Organizational Culture

Organizational culture Set of key characteristics that the organization values that distinguishes the organization from other organizations

Characteristics of Organizational Culture Innovation and risk taking Attention to detail Outcome orientation People orientation Team orientation Aggressiveness Stability

Culture is a Descriptive Term Organizational culture is concerned with how employees perceive the seven characteristics of an organization’s culture, not whether or not they like them

Do Organizations Have Uniform Cultures? A dominant culture expresses the core values that are shared by a majority of the organization’s members Subcultures tend to develop in large organizations to reflect common problems, situations, or experiences that members face Core values-основные ценности Dominant-доминирующий Tend-тенденция Reflect-размышлять

Strong vs. Weak Cultures In a strong culture, the organization’s core values are both intensely held and widely shared Strong cultures will: Have great influence on the behavior of its members Result in lower employee turnover Intensely held-сильно проведенный Turnover-товарооборот

Organizational Culture vs. National Culture National culture has a greater impact on employees than does their organization’s culture Expect that organizations hire employees who are a good fit with the organization’s dominant culture even though they may not fit the national culture Fit-пригодный Hire-наём

Culture’s Functions Boundary-defining role Conveys a sense of identity Facilitates the generation of commitment Enhances social system stability Sense-making and control mechanism Boundary-defining role -Граница определяющая роль Conveys a sense of identity-Передавать чувство идентичности

Culture as a Liability Shared values do not agree with organization’s effectiveness Dilemma of hiring a diverse workforce but wanting people to fit into a single culture Cultural incompatibility in mergers and acquisitions Shared values-разделенные ценности Diverse workforce-Разнооб- разная рабочая сила Incompatibility-несовместимость Merger-слияние компании Acquisitions-приобретения

How a Culture Begins Ultimate source of an organization’s culture is its founders Culture is created in three ways: Founders hire and keep those who think and feel the same way they do They indoctrinate and socialize these employees to their way of thinking and feeling Their behavior acts as a role model encouraging employees to identify with them Indoctrinate-ознакомить encouraging-ободрить

How Organization Cultures Form

How Employees Learn Culture Stories Rituals Material Symbols Language

Managing Cultural Change Cultural change is most likely to take when the following conditions exist: Dramatic crisis exists or is created Turnover in leadership Young and small organization Weak culture

Creating an Ethical Organizational Culture Be a visible role model Communicate ethical expectations Provide ethical training Visibly reward ethical acts and punish unethical ones Provide protective mechanisms

Managerial Action to Make Culture More Customer Responsive Selection Training Structural design Empowerment Leadership Performance evaluation Reward systems

Implications for Managers Create the culture you want when the organization is small If established culture needs to be changed, expect it to take years