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Structure
Notes for EM416 and EA302
What do we mean by Organizational Culture?
• It is the system of shared beliefs and Values. According to
Edgar Schein, organizational culture or corporate culture, is
a system of shared beliefs and values that develops within
an organization and guides the behavior of its members.
This is the “social glue” that binds the organization together.
It can vary considerably with different organizations having
different emphases on risk taking, treatment of employees,
team spirit and rewards.
What do we mean by organizational
structure?
• Core values- core beliefs, those that are taken for granted and
difficult to change
How do employees learn the culture?
• Symbols- which convey its most important values
• Stories- are told and retold about incidences of the past
in the organization
• Heroes- persons whose accomplishments embody the
values of the organization
• Rites and Rituals- activities and ceremonies, planned and
unplanned that celebrate important occasions and
accomplishments of the organization
The importance of culture
• It gives members an organizational identity
• It facilitates collective commitment
• It promotes social-system stability
• It shapes behaviour by helping employees make
sense of their surroundings
Three Types of Organizational Structure