chapter  11
11 Pages

Organizational Culture

The successful implementation of the Total Performance Scorecard approach is closely related to the review and change of the existing organizational culture. Organizational culture, a concept without a clear definition, is difficult to describe. It is also a fashionable subject, one about which numerous authors have been eager to express their opinions during the past ten years. The most important guru in this area is Edgar Schein (1992). According to Schein organizational culture includes a collection of consciously or unconsciously shared ideas, assumptions, and convictions regarding those aspects of reality that are relevant to the organization. He rightly considers the organizational culture to elicit a learning process that gives direction to employee behavior. The organizational culture prescribes which behavior is acceptable, correct, or preferable. It includes what is visible from the outside (explicit culture) and the values behind it (implicit culture). Organizational culture also involves the shared behavior of employees

with regard to the job, organization, and relationship with, for instance, customers, suppliers, and colleagues. It can be described as the total of shared opinions, ideas, fundamental values, rules, customs, traditions, manners, behavioral patterns, and norms of the people in the organization. This definition corresponds with that of Hofstede (1991), who states that organizational culture is the collective mental programming of the company's stakeholders. Thus, organizational culture has to do with organizational learning (see Chapter 7).