Organizational Culture

Definition Culture is the unique dominant pattern of shared beliefs, assumptions, values, and norms that shape the socialization, symbols, language and practices of a group of people. The attitudes and approaches that typify the way staff carry out their tasks. Culture is developed and transmitted by people, consciously and unconsciously, to subsequent generations.

What must be for culture to exist? It must be shared by the vast majority of members of a group or society; It must be passed on from generation to generation; and It must shape behaviour and perceptions.

Cultural iceberg Observable elements of culture Practices Language Symbols Norms Values Assumptions Not observable

Shared assumptions Shared assumptions are the thoughts and feelings that members of a culture take for granted and believe to be true.

Values and norms Values are the basic beliefs people hold that specify general preferences and behaviours, and define what is right and wrong. Cultural values are reflected in a society’s morals, customs and established practices Norms are rules that govern behaviours of groups of people.

Symbols A symbols is any visible object, act, or event that conveys meaning to others. Examples: Artefacts Dress Office layout Slogans ceremonies

Language Language is a shared system of vocal sounds, written signs, and/or gestures used to convey meaning among members of a culture. The Nike swoosh was inspired by the Greek goddess Nike, the winged goddess of victory. The swoosh symbolizes her flight. It conveys the meaning of a brand of sports shoes

Practices Practices are observable cultural customs such as taboos (culturally forbidden behaviours) and ceremonies

Socialization Socialization is the process by which people lean valves, norms, behaviours and social skills. It is the means by which new members are brought into a culture.

Types of organizational culture The basic types of organizational culture are: Bureaucratic Clan Market Entrepreneurial

Bureaucratic Culture In this type of culture the behaviour of employees is governed by formal rules and standard operating procedures. Such a culture perpetuates stability. Organizations with bureaucratic culture tend to produce standardized goods and services, examples: Government ministries Fast food establishments

Clan Culture In a clan culture the behaviour of individuals are shaped by tradition, loyalty, personal commitment, extensive socialization and self-management. A clan culture achieve unity through socialization. Long-term employees serve as mentors Members are aware of the organization’s history and have an understanding of the expected manner of conduct and organizational style. Members share feelings of pride in membership. Peer pressure to adhere to important norms is strong

Market Culture In a market culture, the values and norms reflect the significance of achieving measurable and demanding goals mainly concerning those that are financial and market based. Companies with a market culture tend to focus on: Sales growth Profitability Market share In a market culture the relationship between individuals and the organization is contractual (previously agreed). Individuals are responsible for their performance; whereas the organization promises specific rewards for levels of performance. Managers are not judge on their effectiveness as role models or mentors; but on monthly, quarterly, and annual performance goals based on profit.

Entrepreneurial Culture Organizations existing in the context of an entrepreneurial culture are characterized by high levels of risk taking and creativity. There is a commitment to experimentation, innovation, and being on the leading edge. Steve Jobs – Apple

Relationship between culture and organizational performance Organizational culture has the potential to enhance organizational performance, individual satisfaction, the sense of certainty about how problems are to be handled. Culture serves as a control mechanism to channel behaviour towards desired behaviours and to prevent undesired behaviours.

Building a strong organizational culture A common behavioural style must be shared by managers and employees. Have the same basic approaches to solving problems, meeting goals, and dealing with stakeholders. Have share common norms that guide rule governing rewards and punishment. A strong organizational culture assists in the creation of a stable organization, the consequence of which lead to the achievement of the company’s strategic goals.

Steps to building a strong organizational culture - socialization Careful selection Step 1 Challenging early work assignments Step 2 Training to develop capabilities with culture Step 3 Reward and sustain culture Step 4 Adoption of cultural value policies Step 5 Reinforce culture with ritual, stories rites Step 6 Role model to sustain culture Step 7

Outcomes of socialization process Successful socialization Unsuccessful socialization Job satisfaction Role clarity High work performance Understanding of culture Commitment to organization Internal values Job dissatisfaction Role ambiguity and conflict Misunderstanding, tension, and perceived lack of control Low job involvement Low performance Rejection of values