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Republic of the Philippines

Laguna State Polytechnic University

San Pablo City Campus
Del Remedio, San Pablo City, Laguna


Course Code: COGNATE 208

Address : 442 Cale Tanauan City Batangas
Contact # : 09778564005
E-mail add: charmaine_pastor29@yahoo.com

Definition of Organizational Culture

A system of shared meaning held by members that distinguishes the organization from
other organizations
A pattern of basic assumptions that are considered valid and taught to new members as
the way to perceive , think and feel in the organization

Levels of Organizational Culture

Artifacts symbols of culture in the physical and social work environments.
Examples: Personal Enactment, Ceremonies and rites, stories, rituals and
Values are the second, deeper, level of culture; reflect a person’s beliefs of what should
or should not be.
Espoused values- what members of organization say they value
Enacted values- Values reflected in the way individuals actually behave
Assumptions are deeply held beliefs that guide behavior and tell members of an
organization how to perceive situations and people.

Functions of Organizational Culture

1. Culture provides a sense of identity to members and increases their commitment to
the organizations
2. Culture provides a way for employees to interpret the meaning of organizational
3. Culture reinforces the values of organization
4. Culture serves as a control mechanism for shaping behavior.

The Relationship of Culture to Performance

John Kotter and James Heskett have reviewed three theories about the relationship
between organizational culture and performance and evidence that either supports or refutes
these theories.
The Strong Culture Perspective
States that organizations with strong cultures perform better than other organizations. A strong
culture is organizational culture with a consensus on the values that drive the company and with
an intensity that is recognizable even to outsiders.
The Fit Perspective
Argues that a culture is good only if it fits the industry or the firm’s strategy. For example, a
culture that values a traditional hierarchical structure and stability would not work well in the
computer manufacturing industry, which demands fast response and a lean, flat organization.
The Adaptation Perspective
Its theme is that only cultures that help organization adapt to environmental change are
associated with excellent performance. An adaptive culture is a culture that encourages
confidence and risk taking among employees, has leadership that produces change and
focuses on the changing needs of customers.

Changing Organizational Culture

Changing an organization’s culture is one of the most difficult leadership challenges.
That’s because an organization’s culture comprises an interlocking set of goals, roles,
processes, values, communications practices, attitudes and assumptions.

What is Globalization?
Globalization is the free movement of goods, services and people across the world in a
seamless and integrated manner.
Globalization means to increase their base of operations, expand their workforce with
minimal investments, and provide new services to a broad range of consumers

Globalization in Organizational Culture

As organizations have become more global , their work force has become culturally
Globalization has created a large shift in organizational behaviour as increasing diversity
has brought together people of different backgrounds with different values, cultures and beliefs
all working together for common objective.

Work Diversity
Organizations are becoming more and more heterogeneous.
One of the most important and broad based challenges currently facing organization is
adapting people who are different.
Diversity, if positively managed, can increase creativity and innovation in the

Technological Innovation
Technological innovation requires a technical preparation in material, financial and
human resources. However, without a clear corporate culture, the technical side of technological
innovation will hardly develop in a satisfactory manner.