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Organizational Culture: A Competitive Advantage? | Dirección Estratégica
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Edition 45, Human Resources
Organizational Culture: A Competitive Advantage? 1 de July, 2013
By Jéssica Mendoza Moheno We often hear that organizational culture generates competitive advantages. In effect, organizational culture can give an organization advantages over its competitors, which may translate into returns and strong performance for the company. Organizational culture is understood as a symbolic system created, learned and transmitted internally within an organization, for the purpose of facing the demands of its environment and pursuing its mission (Pariente, 2001). Organizational culture therefore fulfills two basic functions: the first is integration between the organization’s members and the second is adaptation to the environment through various mechanisms carried out by the members.
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Because organizational culture is a symbolic system that sends signals to the organization’s members, it becomes an instrument that regulates employees’ conduct, so they know what to do and what is expected of them. However, organizational culture not only tells employees what to do; the concept is much broader because it encompasses all the values and idiosyncrasies with which the members of an organization act. The culture may enable an organization to resolve problems and ensure its survival and at the same time help members to feel integrated. This situation is achieved when individuals know what to do, how to conduct themselves, and what is expected of them; in other words, organizational culture sets the rules, or the standards that regulate behavior, that must be followed by the members of the organization.
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Learning an organizational culture is not always a conscious act. To better understand what this means, consider how newly-hired employees spend the first few days on the job. They do not know the dress code, the corporate jargon, or its general behavior. They may feel uncomfortable when they show up for work in strict business clothing and find the rest of the office dressed informally. New employees soon discover whether meetings are held to solve problems or simply to create opportunities for proving who knows more–meaning whether discretion and humility are company values, or quite the opposite. All of this is culture, and through it, employees learn, day by day, how to behave. Organizational culture is better explained using the three-level Schein model:
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Comments The first level of the model corresponds to artifacts and creations. This is the most superficial level, where we may observe the manifestations of the culture but not its essence. The second level is formed by values and beliefs, which guide the behavior of the company’s members. The last level corresponds to basic assumptions, which reveal how a group perceives, thinks, feels, and acts. This represents the deepest level of culture. Artifacts encompass the things we see first, including the colors, furniture, and language. Values determine what is important in the organization, and beliefs define how things work. A frequent problem for companies is that they may have more than one culture. They may have one culture for employees, another for owners, and another for management. Problems arise when the company has not created a general dominant culture in which everyone interrelates.
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