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Organizational Culture

Components, function and examples

rational. . normal. etc. valuable.What is Organizational Culture? • A system of meaning shared by the organization’s members • Cultural values are collective beliefs. assumptions. and feelings about what things are good.

Aspects of culture Values Symbols Customs Language .

Stories Rituals How Employees Learn Culture/ How it is “reinforced” Material Symbols Language .

How Organizational Cultures Form Philosophy of the Organization’s Founders: Bill Gates Top Management Selection Organizational Culture Socialization .

Cultural Diversity Why doesn’t McDonald’s sell hamburgers in India? .

collectivism •Uncertainty avoidance •Masculinity vs.Culture and the workplace (Hofstede) • Purpose: understanding of business situations across-cultures • MUST understand own culture AND other culture(s) •Geert Hofstede–sampled 100.000 IBM employees 1963-1973 •Compared employee attitudes and values across 40 countries Isolated 4 dimensions summarizing culture: •Power distance •Individualism vs. feminity .

Inc. .Oakley.’s headquarters symbolizes a corporate culture in which employees believe they are at war with competitors.

Examples of few culture •Innovation and risk taking (3M) •Outcome orientation (Bausch & Lomb) •Aggressiveness (Microsoft) .

Importance of Organizational Culture • Talent attractor • Talent –Retainer • Engages People • Creates energy and momentum • Changes the view of work • Creates greater Synergy .

Some of the bases of the differentiation are presented here: • Strong Vs weak culture • Soft Vs hard culture • Formal Vs informal culture . It is these variances that differentiate one organization from the others.Types of Organizational Culture Organizational culture can vary in a number of ways.

. It is like an extended family. Procedures govern what people do.Types of Cultures • The Clan Culture: A very friendly place to work where people share a lot of themselves. • The Hierarchy Culture: A very formalized structured place to work.

and creative place to work. • The Market Culture: A results oriented organization whose major concern is with getting the job done. .Types of Culture • The Adhocracy Culture: A dynamic entrepreneurial. People stick their necks out and take risks. People are competitive and goal-oriented.

Culture’s Overall Function Culture is the social glue that helps hold an organization together by providing appropriate standards for what employees should say or do. .

• Culture provides a sense of identity to members and increases their commitment to the organization • Culture is a sense-making device for organization members • Culture reinforces the values in the organization • Culture serves as a control mechanism for shaping behavior .