DEFINITION

y Organizational culture is an idea in the field of

Organizational studies and management which describes the psychology, attitudes, experiences, beliefs and values of an organization.
y It has been defined as the specific collection of values

and norms that are shared by people and groups in an organization and that control the way they interact with each other.

CHARACTERISTICS OF ORGANIZATIONAL CULTURE

INNOVATION & RISK TAKING

y The degree to which employees are encouraged to be

innovative and take risks.

ATTENTION TO DETAIL
y The degree to which employees are expected to exhibit

precision, analysis, and attention to detail.

OUTCOME ORIENTATION
y The degree to which management focuses on results or

outcomes rather than on the techniques and processes used to achieve those outcomes.

PEOPLE ORIENTATION
y The degree to which the management decisions take into

consideration the effect of outcomes on people within the organization.

TEAM ORIENTATION
y The degree to which work activities are organized around

teams rather than individuals.

AGGRESSIVENESS
y The

degree to which people are aggressive and competitive rather than easygoing.

STABILITY
y The degree to which organizational activities emphasize

maintaining the status quo.

Do Organizations Have Uniform Cultures

Dominant Culture Core Values

Subcultures

DOMINANT CULTURE
y The culture that expresses the core values that are shared

by a majority of the organization s members.

SUBCULTURES
y Minicultures within an organization, typically defined by

department designations and geographical separations.

CORE VALUES
y The primary or dominant values that are accepted

throughout the organization.

STRONG CULTURES
STRONG CULTURE
Values widely shared Employees strongly identify with culture Strong connection between shared values and behaviors Culture conveys consistent messages.

WEAK CULTURES
WEAK CULTURE
Values

limited to a few

people. Employees have little identification with culture. Little connection between shared values and behaviors. Culture sends contradictory messages.

Where culture comes from and how it continues?

Top management Philosophy of organizations founders

y Selection

Criteria

Organization culture Socialization

Selection criteria

The explicit goal of the selection process is to identify an higher individuals who have knowledge, skills, and abilities to perform the jobs within the organizations successfully.

Top management
y Actions of top management have a major impact on

organizations culture, Like how to behave, establish norms, risk taking is desirable or not, freedom given to the emplyees, appropriate dress.

Socialization
y A process that adapts employees to the organizations

culture.

HOW EMPLOYESS LEARN CULTURE ?

STORIES RITUALS MATERIAL SYMBOLS LANGUAGE

STORIES:
Organizational stories typically contain a narrative of significant events or people, including such things as the organization s founder, rule breaking and reactions to past mistakes.

RITUALS: RITUALS
Corporate rituals are repetitive sequences of activities that express and reinforce the important values and goals of the organization.

MATERIAL SYMBOLS:
When we walk into a businesses, we get a feel for what type of work environment it is formal, casual, fun, serious, etc. These reactions demonstrate the power of material symbols or artifacts in creating an organization s personality.

LANGUAGE:
Many organizations and units within organizations use language as a way to identify and unite members of a culture. For example: CHIFF means(Clever, High-quality, Innovative, Friendly, Fun)

CHIFF

HOW CULTURE AFFECTS MANAGERS ?

A manager s decisions are influenced by the culture in which he/she operates. An organization s culture, influences and constraints the way managers: Plan Organize Lead Control.

y y y y

PLANNING
y The degree of risk that plans should contain y Whether plans should be developed by individuals or teams y The degree of environmental scanning in which management

will engage.

ORGANIZING
y How much autonomy should be designed into employees jobs y Whether tasks should be done by individuals or in teams y The degree to which department managers interact with each

other

LEADING
y The degree to which manages are connected with increasing

employee job satisfaction y What leadership styles are appropriate

CONTROLLING
y Whether to impose external controls or to allow employees to

control their own actions y What criteria should be emphasized in employee performance evaluations

WHAT DO CULTURES DO?

Functions
 Controlling behavior
 Defining boundaries  Conveying identity  Promoting commitment

Liabilities
 Barriers to change  Barriers to diversity  Barriers to acquisition  Barriers to mergers

CREATING an ETHICAL ORGANIZATIONAL CULTURE

y Be a visible role model. y Communicate ethical

expectation.
y Provide ethical training. y Visibly reward ethical acts

and punish unethical ones.

y Provide protective mechanisms.

Be a visible role model

y Employees will look

to the behavior of top management as a benchmark for defining appropriate behavior.

Communicate ethical expectation

y Ethical ambiguities

can be minimized by creating and disseminating an organizational code of ethics.

Provide ethical training

y Set up seminars,

workshops, and similar ethical training programs.

Visibly reward ethical acts and punish unethical ones.

y People who act ethically should be rewarded

for their behavior and similarly unethical acts should be punished.

Provide protective mechanisms

y The organization

needs to provide formal mechanisms so that employees can discuss ethical dilemmas and report unethical behavior without fear of reprimand.

CREATING A POSITIVE ORGANIZATIONAL CULTURE

Building on Employee Strength Rewarding more than Punishing.  Emphasizing Vitality and Growth. Limits of Positive Culture.

Building on Employee Strength

Rewarding more than Punishing

Emphasizing Vitality and Growth

Limits of Positive Culture

SPITRITUALITY
y The recognition that people have an inner life that

nourishes and is nourished by meaningful work that takes place in the context of community.

Characteristics of spiritual organization.

y Strong sense of purpose y Trust and respect y Humanistic work practices y Toleration of employee expression