Organizational culture (1)

Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 15-1

Organizational Culture


Organizational Culture

A system of shared meaning held by members that distinguishes the organization from other

organizations

•Composed of seven key characteristics


Seven Characteristics of Organizational Culture

1. Innovation and Risk Taking2. Attention to Detail3. Outcome Orientation4. People Orientation5. Team Orientation6. Aggressiveness7. Stability


Culture Is a Descriptive Term

Culture• Organizational culture is

concerned with how employees perceive an organization’s culture, not whether or not they like it

• Descriptive

Job Satisfaction• Measures affective responses to

the work environment: concerned with how employees feel about the organization

• Evaluative


Do Organizations Have Uniform Cultures?

• The dominant culture expresses the core values that are shared by a majority of the organization’s members

• Subcultures tend to develop in large organizations to reflect common problems, situations, or experiences of members

• Subcultures mirror the dominant culture but may add to or modify the core values


Strong Cultures• In a strong culture, the organization’s core values are both intensely held

and widely shared • Strong cultures will:

Have great influence on the behavior of its members

Increase cohesiveness Result in lower employee

turnover


Culture Versus Formalization• Both seek predictability, orderliness, and consistency• Culture controls by increasing behavioral consistency• Formalization controls through policies and written documentation• Strong cultures can be a substitute for formalization


Culture’s Five Basic Functions

• Defines Boundaries• Conveys a Sense of Identity • Generates Commitment Beyond Oneself • Enhances Social Stability• Sense-making and Control Mechanism


Culture as a Liability • Barrier to Change

Culture is slow to change – even in a dynamic environment• Barrier to Diversity

Culture seeks to minimize diversity Can embed prevalent bias and prejudice

• Barrier to Acquisitions and Mergers Most mergers fail due to cultural incompatibility


Creating Culture• Ultimate source of an organization’s culture is its founders

• Founders create culture in three ways: By hiring and keeping those who think and feel the same way they do Indoctrinating and socializing those employees to their way of thinking

and feeling Acting as a role model and encouraging employees to identify with

them


Keeping a Culture Alive• Selection – seek out those who fit in

• Top Management – establish norms of behavior by their actions

• Socialization – help new employees adapt to the existing culture


A Socialization Model

• Pre-arrival –initial knowledge about the organization and own unique ideas• Encounter – exposed to the organization• Metamorphosis – member changed to fit within the organization


Dimensions of Socialization Programs

Intense Programs• Formal – new workers separated

for training• Collective – group basis• Fixed – planned activities• Serial – role models used• Divestiture – strip away

characteristics to build up new ones

Moderate Programs• Informal – new workers

immediately put to work• Individual – one-on-one• Variable – no timetables• Random – on your own• Investiture – accepts and confirms

existing characteristics


How Organization Cultures Form

Success in employee socialization depends on management’s selection of socialization method and the closeness of new employees’ values to those of

the organization


How Employees Learn Culture

Culture is transmitted to employees through:

Stories – provide explanations Rituals – reinforce key values Material Symbols – convey

importance Language – identify and segregate

members


Creating an EthicalOrganizational Culture

A strong culture with high risk tolerance, low-to-moderate aggressiveness, and focuses on means as well as outcomes is most likely to shape high ethical standards

Managers must be visible role models Communicate ethical expectations Provide ethical training Visibly reward ethical acts and punish unethical ones Provide protective mechanisms


Creating a Positive Organizational Culture

A positive culture is one that emphasizes the following:

•Building on Employee Strengths•Rewarding More Than Punishing•Emphasizing Vitality and Growth of the Employee


Global Implications

National and Organizational Cultures: Organizations exist in a global context

Must be aware of local and national cultures

Suggestions and Observations:

• Organizations heavily dependent on foreign markets and labor

• National culture does influence organizational culture

• All managers must be culturally sensitive


Implications for Managers• Create the culture you want

when the organization is small and new

• If established culture needs to be changed, expect it to take years

Business

Organizational culture (1)