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IJRFM Volume 1, Issue 2 (June, 2011) (ISSN 2231-5985) There has been a fundamental shift in paradigm in the world of knowledge, which has affected the basic way of thinking conceptualizing and operating on complexities of change in the environment. The new paradigm organizations will have the characteristics: • Joint optimization of technical, human and ecological system • Self-managing groups with joint/shared responsibility • Control and coordination through shared norms • Optimal task grouping and multiple broad skills • Design based on minimum critical specifications • Variety increasing: option generating continuous learning • Adaptation through adjustment and learning • Simultaneous/ concurrent operation and activities • Decentralized self-content units with internal suppliers and customers; companies within company • Manager as an entrepreneur, work group as a small business IMPORTANCE OF ORGANISATIONAL CULTURE Organizational culture is shaped by the management philosophy and practices, and has profound impact on the way employees approach problems, serve customers and related to the environment. Organizational culture has directive, potency, regulatory, uncertainty reduction and consummator functions. In view of these multiple functions that organizational culture performs, it often becomes a substitute to the formal network of structure, rules and procedures prevailing in an organizations leading to widening of the gap between espoused theory and theory in use in most organizations. Continuity in culture is maintained through selective transmission of cultural elements from one generation to another. Since organizational culture is represented at various levels such as behaviours and artefacts constituting the observable units/dimensions; beliefs, attitudes and values manifested in patterns of response and assumptions that are often beyond the level of consciousness; it affects the fundamental choices organizations make in defining and relating to the environment. Organizations are also tending to evolve sub-cultures depending on formal and informal group formation, ethnic affiliation and task demands. For the group within the organization, culture may provide a common purpose and facilitate co-ordination of activities. International Journal of Research in Finance & Marketing 50 http://www.mairec org
IJRFM Volume 1, Issue 2 (June, 2011) (ISSN 2231-5985) Organizational membership is guided by culture, how the boundaries are maintained, who is an insider and who is an outsider. Thus recruitment and selection can be major culture enhancement or change mechanisms, especially when applied to key positions in the organization. Culture also performs a social function. It provides a medium in which friendships can develop. It provides an opportunity for the development of identity and sense of belonging. The predictability of such social environment provides for security. Culture influences what the executive group attends to, how it interprets the information and the responses it makes to changes in the external environment. It is a significant contributor to strategic analysis and the development of strategy. Since culture influences what other members of the organization attend to, how they interpret this information and react, it is a significant determinant of the success of strategic implementation. The decisions that are made in an organization, the goals and standards that are sought and the pattern and manner of behaviour are affected by culture. Dependent upon the degree of fit between organizational demands and personal beliefs, attitudes and values, it results in commitment and feelings of satisfaction or antagonism, dissatisfaction, anxiety and stress. SIGNIFICANCE OF CULTU The study of culture acquires significance as it has an enabling and reinforcing impact on: Continuity of the social system or the collectivity through the process of transmission, socialization and revitalization of ideas norms and behaviour. It establishes and differentiates the human group from other groups that tend to develop core culture and sub-cultures. Culture makes predictability of responses possible by establishing common codes of conduct, standards, norms, symbols and distinguishing between desirable and undesirable behaviour. Thought, feeling and action are integrated by building consistency of thought, developing socially desirable way of expressing feelings and action. Through prioritization of goals, developing societal value system, the responses increase intensity thereby increasing the potency of human need,. It provides regulatory mechanisms including self-regulation by inculcating in the human collectivity the feeling of guilt, shame, fear of social disapproval, humiliation etc. It facilitates development of normative orientation through creation of shared value systems International Journal of Research in Finance & Marketing 51 http://www.mairec org
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