched, expose the essence of an organisation's culture. 

1. Individual initiative : The degree of responsibility, freedom, and independence that individuals have. 
2. Risk tolerance : The degree to which employees are encouraged to be aggressive, innovating, and risk seeking. 
3. Direction : The degree to which the organisation creates clear objectives and. performance expectations. 
4. Integration :  he degree to which units within the organisation are encouraged to operate in a coordinated manner. 
5. Management support : The degree to which managers provide clear communication, assistance and support to the subordinates. 
6. Control : The number of rules and regulations, and the amount of direct supervision that is used to oversee and control employee behaviour. 
7. Identity : The degree to which members identify with the organisation as a whole rather than with their particular work group or field of professional expertise. 
8. Reward system : The degree to which reward allocations (that is salary increases, promotions) are based on employee performance criteria in contrast to seniority, favoritism, and so on. 
9. Conflict tolerance : The degree to which the employees are encouraged to air conflicts and criticisms openly. 
10. Communication patterns :  The degree to which organisational communications are restricted to the formal hierarchy of authority. 

Each of these characteristics exists on a continuum basis from low to high. By appraising the organisation on these ten characteristics, a composite picture of the organisation's . culture is formed. This picture becomes the basis for feelings of shared understanding that members have about the organisation, how things are done in it, and the way members are supposed to behave. The original culture of the organisation is derived from the founders in philosophy. This, in turn, strongly influences the criteria used in hiring. The actions of the current top management set the general climate of what is acceptable behavior and what is not. How employees are to be socialized will depend on the degree of success achieved in matching new employees, values to those of  the organisation in the selection process and top management, and the preference for socialization methods. summaries how a organisation's culture is established and sustained.