Effects of Organizational Culture on Employee Morale


K. Buvaneswari
Selection Grade Lecturer
Dept. of Commerce
T.B.A.K. College for Women


Every Organization has a culture.  It has its own cultural forms that constitute the expected, supported and accepted way of behaving.   These norms are mostly unwritten and tell employees the way things really are.  These influence everyone's perception of the business from the chief executive to the lowest rank.  Employees from all cadres of any organization contribute to the success or failure of the organization, to the norms by accepting and supporting them.


Stanley Davis commented on this concept as follows: corporate culture is the pattern of shared beliefs and values that give the member of an institution meaning and provide them with the rules for behaviour in their organization.

Campbell, Dunnelte and Lawler have commented that organizational culture is concerned with how employees perceive the six basic characteristics such as individual, autonomy, structure, reward, consideration and conflict.

Every organization will have its own word to describe what it mean by culture,  Some of them are core, ethos, ideology, manner, patterns, philosophy, purpose, roots, style, vision and way.


Davis says that ''People have all sorts of beliefs from profound to trivial''.  Corporate culture is made up of the two dimensions, viz guiding beliefs and daily beliefs.

Guiding beliefs, they come in two varieties.   There are external beliefs about how to compete and how to direct the business and there are internal beliefs about how to manage, how to direct the organization.  These are the roots and principles upon which the organization is built the philosophical foundation of the organization.  They are held in the realm of universal truths and are broad enough to accommodate any variety of circumstances.

Daily beliefs are rules and feelings about everyday behavior.  They are situational and change to meet circumstances.  They tell people the ropes to skip and the ropes to know.


A growing organization cannot neglect its human side. Employees are the real fortune makers who make the organization a strong and growing unit.  It becomes necessary for management to nurture the spirit of oneness and to develop an organizational entity.  Organisational culture performs four different types of functions.

(i)  The fooling of organisational identify

No Organization can grow without strong commitment of its employees to the cause of organization.  Organisational culture has its own ability to attract develop and keep talented people.

(ii)  Collective Commitment

Organisational development is the result of group efforts.  Culture is that invisible bond of emotions and feeling that ties employees at various levels to develop collective commitment.

(iii)  Socialization of Members

The organizational culture develops uniform system of promotions, remuneration and behaviour patterns which can socialize the employees without any group conflicts and ideological clashes.

(iv)  Desired Behavioural Pattern

The employees must understand their surroundings; they should learn to behave according to basic philosophy of business.  No organization can succeed for a long if it has not given proper understanding of its surroundings to its employees.


The nature of corporate culture that exists in a company is going to decide the degree to which the desired results from the employees are obtained.  The common perceptions of the individual members about the organisation determines the types of the organisational culture, individuals with realm of universal truths and are broad enough to accommodate any variety of circumstance.

An organisation culture consists of two primary components.

(i) The primary value of the organization and
(ii) The existing management style and systems.

These two components significantly determine the degree to which the desired result from the employees is obtained.  The value system to which the employees support directly or indirectly or by their behaviour indicates the direction in which organizations are likely to move in the future.  A strong culture is a powerful lover for guiding behaviour.  It helps the employees to do their job better.

The essence of the organizational culture can be stated in its five characteristics namely.

(i) Individual autonomy
(ii) Organisational Structure
(iii) Reward organisation
(iv) Consideration and
(v) Conflict

Organisationals culture is concerned with how employees perceive each of the five characteristics slated above whether it may be positive or negative.  An effective culture is a system of informal rules that spell out how employees are behaving most of the time.  It also enables people to feel better about what they do, so they are more likely to work harder.  It provides a sense of common direction and guidelines for day to day behaviours.


Culture helps the organization to accomplish what it desires to achieve.  The corporate culture as a management programme has great motivating impact to motivate employees to improve their own and organizational performance.


1. Robbins S.P, Organisational behaviour cases,concepts,and controversies, Printice hall of India, New Delhi 1993.

2. Fred Luthans, Organisational behaviour,  Mcgraw hill inc,  1993.

3. Rao V.S.P & Narayan P. S, Organisational Theory and behaviour,  Konark publishers pvt ltd, New Delhi 1997.

K. Buvaneswari
Selection Grade Lecturer
Dept. of Commerce
T.B.A.K. College for Women

Source: By Post (October 4, 2008)


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