ORGANIZATIONAL CULTURE AND INNOVATION

Organizational culture is the pattern of shared assumption, principles and standards which govern how people behave in an organization. These standards have a strong influence on the people and dominate or dictate their behavior and performance. Every organization creates, develop and maintain their unique culture to provide guidance and limitations for the action of the members of the organization.

Organizational or corporate culture is the pattern of values, norms, beliefs, attitudes and assumptions that may not have been articulated but shape the ways in which people in organizations behave and things get done (Armstrong, 2009).

Culture also includes the organization’s vision, values, norms, systems, symbols, language, assumptions, beliefs, and habits (Needle, 2004).

Simply stated, organizational culture is “the way things are done around here” (Deal & Kennedy, 2000).

Organizational culture and Innovation 

Innovative culture is a way of thinking and behaving that creates, develops and establishes standards and values within the organization, which may support ideas and improve involvement in the function and make changes in conventional and traditional behavior. In the modern rapidly changing environment, it is compulsory to implement an organizational culture which supports innovation.   

No matter of  your organization’s size or industry, however, a culture of innovation may be necessary to evolve and succeed in today’s constantly changing business environment (Cancialosi, 2017)

Innovation is widely regarded as a critical source of competitive advantage in an increasingly changing environment (Dess and Picken, 2000)

In most organizations innovations are not valued. Finishing work on time within budget is considered as enough to succeed. All of these traditional principles are making barriers in innovation and which result employees to get stuck to some extent. So, organizational culture should allow innovation to gain a competitive advantage and for a long lasting sustainability. 

   

In Srilankan banking sectors, almost all the banks are now adapting to new technology to be the market leader, especially private sector encourages new innovative ideas from employees and create an internal culture to support their innovative thoughts without braking traditional rules. For an example, implementation of smart banking system where customers can make banking even after banking hours.

Reference

Armstrong, M. (2009). Armstrong's Handbook of human resource management practice (11 ed.). London, United Kingdom: Koganpage.

Cancialosi, C. (2017, Feb 7). Forbes. Retrieved Sep 24, 2019, from Forbes: https://www.forbes.com/sites/chriscancialosi/2017/02/07/why-culture-is-the-heart-of-organizational-innovation/#80d98653f4d7

Deal T. E. and Kennedy, A. A. (1982, 2000) Corporate Cultures: The Rites and Rituals of Corporate Life, Harmondsworth, Penguin Books, 1982; reissue Perseus Books, 2000

DESS, G.G. & PICKEN, J.C. (2000). Changing roles: leadership in the 21st century. Organizational Dynamics, Vol 28, No 3, 18–34

Needle, David (2004). Business in Context: An Introduction to Business and Its Environment.