Culture is a system of shared assumptions, values and beliefs that tells people how to act. Understanding culture is critical to changing minds in a peer group or an organization. There are 3 levels of organizational culture:
1) Assumptions - At the core are assumptions or things people take for granted.
2) Values - At the next level are values or shared standards which unite people and drive them towards a common goal.
3) Artifacts - At the surface are artifacts or visible aspects of organizational culture.
For instance, if the organization works on the assumption that ‘happy’ employees are essential for driving the company towards accomplishing its objectives, then the assumptions will translate into values such as transparency and empowerment. The artifacts could include ‘flat’ hierarchy and an office layout bereft of cabins and name plates.
Organizational culture can play an important role in increasing performance of employees leading to higher revenues and strong client relationships. A strong organizational culture can also be a source of competitive advantage for organizations.
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