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ORGANIZATIONAL CULTURE
Just as individuals have a personality, so, too, do
organizations. We refer to an organizations personality as its
culture.
Organizational culture is shared assumptions a given group
has developed to deal with the problems of external
adaptation and internal integration
The way we do things around here (and why)
Historical (transferred to newcomers)
Moral force (normative: what is right and good)
Associated with intensity of common problems
Associated with stability of the group
Changes across time, but slowly and in small steps
ORGANIZATIONAL CULTURE.Introduction
Culture is the soul of the organization the beliefs and values, and
how they are manifested. I think of the structure as the skeleton,
and as the flesh and blood. And culture is the soul that holds the
thing together and gives it life force.- Henry Mintzberg
What do Cultures do ?
1. culture has a boundary-defining role: it creates distinctions
between organizations.
2. Second, it conveys a sense of identity for members.
3. Third, culture facilitates commitment to something larger than
individual self-interest. Fourth, it enhances the stability of the
social system. Culture is the social glue that helps hold the
organization together by providing standards for what
employees should say and do.
4. Fourthly, it is a sense-making and control mechanism that
guides and shapes employees attitudes and behavior.
5. Culture defines the rules of the game.
6. Culture Creates Climate: Organizational climate refers to the
shared perceptions organizational members have about their
organization and work environment. This aspect of culture is
like team spirit at the organizational level. When everyone has
the same general feelings about whats important or how well
Culture as a Liability
Culture can have dysfunctional aspects in some
instances
Culture as a Barrier to Change
When organization is undergoing change, culture may impede
change
Point-CounterPoint
Why Culture Doesnt
Change
s Culture develops over
many years, and
becomes part of how the
organization thinks and
feels
s Selection and promotion
policies guarantee
survival of culture
s Top management
chooses managers likely
to maintain culture
There is a dramatic
crisis
There is a turnover in
leadership
The organization is
young and small
There is a weak culture
Levels of Culture
Artifacts
Aspects of an organizations culture that you see, hear,
and feel.
Beliefs
The understandings of how objects and ideas relate to
each other.
Values
The stable, long-lasting beliefs about what is important.
Assumptions
The taken-for-granted notions of how something should
be in an organization
ORGANIZATIONAL CULTURE-Dimensions
Seven dimensions of an organizations culture have
been proposed. These are :
a. Innovation and risk taking (the degree to which
employees are encouraged to be innovative and take
risks)
b. Attention to detail (the degree to which employees
are expected to exhibit precision, analysis, and
attention to detail)
c. Outcome orientation (the degree to which managers
focus on results or outcomes rather than on the
techniques and processes used to achieve those
outcomes)
Dimensions.
d. People orientation (the degree to which management
decisions take into consideration the effect on people
within the organization)
e. Team orientation (the degree to which work activities
are organized around teams rather than individuals)
f. Aggressiveness (the degree to which people are
aggressive and competitive rather than easygoing and
cooperative)
g. Stability (the degree to which organizational activities
emphasize maintaining the status quo in contrast to
growth)
Top Management
Senior executives help establish behavioral norms that
are adopted by the organization.
Socialization
The process that helps new employees adapt to the
organizations culture.
A Socialization Model
Encounter Stage
The stage in the socialization process in which a
new employee sees what the organization is
really like and confronts the possibility that
expectations and reality may diverge.
Metamorphosis Stage
The stage in the socialization process in which a new employee
changes and adjusts to the work, work group, and organization.
Formal statements
The design of physical space
Slogans, language, acronyms, and sayings
Deliberate role modeling, training programs, teaching and coaching
Explicit rewards, status symbols (e.g., titles),
and promotion criteria
Stories, legends, and myths about key people and events
The organizational activities, processes, or outcomes that leaders pay
attention to, measure, and control
Leader reactions to critical incidents and organizational crises
The workflow and organizational structure
Organizational systems and procedures
Organizational goals and the associated criteria used for recruitment,
selection, development, promotion, layoffs, and retirement of people
Layers of Culture
Artifacts of
Organizational
Culture
Organizational
Culture
Material Symbols
Language
Rituals
Stories
Beliefs
Values
Assumptions
CULTURE : Example
Organization A
Managers must fully document
all decisions.
Creative decisions, change, and risks
are not encouraged.
Extensive rules and regulations exist
for all employees.
Productivity is valued over employee
morale.
Employees are encouraged to stay
within their own department.
Individual effort is encouraged.
Organization B
Management encourages and
rewards risk-taking and change.
Employees are encouraged to
run with ideas, and failures are
treated as learning experiences.
Employees have few rules and
regulations to follow.
Productivity is balanced with treating
its people right.
Team members are encouraged to interact
with people at all levels and functions.
Many rewards are team based.
HR Implications: Creating an
Ethical Culture
Visibly reward ethical acts and punish unethical
ones.
Performance appraisals should consider how decisions
and behavior measure against the organizations code of
ethics.
Creating a Customer-Responsive
Culture
Key Variables Shaping CustomerResponsive Cultures
1.
2.
3.
4.
5.
6.
Managerial Actions:
Select new employees with personality and attitudes
consistent with high service orientation.
Train and socialize current employees to be more
customer focused.
Change organizational structure to give employees
more control.
Empower employees to make decisions about their
jobs.