Organizational Culture in Engineering and Construction Organizations (Archived)

There are five basic elements of corporate culture:(SD-52, p. 5)

1. The Business Environment – The success of an organization in certain business environment will depend on the organization doing things very well. What these things are will be a prime determinant of the organization’s culture.
2. Values and Norms – It is very important to understand what the organization is rewarding for the person to perform satisfactory to appraisal criteria. The reward need not be always monetary, but something which is perceived of value by the members of the organization. It is also noted that mostly the behavior of manager and leaders is perceived as the model behavior for that particular organization. 
3. Heroes – Heroes and leaders personify the values which form the soul of the culture and strengths of the organization. 
4. Rites and Rituals – An organization needs rites and rituals to reinforce the values and norms. Several types of rituals have been identified as of importance to an organization: 
   • Commitment and social rituals – deal with social exchange process & interpersonal relationship within the organization
   • Work rituals – utilized by members to perform work
   • Management rituals – govern the conduct of managers
   • Recognition rituals – illustrate the values and norms organization seek to uphold
5. Communication – Effective communication depends on the cultural network rather than formal structure of the organization. A diverse group of members form this network and a manager must learn how to use them for proper organization communication. 

The best managers are those that function within a framework of competing values. These values can be described in terms of four models: (SD-52, pp. 25-26)

1. Rational Goal – preference for a high degree of certainty and for short time horizons. Focus on clarification of goals and independent action.
2. Open Systems – short time horizons and a low degree of certainty. Decisions are made quickly and modified as new information is received.
3. Human Relations – long time horizons and a low degree of certainty. Emphasizes human interaction and feelings.
4. Internal Process (bureaucratic) – long time horizons and high degree of certainty. Information is gathered an systematically analyzed.

These models can be used to describe:

• Effectiveness 
• Culture 
• Leadership 
• Power and Influence 

A management skills profile is presented that indicates the skills required by managers operating in particular (organizational) cultures. (SD-52, p. 40)