Organisation Culture - Concept with Examples

Definition (Edgar Schein): Organisation culture is a pattern of shared basic assumptions, values, beliefs and norms that are learned by a group as it solves problems of external adaptation and internal integration, and taught to new members as correct way to perceive, think and feel.

In simple words: "How we do things around here" - common understanding that distinguishes one organisation from another.

Characteristics: Shared, Learned, Symbolic, Stable, Provides identity, Influences behaviour.

Levels of Culture (Schein's 3 Levels):

1. Artifacts - visible (dress code, office layout, logos, rituals)
2. Espoused Values - stated strategies, goals, philosophies
3. Basic Assumptions - unconscious deep beliefs (e.g., people are trustworthy)

Types (Handy): Power, Role, Task, Person cultures. Also Strong vs Weak culture.

7 Dimensions (Robbins): Innovation & risk-taking, Attention to detail, Outcome orientation, People orientation, Team orientation, Aggressiveness, Stability.

Examples:

1. Google (Alphabet) - Innovative, People-Centric Culture:

• Artifacts: Open offices, nap pods, free food, informal dress, 20% time policy.
• Values: "Don't be evil", Innovation, Psychological safety, Employee autonomy.
• Assumption: Creative people when given freedom produce breakthrough ideas.
• Impact: High innovation, low turnover, strong employer brand. Shows clan + adhocracy culture.

2. Tata Group (India) - Ethical, Value-Based Culture:

• Artifacts: Tata Code of Conduct, Taj hotels' heritage service ritual, community welfare centres.
• Values: Integrity, Understanding, Excellence, Unity, Responsibility - Trust (Tata Salt, Tata Steel AG).
• Assumption: Business must serve nation and community, not just profit (Jamsetji Tata philosophy).
• Example: During 26/11 Taj Mumbai attacks, staff sacrificed lives for guests - reflection of deep culture of service and loyalty. Also Tata Steel's 8-hour workday introduced in 1912 before law required.
• Impact: Strong reputation, employee commitment, stakeholder trust.

Other Quick Examples:

• Infosys: Formal, rule-bound, ethical (Role culture)
• Amazon: Customer-obsessive, aggressive, data-driven
• ISRO: Mission-oriented, frugal innovation, collaboration

Importance: Culture creates identity, commitment beyond self-interest, social glue, sense-making, controls behaviour informally more powerfully than rules.

Conclusion: Culture is organisation's personality. Positive strong culture like Google (innovation) or Tata (ethics) becomes competitive advantage, while toxic culture leads to failure (e.g., Enron). Managers must diagnose and shape culture deliberately.