doi: 10.62486/agma202342

 

REVIEW

 

Organizational Culture as a Strategic Pillar: A Theoretical Analysis of Models, Levels, and Typologies

 

Cultura Organizacional como Pilar Estratégico: Un Análisis Teórico de Modelos, Niveles y Tipologías

 

Camilo Andrés Narváez1, Claudia Magali Solarte Solarte1  *

 

1Universidad Cesmag, Facultad De Ciencias Administrativas y Contables, Programa De Administración De Empresas. San Juan De Pasto, Colombia.

 

Cite as: Andrés Narváez C, Solarte Solarte CM. Organizational Culture as a Strategic Pillar: A Theoretical Analysis of Models, Levels, and Typologies. Management (Montevideo). 2023; 1:42. https://doi.org/10.62486/agma202342

 

Submitted: 29-07-2023                   Revised: 25-10-2023                   Accepted: 20-12-2023                 Published: 21-12-2023

 

Editor: Ing. Misael Ron

 

Corresponding Author: Claudia Magali Solarte Solarte *

 

ABSTRACT

 

Introduction: this paper approached the study of organizational culture from a theoretical perspective, recognizing its historical evolution and its relevance in business performance. From the 18th century to the present, organizational culture was conceived as a determining factor in the way organizations operate, adapt to change and project their identity to the external environment.

Development: during the development of the research, theoretical models proposed by authors such as Edgar Schein, Chiavenato, Denison, Harrison and Ansoff were analyzed. Each one provided different levels, functions and classifications that allowed understanding organizational culture as a phenomenon composed of visible elements -such as artifacts, symbols and structures- and invisible ones -such as values, beliefs and basic assumptions. Power-oriented, norm-oriented, results-oriented and people-oriented cultural typologies were also studied, highlighting how these influenced staff motivation, decision-making and leadership.

Conclusions: the research concluded that a strong and consistent organizational culture represented a competitive advantage for companies. It was found that results- and people-oriented models favored more flexible and innovative environments, while rigid cultures based on power or norms were less effective. Finally, the importance of strategically managing organizational culture to strengthen corporate identity, improve productivity and foster long-term sustainability was highlighted.

 

Keywords: Culture; Organization; Values; Leadership; Strategy.

 

RESUMEN

 

Introducción: el presente trabajo abordó el estudio de la cultura organizacional desde una perspectiva teórica, reconociendo su evolución histórica y su relevancia en el desempeño empresarial. Desde el siglo XVIII hasta la actualidad, la cultura organizacional fue concebida como un factor determinante en la forma en que las organizaciones operan, se adaptan al cambio y proyectan su identidad hacia el entorno externo.

Desarrollo: durante el desarrollo de la investigación, se analizaron modelos teóricos propuestos por autores como Edgar Schein, Chiavenato, Denison, Harrison y Ansoff. Cada uno aportó diferentes niveles, funciones y clasificaciones que permitieron entender la cultura organizacional como un fenómeno compuesto por elementos visibles —como los artefactos, símbolos y estructuras— e invisibles —como los valores, creencias y supuestos básicos. Se estudiaron también las tipologías culturales orientadas al poder, a las normas, a los resultados y a las personas, destacando cómo estas influyeron en la motivación del personal, la toma de decisiones y el liderazgo.

Conclusiones: la investigación concluyó que una cultura organizacional sólida y coherente representó una ventaja competitiva para las empresas. Se comprobó que los modelos orientados a resultados y personas favorecieron entornos más flexibles e innovadores, mientras que las culturas rígidas basadas en poder o normas resultaron menos eficaces. Por último, se resaltó la importancia de gestionar estratégicamente la cultura organizacional para fortalecer la identidad corporativa, mejorar la productividad y fomentar la sostenibilidad a largo plazo.

 

Palabras clave: Cultura; Organización; Valores; Liderazgo; Estrategia.

 

 

 

INTRODUCTION

Organizational culture has become increasingly important in business and organizational behavior studies, as it is considered an essential element in organizations' internal functioning and external projection. Since its origins in the 18th century and its consolidation as an object of analysis since the 20th century, this concept has become a strategic factor in organizational management. In this context, the present research approaches the study of organizational culture from a theoretical perspective, recognizing its influence on the values, beliefs, habits, and behaviors shared by company members.(1,2)

The main objective of this work is to explore and understand the most relevant theoretical models on organizational culture, its levels, functions, and typologies, as well as its application in different business environments. To this end, it is based on the thinking of key authors such as some study who have provided conceptual frameworks that allow us to identify and analyze the visible and invisible elements that make up an organization's identity.(3,4)

This theoretical approach makes it possible to recognize how organizational culture influences leadership, decision-making, staff satisfaction, productivity, and adaptation to change. This approach seeks to provide a solid basis for companies' analysis, diagnosis, and cultural transformation, with the understanding that a coherent and strengthened culture represents a sustainable competitive advantage in an increasingly dynamic and complex organizational environment.(5,6)

 

DEVELOPMENT

Theoretical framework

The term organizational culture has its origins in the 18th century when it was used in terms related to thought management and aspects related to human behavior, which became a determinant for comparing human behavior in a normative way during the 19th century, which also arose due to the differences between the productivity of North American business management models and that of Japanese industry, which sparked interest in organizational culture. On the one hand, Japan's leadership in terms of the quality and functionality of its products, which in turn were characteristic of its culture, forced many researchers to study it as a relevant strategy in the performance of organizations.(7)

In 1930, the term organizational culture was included and applied to the most relevant fields within companies and the studies referring to the organization. From this moment on, studies began to be carried out, and the first book ‘Organisational Culture and Leadership, by Shein, discovered the great richness and importance of the term; from then on, different organizational studies were carried out throughout this time, which is why it has been a concept of great influence for managers and the whole work team.’ We know that nowadays, companies have maintained certain types of values, traditions, concepts, and guidelines that last over time to create a seal that identifies their service and the quality of this; for this reason, in this paper, reference is made to the different theories that characterize organizations and their various investigations.(8)

‘Thus, it is understood that there are internal manifestations of organizational culture, within which we find, according to Schein(3), common language and conceptual categories, group boundaries and criteria for inclusion and exclusion, power and hierarchy, intimacy, friendship and love, rewards and punishments, ideology and religion’.

In addition, organizational culture has certain elements that allow identifying its essence within which we can mention:

·      Model: vision, mission, corporate values, objectives.

·      Organizational structure: according to the function performed by the employee and their hierarchical level.

·      Brand identity: logos, brands, and organization's distinctive features.

·      Beliefs: determined by the values and events evident in the company's members.

·      Habits: the routines of the organization's members, meetings, reports, arrival times, attitudes, and treatment of them, among others.

 

A study, state that "each organization has its own characteristics, its lifestyle and behavior, its mentality, its presence, its personality. In addition, each organization has characteristics that are not always physical or concrete, visible or measurable. Many phenomena that occur in organizations are due to their culture, which is like their genetic code".(9)

 

The Iceberg of Organisational Culture

Similarly, Chiavenato likens the concept of Organisational Culture from a theoretical stance where he states that organizational culture is not something palpable and that it can only be observed in terms of its effects and consequences, a term associated with an iceberg that highlights the top, the visible and superficial aspects of organizations, related to the elements of operations and daily tasks; and at the bottom, the informal and hidden elements, such as affective and emotional behaviors oriented towards social and psychological factors.(10,11)

 

Source: https://www.researchgate.net/figure/Figura-1-El-iceberg-de-la-cultura-organizacional-Chiavenato-2001_fig1_287645946 pag.1

Figure 1. The Organisational Culture Iceberg

 

Organizational culture is not something palpable. It can only be observed in terms of its effects and consequences. In this sense, it is similar to an iceberg. At the top, above the water level, are the visible and superficial aspects of organizations, which are derived from their culture. These are almost always physical and concrete elements such as the type of building, the colors used, the spaces, the layout of offices and desks, the working methods and procedures, the technologies used, job titles and descriptions, and personnel management policies. In the submerged part are the invisible and deep aspects, which are more difficult to observe or perceive. In this part are the psychological and sociological manifestations of culture.(12,13)

The visible elements are the structure presented by the entity, the organization chart, short and long-term objectives, strategies, personnel policies and guidelines, efficiency and productivity measures, work procedures and methodologies, financial measures, and aspects. The hidden part of the iceberg is the invisible aspects, i.e., the organization's unconscious. These elements are not easily noticeable and visible, but they are decisive in the functioning and development of the company; for example, they are the values, myths, philosophy, personality, desires, satisfaction, frustrations, and other concepts shared by the company's members.(14,15)

Over time, studies have been carried out that have materialized and created a wealth of literature that distinguishes the different theoretical views and their relevant contributions to have a global and deeper concept of organizational culture, which can be conceptualized in the grouping of unique characteristics that distinguish organizations from each other, as well as the behavior of the members of the organization through a system of norms and values that are transmitted through socialization from one generation to the next. The existence of an organizational culture allows people to identify characteristic features in comparison with the personality of the companies, thus creating a certain level of sense of belonging.(16,17)

It should be taken into account that there are defined parameters by which the organizational culture of a company can be identified, such as the degree of individual autonomy within the company, the design of an organizational structure, the quality of administrative support by the achievement of the company's objectives and desired results; elements that identify patterns of organizational identity; reward mechanisms for performance; tolerance and positive acceptance of conflict management; greater or lesser aversion to risk in decision-making. Key elements lead to ‘an organizational way of life.’(18,19)

Authors such as Hellriegel and Slocum discuss organizational culture and its layers in their book Organisational Behaviour and the Dynamics of Organisational Culture. They define the concept: "Organisational culture reflects the values, beliefs, and attitudes learned and shared by its members. Organizational cultures evolve slowly over time. Unlike mission and vision statements, cultures are often not in written form, yet they are the organization's lifeblood".(20,21)

In the same way, they define organizational culture as being found within several levels, which have excellent visibility and a wide resistance to change. Seen in another way, this philosophy contains the shared assumptions in the first instance, are represented by fundamental beliefs of what is real, human nature, and the way things are; in the second instance are the cultural values of the organization, represented by beliefs, assumptions and collective feelings about what is correct, regular and rational, it should be noted that values tend to endure over time despite the changes made in human talent.(22,23)

In the third place are shared behaviors, which are contained by norms and more flexible to change than values; and finally, in the fourth place are cultural symbols, which are gestures, images, or other physical objects that mean something within a given culture.(24,25)

 

Table 1. Layers of organisational culture

Stratos

Description

Philosophy and assumptions assumptions

Basic beliefs about how reality is perceived, as well as how things are done.

Cultural Values

Collective beliefs, assumptions and feelings about what is right, valuable and rational.

Shared behaviours

Rules or guidelines for behaviour.

Cultural Symbols.

Ways of expressing oneself through words, gestures and images.

 

Edgar Schein's Organisational Culture Model

It was in the 80s when the American professor Schein developed a model applied to organizational culture that allowed it to be made more visible within organizations, indicating the steps to follow to achieve an effective cultural change. Schein affirmed that organizations have direct and indirect mechanisms that influence behavior, opinions, status, etc. These indirect elements do not influence organizational culture, although they are determinants for its good development in the search for the ideal culture. These indirect elements do not influence organizational culture, although they are determinants for its good development in the search for the perfect culture. These include a company's mission, vision, formal guidelines, corporate identity, rituals, and design.(26,27)

The three levels of organizational culture proposed in this model, the aim of which is to understand the behavior of employees in companies, are outlined according to the degree of their visualization, which, according to the author, are divided as follows:

Edgar Schein divided organizational culture into three different levels:

1.   Artefacts and symbols (Creations) mark an organisation's surface through visible elements such as its logos, physical structure, processes, and use of corporate clothing, among others.

2.   Adopted values: Values, the roles of the employees' behaviour, and their projection to the market are the origin of the company's way of doing things and represent a greater knowledge of the company's culture.

3.   Basic and underlying assumptions (basic assumptions): these are experienced through self-evident and unconscious behavior and are difficult to identify within the organization and each individual.

 

Source: https://frrq.cvg.utn.edu.ar/pluginfile.php/15589/mod_resource/content/0/Schein%20La-Cultura-Empresarial-y-El-Liderazgo.pdfp.30

Figure 4. Levels of culture and their interaction

 

“The model, also known as the onion model, has three clearly identified layers. The outer layer is easy to adapt and change, while assumptions related to the functioning of the world and according to the people belonging to the organization, assumptions derived from experience and perception, are at the core. These assumptions also become unconscious assumptions and are thus considered self-evident and do not need to be included”.(28,29)

 

Modelo de Cultura Organizacional por Edgar Schein - toolshero

Source: https://www.toolshero.es/liderazgo/modelo-de-cultura-organizacional-por-edgar-schein/

Figure 3. Schein's model of organisational culture

 

Models of organizational culture

Many authors have written on this subject, and the classification made by the psychologist Roger Harrison regarding the types of organizational culture, which are listed below, stands out:

Power-oriented organizations: whose defined objective within this typology of organizational culture is to increase business competitiveness, highlighting its power and positioning within the market. Their values and focus are oriented towards reinforcing their position of power by emphasizing centralized decision-making, thus highlighting the figure of control of the manager over his collaborators, also denoting the essence of business leadership within this type of organization.

"The power-oriented organization strives to dominate everything around it and to overcome any opposition. It does not want to be subject to any external law or power. Those with power within the organization seek absolute control over their subordinates".(30,31)

It is worth noting that organizations were previously strongly linked to this type of culture and used to play a leading role in the business environment with arbitrary forms of power and decision-making. Nowadays, however, fewer companies opt for this model of organizational culture.(32,33)

Rule-oriented organizations: This model guarantees the security and stability of the organization. To achieve this, the company focuses on strict compliance with the rules, the division and fulfillment of the responsibilities that each position entails, and a thorough analysis of all the procedures and processes carried out. Like the previous one, this model is being left behind, giving way to new, more flexible, and less imposing models due to a constantly changing society.(34,35)

Result-oriented organizations focus on attaining objectives by achieving results and being more efficient in implementing resources while developing their processes. They optimize resources, reduce costs, and are governed by fulfilling business objectives in the short term, minimally using material and human resources. Although most companies are result-oriented, it is clear that this makes them more competitive in a business environment that is becoming more demanding every day in the context of globalization and trends and, at the same time, more complicated.(36,37)

People-oriented organizations: this is the most coherent typology and focuses on the personal and professional development of the group of collaborators, promoting social values, motivation, and creativity. It revolves around the general and collaborative benefits concerning customer satisfaction and employees' personal and professional growth. Nowadays, many organizations are leaning towards caring for their human capital, seeing them as more than just providing a service and considering them the brand's primary representative.(38,39)

The way of seeing organizational culture and being a guide for other countries depends mainly on developing these countries, which is why "in underdeveloped countries, the most widespread types of organizational culture are those of power. Organizations spend a lot of time monitoring members and rely on rewards or punishments to improve the performance of functions. The system is endowed with docility and rebelliousness in the face of members' inability to contribute value to the company. The organization must be able to keep its members loyal. Otherwise, it will disintegrate.(40,41)

While in developed countries, human talent seeks satisfaction in other aspects and to be able to contribute significantly to the development of the organization, in underdeveloped countries, the power tendency theory is stronger.(42,43)

In addition, their favorable environment in terms of the country's economy, social aspects, and public order allows them to focus their efforts on people, rules, or problem-solving.(44,45)

Developed countries are changing company cultures. Flexibility in work and care for employees are becoming increasingly important. According to a study "Shorter hours may not compromise the bottom line. Fewer hours may mean lower labor costs. Not only does the employer benefit, but the employee benefits as well."(46,47)

According to a new study by Boston Consulting Group (BCG) and The Network, entitled ‘Decoding Global Ways of Working,’ on the impact of the pandemic on workers' preferences and expectations, 89 % of people said that the expectation to work remotely is a legacy of the pandemic, with 209 000 people in 190 countries participating in the study. The strong outbreak of COVID-19 forced most organizations to adopt telework almost overnight," explains Cristián Carafí, managing director and partner at BCG in Chile. "A year later, workers and managers have proven that developing a flexible work model is possible. It is time for companies to analyze what they have learned and respond to the employees' expectations that will follow after the pandemic"(48,49)

The above is a clear, simple, complete, and defined classification of organizational culture models. Nowadays, many companies opt for models oriented to results and people, leaving behind authoritarian models through the implementation of imposing organizational cultures that do not allow the empowerment and self-realization of human capital. Companies such as Google and Facebook, in which the center of activity and protagonist is thus considered the most important asset of the organization today, are mentioned.(50,51)

 

The seven functions of organizational culture

Generally, the concept of culture is related to the typical characteristics of a country's members. In the same way, organizational culture refers to the common characteristics shared by the members of a company. Companies have started to give importance to the psychological and social aspects of people in organizations, as well as their relationships. Today, the focus is on a strong and dominant culture, the way it wants to be seen, perceived, and chosen by customers.(52,53)

Alongside this, organizational culture fulfills several vital functions for organizations in pursuit of continuous improvement, expansion, and customer loyalty within which we can mention:

·      Provides stability and security to the organization's interactions, whether between customers, collaborators, partners, or shareholders.

·      Articulates and integrates the different internal processes, helping to solve problems in its business activity.

·      Defines and ensures understanding of the mission and the different working strategies within the company.

·      Sets internal and external goals and focuses efforts on achieving them.

·      Helps the company to adapt to the current social context.

·      Encourages the creation and emergence of a community.

·      Guides the company's decisions about what is and is not desirable in pursuing organizational goals.

 

Robbins and Judge define "Organisational culture as how employees perceive the characteristics of an organization's culture, not whether they like it. In other words, it is a descriptive term. This is important because it differentiates this concept from that of job satisfaction. Organizational culture research seeks to measure how employees view their organization" - does it encourage teamwork, reward innovation, or support the initiative? On the other hand, job satisfaction seeks to measure effective responses to the work environment. It concerns employees' feelings about the organization's expectations, reward practices, etc. While the two terms certainly have overlapping characteristics, it should be remembered that the term organizational culture is descriptive, while job satisfaction is evaluative.(54,55)

In the same way, Robbins points out that about organizational culture. Many authors make mention of the functions of organizational culture and point out the functions of organizational culture as functions that culture has in the organization, which are listed below:

·      Defines boundaries and differences between different organizations.

·      Gives a sense of identity to organizations.

·      Creates commitments to the organization over and above individual interests.

·      Provides a system of social control in organizations.

·      Supports the stabilization of the organizational social system.

 

Daniel R. Denison's Model of Organisational Culture

The model developed by Denison is based on analyzing a parallel between organizational culture and performance measurements, within which we can mention growth in sales, quality, innovation, and level of satisfaction of human talent, among others; the model was designed based on studies that allow evidence the impact of organizational culture taking into account factors observed in the development of its activities, which allowed to identify four characteristics that impact: involvement, consistency, adaptability, and mission.(56,57)

Denison puts forward the central idea of the ‘strong culture hypothesis,’ which argues that culture must be strong and distinctive to increase performance significantly. From this, Denison elaborates on a model presented in a circular profile. He shows the four characteristics and three indices that visually represent culture within each. The model offers four typologies of culture defined as follows:

·      Adaptability culture: characterized by a strategic focus on the external environment through flexibility and change to meet consumer needs.

·      Mission culture: places crucial importance on a shared vision of organizational purpose.

·      Involvement culture primarily focuses on the involvement and participation of the organization's members.

·      Culture of consistency: has an internal focus and emphasizes a stable, methodological, and cooperative approach to doing business.

 

Denison thus concludes that organizational culture is eminently operational and defined with a focus on performance as a function of managerial efficiency. This model is based on other instruments developed by the same author., presents the analysis of organizational effectiveness in a structured way.(58,59)

 

Ansoff's Types of Organisational Culture

"Ansoff is an outstanding figure and founder of the concept of strategic management. His work in the area is globally recognized as representing the cutting edge of the modern corporate management paradigm. He has also developed research on environmental turbulence, the contingent paradigm of strategic success, and real-time strategic management". This study focuses its typology on the evolution of the company: the analysis of this type of company takes into account the dynamism or stability in the face of change and its propensity to risk; it establishes as the object of study a characterized cultural typology where it proposes four representative levels of strategic culture, which it correlates with various attributes such as competition, artistic, business profiles, among others. Therefore, Ansoff proposes seven attributes in his study, which are as follows:(60,61)

1.   Managerial values, which refer to how the organization operates based on internal characteristics.

2.   Behavioural focus, which refers to what is essential or what is paid attention to, either within the focus of behavior refers to what is important or to what attention is paid, either within the framework of internal events or outwardly to what is happening in the environment.

3.   Trigger of organizational response to change refers to the events that generate organizational responses, which are measured by the strength of the signals needed to trigger them.

4.   Reaction to change refers to the form or type of organizational reaction to change.

5.   The domain of alternatives in which the organization seeks possibilities for action. This refers to the frame of reference for action, be it past experiences, precedents for action, global, creative, or extrapolated possibilities.

6.   Risk propensity in choosing alternatives refers to risk aversion or preference.

7.   Response goals refer to the discontinuity of acceptable past experience in action alternatives.

 

Acceptable in action alternatives. It refers to levels that maintain or move away from the status quo. Therefore, Ansoff creates an analytical-practical proposal that uses qualitative and quantitative tools, assessing organizational culture as part of strategic planning to solve a purely organizational problem from a total vision. From this classification of attributes, or based on them, Ansoff proposes four types of organizational culture, which are detailed in the following table:(62,63)

The model operates based on correlating the competitive level, the entrepreneurial level, and the probability of future turbulence and determining organizational action frameworks from this. "Based on the characteristics of the typologies defined by Ansoff, it could be identified that some examples of the operation of the typologies are:

·      Stable: production Units and Accounting Units.

·      Reactive: production/Financial Control Units.

·      Anticipatory: marketing Units and Production Units.

·      Initiative: new Business Research Units.

 

Source: http://teoriaycomorg.sociales.uba.ar/wp-content/uploads/sites/98/2019/03/TeoriasdelaCulturaOrganizacionalCarlosGomezyJennyRodriguezrevision2013.pdfp.4.

Figure 4. Levels of culture

 

In this order of ideas and conclusion, it is defined that based on this categorization, the author develops the subject of organizational change based on strategy, identifying the action cycle of strategic development, the determinants of strategy, and the strategic plan. He complements this with decisional flows and analysis of behavioral variables to finally conclude with the accordion method of change management.(64,65)

 

Conceptual framework

Administration: a scientific discipline whose objective is the study of organizations, it is responsible for following the guidelines of the administrative process through planning, organization, management, and control of the human, physical, financial, technological, and knowledge resources of a given organization to obtain the maximum benefit, whether social, economic or aimed at achieving the organization's objectives. ‘Administration is the process that seeks through planning, organization, execution, and control of resources to give them a more efficient use to achieve an institution's objectives.’(66,67)

Aptitude: the ability of a person or thing to adequately perform a particular activity, function, or service, the natural ability to acquire a specific type of knowledge, or to perform adequately in a subject; it is a potential ability. "In psychology, aptitude is the ability to achieve something. It can also be defined as the set of conditions or requirements that a person has to fulfill a specific function or objective".(68,69)

Organizational climate and change: this consists of determining individuals' perceptions about their organization's characteristics and qualities. It is also a key and determining aspect when identifying and evaluating the organizational culture, thus allowing the creation of strategies and improvements to achieve objectives. Temporary change in the attitude of the organization's members concerning the environment and the surrounding environment refers to the set of properties or characteristics of the internal work environment perceived by the members of an organization that determine and influence the behavior of a collaborator. ‘Organisational climate is an intervening phenomenon that mediates between the factors of the organizational system and the motivational tendencies that translate into behavior that has consequences for the organization (productivity, satisfaction, turnover, etc.).’(70)

Culture is the body of knowledge and characteristic features that distinguish a society, a particular era, or a social group. The term culture, as it has evolved in society, is associated with progress and values; it comes from the Latin cultus, which refers to the form of cultivation of the human spirit and of man's intellectual capacities, which are manifested in various ways and forms. "Culture is everything that exists in the world, and is a product of the human mind and hand, among which we can mention: festivals, gastronomy, political systems, the free way of thinking, the way of dressing and fashions, damage to the environment, the way of playing football, war, and weapons, humanitarian acts, among others.(71)

Corporate culture: it is the ideology of an organization, where attitudes, habits, beliefs, and a series of human behaviors interact in search of personal and institutional achievements. The direction and style of the priorities and values, workforce integration, and collaborators' characteristic essence guide its free development. "Corporate or organizational culture is the ideology of a company: the set of attitudes, habits, beliefs, and behaviors of the human group that makes it up, the way they interact, and the way they manage external business transactions.(72)

Organizational development: a planned and systematic renewal effort involving management and encompassing the entire enterprise system to increase overall effectiveness. This approach draws on business planning, management by objectives, and behavioral science to bring about change in a gradual but sustained manner. "Organisational development is defined as the process of understanding and changing the organization's health, culture, and performance. It is designed to improve a company's skills, knowledge, and individual effectiveness in terms of all its objectives.(73)

Structure defines the official relationships within organizations that allow work to be practical and also refers to how the parts that make up a whole are organized. It is made up of human talent and executes the organization's activities, relating in a structural way to carry out its raison d'être and achieve organizational objectives effectively. "In Marxist theory, structure is understood as the social and technical relations of production. In other words, it refers to the economic links. On the other hand, they also define the superstructure as related to social institutions, religion, ideology, and politics, determined by the structure".(74)

Effectiveness: the ability to achieve the programmed objectives and goals with the allocated resources in the pre-established time. Effectiveness can be defined as achieving goals and objectives, referring to our ability to achieve our goals. "Effectiveness differs from efficiency in the sense that efficiency refers to the best use of resources, while effectiveness refers to the ability to achieve an objective, even if the best use of resources has not been made in the process, i.e., it does not matter if we were efficient in the process carried out to achieve the objective and be effective.(75)

Strategy: defined as a set of principles and guidelines that indicate the path or direction, organization, and channeling of resources to achieve objectives. In addition, it is considered the way to face a specific action, taking into account aspects to be carried out and those that are not, and where the use of tools and instruments is decisive to carry out the objectives of a plan. "It is defined as the determination of the company's basic long-term goals and objectives, the adoption of courses of action, and the allocation of resources necessary to achieve these goals.(76)

The evaluation consists of a thorough review of a plan, task, or project, partially or totally, to objectively measure the results obtained about those planned and the efficiency, productivity, and quality levels. It also makes it possible to determine deviations and adopt corrective measures, guaranteeing the programmed goals' fulfillment. ‘Evaluation is the dynamic process through which a company, organization or academic institution can learn about its performance, especially its achievements, and weaknesses, and thus reorient proposals or focus on those positive results to make them even more profitable.’

Values and beliefs: values and beliefs are essential and relevant within and outside the organization. They characterize people's principles and aim to perform actions that imply doing good in any circumstance and situation. "Values are statements about what is right or wrong about an organization. Belief is people's perception of an action and its consequences. Values and beliefs are concretized through norms, which specify expected behavior."

 

CONCLUSIONS

Throughout this study, it was possible to confirm that organizational culture constitutes a fundamental axis in the development and functioning of companies, directly influencing their identity, structure, productivity, adaptability to change, and the interpersonal relationships generated within the work environment. The theoretical review allowed us to understand that organizational culture is not an isolated or abstract concept but a collective construction that manifests itself in both visible elements -such as symbols, structures, and policies- and invisible components -such as values, beliefs, unwritten rules and shared assumptions-, which profoundly condition organizational behavior.

Authors such as Edgar Schein, Chiavenato, Denison, Harrison, and Ansoff offered solid conceptual frameworks that facilitated a clearer understanding of organizational culture's levels, typologies, and functions. It became clear that organizational culture can and should be managed strategically, as strengthening it leads to improvements in work climate, staff motivation, organizational commitment, and overall performance. It was also recognized that a strong culture that is well aligned with business objectives becomes a sustainable competitive advantage, especially in high complexity and constant transformation contexts.

From the analysis of the cultural typologies, it was concluded that results and people-oriented models are the most coherent with the current demands of the business environment, standing out for their focus on innovation, the well-being of human talent, and adaptation to change. In contrast, models focused exclusively on power or rules tend to limit participation, creativity, and flexibility and are becoming less and less frequent in modern organizations. The importance of the functions of organizational culture, ranging from the definition of corporate identity to strategic orientation and social control, was also assessed.

This research reaffirmed that understanding and managing organizational culture is desirable and essential. Organisations that recognise and leverage their cultural elements are better able to build collaborative, resilient, and goal-aligned environments. Thus, it was concluded that a strong organizational culture not only improves operational performance but also projects a coherent and reliable image to its stakeholders, consolidating its sustainability over time.

 

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FINANCING

None.

 

CONFLICT OF INTEREST

Authors declare that there is no conflict of interest.

 

AUTHORSHIP CONTRIBUTION

Conceptualization: Camilo Andrés Narváez, Claudia Magali Solarte Solarte.

Data curation: Camilo Andrés Narváez, Claudia Magali Solarte Solarte.

Formal analysis: Camilo Andrés Narváez, Claudia Magali Solarte Solarte.

Drafting - original draft: Camilo Andrés Narváez, Claudia Magali Solarte Solarte.

Writing - proofreading and editing: Camilo Andrés Narváez, Claudia Magali Solarte Solarte.