Elements of Organizational Culture 

PSYCH-105 Industrial Psychology

Chapter 9: Organizational Culture and Climate

Unit 1

Unit 2

Unit 3

Unit 4


Elements of Organizational Culture

1. Individual Autonomy

The degree of responsibility, freedom and responsibilities of exercising initiative that individuals have in the organization.

2. Structure

The degree to which the organization creates clear objective, performance expectations and authority relationship.

3. Management Support

The degree to which managers provide clear communication, assistance, warmth and support to their subordinates.

4. Identity

The degree to which members identify with the organization as a whole and not as their particular work group.

5. Performance Reward System

The degree to which reward system in the organization is based on employee performance rather than seniority and favouritism. 

6. Risk Tolerance

The degree to which employees are encouraged to be innovative, aggressive and risk taking

7. Conflict Tolerance

The degree of conflict present in relationship between colleagues and work groups as well as the degree to which employees are encouraged to air conflicts and criticism openly.

8. Communication Patterns

The degree to which organizational communications are restricted to the formal hierarchy of authority.

9. Outcome Orientation

The degree to which management focuses on results or outcomes rather than on techniques and processes.

10. People Orientation

The degree to which management decisions take into consideration the impact of outcome on people within the organization.

Role and Significance of Organizational Culture

  1. Organizational culture creates the boundary beyond which no employees are permitted to go.
  2. The culture of an organization provides its stability.
  3. It makes the organization to grow and develop in all dimensions.
  4. It acts as a motivator that guides and control the employees.
  5. The attitude and behaviour of the employees are directed towards the achievement of goals.
  6. Culture gives rise to a positive attitude and behaviour which are again an addition to culture.
  7. It makes people development oriented.

Author – Dr. Niyati Garg

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