Organizational Culture

Organizational Culture is a system of shared beliefs and values that develop within an organization and guide the behavior of its members The way we do things around here. Basic assumptions, values, norms Implications: Culture is a perception. Culture is shared. Culture is descriptive.

 Sources of Organizational Culture

The organizations founder Vision and mission Past practices of the organization The way things have been done The behavior of top management Continuation of the Organizational Culture
Recruitment of like-minded employees who fit Socialization of new employees to help them adapt to the culture

Keeping Culture Alive

Sources of Organizational Culture

The organizations founder Vision and mission Past practices of the organization The way things have been done The behavior of top management Continuation of the Organizational Culture
Recruitment of like-minded employees who fit Socialization of new employees to help them adapt to the culture

Strong versus Weak Cultures

Strong Cultures

Are cultures in which key values are deeply held and widely held. Have a strong influence on organizational members. Factors Influencing the Strength of Culture Size of the organization Age of the organization Rate of employee turnover Strength of the original culture Clarity of cultural values and beliefs

Besides Organizational Culture

Organizational Culture

Managerial Discretion

Organizations Environment

The External Environment

Suppliers The Organization Public Pressure Groups Customers

Competitors

How Culture Affects Managers?

Plan - degree of risk that plans should contain Organize - degree of autonomy given to employees Lead - degree of concern for employees, style of leadership

Control - what criteria to use when evaluating performance

Corporate Culture: A Global Perspective

Corporate Culture is
1. Influenced by national culture and 2. Sustained by corporate leadership

What is corporate culture?

Corporate culture is a manifestation of the informally sanctioned corporate attitude. It is often referred to as Organizational DNA or the Organizational Soul. It is a fundamental contributor to the success or failure of corporate strategies.

Corporate Culture can evolve from

A leaders vision, policies, and actions Influential individuals or work groups Policies & Procedures (Careless, lax, or unclear)

People management philosophy (ignoring employee

harassment)

Employee work-ethic (hire for attitude; train for skill)

Organizational policies (no gifts from suppliers, casual

Fridays, etc.)

Corporate Culture is reflected in

A companys Values, business principles, and ethical standards preached and practiced by management Approaches to people management and problem solving Relationships with Shareholders, community, customers, suppliers, government agencies, etc. Entrenched attitudes toward people from different national cultures

The First Step on the Path to Implementing a Successful Global Strategy

Understanding the Relationship between National Culture and Corporate Culture Corporate Culture & National Culture Are Symbiotically Related

What is national culture?

National culture is the mental programming of a group of people. It is comprised of the values, customs, and belief systems shared by a particular group of individuals.

Cultural Understanding can translate to better Business Practices

Contributions of Geert Hofstede
He separated cultures into five dimensions: Power Distance

Individualism
Uncertainty Avoidance Masculinity Short and long-term orientation

Business Ethics:
It can be argued that some dimensions of business ethics are fluid. Cultural norms can differ between countries. What is unacceptable in one country may be perfectly acceptable in another. Thus A healthy corporate culture will encourage employees to observe, learn, and avoid passing judgment too quickly.

 Effective strategic leaders -Craft global strategies that nurture a healthy

corporate culture

Encourage employees to understand and appreciate other national cultures

Determination to nurture a healthy corporate culture Courage Self-confidence Integrity The capacity to deal with uncertainty and complexity A willingness to hold people (and themselves) accountable for their work

Cultural Core Concepts

Its not about Magic Its about Management

Corporate Culture Managements Responsibility

1. Corporate culture refers to the character of a companys internal work climate and personality.

2. In a strong-culture company, culturallyapproved behaviors and ways of doing things are nurtured while culturally-disapproved behaviors and work practices are discouraged.

3. In adaptive cultures, there is a spirit of doing what is necessary to ensure long-term organizational success. 4. Adaptive cultures are exceptionally well suited to companies with fast-changing strategies and market. 5. The tighter the culture-strategy fit, the more the culture steers company personnel into displaying behaviors and adopting operating practices that lead to successful strategy execution.

6. It is in managements best interest to dedicate considerable effort to building a corporate culture that encourages behaviors and work practices conducive to good strategy. 7. A companys culture is grounded in and shaped by its core values and the bar it sets for ethical behavior. 8. A multinational company needs to build its corporate culture around values and operating practices that travel well across borders.