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Organizational Culture

Group 10 Advanced Accounting


Case Study :
Culture of
Defining Organizational
Organizational culture is the set of values and behaviors that
contribute to the unique social and psychological environment of an

Organizational culture includes an organization's expectations,

experiences, philosophy, and values that hold it together, and is
expressed in its self-image, inner workings, interactions with the
outside world, and future expectations. It is based on shared attitudes,
beliefs, customs, and written and unwritten rules that have been
developed over time and are considered valid.
Corporate Culture
show in:

01 the ways the organization conducts its business,

treats its employees, customers, and the wider
the extent to which freedom is allowed in
decision making, developing new ideas, and
personal expression

03 how power and information flow through its


04 how committed employees are towards

collective objectives
Types of Organizational
There are fourCulture
types of Organizational

01 It is where employees are behaving as an

extended family, mentoring, nurturing and
Clan participation can be seen.
Adhocracy Culture
02 It is where employees of the organization are
dynamic, risk-taking and innovative.

Market Oriented
03 It is where employees are result oriented and
focus on the job, competition and

ierarchically Oriented Culture

04 It is where the employees undergo a rigid
structure, controls, former rules and policies.
They expect to maintain stability, consistency
and uniformity in their processes.
Organizational Climate is based on
individuals perceptions and is often
defined as the recurring patterns of
behavior, attitudes and feelings that
characterize life in the organization and
refers to current situations in an
organization and the linkages among
work groups, employees, and work
performance. Climate, therefore, is
usually more easily to manipulated by
management to directly affect the
behavior of employees

Difference Between Organizational Culture
and Climate
The two concepts are both concerned
with the overall work atmosphere, deal
with the social context, and are assumed
to affect the behaviors of people who
work in organizations.
Organization culture is often described
as the means through which people in
the organization learn and communicate
what is acceptable and unacceptable in
an organization it Values and Norms.

Organization climate are concerned with

the current atmosphere in an
organization, whereas organization
culture is based on the history and
traditions of the organization and
emphasizes values and norms about
Creating the Organizational Culture

Step 1 Establish Values: Strategic values

01 The basic beliefs about an organizations
environment that shape its strategy
Step 2 Establish Values: Cultural values
02 The values that employees need to have and
act on for the organization to implement its
strategic values
Step 3 Create Vision
03 A picture of what an organization will look like
at some point in the future

Step 4 Initiate Implementation Strategies

04 Many factors, including developing organization design to

recruiting and training employees who share the values and
will carry them out
Step 5 Reinforce Cultural Behaviors
05 The act of monitoring and encouraging these behaviors of
employees as they act out the cultural values and implement the
organizations strategies
The Ouchi Framework
Ouchi formulated the notion of the Type Z firm.

Ouchi argued that the

cultures of typical Japanese
firms and U.S. Type Z firms are
very different from those of
typical U.S. firms, and that
these differences explain the Framework
success of many Japanese firms
and U.S. Type Z firms and the
difficulties in typical U.S. firms.
The Ouchi Framework
The Peters and Waterman Approach

Bias for action Stay close to Autonomy and Productivity through people
the customer entrepreneurship
value customers break company into smaller believe that people
over everything else pieces and encourage (both employees and
without all
independent, innovative managers)
activities within these are the most important
smaller segments asset
The Peters and Waterman Approach

managers should have few

wander around administrative layers
not stay behind closed and relatively small
doors corporate staff groups
Simultaneously loose
Hands-on management Stick to the knitting Simple form, lean staff
and tight organization

Tightly organized because all

reluctant to engage in members understand and
business outside their believe in the firms values;
loosely organized because
areas of expertise
they tend to have less
administrative overhead,
fewer staff members, and
fewer rules and regulations.
The result is increased
innovation and risk taking and
Emerging Issues in Organization Culture
Types of innovation
Radical innovation is a major
Innovation is the 01 breakthrough that changes or
creates whole industries.
process of creating
and doing new
things that are Systems innovation creates
introduced into the 02 a new functionality by
assembling parts in
marketplace as
new ways.
processes, or Incremental innovation
services. 03 continues the technical
improvement and extends the
applications of radical and
systems innovations.
Emerging Issues in Organization
- New ventures require
entrepreneurship Corporate research
and good management to work.
Most common means of developing
Entrepreneurs profile: innovation in traditional organization.
+ Needs achievement
+ Desires to assume responsibility Support existing businesses to provide
+ Willing to take risks incremental innovations and explore
+ Focuses on concrete results potential new technology bases.
Responsible for keeping the companys
- Intrapreneurship - products and processes technologically
entrepreneurial activity that takes advanced.
Corporate culture can be instrumental in
place within the context of a large
fostering environment for creativity and
organization. innovation.
rging Issues in Organization Culture
Empowerment is the process of enabling workers
to set their own work goals, make decisions and
solve problems within their sphere of responsibility
and authority
01 Can be much more than a
motivational technique

02 Can be the cornerstone of

organizational culture

03 The concept of liberating employees

suggests that they should be free to do
what they think is best without fear
that the boss is standing by to veto or
change the work they do.
Managing organizational
The three elements of managing organizational

Taking Teaching Changing

advantage of organization organization
the existing culture culture

01 02 03
Taking advantage of
the existing culture

Easier and faster to alter employee

1 behaviors within the existing culture
than it is to change existing history,
traditions and values.

2 Managers must be fully aware of and

understand the organizations values.

Managers can communicate

3 their understanding to lower-
level individuals.
Teaching organization culture

- Organizational mechanisms:
Organizational socialization is the
+ Examples employees see in
process through which employees learn
about the firms culture and pass their
peoples behavior.
knowledge/understanding on to others.
+ Corporate pamphlets, corporate
and formal training sessions are
Changing organization culture

01 Managing symbols: Substitute

stories/myths that support new cultural
values for those that support old ones.

The difficulty of change: Upper

02 management inadvertently reverts
to old behavior.
The stability of change
+ New values and beliefs are as stable and
03 influential
as old ones.
+ Value systems tend to be self-reinforcing.
+ Changing value systems requires enormous
Organizational Culture
Of Google

American search Founded in 1998 A subsidiary of Its headquarters

engine company bySergey theholding are in Mountain
BrinandLarry companyAlphab View,California
Page et Inc

Google 2011 Mission statement

Google earned 97 percent of To organize the world's

Company its revenue through

advertising based on users
information and make it
universally accessible and
Google began as an online search requests usefull
search firm, but it now offers
more than 50 Internet services 2012 Vision statement
and products, frome-mailand
online document creation The top four influential To provide access to the
tosoftwareformobile companies in the high-tech worlds information in one
phonesandtablet computers. marketplace click
Googles organizational culture

Open &
concern for
people Supports small-
Smart, with company-family
emphasis on rapport
Open & concern for
Employees feel free
to give their ideas
01 and opinions
Their employees are
treated well and their
needs are taken care of 02
Keeping their employees
happy is a value they take
03 to heart

A unique and coolest place

that is different frome 04
anywhere. Number 1 of Best place to
work for by Fortune Magazin
05 in 2007 and number 4 in 2010
Decision making
Decisions at Google are made in teams based on full
information sharing and consensus

They approciate all the ideas and decisions are not made
by the senior person in charge then implemented top

Individuals have to persuase others by specific


To expedite the teamwork, Google

employees work in open office
environments where private offices are
assigned only to a select few

Innovation is at the heart of Google

To promote new ideas, they fosters all engineers to

spend 20% of their time working on their own ideas

To mantain its growth and compete with their rivals

such as Microsoft and Yahoo, they have to come out
with many new products and features

Google has set up an internal web page in order

to track the new ideas
Smart, with emphasis on excellence

The firm also favors smart
employees who strive for
The companysupports their
employees involvement in
projects and experiments.


70 20 10

project assigned by

projects or ideas related

to core projects

new ideas
Support small-company-family rapport
7 secrets of Googles epic
Throughout the hiring process for the brightest
and the best

Making human resource to a science

Casual, Democratic atmosphere

Clear mission and Values: Why you do what you


Practicing transparency and open door


Employee recognition for small and big


Organization culture boosted by community

engagement outside of work

The world most

successful corporate

Open organization

Focus on the
advantage of
Thank you for listening
Group 10 Advanced Accounting