ORGANIZATIONAL
CULTURE
MUHAMMAD ADNAN MAQBOOL

Definition
 Culture is the unique dominant pattern of
shared beliefs, assumptions, values, and
norms that shape the socialization, symbols,
language and practices of a group of people.
 The attitudes and approaches that typify the
way staff carry out their tasks.
 Culture is developed and transmitted by
people, consciously and unconsciously, to
subsequent generations.

What must be for culture to
exist?
1. It must be shared by the vast majority of
members of a group or society;
2. It must be passed on from generation to
generation; and
3. It must shape behaviour and perceptions.

Cultural iceberg
Observable
elements of
culture
Not
observable
•Language
•Symbols
•Practices
•Norms
•Values
•Assumptions

Shared assumptions
 Shared assumptions are the thoughts and
feelings that members of a culture take for
granted and believe to be true.

Values and norms
 Values: are the basic beliefs people hold
that specify general preferences and
behaviours, and define what is right and
wrong.
 Cultural values are reflected in a society’s
morals, customs and established practices
 Norms are rules that govern behaviours of
groups of people.

Symbols
 A symbols is any visible object, act, or event
that conveys meaning to others. Examples:
 Artefacts
 Dress
 Office layout
 Slogans
 ceremonies

Socialization
 Socialization is the process by which
people lean valves, norms, behaviours and
social skills. It is the means by which new
members are brought into a culture.

Types of organizational culture
 The basic types of organizational
culture are:
1. Bureaucratic
2. Clan
3. Market
4. Entrepreneurial

Bureaucratic Culture
 In this type of culture the behaviour of
employees is governed by formal rules and
standard operating procedures.
 Such a culture perpetuates stability.
 Organizations with bureaucratic culture tend to
produce standardized goods and services,
examples:
 Government ministries
 Fast food establishments

Clan Culture
 In a clan culture the behaviour of individuals are
shaped by tradition, loyalty, personal commitment,
extensive socialization and self-management.
 A clan culture achieve unity through socialization.
 Long-term employees serve as mentors
 Members are aware of the organization’s history
and have an understanding of the expected
manner of conduct and organizational style.
 Members share feelings of pride in membership.
 Peer pressure to adhere to important norms is
strong

Market Culture
 In a market culture, the values and norms reflect the
significance of achieving measurable and demanding
goals mainly concerning those that are financial and
market based.
 Companies with a market culture tend to focus on:
 Sales growth
 Profitability
 Market share
 In a market culture the relationship between individuals
and the organization is contractual (previously agreed).
 Individuals are responsible for their performance;
whereas the organization promises specific rewards for
levels of performance.
 Managers are not judge on their effectiveness as role
models or mentors; but on monthly, quarterly, and
annual performance goals based on profit.

Entrepreneurial Culture
 Organizations
existing in the
context of an
entrepreneurial
culture are
characterized by high
levels of risk taking
and creativity.
 There is a
commitment to
experimentation,
innovation, and being
Steve Jobs – Apple

Relationship between culture and
organizational performance
 Organizational culture has the potential to
enhance organizational performance,
individual satisfaction, the sense of certainty
about how problems are to be handled.
 Culture serves as a control mechanism to
channel behaviour towards desired behaviours
and to prevent undesired behaviours.

Building a strong organizational
culture
1. A common behavioural style must be shared by
managers and employees.
2. Have the same basic approaches to solving
problems, meeting goals, and dealing with
stakeholders.
3. Have share common norms that guide rule
governing rewards and punishment.
4. A strong organizational culture assists in the
creation of a stable organization, the
consequence of which lead to the achievement
of the company’s strategic goals.

Steps to building a strong
organizational culture -
socialization
•Careful
selection
Step 1
•Challenging
early work
assignments
Step 2 •Training to
develop
capabilities
with culture
Step 3
•Reward and
sustain culture
Step 4
•Adoption of
cultural value
policies
Step 5
•Reinforce
culture with
ritual, stories
rites
Step 6 •Role model to
sustain culture
Step 7

Outcomes of socialization
process
 Job satisfaction
 Role clarity
 High work
performance
 Understanding of
culture
 Commitment to
organization
 Internal values
 Job dissatisfaction
 Role ambiguity and
conflict
 Misunderstanding,
tension, and
perceived lack of
control
 Low job involvement
 Low performance
 Rejection of values
Successful socialization Unsuccessful socialization

THANK YOU