Organizational Culture

What is culture? Culture is the set of key values, assumptions, understandings and norms that is shared by members of an organization and taught to new members as being correct. It is the character or personality of an organization. It is how an organization “feels”. It is important to consider culture while managing change in the organization.

Creating Corporate Culture The ultimate source of an organization’s culture is its founders. Culture creation occurs in three ways: Employer hires and keeps employees with the same thinking They indoctrinate and socialize employees with the organization’s thinking The founder’s behaviour acts as a role model for employees With success, the founder’s personality is embedded in the organizational culture.

The Power of Culture A supportive culture: Leaders now understand that when a company’s culture supports their strategy, employees can create a uniquely competitive organization. A supportive culture: gives employees an organizational identity and a commitment to particular values and ways of doing things guides members on how to respond to the external environment

Characteristics of Organizational Culture Innovation and Risk Taking Attention to Detail Outcome Orientation

Characteristics Cont’d Team Orientation Aggressiveness People Orientation Stability

Sustaining Organizational Culture Three forces play a particularly important part in sustaining a culture: Selection Process Actions of Top Management Socialization Methods

How Organization cultures form Top Management Philosophy of Organization’s Founder Selection Criteria Organization Culture Socialization

Creating an Ethical organizational culture The content and strength of a culture influence an organization’s ethical climate and the ethical behavior of its member. Example: High in risk tolerance Low to moderate in aggressiveness Focuses on means as well as outcomes