Organizational Culture

Introduction
Culture of any organization is hard to
measure precisely
It is recognized by the employees
Organizational culture governs how things
are done and way members are supposed to
behave
Do not confuse organizational culture with
job satisfaction
Organizational culture is descriptive whereas
job satisfaction is evaluative

Definition
Organizational Culture refers to a
system of shared meaning held by
members that distinguishes the
organization from other organizations
System of shared meaning is a set of
key characteristics that the
organization values
7 primary characteristics capture the
essence of an organizational culture

Definition
Innovation and risk taking
Degree to which employees are encouraged to
be innovative and risk takers

Attention to detail
Degree to which employees are expected to
exhibit precision, analysis and attention to detail

Outcome orientation
Degree to which management focuses on results
or outcomes rather than on the techniques and
processes used to achieve those outcomes

Definition
People orientation
Degree to which management decisions take into
consideration the effect of outcomes on people within the
organization

Team orientation
Degree to which work activities are organized around
teams rather than individuals

Aggressiveness
Degree to which people are aggressive and competitive
rather than easygoing

Stability
Degree to which organizational activities emphasize
maintaining the status quo in contrast to growth

Do Organizations Have Uniform

Cultures?
Culture is a system of shared meaning
Individuals at different levels and with
different backgrounds tend to describe OC
in similar terms
Most organizations have a dominant
culture and numerous sets of subcultures
Dominant culture expresses shared core
values and gives an organization its
distinct personality

Strong vs Weak Culture

In strong OC organizations core values are intensely held
and widely shared
The more members accept the core values and the
greater their commitment to those values, the stronger
the culture
In strong OC there is high degree of sharedness and
intensity which creates an internal climate of high
behavioural control
There is lower employee turnover as there is high
agreement amongst members about what the
organization stands for
The unanimity of purpose builds cohesiveness, loyalty
and organizational commitment

What do cultures do?

Cultures Functions
Creates distinction between one organization and
another
Conveys sense of identity for organization members
Facilitates generation of commitment to something
larger than ones individual self-interest
Enhances stability of social system within the
organization
Serves as a sense making and control mechanism
that guides and shapes attitude and behaviour of
employees

What do cultures do?

Culture as a Liability
Barriers to change: When an organizations environment
is undergoing rapid change an organizations
entrenched culture may no longer be appropriate

Barriers to diversity
Management wants new employees to accept
organizations core cultural values so that they fit in at
the same time they want to acknowledge and
demonstrate support for the differences that these
employees bring to the workplace
Diverse behaviours and strengths are likely to diminish
in strong cultures as people attempt to fit in

Creating and Sustaining

Culture
An organizations culture does not
pop out of thin air
What forces influence the creation of
a culture?
What reinforces and sustains these
forces once they are in place?

Creating and Sustaining

Culture
Top Management
The actions of the top management have a major impact on the
organizations culture
Through what they say and how they behave senior management
establishes norms that filter down through the organization

Socialization
Organizations have to help new employees adapt to its cuture
Employees who fail to learn the essential or pivotal role
behaviours risk being labeled nonconformists or rebels which
may lead to expulsion
Socialization comprises of three stages: pre-arrival, encounter
and metamorphosis
Socialization can be formal or informal, individual or collective,
serial or random, investiture or divestiture

How Employees Learn

Culture?
Culture is transmitted to employees in a
number of forms
Stories circulate through many organizations
e.g., rule breaking, reduction in workforce
reactions to past mistakes, etc.
Rituals: repetitive sequence of activities that
express and reinforce the key values of the
organization
Material symbols
Language: developing unique terms to describe
several things

Creating an Ethical Organizational

Culture
Management can do the following to create a
more ethical culture:
Be a visible role model. Senior management must
take ethical high road
Communicating ethical expectations. Ethical
ambiguities can be minimized by creating and
disseminating an organizational code of ethics
Provide ethical training
Visibly reward ethical acts and punish unethical ones
Provide protective mechanisms to discuss ethical
dilemmas and report unethical behaviour without
fear of reprimand

Creating a Positive Organizational

Culture
A positive organizational culture is defined as a
culture that emphasizes building on employee
strengths, rewards more than it punishes and
emphasizes individual vitality and growth
Workers must be shown how to capitalize on their
strengths and make the most of them
Focusing on pay and promotions is important but
power of smaller and cheaper rewards like praise is
also high. Managers must catch employees doing
something right
Employees career aspirations must be treated as
important