What Influences and Shapes Organisational Culture?

Influencing Factors

Organisational culture is, in simple terms, how things are done within the business. This impacts heavily on the company's performance and how it develops going forward. 

This culture is not set in stone from the inception of the company – it is ever-changing and is influenced by several different factors.

These factors have two forms:

1. Internal factors – those from inside the organisation
2. External factors – those from outside

Internal factors

Internal 

factors, as is often the case, refer to those within the organisation, and therefore those that can be altered or controlled by the organisation and its staff. These are referenced in models such as that from Johnson and Scholes'. They could include:

• Hierarchies and company structures
• History and traditions
• Values, myths and beliefs
• Policies and procedures
• Vision, mission and purpose
• Behaviour 

External factors

External factors generally refer to those in the wider business environment, outside of the organisation, and are generally therefore outside of their control. Tools such as PESTLE help you categorise different potential factors. They often include:

• Technological change
• Competitor activity
• Rules and regulations
• Market forces
• Customer expectations
• Crises

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