What Are Basic Functions of Organisational Culture Flashcards

Cooperation - by providing shared values and assumptions, culture may enhance goodwill and mutual trust, encouraging cooperation

Decision Making - shared beliefs gives members a consistent set of basic assumptions which may lead to a more efficient decision-making process due to fewer disagreements,

Control - control is provided by three mechanisms 1. Market control mechanism: relies on price.  If results fall short of goals, prices are adjusted to stimulate necessary change 2. Bureaucratic control mechanism: relies on formal authority.  The control process consists of adjusting rules and regulations and issuing directives 3. Clan control mechanism: relies on shared beliefs and values.  Provide a map that members can rely on to choose appropriate course of action.

Communication - culture reduces communication problems in two ways: 1. no need to communicate in matters for which shared assumptions already exist (things go without saying) 2. shared assumptions provide guidelines and cues to help interpret messages that are received

Commitment - strong cultures foster strong identification which causes commitment

Perception - what an individual sees is conditioned by what others sharing the same experience say they are seeing

Justification of behavior - culture helps organization members make sense of their behavior by providing justification for it.