1. Organizational Culture

2. 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.

3. 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.

4. 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

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

6. Characteristics Cont’d
Team Orientation
Aggressiveness
People Orientation
Stability

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

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

9. 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