BA 5201 Organization and Management Organizational culture Instructor: Ça ğ rı Topal 1

Organizational culture The pattern or configuration of the two levels of observable indicators and unobservable forces that orients or directs organizational members to manage problems and their surroundings Tacit understanding Consistency and predictability in interpretations and behaviors 2

Formation of organizational culture Schein’s stages Whether the organization can create and preserve the kind of culture needed to survive Stages Dependency and authority Confrontation of intimacy, role differentiation, and peer relationships Creativity and stability Growth and survival 3

Formation of organizational culture Scholz’s Typology Culture develops along three dimensions Cultures is a product of time, internal organizational characteristics, and external environmental conditions Dimensions Evolutionary Internal External 4

Formation of organizational culture Fombrun’s levels Culture is shaped by forces operative at three levels Levels Societal Industrial Organizational 5

Formation of organizational culture Louis’ multiple cultures Organizations are not simply a single monolithic culture Subcultures exist at different levels and in different departments Pressures exist for different cultures to emerge 6

Effect of national culture Hofstede’s dimensions Individualism vs. collectivism Low vs. high uncertainty avoidance Masculinity vs. femininity Low vs. high power distance Short- vs. long-term time orientation 7

Thick vs. thin organizational cultures Measure of a culture’s strength Thick if a culture is widespread and accepted throughout the organization Thin if a culture is not widely held and not accepted throughout the organization 8

Cultural indicators\manifestations Rites, rituals, and ceremonies Symbols and slogans Language Myths and stories Physical environment Physical structure Physical stimuli Symbolic artifacts 9

Effects of organizational culture Direction Pervasiveness Strength Flexibility Commitment 10

Cultural change in organizations Natural or planned Approaches Top-down Bottom-up 11