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Features of the formation of organizational culture

1.2 Factors influencing the formation of organizational culture

The formation and change of organizational culture occurs under the influence of many factors. One of the recognized experts in the field of organizational culture, Edgar Schein, believes that “there are five primary and five secondary factors that determine the formation of organizational culture.” In accordance with his concept, the following factors are primary.

Points of focus for senior management. Usually, what managers pay serious attention to, what they often talk about as being important for the organization, gradually turns into the subject of attention and concern of employees and is included in the number of norms on the basis of which the criterion basis for the behavior of people in the organization is formed.

Management's response to critical situations arising in the organization. When critical situations arise in an organization, employees of the organization experience a heightened sense of anxiety. Therefore, the way management approaches resolving the problems of a crisis situation, what it gives preference to, finds its further manifestation in the formation of a system of values and beliefs that become reality for members of the organization.

Attitude to work and behavioral style of managers. Due to the fact that managers occupy a special position in the organization and the attention of employees is drawn to them, their style of behavior and their attitude to work acquire the character of a standard for behavior in the organization. Employees of an organization consciously or unconsciously adjust their actions to the rhythm of the manager’s work, duplicate his approach to performing his duties and thereby, as it were, form stable norms of behavior in the organization.

Criteria base for employee incentives. The formation of organizational culture is greatly influenced by the criteria by which employees are rewarded. Members of the organization, having realized what they are receiving reward or punishment for, quickly form an idea for themselves about what is good and what is bad in this organization. Having mastered this, they become bearers of certain values, thereby consolidating a certain organizational culture.

Criteria for selection, appointment, promotion and dismissal from the organization. Just as in the case of rewards, the criteria used by management when selecting for work in the organization, when promoting employees and their dismissal, have a very strong influence on what values \u200b\u200bwill be shared by employees of the organization, and therefore play a significant role in the formation organizational culture.

The group of secondary factors in accordance with Schein’s concept includes the following factors:

Organization structure. Depending on how the organization is designed, how tasks and functions are distributed between departments and individual employees, how widely delegation of authority is practiced, members of the organization develop a certain idea of the extent to which they enjoy the trust of management, the extent to which the organization there is a spirit of freedom and employee initiative is valued.

Information transmission system and organizational procedures. In an organization, employee behavior is constantly regulated by various procedures and norms. People communicate in a certain way and according to certain patterns, fill out certain circulars and reporting forms, and report on the work done with a certain frequency and in a certain form. All these procedural moments, due to their regularity and repetition, create a certain climate in the organization, which deeply penetrates the behavior of its members.

External and internal design and decoration of the premises in which the organization is located. The design of the premises, the principles used for accommodating employees, the style of decoration, and the like create among members of the organization a certain idea of its style, their position in the organization and, ultimately, the values inherent in the organization.

Myths and stories about important events and people who played and are playing a key role in the life of the organization. Legends and stories existing in the organization about how the organization was created, what outstanding events took place in its history, which people and how had a strong influence on its development, contribute to the fact that the system of stable ideas about the spirit of the organization is preserved over time and brought to members of the organization in a bright emotional form.

Formalized statements about the philosophy and meaning of the organization’s existence. Statements about the philosophy and goals of the organization, formulated in the form of the principles of the organization, a set of its values, commandments that must be followed in order to preserve and maintain the spirit of the organization, if they are properly communicated to all its members, contribute to the formation of organizational culture, adequate to the mission of the organization.

Each of the ten primary and secondary factors in shaping organizational culture requires the use of certain techniques to achieve success in consciously shaping and changing organizational culture. During the strategy execution stage, significant effort is devoted to aligning the organizational culture with the chosen strategy. However, it should be emphasized that while the organizational structure can be changed relatively easily, changing the organizational culture is a very difficult and sometimes impossible task. Therefore, at the level of the strategy definition stage, which precedes the stage of its implementation, it is necessary to take into account, as much as possible, what difficulties with changing the organizational culture may arise when implementing the strategy, and try to choose a strategy that will not require the implementation of obviously impossible actions to change the organizational culture.

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The concept of organizational culture

Organizational culture as an object of strategic change

If the organizational structure, establishing the boundaries of organizationally designated units and setting formal connections between them, acts as a kind of skeleton, the “skeleton” of the organization, then a kind of “soul” of the organization, establishing invisible levers that guide the actions of the organization’s members, is organizational culture. It usually manifests itself in the form of values shared in the organization, accepted beliefs, norms of behavior, etc. It is believed that organizational culture consists of the following six components:

Philosophy that sets the meaning of the organization’s existence and its attitude towards employees and clients;

The dominant values on which the organization is based, which relate to the goals of its existence or to the means of achieving these goals;

Norms shared by employees of the organization and defining the principles of relationships in the organization;

The rules by which the “game” is played in the organization;

Climate, which exists in an organization and is reflected in the atmosphere in the organization and how members of the organization interact with outsiders;

Behavioral rituals expressed in the organization of certain ceremonies, in the use of certain expressions, signs, etc.

Organizational culture is formed as a reaction to two groups of problems that the organization has to solve. The first group consists of tasks integration of internal resources and efforts. This includes tasks such as:

Creation of a common language and unified terminology understandable to everyone;

Establishing group boundaries and principles of inclusion and exclusion from the group;

Creating a mechanism for vesting power and depriving rights, as well as assigning a certain status to individual members of the organization;

Establishment of norms regulating informal relationships between persons of different sexes;

Developing assessments regarding what is desirable in employee behavior and what is not.

The second group includes those tasks that the organization has to solve in the process interaction with the external environment. This is a wide range of issues related to the development of a mission, goals and means of achieving them.

The formation and change of organizational culture occurs under the influence of many factors. One of the recognized experts in the field of organizational culture, Edgar Schein, believes that there are five primary and five secondary factors that determine the formation of organizational culture (Schein, 1985, pp. 223-243). In accordance with his concept, the following factors are primary.

1. Points of concentration for senior management. Usually, what managers pay serious attention to, what they often talk about as being important for the organization, gradually turns into the subject of attention and concern of employees and is included in the number of norms on the basis of which the criterion basis for the behavior of people in the organization is formed.

2. Management's response to critical situations arising in the organization. When critical situations arise in an organization, employees of the organization experience a heightened sense of anxiety. Therefore, the way management approaches resolving the problems of a crisis situation, what it gives preference to, finds its further manifestation in the formation of a system of values and beliefs that become reality for members of the organization.

3. Attitude to work and behavioral style of managers. Due to the fact that managers occupy a special position in the organization and the attention of employees is drawn to them, their style of behavior and their attitude to work acquire the character of a standard for behavior in the organization. Employees of an organization consciously or unconsciously adjust their actions to the rhythm of the manager’s work, duplicate his approach to performing his duties and thereby, as it were, form stable norms of behavior in the organization.

4. Criteria for employee incentives. The formation of organizational culture is greatly influenced by the criteria by which employees are rewarded. Members of the organization, having realized what they are receiving reward or punishment for, quickly form an idea for themselves about what is good and what is bad in this organization. Having mastered this, they become bearers of certain values, thereby consolidating a certain organizational culture.

5. Criteria for selection, appointment, promotion and dismissal from the organization. Just as in the case of rewards, the criteria used by management when selecting for work in the organization, when promoting employees and their dismissal, have a very strong influence on what values will be shared by the employees of the organization, and therefore play a significant role in the formation organizational culture.

The group of secondary factors in accordance with Schein’s concept includes the following factors:

1. Organization structure. Depending on how the organization is designed, how tasks and functions are distributed between departments and individual employees, how widely delegation of authority is practiced, members of the organization develop a certain idea of the extent to which they enjoy the trust of management, the extent to which the organization there is a spirit of freedom and employee initiative is valued.

2. Information transmission system and organizational procedures. In an organization, employee behavior is constantly regulated by various procedures and norms. People communicate in a certain way and according to certain patterns, fill out certain circulars and reporting forms, and report on the work done with a certain frequency and in a certain form. All these procedural moments, due to their regularity and repetition, create a certain climate in the organization, which deeply penetrates the behavior of its members.

3. External and internal design and decoration of the premises in which the organization is located. The design of the premises, the principles used for accommodating employees, the style of decoration, and the like create among members of the organization a certain idea of its style, their position in the organization and, ultimately, the values inherent in the organization.

4. Myths and stories about important events and persons who played and are playing a key role in the life of the organization. Legends and stories existing in the organization about how the organization was created, what outstanding events took place in its history, which people and how had a strong influence on its development, contribute to the fact that the system of stable ideas about the spirit of the organization is preserved over time and brought to members of the organization in a bright emotional form.

5. Formalized statements about the philosophy and meaning of the organization’s existence. Statements about the philosophy and goals of the organization, formulated in the form of the principles of the organization, a set of its values, commandments that must be followed in order to preserve and maintain the spirit of the organization, if they are properly communicated to all its members, contribute to the formation of organizational culture, adequate to the mission of the organization.

The formation and change of organizational culture occurs under the influence of many factors. One of the recognized experts in the field of organizational culture, Edgar Schein, believes: that there are five primary and five secondary factors that determine the formation of organizational culture (Schein, 1985, pp. 223-243). In accordance with his concept, the following factors are primary.

Points of focus for senior management. Usually, what managers pay serious attention to, what they often talk about as being important for the organization, gradually turns into the subject of attention and concern of employees and is included in the number of norms on the basis of which the criterion basis for the behavior of people in the organization is formed.
Management's response to critical situations arising in the organization. When critical situations arise in an organization, employees of the organization experience a heightened sense of anxiety. Therefore, the way management approaches resolving the problems of a crisis situation, what it gives preference to, finds its further manifestation in the formation of a system of values and beliefs that become reality for members of the organization.
Attitude to work and behavioral style of managers. Due to the fact that managers occupy a special position in the organization and the attention of employees is drawn to them, their style of behavior and their attitude to work acquire the character of a standard for behavior in the organization. Employees of an organization consciously or unconsciously adjust their actions to the rhythm of the manager’s work, duplicate his approach to performing his duties and thereby, as it were, form stable norms of behavior in the organization.
Criteria base for employee incentives. The formation of organizational culture is greatly influenced by the criteria by which employees are rewarded. Members of the organization, having realized what they are receiving reward or punishment for, quickly form an idea for themselves about what is good and what is bad in this organization. Having mastered this, they become bearers of certain values, thereby consolidating a certain organizational culture.
Criteria for selection, appointment, promotion and dismissal from the organization. Just as in the case of rewards, the criteria used by management when selecting for work in the organization, when promoting employees and their dismissal, have a very strong influence on what values will be shared by the employees of the organization, and therefore play a significant role in the formation of organizational culture.

The group of secondary factors in accordance with Schein’s concept includes the following factors:

Organization structure. Depending on how the organization is designed, how tasks and functions are distributed between departments and individual employees, how widely delegation of authority is practiced, members of the organization develop a certain idea of the extent to which they enjoy the trust of management, the extent to which the organization there is a spirit of freedom and the initiative of employees is valued.
Information transmission system and organizational procedures. In an organization, employee behavior is constantly regulated by various procedures and norms. People communicate in a certain way and according to certain patterns, fill out certain circulars and reporting forms, and report on the work done with a certain frequency and in a certain form. All these procedural moments, due to their regularity and repetition, create a certain climate in the organization, which deeply penetrates the behavior of its members.
External and internal design and decoration of the premises in which the organization is located. The design of the premises, the principles used for accommodating employees, the style of decoration, and the like create among members of the organization a certain idea of its style, their position in the organization and, ultimately, the values inherent in the organization.
Myths and stories about important events and people who played and are playing a key role in the life of the organization. Legends and stories existing in the organization about how the organization was created, what outstanding events took place in its history, which people and how had a strong influence on its development, contribute to the fact that the system of stable ideas about the spirit of the organization is preserved over time and brought to members of the organization in a bright emotional form.
Formalized statements about the philosophy and meaning of the organization’s existence. Statements about the philosophy and goals of the organization, formulated in the form of the principles of the organization, a set of its values, commandments that must be followed in order to preserve and maintain the spirit of the organization, if they are properly communicated to all its members, contribute to the formation of organizational culture, adequate to the mission of the organization.

- creation of a common language and unified terminology understandable to everyone;
- establishing group boundaries and principles of inclusion and exclusion from the group;
- creation of a mechanism for vesting power and depriving rights, as well as assigning a certain status to individual members of the organization;
- establishment of norms regulating informal relationships between persons of different sexes;
- developing assessments regarding what is desirable in employee behavior and what is not.

The second group includes those tasks that the organization has to solve in the process interaction with the external environment. This is a wide range of issues related to the development of a mission, goals and means of achieving them.

Formation and change of organizational culture occurs under influenced by many factors. One of the recognized experts in the field of organizational culture, Edgar Schein, believes that there are five primary and five secondary factors that determine the formation of organizational culture. In accordance with his concept primary The following factors include:

1. Points of concentration for senior management. Usually, what managers pay serious attention to, what they often talk about as being important for the organization, gradually turns into the subject of attention and concern of employees and is included in the number of norms on the basis of which the criterion basis for the behavior of people in the organization is formed.
2. Management's response to critical situations arising in the organization. When critical situations arise in an organization, employees of the organization experience a heightened sense of anxiety. Therefore, the way management approaches resolving the problems of a crisis situation, what it gives preference to, finds its further manifestation in the formation of a system of values and beliefs that become reality for members of the organization.
3. Attitude to work and behavioral style of managers. Due to the fact that managers occupy a special position in the organization and the attention of employees is drawn to them, their style of behavior and their attitude to work acquire the character of a standard for behavior in the organization. Employees of an organization consciously or unconsciously adjust their actions to the rhythm of the manager’s work, duplicate his approach to performing his duties and thereby, as it were, form stable norms of behavior in the organization.
4. Criteria for employee incentives. The formation of organizational culture is greatly influenced by the criteria by which employees are rewarded. Members of the organization, having realized what they are receiving reward or punishment for, quickly form an idea for themselves about what is good and what is bad in this organization. Having mastered this, they become carriers of certain values, thereby consolidating a certain organizational culture,
5. Criteria for selection, appointment, promotion and dismissal from the organization. Just as in the case of rewards, the criteria used by management when selecting for work in the organization, when promoting employees and their dismissal, have a very strong influence on what values \u200b\u200bwill be shared by employees of the organization, and therefore play a significant role in the formation organizational culture.

The group of secondary factors in accordance with Schein’s concept includes the following factors:

1. Organization structure. Depending on how the organization is designed, how tasks and functions are distributed between departments and individual employees, how widely delegation of authority is practiced, members of the organization develop a certain idea of the extent to which they enjoy the trust of management, the extent to which the organization there is a spirit of freedom and employee initiative is valued.
2. Information transmission system and organizational procedures. In an organization, employee behavior is constantly regulated by various procedures and norms. People communicate in a certain way and according to certain patterns, fill out certain circulars and reporting forms, and report on the work done with a certain frequency and in a certain form. All these procedural moments, due to their regularity and repetition, create a certain climate in the organization, which deeply penetrates the behavior of its members.
3. External and internal design and decoration of the premises in which the organization is located. The design of the premises, the principles used for accommodating employees, the style of decoration, and the like create among members of the organization a certain idea of its style, their position in the organization and, ultimately, the values inherent in the organization.
4. Myths and stories about important events and persons who played and are playing a key role in the life of the organization. Legends and stories existing in the organization about how the organization was created, what outstanding events took place in its history, which people and how had a strong influence on its development, contribute to the fact that the system of stable ideas about the spirit of the organization is preserved over time and brought to members of the organization in a bright emotional form.
5. Formalized statements about the philosophy and meaning of the organization’s existence. Statements about the philosophy and goals of the organization, formulated in the form of the principles of the organization, a set of its values, commandments that must be followed in order to preserve and maintain the spirit of the organization, if they are properly communicated to all its members, contribute to the formation of organizational culture, adequate to the mission of the organization. Each of the ten primary and secondary factors in shaping organizational culture requires the use of certain techniques to achieve success in consciously shaping and changing organizational culture. During the strategy execution stage, significant effort is devoted to aligning the organizational culture with the chosen strategy. However, it should be emphasized that while the organizational structure can be changed relatively easily, changing the organizational culture is a very difficult and sometimes impossible task. Therefore, at the level of the strategy definition stage, which precedes the stage of its implementation, it is necessary to take into account, as much as possible, what difficulties with changing the organizational culture may arise when implementing the strategy, and try to choose a strategy that will not require the implementation of obviously impossible actions to change the organizational culture.

The organizational structure should be characterized by a high degree of specialization and division of labor (it is assumed that the requirements for each of the functions can and should be standardized), a developed management hierarchy, a chain of command, the presence of internal corporate standards that determine the behavior of personnel, the selection of personnel according to their business and professional qualities (standardization according to possessed competencies). The characteristics of a rational organizational structure are presented in Table 1.1.

Table 1.1 Characteristics of a rational organizational structure

	A clear division of labor, which leads to the emergence of highly qualified specialists in each position and contributes to an increase in the degree of specialization of workers
	Strict hierarchy: each lower level is controlled by a higher one and is subordinate to it
	The presence of a system of formal rules and standards that apply to the activities of all employees, ensuring uniformity in the performance of their functions by employees and the coordination of their actions
	Independence of job responsibilities from the personality of the performer, i.e. formal impersonality of performance of duties by officials
	Hiring is carried out in strict accordance with qualification requirements, which ensures a certain protection for employees (dismissal is possible only if non-compliance with qualification requirements is identified)

The organizational structure should cover:

- individual autonomy - the degree of responsibility, independence and opportunities to express initiative in the organization;
- structure - interaction of bodies and persons, current rules, direct management and control;
- direction - the degree of formation of the goals and prospects of the organization’s activities;
- integration - the extent to which parts (subjects) within the organization are supported in the interests of carrying out coordinated activities;
- management support - the degree to which managers provide clear communication links, assistance and support to their subordinates;
- support - the level of assistance provided by managers to their subordinates;
- incentives - the degree of dependence of remuneration on labor results;
- identification - the degree of identification of employees with the organization as a whole;
- conflict management - the degree of conflict resolution;
- risk management - the extent to which employees are encouraged to innovate and take risks

Organizations are formed, determined and conditioned primarily by the configuration of the structure and the content of the expression of connections between their constituent elements. This once again demonstrates the fundamental, methodological, constructive importance of connections in the construction and presentation of any organization in general and specific organizational relations in particular.