Module 4
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The document discusses organizational culture, describing it as shared values, beliefs and norms that unite employees. It notes that organizations have a dominant culture as well as subcultures. Artifacts like physical structures, stories and language help maintain and transmit organizational culture. The strength of a culture depends on how widely shared and institutionalized its values are. National culture also influences organizations through dimensions like power distance, individualism, uncertainty avoidance and masculinity.
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Module 4
- 1. AM ITY GLO BAL BUSINESS SCHO O L ashishpillai@gmail.com
- 2. AM ITY GLO BAL BUSINESS SCHO O L What is This? ashishpillai@gmail.com
- 3. AM ITY GLO BAL BUSINESS SCHO O L What is Organizational Culture? A system of shared values, assumptions, beliefs, and norms that unite the members of an organization. Reflects employees’ views about “the way things are done around here.” The culture specific to each firm affects how employees feel and act and the type of employee hired and retained by the company. ashishpillai@gmail.com
- 4. AM ITY GLO BAL BUSINESS SCHO O L Do Organizations Have Uniform Cultures? Dominant Subcultures Culture Core Values ashishpillai@gmail.com
- 5. AM ITY GLO BAL BUSINESS SCHO O L Culture & Subcultures Dominant culture -- most widely shared values and assumptions Subcultures Located throughout the organization Can enhance or oppose (countercultures) firm’s dominant culture Are “countercultures” useful? Provide surveillance and critique, ethics Source of emerging values ashishpillai@gmail.com
- 6. AM ITY GLO BAL The BUSINESS SCHO O L Artefacts of Org. Culture Elements of Organizational Culture Culture ashishpillai@gmail.com
- 7. AM ITY GLO BAL BUSINESS SCHO O L Organizational Culture Profile Org Culture Dimensions Dimension Characteristics Experimenting, opportunity seeking, risk taking, few Innovation rules, low cautiousness Stability Predictability, security, rule-oriented Respect for people Fairness, tolerance Outcome orientation Action oriented, high expectations, results oriented Attention to detail Precise, analytic Team orientation Collaboration, people-oriented Aggressiveness Competitive, low emphasis on social responsibility ashishpillai@gmail.com
- 8. AM ITY GLO BAL BUSINESS SCHO O L Artifacts of Organizational Culture Observable symbols and signs of culture Physical structures, ceremonies, language, stories Maintain and transmit organization’s culture Not easy to decipher artifacts -- need many of them ashishpillai@gmail.com
- 9. AM ITY GLO BAL BUSINESS SCHO O L Artifacts – Stories & Legends Social prescriptions of desired (undesired) behavior Provides a realistic human side to expectations Most effective stories and legends: Describe real people Assumed to be true Known throughout the organization Are prescriptive ashishpillai@gmail.com
- 10. AM ITY GLO BAL BUSINESS SCHO O L Artifacts – Rituals & Ceremonies Rituals Programmed routines (eg., how visitors are greeted, marking attendance, call for meeting etc…) Ceremonies Planned activities for an audience (eg., award ceremonies, celebrating occassions etc…) ashishpillai@gmail.com
- 11. AM ITY GLO BAL BUSINESS SCHO O L Artifacts – Organizational Language Words used to address people, describe customers, etc. Leaders use phrases and special vocabulary as cultural symbols Language also found in subcultures ashishpillai@gmail.com
- 12. AM ITY GLO BAL BUSINESS SCHO O L Artifacts – Physical Structures Building structure -- may shape and reflect culture Office design conveys cultural meaning Furniture, office size, wall hangings ashishpillai@gmail.com
- 13. AM ITY GLO BAL BUSINESS SCHO O L Strength of Organizational Culture How widely and deeply employees hold the company’s dominant values and assumptions Strong cultures exist when: Most employees understand/embrace the dominant values Values and assumptions are institutionalized through well-established artifacts Culture is long lasting -- often traced back to founder ashishpillai@gmail.com
- 14. AM ITY GLO BAL BUSINESS SCHO O L Functions of Strong Corporate Culture Culture strength advantages depend on: • Environment fit • Not cult-like • Adaptive culture Functions of Organizational Strong Cultures Outcomes • Control system • Org performance • Social glue • Employee well-being • Sense-making ashishpillai@gmail.com
- 15. AM ITY GLO BAL BUSINESS SCHO O L BUSINESS CULTURE ORGANIZATION OCCUPATIONAL CULTURE CULTURE ashishpillai@gmail.com
- 16. AM ITY GLO BAL BUSINESS SCHO O L Hofstede’s Cultural Dimensions Finds national culture dimensions meaningful to business Basis: Work related values not universal National values may persist over MNC efforts to create corporate culture Home country values often used to determine HQ policies MNC may create morale problems with uniform moral norms Purpose: understanding of business situations across-cultures ashishpillai@gmail.com
- 17. AM ITY GLO BAL BUSINESS SCHO O L Hofstede’s Cultural Dimensions Geert Hofstede – sampled 100,000 IBM employees 1963-1973 Compared employee attitudes and values across 40 countries Isolated 4 dimensions summarizing culture: 1. Power distance 2. Individualism vs. Collectivism 3. Uncertainty avoidance 4. Masculinity vs. Feminity ashishpillai@gmail.com
- 18. AM ITY GLO BAL BUSINESS SCHO O L Power Distance Degree of social inequality considered normal by people Distance between individuals at different levels of a hierarchy Scale: from equal (small power distance) to extremely unequal (large power distance) ashishpillai@gmail.com
- 19. AM ITY GLO BAL BUSINESS SCHO O L Individualism Vs. Collectivism Degree to which people in a country prefer to act as individuals rather than in groups Describes the relations between the individual and his/her fellows ashishpillai@gmail.com
- 20. AM ITY GLO BAL BUSINESS SCHO O L Uncertainty Avoidance Degree of need to avoid uncertainty about the future Degree of preference for structured versus unstructured situations Structured situations: have tight rules may or may not be written down High uncertainty avoidance: people with more nervous energy (Vs. easy-going), rigid society, "what is different is dangerous." ashishpillai@gmail.com
- 21. AM ITY GLO BAL BUSINESS SCHO O L Masculinity Vs. Feminity Division of roles and values in a society Masculine values prevail: Assertiveness, success, competition Feminine values prevail: Quality of life, maintenance of warm personal relationships, service, care for the weak, solidarity ashishpillai@gmail.com
- 22. AM ITY GLO BAL BUSINESS SCHO O L ashishpillai@gmail.com