Understanding Organizational Culture - Essay Example

 People Dimension of CultureOrganizations have two explicit environments that they must be aware of and be ready to manage subsequently. Firstly, the internal environment involves the manner in which the organization is run and how processes are approached from a routinely perspective rather from policy perspective (Campbell and Göritz, 2014). The development of routines in leadership, process control, performance appraisals, and development of competitive strategies define the characteristics of the organization and the overall defining culture.

Secondly, the external environment comprises mainly of shareholders whose role is to provide financial support through the acquisition of organizational stakes. The investors influence organizational culture in terms of their expectations and contribution to the organization in both financial and intelligence levels (Dalkir, 2011). Performance Dimension of CultureAll for-profit and non-profit organizations have different tools for appraising performance. Performance is an organizational measurement tool for success and involves the participation of management and other stakeholders such as employees.

In this case, the coordination among stakeholders, the rewarding systems, the disciplinary measures, and promotional strategies defines the performance dimension of organizational culture (Flamholtz & Randle, 2011).