The Organizations Culture

Organizational Culture
A system of shared meanings and common beliefs
held by organizational members that determines, in a
large degree, how they act towards each other.
The way we do things around here.
Values, symbols, rituals, myths, and practices
Implications:
Culture is a perception.
Culture is shared.
Culture is descriptive.
Which companies come to your mind when
you look at the following characteristics ?
What Do Cultures Do?
Cultures Functions
1. Defines the boundary between one organization
and others
2. Conveys a sense of identity for its members
3. Facilitates the generation of commitment to
something larger than self-interest
4. Enhances the stability of the social system
5. Serves as a sense-making and control mechanism
for fitting employees in the organization
How is Culture Ingrained
Negatives of Culture
Barrier to change
Occurs when cultures values are not aligned with the
values necessary for rapid change
Barrier to diversity
Strong cultures put considerable pressure on
employees to conform, which may lead to
institutionalized bias
Barrier to acquisitions and mergers
Incompatible cultures can destroy an otherwise
successful merger
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
Benefits of a Strong Culture
Creates a stronger employee commitment to the
organization.
Aids in the recruitment and socialization of new
employees.
Fosters higher organizational
performance by instilling and
promoting employee initiative.
Organizational Culture
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
How Culture Begins
Stems from the actions of the founders:
Founders hire and keep only employees who think
and feel the same way they do.
Founders indoctrinate and socialize these
employees to their way of thinking and feeling.
The founders own behavior acts as a role model
that encourages employees to identify with them and
thereby internalize their beliefs, values, and
assumptions.
How Employees Learn Culture
Stories
Narratives of significant events or actions of people that convey
the spirit of the organization
Rituals
Repetitive sequences of activities that express and reinforce the
values of the organization
Material Symbols
Physical assets distinguishing the organization
Language
Acronyms and jargon of terms, phrases, and word meanings
specific to an organization
Stages in the Socialization Process
Prearrival
The period of learning prior to a new employee joining
the organization
Encounter
When the new employee sees what the organization
is really like and confronts the possibility that
expectations and reality may diverge
Metamorphosis
When the new employee changes and adjusts to the
work, work group, and organization
Socialization Program Options

Choose the appropriate alternatives:

Formal versus Informal
Individual versus Collective
Fixed versus Variable
Serial versus Random
Investiture versus Divestiture

Socialization Outcomes:
Higher productivity
Greater commitment
Lower turnover
How an Organizations Culture Is Established
and Maintained
Organization Culture Issues
Creating an Ethical Creating an Innovative
Culture Culture
High in risk tolerance Challenge and
Low to moderate involvement
aggressiveness Freedom
Focus on means as Trust and openness
well as outcomes Idea time
Playfulness/humor
Conflict resolution
Debates
Risk-taking
Suggestions for Managers: Creating a More Ethical Culture

Be a visible role model.

Communicate ethical expectations.
Provide ethics training.
Visibly reward ethical acts and punish unethical
ones.
Provide protective mechanisms so employees can
discuss ethical dilemmas and report unethical
behavior without fear.
Hofstedes Framework for Assessing
Cultures

319
Hofstedes Framework (contd)

320
Hofstedes Framework (contd)

321
Hofstedes Framework (contd)

322
Hofstedes Framework (contd)

323
 Assertiveness
Assertiveness
Future
FutureOrientation
Orientation
The GLOBE Gender
Genderdifferentiation
differentiation
Framework Uncertainty
Uncertaintyavoidance
avoidance
for Power
Powerdistance
distance
Assessing
Individual/collectivism
Individual/collectivism
Cultures
In-group
In-groupcollectivism
collectivism
Power
Powerorientation
orientation
Humane
Humaneorientation
orientation
EXHIBIT 3-4

324