Organization 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. I want to look at the economic
impact of organization culture. Since they 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.
Organization 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. I want to look at the economic
impact of organization culture. Since they 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.
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