What Is an

Organization?
A consciously coordinated social unit,
composed of a group of people, which
functions on a relatively continuous
basis to achieve a common goal or set
of goals.

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

ORGANIZATIONAL
CULTURE.Introduction
Cultureis thesoul of theorganizationthe beliefs and
values, and how they are manifested. I think of the
structure as the skeleton, and asthe fleshand
blood.And culture is the soul that holds the thing
together and gives it life force.- Henry Mintzberg

Organizational Culture is the pattern of shared

values, beliefs and assumptions considered to
bethe appropriate way to think and act within
an organization. Thus
Culture is shared;
Culture helps members solve problems;
Culture is taught to newcomers;
Culture strongly influences behavior.

ORGANIZATIONAL CULTUREDefinition & Characteristics

Definition: Organizational culture is the shared

values, principles, traditions, and ways of doing
things that influence the way organizational
members act.
This definition implies:
1. Individuals perceive organizational culture
based on what they see, hear, or experience
within the organization.
2. Organizational culture is shared by individuals
within the organization.
3. Organizational culture is a descriptive term. It
describes, rather than evaluates.
4. Organizational Culture have Passed on to new
employees through the process of socialization
5. Organizational Culture Influences our behavior

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

INNOVATIVE CULTURE :
Characteristics
An innovative culture should have these
characteristics:
Challenge and involvement
Freedom
Trust and openness
Playfulness/humor
Conflict resolution
Debates
Risk taking

Organizational Culture:
Functions
Culture is the social glue that helps hold an
organization together by providing
appropriate standards for what employees
should say or do.
It has a boundary-defining role.
It conveys a sense of identity for
organization members.
It facilitates the generation of commitment
to something larger than ones individual
self-interest.
It enhances social system stability.
It serves as a sense-making and control
mechanism that guides and shapes the
attitudes and behaviour of employees.

Culture as a Liability
Culture can have dysfunctional
aspects in some instances

Culture as a Barrier to Change

Culture as a Barrier to Diversity

When organization is undergoing change, culture

may impede change
Strong cultures put considerable pressure on
employees to conform

Culture as a Barrier to Mergers and

Acquisitions

Merging the cultures of two organizations can be

difficult, if not impossible

Point-CounterPoint
Why Culture
Doesnt Change

When Culture
Culture develops
Can Change
over many years,
There is a dramatic
and becomes part of
crisis
how the organization
There is a turnover
thinks and feels
in leadership
Selection and
The organization is
promotion policies
young and small
guarantee survival
There is a weak
of culture
culture
Top management
chooses managers
likely to maintain

CULTURE :How Does

Organizational Culture Change
Natural evolution as adaptations
Managed evolution (organizational
development)

Challenges to cultural
assumptions
Scandals and disasters
Charismatic leaders as role
models
Infusion of outsiders,
merger/acquisition
Coercive persuasion

How to Change Culture

Have top-management people become positive role
models, setting the tone through their behavior.
Create new stories, symbols, and rituals to replace
those currently in vogue.
Select, promote, and support employees who
espouse the new values that are sought.
Redesign socialization processes to align with the
new values.
Change the reward system to encourage acceptance
of a new set of values.
Replace unwritten norms with formal rules and
regulations that are tightly enforced.
Shake up current subcultures through transfers, job
rotation, and/or terminations.
Work to get peer group consensus through
utilization of employee participation and creation of
a climate with a high level of trust.

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 CultureApproaches

The Interpretative Approach : This approach is less concerned

with managers but more focused on the complex process of
organizational life.
1. All membersnot just managersare thought to create
and shape the organizations culture through everyday
communication practices.
2. It Centers on the processes through which organizational
members makes sense or create their experiences.
3.Rituals, myths, jokes, and other cultural performances are not
viewed as static entities to be transmitted from management to
employees.
4.Culture is not merely another variable that the organization has,
rather, culture is something the organization is.
5.Interpretive view is not anti-management, but rather see the
organization from multiple levels and each level having
influence on the organizations culture. This approach
provides a more in-depth understanding of corporate life.
The critics of this approach say this is a bit politically about people
and how they (and the powers they use) behave in organizations.

The Critical Approach

It Extends the research of the Interpretative
Approach into the realm of the critique and
evaluation.
This approach evaluates existing cultures;
calls into question the ideologies and
power structures that underscore
organizational cultures.
This approach is grounded in the goal of
freeing people from dominance and
oppression.
This tries to look at the dark side of
otherwise excellent corporate cultures, and
suggests that managers need to be on guard

ORGANIZATIONAL CULTUREDimensions
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

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

Do Organizations Have Uniform

Cultures?
Organizational culture represents a common perception held by the organization
members.
Core values or dominant (primary) values are accepted throughout the organization.
.

Dominant culture :Expresses the core values that are

shared by a majority of the organizations members.

Subcultures : Tend to develop in large organizations to

reflect common problems, situations, or experiences.
These are Mini-cultures within an organization, typically
defined by department designations and geographical
separation.
Strong Culture : A culture in which the core values are intensely held and widely
shared.

Do Organizations Have Uniform

Cultures?
Culture Versus Formalization
A strong culture increases behavioral consistency and can act as a substitute for
formalization.
Organizational Culture Versus National Culture
National culture has a greater impact on employees than does their organizations
culture.
Nationals selected to work for foreign companies may be atypical of the local/native
population.

CULTURE : STRONG -WEAK

Strong cultures are found in organizations where
key values are intensely held and widely shared.
the stronger the culture more members accept
thecore values and the greater is their commitment.
the stronger the culture and thegreater its influence
on member behavior, because the high degree of
sharing
and intensity creates a climate of high
behavioral control.
A strong culture should reduce employee turnover
because
itdemonstrates high agreement about
whatthe organization represents. Such unanimity of
purpose
builds
cohesiveness,
loyalty,
andorganizational commitment. These qualities, in
turn, lessen employees propensity to leave.

CULTURE : For Having A Strong

And Pronounced Corporate Culture
The company tends to be more
competitive in the marketplace and leads
to increased employee satisfaction and
consequently a lower turn-over rate.
The Deal and Kennedy book Corporate
Cultures: The Rites and Rituals of Corporate
Life outlines the keys in their mind

enhancing the business environment,

stressing and living up to the company
values, recognizing its heroes, and
practicing the corporate rites and
rituals.
The Peters and Waterman book In Search of
Excellence: Lessons from Americas Best Run Companies

How Organization Cultures

Form

How Culture Begins

Founders hire and keep
only employees who
think and feel the same
way they do.
Founders indoctrinate
and socialize these
employees to their way of
thinking and feeling.
The founders own
behavior acts as a role
model that encourages
employees to identify
with them and thereby
internalize their beliefs,

Keeping Culture Alive

Selection

Concern with how well the candidates will fit

into the organization.
Provides information to candidates about
the organization.

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

Stages in the
Socialization Process
Prearrival Stage
The period of learning in the
socialization process that occurs
before a new employee joins the
organization.

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.

How Employees Learn

Culture
Stories
Stories
Rituals
Rituals
Material
MaterialSymbols
Symbols
Language
Language

CULTURE : Elements and

Transmission

Culture is transmitted and learned by

employees principally through metaphors
(language), rituals, stories, heroes,
cultural artifacts, performances and
values.
1.MetaphorsThis language device can serve to create vivid and
memorable pictures in our head. When used well it causes us to
see the usual in unusual ways and therefore imprints the ideas in
a deeper and sometimes more meaningful way. We use military
and sports language frequently in our culture. And these terms
along with others can be used in the workplace to describe the
environment.
2.Ritualspractices that are performed regularly and with some
specific purpose in mind. May be individual actions, department
actions, or organizational actions. For example, one department
may have a tradition of holiday parties, Friday afternoon Happy
Hours, or any number of specific behaviors that help define who
this group is and what they stand for.
3.StoriesStorytelling are important indicators of the values

CULTURE : Elements and

Transmission
4.HeroesOftentimes the stories are told about the
heroes of the company. The organizational members
who have taken great strides and performed at the
highest levels that made the company what it is
today.
5.Cultural ArtifactsTangible/Physical features of the
company; ranging from colors, to design, to artwork,
to physical symbols, etc; all contributing to shaping
the personality and attitude of the company.
6.Performanceshow the members of the company
interact with each other; learning the rules on talking
with bosses, with co-workers, when to use humor or
not; how laid-back versus how structured and strict
in communication style.
7.ValuesThis is often linked the companys mission
statement; what the organization stands for and the

Embedding Organizational Culture

1.
2.
3.
4.

Formal statements
The design of physical space
Slogans, language, acronyms, and sayings
Deliberate role modeling, training programs, teaching and
coaching
5. Explicit rewards, status symbols (e.g., titles),
and promotion criteria
6. Stories, legends, and myths about key people and events
7. The organizational activities, processes, or outcomes that
leaders pay attention to, measure, and control
8. Leader reactions to critical incidents and organizational
crises
9. The workflow and organizational structure
10. Organizational systems and procedures
11. 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

Types of Organizational
Culture
Constructive
Passive-defensive
Aggressive-defensive
Constructive : Employees are encouraged to interact with others.
Associated with achievement, self-actualizing, humanistic-encouraging, and affiliative

: Employees must interact with others in ways

that do not threaten their own job security.
Associated with approval, convention, dependent, and
avoidance.
Passive-defensive

Aggressive-defensive: Employees approach tasks in forceful ways to protect their

status and job security.
Associated with oppositional power, is competitive and perfectionistic

CULTURE : Example

8 Jungle Cruise skippers fired for

veering from the companys official script
and telling their own jokes to park
guests. Official Disney statement: We
entertain our guests with quality family
entertainment and put on
performances every day. Our goal is to
deliver a consistent quality show daily.
A week ago the Disney Co. ordered John
Magness, a 65-year-old Navy veteran, to
shave off the moustache he has worn for
more than 40 years to comply with
company grooming rules or be fired from

Wal-Marts 10-foot Rule

One of our secrets to customer service
is the 10-foot rule, handed down to us
by our founder, Sam Walton. During his
many store visits, he encouraged
associates to take a pledge with him: "I
want you to promise that whenever you
come within 10 feet of a customer, you
will look him in the eye, greet him, and
ask him if you can help him."
This pledge is what we call our "10foot attitude," and it was something
Sam had practiced since childhood.
From Walmart.com

Example :Contrasting Organizational

Cultures

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.

Summary and
Implications
Employees form an overall subjective
perception of the organization based on
such factors as degree of risk tolerance,
team emphasis, and support of people.

This overall perception becomes, in effect, the

organizations culture or personality.
These favourable or unfavourable perceptions then
affect employee performance and satisfaction, with the
impact being greater for stronger cultures.

Just as peoples personalities tend to be

stable over time, so too do strong cultures.

This makes strong cultures difficult for managers to

change.

Summary and
Implications
One of the more important managerial
implications of organizational culture
relates to selection decisions.

Hiring individuals whose values don't align with those of

the organization is not good.

An employee's performance depends to a

considerable degree on knowing what he
should or should not do.

Significantly correlated with

employee behavior and attitudes,
Organizational commitment, job
satisfaction, intention to quit, and
turnover Did not predict financial
performance.

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.

Provide protective mechanisms.

Employees need to be able to discuss ethical

dilemmas and report unethical behavior
without fear of punishment.

Creating An Ethical
Organizational Culture
Characteristics of Organizations that
Develop High Ethical Standards

High tolerance for risk

Low to moderate in aggressiveness
Focus on means as well as outcomes

Managerial Practices Promoting an

Ethical Culture

Being a visible role model

Communicating ethical expectations
Providing ethical training
Rewarding ethical acts and punishing unethical
ones
Providing protective mechanisms

How Organizational Cultures Have an Impact on

Performance and Satisfaction

Creating a CustomerResponsive Culture

Key Variables Shaping
Customer-Responsive
Cultures
1.

2.

3.

4.

5.

The types of employees hired by

the organization.
Low formalization: the freedom to
meet customer service
requirements.
Empowering employees with
decision-making discretion to
please the customer.
Good listening skills to understand
customer messages.
Role clarity that allows service
employees to act as boundary

Creating a Customer-Responsive Culture

(contd)

Managerial
ManagerialActions:
Actions:
Select
Selectnew
newemployees
employeeswith
withpersonality
personalityand
andattitudes
attitudes
consistent
consistentwith
withhigh
highservice
serviceorientation.
orientation.
Train
Trainand
andsocialize
socializecurrent
currentemployees
employeesto
tobe
bemore
more
customer
customerfocused.
focused.
Change
Changeorganizational
organizationalstructure
structureto
togive
giveemployees
employees
more
morecontrol.
control.
Empower
Empoweremployees
employeesto
tomake
makedecisions
decisionsabout
abouttheir
their
jobs.
jobs.

Creating a Customer-Responsive Culture

(contd)

Managerial
ManagerialActions
Actions(contd)
(contd): :
Lead
Leadby
byconveying
conveyingaacustomer-focused
customer-focusedvision
visionand
and
demonstrating
demonstratingcommitment
commitmentto
tocustomers.
customers.
Conduct
Conductperformance
performanceappraisals
appraisalsbased
basedon
on
customer-focused
customer-focusedemployee
employeebehaviors.
behaviors.
Provide
Provideongoing
ongoingrecognition
recognitionfor
foremployees
employeeswho
who
make
makespecial
specialefforts
effortstotoplease
pleasecustomers.
customers.

Spirituality and Organizational

Culture
Workplace Spirituality
The recognition that people have an inner life
that nourishes and is nourished by meaningful
work that takes place in the context of the
community.
Characteristics:
Characteristics:

Strong
Strongsense
senseofofpurpose
purpose
Focus
Focuson
onindividual
individualdevelopment
development
Trust
Trustand
andopenness
openness
Employee
Employeeempowerment
empowerment
Toleration
Tolerationofofemployee
employeeexpression
expression

Reasons for the

Growing Interest in
Spirituality

As a counterbalance to the pressures and stress

of a turbulent pace of life and the lack of
community many people feel and their increased
need for involvement and connection.

Formalized religion hasnt worked for many

people.

Job demands have made the workplace dominant

in many peoples lives, yet they continue to
question the meaning of work.

The desire to integrate personal life values with

ones professional life.

An increasing number of people are finding that

the pursuit of more material acquisitions leaves
them unfulfilled.