Economic Organization Culture

Abstract

Organizational culture is a phenomenon that exists in all companies.  Author Edgar Schein states “Culture is both a dynamic phenomenon that surrounds us at all times, being constantly enacted and created by our interactions with others and shaped by leadership behavior, and a set of structures, routines, rules, and norms that guide and constrain behavior.” (Schein, 2004, p.1)  Most authors and researchers, including Schein, focus on the psychological aspects of why cultures exist and how they influence the organization.  This paper intends to look at the economic impact of organizational culture.  Since these cultures do exist, what do they do to increase or even decrease the bottom line or profit of the organization?  This paper will discuss the economic issues that relate to organization culture.  Understanding and working within an organizational culture is a skill that can be grown in any leader.  Managers must learn leadership skills to become successful.

Keywords: Organization Culture, Leadership, Economic Change