2-5 Organization Culture and Project Management

Research suggests that there is a strong relationship between organizational culture, project management structure, and project success. Tools and techniques that lead to project success might not necessarily work in another organization because of the different organizational cultures.

Organizational culture refers to the system of shared norms, values, attitudes, beliefs, and assumptions that bind people together and influence behavior in the organization. It reflects the personality of the organization.  Some of the factors that characterize an organization’s culture include:

Member Identity – how do employees identify with the company

Team emphasis– to what extent is work organized around groups

Control– what is the extent to which  rules, policies, and direct supervision  used to control employee behavior

Reward Criteria– how are employees rewarded and promoted?

The above, among others, influence (i) how departments in the organization interact on projects; (ii) how projects are planned; (iii) employees and team members commitment to project goals; (iv) performance evaluation

Some of the key factors that affect culture development within organizations include:

  • —Technology
  • —Environment
  • —Geographical location
  • —Reward systems
  • —Rules and procedures
  • —Key organizational members
  • —Critical incidents