Chapter 16

Organizational Culture
Sydney Taylor MGNT 3165 - MGNT of Organization

OBJECTIVES LEARNING

After studying this chapter, you should be able to:

1. Define organizational culture and describe its common characteristics.
2. Compare the functional and dysfunctional effects of organizational culture on people and the organization. 3. Identify the factors that create and sustain an organizations culture.

4. Show how culture is transmitted to employees.

5. Demonstrate how an ethical culture can be created.
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O B J E C T I V E S (contd) LEARNING

After studying this chapter, you should be able to:

6. Describe a positive organizational culture.
7. Identity characteristics of a spiritual culture. 8. Show how national culture may affect the way organizational culture is transported to a different country.

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What Is Organizational Culture?

Organizational Culture
A common perception held by the organizations members; a system of shared meaning. Characteristics:
1. Innovation and risk taking 2. Attention to detail 3. Outcome orientation 4. People orientation 5. Team orientation 6. Aggressiveness

7. Stability

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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.

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What Do Cultures Do?

Culture as a Liability:
1. Barrier to change - Difficult to respond 2. Barrier to diversity - Creates a paradox

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How Culture Begins

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.

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Keeping Culture Alive

Selection
Concern with how well the candidates will fit into the organization. Provides information to candidates about the organization.

Top Management
Senior executives help establish behavioral norms that are adopted by the organization.

Socialization
The process that helps new employees adapt to the organizations culture.

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How Employees Learn Culture

Stories

Rituals
Material Symbols Language

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Creating An Ethical Organizational Culture

Characteristics of Organizations that Develop High Ethical Standards
High tolerance for risk Low to moderate in aggressiveness Focus on means as well as outcomes

Managerial Practices Promoting an Ethical Culture

Being a visible role model. Communicating ethical expectations. Providing ethical training. Rewarding ethical acts and punishing unethical ones. Providing protective mechanisms.
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Spirituality and Organizational Culture

Workplace Spirituality The recognition that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of the community. Characteristics:
Strong sense of purpose Focus on individual development Trust and openness Employee empowerment Toleration of employee expression
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