Organizational Culture

What Is Organizational Culture? A common perception held by the organization’s members; a system of shared meaning. Characteristics: Innovation and risk taking Attention to detail Outcome orientation People orientation Team orientation Aggressiveness Stability

What is Organizational Culture??? Organizational culture is defined as “A pattern of shared basic assumptions invented, discovered, or developed by a given group as it learns to cope with its problems of external adaptation and internal integration" that have worked well enough to be considered valid and therefore, to be taught to new members as the correct way to perceive, think and feel in relation to those problems”

Organizational culture is a commonly held –in-the-mind framework of organizational members. This framework contains basic assumptions and values. These basic assumptions and values are taught to new members as the way to perceive, think, feel, behave, and expect others to behave in the organization.

Organizational culture is developed over time as people in the organization learn to deal successfully with problems of external adaptation and internal integration. It becomes the common language and the common background. So culture arises out of what has been successful for the organization.

Organizational culture is a collection of values, norms and behaviour, shared by workers that control the way workers interact with each other. Organizational culture is a set of shared mental assumptions that guide interpretation and action in organizations by defining appropriate behavior for various situations.

Do Organizations Have Uniform Cultures? Dominant Culture Expresses the core values that are shared by a majority of the organization’s members. Subcultures Minicultures within an organization, typically defined by department designations and geographical separation.

Do Organizations Have Uniform Cultures? Core Values The primary or dominant values that are accepted throughout the organization. Strong Culture A culture in which the core values are intensely held and widely shared.

What Is Organizational Culture? 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 organization’s culture.

What Do Cultures Do? Culture’s Functions: Defines the boundary between one organization and others. Conveys a sense of identity for its members. Facilitates the generation of commitment to something larger than self-interest. Enhances the stability of the social system. Serves as a sense-making and control mechanism for fitting employees in the organization.

What Do Cultures Do? Culture as a Liability: Barrier to change Barrier to diversity Barrier to acquisitions and mergers

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, values, and assumptions.

Keeping Culture Alive Selection Top Management Socialization 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 organization’s culture.

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.

A Socialization Model

How Organization Cultures Form

How Employees Learn Culture Stories Rituals Material Symbols Language

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

Hofstede’s Framework Power Distance Individualism vs. Collectivism Masculinity vs. Femininity Uncertainty Avoidance Long-term and Short-term orientation

Hofstede’s Framework for Assessing Cultures Power Distance The extent to which a society accepts that power in institutions and organizations is distributed unequally. Low distance: relatively equal power between those with status/wealth and those without status/wealth High distance: extremely unequal power distribution between those with status/wealth and those without status/wealth

Hofstede’s Framework Individualism The degree to which people prefer to act as individuals rather than a member of groups. Collectivism A tight social framework in which people expect others in groups of which they are a part to look after them and protect them. Vs.

Hofstede’s Framework Masculinity Femininity The extent to which the society values work roles of achievement, power, and control, and where assertiveness and materialism are also valued. Vs. Femininity The extent to which there is little differentiation between roles for men and women.

Uncertainty Avoidance Hofstede’s Framework Uncertainty Avoidance The extent to which a society feels threatened by uncertain and ambiguous situations and tries to avoid them. High Uncertainty Avoidance: Society does not like ambiguous situations & tries to avoid them. Low Uncertainty Avoidance: Society does not mind ambiguous situations & embraces them.

Hofstede’s Framework Long-term Orientation A national culture attribute that emphasizes the future, and persistence. Vs. Short-term Orientation A national culture attribute that emphasizes the present and the here and now.