1. Organizational Culture

2. 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.

3. 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.

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

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

6. 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.

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

8. 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

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

10. 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.

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

12. 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

13. 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

14. 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.

15. 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

16. 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.

17. 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.

18. 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

19. 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