The Determinant of Organizational Culture and Its Impact on Organization: A Conceptual Framework

Abstract

This research was conducted to find a conceptual framework of organizational culture that can be relied upon to build and develop organizations. Research methods use a literature review by relying on data sourced from various relevant literature, both books, and journals. The data were analyzed by critical analysis. The results of the study found a conceptual framework of organizational culture mediating the effect of transformational leadership and organizational communication media on motivation, organizational commitment, job satisfaction, engagement, job involvement, innovation, OCB, productivity and performance. This conceptual framework can be utilized by academics, researchers and practitioners in the future as an effort to build and develop highly competitive organizations.Luthans (2011) identified six main characteristics of organizational culture, namely: rules of behavior that are shared by the organization; norms which are standard in behavior and work; dominant values, namely the main values in the organization that must be carried out by all staff; philosophy, organizational policies in treating employees and customers; rules, which are a set of rules that serve as guidelines or guidelines for all employees in the organization; and organizational climate, namely the apparent habits of interaction between individuals within the organization, and the ways members of the organization serve customers and other related parties. Langton and Robbins (2006) mention seven dimensions of organizational culture, namely: innovation and decision making, attention to small things, results in orientation, orientation to people, team orientation, aggressiveness, and stability.These characteristics and dimensions, in part or whole, may be present in every organization, but the conditions may differ from one organization to another. The difference is caused, among others, by factors that are reflected in the organizational culture of each organization.

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