ORGANIZATIONAL

CULTURE IN
BASIC AND
HIGHER
EDUCATION
Presented by:
Jay-R M. Ballon, MAIE

What is Organizational Culture?

Culture is how organizations do things.
- Robbie Katanga
In large part, culture is a product of compensation.
- Alec Haverstick
Organizational culture defines a jointly shared description of
an organization from within.
- Bruce Perron
Organizational culture is the sum of values and rituals which
serve as glue to integrate the members of the organization.
- Richard Perrin

Cont
Organizational culture is civilization in the workplace.
- Alan Adler
Culture is the organizations immune system.
- Michael Watkins
Organizational culture [is shaped by] the main culture of the
society we live in, albeit with greater emphasis on particular parts
of it.
- Elizabeth Skringar
it over simplifies the situation in large organizations to assume
there is only one culture and its risky for new leaders to ignore
the sub-cultures.
- Rolf Winkler

Definition of Organizational Culture

a pattern of shared basic assumptions that
the group learned as it solved its problems
of
external
adaptation
and
internal
integration, that has worked well enough to
be considered valid and, therefore, to be
taught to new members as the correct way
to perceive, think, and feel in relation to
those problems.
Edgar Schein of MIT Sloan School of Management

Definition of Organizational Culture

Organizational or corporate culture is the
system of shared actions, values, and beliefs
that develops within an organization and
guides the behavior of its members.

Functions of Organizational Culture

Through their collective experience members of an
organization can solve two extremely important
survival issues.
First issue of external adaptation: what precisely needs
to be accomplished, and how can it be done?
EXTERNAL ADAPTATION deals with reaching goals,
the task to be accomplished, methods used to achieve
the goals, and the methods of coping with success and
failure.
Organizational members need to know the real mission
of the organization, not just pronouncement to key
constituencies, such as stockholders.

Cont
The second issue know as internal integration: how do
members resolve daily problems associated with living
& working together?
INTERNAL INTEGRATION deals with the creation of
a collective identity and with ways of working and living
together.
Three important aspects of working together are:
1. Deciding who is a member of the group and who is not
2. Developing an informal understanding of acceptable
and unacceptable behavior, and
3. Separating friends from enemies.

Subcultures and Countercultures

Subcultures are groups who exhibit unique
patterns of values and philosophies not
consistent with the dominant culture of the
larger organization or system.
Countercultures are groups where the
patterns of values and philosophies outwardly
reject those of the organization or social
system.

National Culture &

Corporate Culture
Most organizations originate in one natural
culture and incorporate many features from
this host national culture even when they
expand internationally.
MULTICULTURAL ORGANIZATION is a firm
that values diversity but systematically works
to block the transfer of societally based
subcultures into the fabric of the organization.

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Understanding Organizational
Cultures
Layers of Cultural Analysis
The first layer is Observable culture is the way things are
done in an organization.

Three level of analysis in

studying organizational
culture.

Shared Values
Second layer recognizes that shared values can play a
critical part in linking people together and can provide
a powerful motivation mechanism for members of the
culture.

Consultants suggest that organization should develop a

dominant and coherent set of shared values

Shared in cultural analysis implies that the group is a

whole.

Cultural Assumptions
Third layer of cultural analysis are common
cultural assumptions; these are the taken-forgranted truths that collections of corporate
members share as a result of their joint
experience.
It is often extremely difficult to isolate these
patterns, but doing so helps explain why culture
invades every aspect of organizational life.

Two Major Assumptions of

Organizational Culture
BELIEFS are assumptions about reality and
are derived and reinforced by experiences.
VALUES are assumptions about ideals that
are desirable and worth striving for.

When beliefs and values are shared in an

organization, they create a corporate culture.
- (Azhar, 2003)

STORIES, RITES, RITUALS &

SYMBOLS
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
distinguish the organization

physical

assets

LANGUAGE acronyms and jargon of terms,

phrases, and word meanings specific to an
organization.

SAGA is an embellished heroic account of

accomplishment.
RITES are standardized and recurring
activities used at special times to influence
the behaviors and understanding of
organizational members.
CULTURAL SYMBOLS is any object, act,
or event that serves to transmit cultural
meaning.

Shared Values, Meanings, &

Organizational Myths
SHARED VALUES help turn routine activities
into valuable and important actions, tie the
corporation to the important values of society, and
possibly provide a very distinctive source of
competitive advantage.
By linking values and actions, the organization
taps into some of the strongest and deepest
realms of the individual. The task a person
performs are given not only meaning but also
value.
What one does is not only workable but correct,
right and important

STRONG CULTURE
A widely shared real understanding of what the firm stands
for, often embodied in slogans.
A concern for individuals over rules, policies, procedures, and
adherence to job duties.
A recognition of heroes whose actions illustrate the
companys shared philosophy an concerns.
A belief in ritual and ceremony as important to members and
to building a common identity.
A well-understood sense of the informal rules and
expectations so that employees and managers understand
what is expected of them
A belief that what employees and managers do is important
and that it is important to share information and ideas.

Shared Meanings
SHARED MEANINGS
As with a strong culture, shared meanings
and perceptions can be a double edged
sword.
Deeper shared perception can provide
managers with a common base for decision
making to develop an effective organization.

Organizational Myths
ORGANIZATIONAL MYTHS is a commonly held cause-effect
relationship or assertion that cannot be support empirically.
Three common myth:

First myth is the presumption that at least

senior management has no risk bias.
Second myth is the presumption
administrative competence.
Third myth is the denial of trade-offs.

of

Degree to which
employees are
encourage to be
innovative
to
Degree and
to which
take
risk
employees
are

expected to
exhibit precision,
Degree
to which
analysis,
and
managers
focus
attention
to detail
on results or
outcomes rather
than on how
these outcomes
are achieved.

Degree to which
work is organized
around teams
rather
than to which
Degree
individuals
employees are

aggressive and
competitive
Degree
rather
than to which
management
cooperative
decisions take
into account the
Degree
to which
effects
on people
organizational
in the
decisions and
organization
actions
emphasize
maintaining the

Sources of
Organizational Culture
The organizations founder (vision and
mission)
Past practices of the organization (the
way things have been done, traditional)
The behavior of top management

Influences on the Development of

an Institutions Culture
The culture and structure of an
organization develop over time and in
response to a complex set of factors.
There a number of key influences that
are likely to play an important role in the
development of any corporate culture.
According to Chatman and Cha (1994),
these include

History The reason

and manner in which
the organization was
originally formed, its
age,
and
the
philosophy and values
of its owners and
senior managers will
affect culture.

Primary Function and Technology The nature

of the organizations business and its primary
function have an important influence on its
culture. This includes the range and quality of
products and services provided, the importance of
reputation and the type of customers. The primary
function of the institution will determine the
nature of the technological processes and
methods of undertaking work, which in turn also
affect structure and culture.

Strategy The organization must give

attention to objectives in all its key
areas of operations. The combination
of objectives and resultant strategies
will influence, and may itself be
influenced by culture.

Size Usually larger institutions have more

formalized
structures
and
cultures.
Increased size is likely to result to separate
departments
and
possibly
split-site
operations. A rapid expansion, or decline, in
size and rate of growth, and resultant
changes in staffing will influence structure
and culture.

Location
Geographical
location
and
physical
characteristics can have a
major influence on culture. For
example whether an institution
is located in a quiet rural
location or a busy city centre
can influence the types of
customers (students) and the
staff employed. Location can
also affect the nature of
services (courses) offered by
an institution.

Management and Leadership

Top
executives
can
have
considerable influence on the
nature
of
corporate
culture.
However, all members of staff help
shape the dominant culture of an
institution, irrespective of what
senior management feels it should
be. Culture is also determined by
the nature of staff employed and
the extent to which they accept
management
philosophy
and
policies or pay only lip service

The environment In order to be

effective, the institution must be
responsive to external environmental
influences.

Strong vs. Weak Cultures

In strong cultures, key values are deeply held

and widely shared
Strong cultures have greater influence on
employees than do weak cultures
Employees more committed to organizations
with strong cultures
Strong cultures are associated with high
organizational performance
Most organizations have moderate to strong
cultures

Cont
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

Organization Culture Issues

Creating an Ethical
Culture
High in risk tolerance
Low to moderate
aggressiveness
Focus on means as
well as outcomes

Creating an Innovative
Culture
Challenge and
involvement
Freedom
Trust and openness
Idea time
Playfulness/humor
Conflict resolution
Debates
Risk-taking

2007 Prentice Hall, Inc. All

rights reserved.

334

Organization Culture Issues

(contd)
Creating a Customer-Responsive Culture
Hiring the right type of employees (ones with a
strong interest in serving customers)
Having few rigid rules, procedures, and
regulations
Using widespread empowerment of employees
Having good listening skills in relating to
customers messages
Providing role clarity to employees to reduce
ambiguity and conflict and increase job
satisfaction
Having conscientious, caring employees willing to
take initiative
2007 Prentice Hall, Inc. All
rights reserved.

335

VALUES, ORGANIZATIONAL
CULTURE AND ORGANIZATION
How do values affect the way we do business?

Organizational Culture Are you in

a Toxic Work Environment
The following organizationalcultures are described as toxic
because they are dysfunctioning in terms of relationships and
adjustment to changing times. They undermine the
social/spiritual capital, poison the work climate and contribute
to organizational decline.

Authoritarian-hierarchical culture
1. Authoritarian-hierarchical culture the big boss alone makes
all the major decisions behind closed doors. Even when the
decisions are harmful to the company, no one dares to
challenge the boss.
The standard mode of operand um is command and control,
with no regards to the well being of employees, or the future
of the company.

Competing-conflictive culture
There is always some sort of power struggle going on.
Leaders are plotting against each other and stabbing each
other on the back. Different units and even different
individuals within a unit are undercutting, backstabbing each
other to gain some competitive advantage. There is a lack of
trust and cooperation. People often hide important
information from each other and even sabotage each other's
efforts to ensure that only they will come up on top.

Laissez faire culture

There is a vacuum at the top, either because the leader is
incompetent and ignorant, or because he is too preoccupied
with his personal affairs to pay much attention to the
company. Consequently, there is an absence of directions,
standards and expectations. When there is an absence of
effective leadership, each department, in fact, each individual
does whatever they want. The leadership void will also tempt
ambitious individuals to seize power to benefit themselves.
Chaos and confusion are the order of the day. No one has a
clear sense where the company is going. Often, employees
receive conflicting directions and signals. Often, decisions are
made in the morning only to be nullified in the afternoon.
Given the lack of direction, oversight and accountability all
across-the-board, productivity declines. In this kind of culture,
the company either disintegrates or becomes an easy target
for a hostile takeover.

Dishonest-corrupt culture
In this culture, greed is good and money is God. There is little
regard for ethics or the law. Such attitudes permeate the
whole company from the top down to individual workers.
Bribery, cheating, and fraudulent practices are widespread.
Creative accounting and misleading profit reports are a
matter of routine. Denial, rationalization and reputation
management enable them carry on their unethical and often
illegal activities until they are caught red-handed or exposed
by correcting forces of the market. When management are
blinded by greed and ambition, their judgment becomes
distorted and their decisions become seriously flawed; as a
result, they often cross the line without being aware of it.
Enron serves as a good example.

Rigid-traditional culture
There is a strong resistance to any kind of change. The
leadership clings to out-dated methods and traditions,
unwilling to adapt to the changes in the market place. They
live in past glory and any change poses a threat to their
deeply entrenched values and their sense of security. Workers
are discouraged or even reprimanded for suggesting
innovative ideas. Their accounting, marketing and delivery
systems are no longer competitive with the fast-paced
technology-driven market place. Their products and services
have not responded to changing market demands. Their
mantra is "We have always done things this way." As a result,
the world passes them by and eventually they are left with an
empty shell of the former self.

Sources/Reference
Harvard Business Review What is Organizational Culture? And
Why Should We Care? By Michael Watkins May 15, 2013
Organizational Behavior 12th Edition, Schermerhorn, Osborn,
Hunt, Uhl-Bien, 2012
Randon Pics from the Internet @Google.com
Impact of Organisational Culture on Performance of
Educational Institutions, Muya James Nganga, Wesonga
Justus Nyongesa