The Organization’s Culture

• Organizational Culture
• A system of shared meanings and common beliefs held by organizational
members that determines, in a large degree, how they act towards each
other.
• “The way we do things around here.”
• Values, symbols, rituals, myths, and practices
• Implications:
• Culture is a perception.
• Culture is shared.
• Culture is descriptive.

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3–2
ORGANIZATIONAL CULTURE
• Assumption:
• Belief
1)Open dialogue is
good for Individual perception of
business……i.e. reality
something taken
for granted
2) It is assumed that • Value
it is rude to
complain Long lasting belief about
what is important
ORGANIZATIONAL CULTURE
• Artefacts:
The observable signs and symbols of an
organizational culture
-The way visitors are greeted
-Physical layout (0ffices or cabins, glass
doors and windows)
-How employees are rewarded
-How socializing is done among employees
ORGANIZATIONAL CULTURE
• Stories & Legends
-Some stories highlights what organization
values
-Where as some also highlights the
Mistakes done in the past and are not to be
repeated.

• Rituals & Ceremonies

The programmed routines of daily organizational
life that dramatise the organizations culture.
-Ritual of pushing back
-Ritual of ragging in armed forces
•
ORGANIZATIONAL CULTURE
Ceremonies:
Planned and usually dramatic displays of
organizational culture conducted specifically
for the benefit of an audience.
-Annual company dinners
-Rewarding ceremonies
-Employee birthday celebrations
• Organizational Language
-How employees address colleagues
-How employees describe customers
-Express Anger

• Physical structures & Symbols

-Size, location and age of the building
-Furniture, internal setting and wall hangings
ORGANIZATIONAL CULTURE

• Does organizational culture effects corporate

performance?
ORGANIZATIONAL CULTURE
• It influences employees decision & behaviours
• It is a social glue-bonds people together & makes
them part of the organizational experiences.
• It assists employees sense making process
 Strong Organizational culture
• When employees across all subunits hold dominant
values
• Values are also instutionalised through well establish
artefacts
• Are long lasting
• Can be traced back to company's founders

Strong culture assist good performance only if it is

appropriate to organizations environment
• Company's strong culture if misaligned with
its environment……then employees have
difficulty anticipating & responding to the
needs of customers.

Strong culture blinds Strong culture

employees to unique prevents
problems & new organizations from
opportunities nurturing new
cultural values
• Great ideas generally comes from conflict- a
dissatisfaction with the status co- which is not
possible when in an organization people think
and look a like due to a strong cultural.
Adaptive Culture
• An organizational Culture in which employees focus
on the changing needs of the customers and other
stakeholders, and support initiatives to keep pace
with these changes.
Changing & strengthening Org Culture
1) Actions of founders & Leaders
2) Introducing cultural consistent rewards for
• example In a paternalistic environment
• Employees expect medical benefits etc..
• 3)Manitaining stable workforce
• 4) Managing cultural network
• 5) Electing and Socializing new employees.
Exhibit 3–2 Dimensions of Organizational Culture

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3–14
Characteristics of organizational culture

• Innovation and risk aversion. The extent to which employees are

supported to be innovative and take risks.
• Attention to detail. The extent to which employees are expected to
demonstrate their accuracy, analysis and attention to detail.
• Orientation results. The extent to which management focuses on
results rather than on the techniques and processes used to achieve
these results.
• Orientation people. The extent to which management decisions take
into account the effects on people within the organization.
• Orientation team. The extent to which work activities are organized
around teams rather than individuals.
• Stability. The organization emphasizes the maintenance of
organizational culture that is good.
Exhibit 3–3 Contrasting Organizational Cultures

Dimension Organization A Organization B

Attention to Detail High Low

Outcome Orientation Low High
People Orientation Low High
Team Orientation Low High
Aggressiveness Low High
Stability High Low
Innovation and Risk Taking Low High

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3–16
Strong Versus Weak Cultures
• Strong Cultures
• Are cultures in which key values are deeply 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

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Benefits of a Strong Culture
• Creates a stronger employee commitment to the
organization.
• Aids in the recruitment and socialization of new
employees.
• Fosters higher organizational
performance by instilling and
promoting employee initiative.

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3–18
Organizational Culture
• Sources of Organizational Culture
• The organization’s founder
• Vision and mission
• Past practices of the organization
• The way things have been done
• The behavior of top management
• Continuation of the Organizational Culture
• Recruitment of like-minded employees who “fit”
• Socialization of new employees to help them adapt to the culture

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3–19
Exhibit 3–5 How an Organization’s Culture Is
Established and Maintained

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3–20
Exhibit 3–4 Strong Versus Weak Organizational
Cultures

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3–21
How Employees Learn Culture
• 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
• Physical assets distinguishing the organization
• Language
• Acronyms and jargon of terms, phrases, and word
meanings specific to an organization

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3–22
How Culture Affects Managers
• Cultural Constraints on Managers
• Whatever managerial actions the organization recognizes as proper or
improper on its behalf
• Whatever organizational activities the organization values and encourages
• The overall strength or weakness of the organizational culture

Simple rule for getting ahead in an organization:

Find out what the organization rewards and act accordingly.

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3–23
Exhibit 3–6 Managerial Decisions Affected by Culture
• Planning
• The degree of risk that plans should contain
• Whether plans should be developed by individuals or teams
• The degree of environmental scanning in which management
will engage
• Organizing
• How much autonomy should be designed into employees’ jobs
• Whether tasks should be done by individuals or in teams
• The degree to which department managers interact with each
other

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3–24
Exhibit 3–6 Managerial Decisions Affected by Culture
(cont’d)
• Leading
• The degree to which managers are concerned with increasing
employee job satisfaction
• What leadership styles are appropriate
• Whether all disagreements—even constructive ones—should
be eliminated
• Controlling
• Whether to impose external controls or to allow employees to
control their own actions
• What criteria should be emphasized in employee performance
evaluations
• What repercussions will occur from exceeding one’s budget

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3–25
Organization Culture Issues
• Creating an Innovative
Ethical Culture
Culture
• Challenge
High in riskand
tolerance
involvement
• Low to moderate aggressiveness
Freedom
• Focusand
Trust on means
openness
as well as outcomes
• Idea time
• Playfulness/humor
• Conflict resolution
• Debates
• Risk-taking

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3–26
Organization Culture Issues
(cont’d)
• Creating a Customer-Responsive Culture
• Hiring the right type of employees (those 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

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3–27
Spirituality and Organizational
Culture
•Workplace Spirituality
• 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 a Spiritual Organization
• Strong sense of purpose
• Focus on individual development
• Trust and openness
• Employee empowerment
• Toleration of employees’ expression

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3–28
Copyright © 2010 Pearson Education, Inc. Publishing as
Prentice Hall 3–29
ORGANIZATIONAL CULTURE
• Assumption:
• Belief
1)Open dialogue is
good for Individual perception of
business……i.e. reality
something taken
for granted
2) It is assumed that • Value
it is rude to
complain Long lasting belief about
what is important
 ORGANIZATIONAL CULTURE
• Dominant Value:
Which are shared most widely throughout the
organization
• Subculture:
What is dominant through out organization divisions,
geographic regions and occupational groups.
• Counterculture:
Which directly oppose organizational core values.
ORGANIZATIONAL CULTURE
• Artefacts:
The observable signs and symbols of an
organizational culture
-The way visitors are greeted
-Physical layout (0ffices or cabins, glass
doors and windows)
-How employees are rewarded
-How socializing is done among employees
ORGANIZATIONAL CULTURE
• Stories & Legends
-Some stories highlights what organization
values
-Where as some also highlights the
Mistakes done in the past and are not to be
repeated.
 ORGANIZATIONAL CULTURE
• Rituals & Ceremonies
• The programmed routines of daily organizational
• life that dramatise the organizations culture.
• -Ritual of pushing back
• -Ritual of ragging in armed forces
 ORGANIZATIONAL CULTURE
• Ceremonies:
Planned and usually dramatic displays of
organizational culture conducted specifically
for the benefit of an audience.
-Annual company dinners
-Rewarding ceremonies
-Employee birthday celebrations
ORGANIZATIONAL CULTURE
• Organizational Language
-How employees address colleagues
-How employees describe customers
-Express Anger
ORGANIZATIONAL CULTURE
• Physical structures & Symbols
-Size, location and age of the building
-Furniture, internal setting and wall hangings
ORGANIZATIONAL CULTURE

• Does organizational culture effects corporate

performance?
ORGANIZATIONAL CULTURE
• It influences employees decision & behaviours
• It is a social glue-bonds people together & makes
them part of the organizational experiences.
• It assists employees sense making process
 Strong Organizational culture
• When employees across all subunits hold dominant
values
• Values are also instutionalised through well establish
artefacts
• Are long lasting
• Can be traced back to company's founders

Strong culture assist good performance only if it is

appropriate to organizations environment
• Company's strong culture if misaligned with
its environment……then employees have
difficulty anticipating & responding to the
needs of customers.

Strong culture blinds Strong culture

employees to unique prevents
problems & new organizations from
opportunities nurturing new
cultural values
• Great ideas generally comes from conflict- a
dissatisfaction with the status co- which is not
possible when in an organization people think
and look a like due to a strong cultural.
Adaptive Culture
• An organizational Culture in which employees focus
on the changing needs of the customers and other
stakeholders, and support initiatives to keep pace
with these changes.
Changing & strengthening Org Culture
1) Actions of founders & Leaders
2) Introducing cultural consistent rewards for
• example In a paternalistic environment
• Employees expect medical benefits etc..
• 3)Manitaining stable workforce
• 4) Managing cultural network
• 5) Electing and Socializing new employees.
Socialization
• -It is the process by which organizations
• bring new employees into the culture
• Recruitment & Selection
• -Orientation Program-Employees are given
• information on what company values usually
• given by the management of the company.
• Example (Telenor, Nestle)
Socialization
• Structuring Training programs:
• On job training is given to employees for
• example at nestle all recruits goes through job
• rotation. They believe that this training program is
• essential since it will give employee complete
• information on company's operations and its
• culture.
• Same strategy is followed by Wal-Mart
Socialization
• -Performance evaluation:
• How well an individual is getting along in the
• Organization
• -Methods of performance evaluation
• face to ace meeting
• 360 evaluation
• Upwards evaluation
Socialization
• -Assigning Challenging work
• First job assigned to a new employee usually
• demands far less of what is expected.
• After the settlement employees are then assigned
• challenging task.
Socialization & Cultural Diversity
• -Managers need to play a role in handling
• cultural diversity with a sound socialization
• program.
• -Knowledge of ethnical background and national
• culture of all employees is essential.
• -Challenge will be to integrate the mix of diffrenet
• People for example
Socialization & Cultural Diversity
• -Mangers will have to cope with the unfamiliarity
• with the English language.
• -Increase training for service jobs that require
• verbal skills.
• -Cultural awareness training
- Which rewards are valued by different groups
- Developing career programs which fits the
value of different groups
Socialization & Cultural Diversity
• -Also focus on age, gender and workers with
• disabilities.

• Apart from managers employees should also learn about the

customs, rituals and value of the work place.
Cross-Cultural Issues
ACTIVITY
• Your plane crashed...your group needs to choose the
10 most useful items to survive... Possible scenarios:
Desert (plane crash)
• Choose / rank equipment items in terms of their
relative survival value:
• Choose / rank people in terms of who will get to live
or die in situations with limited survival resources: