Organizational Culture

Objectives:

1. Define Organizational Culture

2. Discuss how to create and sustain
organizational culture
3. Describe creating an ethical organizational
Culture
Would you act the same way at a rock concert
as you would while watching a symphony
orchestra perform?
Would you dress the same way to attend a
beach party as you would to attend a garden
party?
Organizational Culture
Definition of
Organizational Culture
Organizational Culture

 Is a system of shared assumptions, values, beliefs, which

governs how people behave in organizations.

 Organizational culture is the sum of values and rituals which

serve as ‘glue’ to integrate the members of the
organization.” — Richard Perrin
Organizational Culture

“Organizational culture is civilization in the workplace.” —

Alan Adler

 is the pattern of values, norms, beliefs, attitudes and

assumptions that may not have been articulated but shape the
ways in which people in organizations behave and things get
done.

‘Values’ refer to what is believed to be important about how people and

organizations behave. ‘Norms’ are the unwritten rules of behaviour.
Organizational Culture

 Culture is the soul of the organization – the beliefs and values

and how they are manifested.

 Culture provides stability to an organization and gives

employees a clear understanding of “the way things are
done around and organization.

 Culture sets the tone for how organizations operate and how
individuals within the organization interacts.
 How organizational culture develops?

First, by the leaders of the organization, especially those who have

shaped it in the past.

Second, formed around critical incidents – important events from which

lessons are learnt about desirable or undesirable behavior.

Third, develops from the need to maintain effective working

relationships among organization members, and this establishes values
and expectations.

Finally, culture is influenced by the organization’s environment. The

external environment may be relatively dynamic or unchanging.
 The Components of Culture
 VALUES

 NORMS

 ARTEFACTS

 MANAGEMENT STYLE
 The Components of Culture
 VALUES
are beliefs in what is best or good for the organization and what should or
ought to happen.
• Care and consideration for people
• Competence
• Competitiveness
• Customer Service
• Innovation
• Performance
• Quality
• Teamwork
 The Components of Culture
 NORMS
are the unwritten rules of behavior, ‘the rules of the game’ that provide
informal guidelines on how to behave.

• How managers treat the members of their teams (management style) and
how latter relate to their managers.
• The prevailing work ethic eg. ‘work hard’, play hard; come early, stay late
• Status
• Ambition
• Performance
• Power
• Loyalty
• Anger
 The Components of Culture
 ARTEFACTS

are the visible and tangible aspects of an organization that people hear, see or
feel and which contribute to their understanding of the organization’s culture.

• Working environment
• Tone and language used in e-mails, letters or memoranda
• The manner in which people address each other at meetings
• The welcome given to visitors
 The Components of Culture
 MANAGEMENT STYLE
is the approach managers use to deal with people.
called as leadership style
• Charismatic/Non-charismatic
• Autocratic/Democratic
• Enabler/Controller
• Transactional/Transformational
• Consultative
• Constitutional
• Opportunist
Creating and Sustaining
Culture
 10 Must Do’s for Creating and Sustaining Culture

1. Focus on the Positive

2. Ensure Shared Values
3. Give and Receive Feedbacks
4. Follow through
5. Care About Your Team Members
6. Play to strengths and Look for the Bright Spots
7. Set Expectations
8. Evaluate Processes and Problems
9. Create Opportunities for Collaboratuion
10.Be consistent
Creating an Ethical
Organization Culture
“Having an organizational culture that emphasizes
ethical behavior can cut down misbehavior of
organizations.”
A strong ethical culture creates a more
trustworthy workplace.

A strong ethical culture lends itself to better

stakeholder relationships.
The ultimate benefit an ethical culture should
deliver is to provide the organization with a
unique source of competitive advantage.
Here is a nice list of what management can do to create a more ethical
organizational culture:

1. Be a role model and be visible

Top Management leads Ethics by example

2. Communicate ethical expectations

Communicate Clear Expectations of Organizational Code of Ethics

3. Offer ethics training

Key components of Ethics Training Program
Here is a nice list of what management can do to create a more ethical
organizational culture:

4. Visibly reward ethical acts and punish unethical ones

Reinforce Behavior you want, Don’t reinforce Behavior You Don’t
Want

5. Provide protective mechanism

Provide Protection for Employees
Thank you 