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Organization culture.ppt

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Organization culture.ppt

  1. 1. Organizational Culture
  2. 2. Objectives What is organizational culture? When is organizational culture functional? Dysfunctional? How do employees learn about the culture of their organization? Why organization culture is important to organizational leaders?
  3. 3. What is organizational culture? Henry Mintzberg on Culture “Culture is the soul of the organization - the beliefs and values, and how they are manifested. I think of the structure as the skeleton, and as the flesh and blood. And culture is the soul that holds the thing together and gives it life force.”
  4. 4. What is organizational culture? The pattern of shared values, beliefs and assumptions considered to be the appropriate way to think and act within an organization. ◦ Culture is shared ◦ Culture helps members solve problems ◦ Culture is taught to newcomers ◦ Culture strongly influences behavior
  5. 5. What is organizational culture? Layers of Culture Artifacts of Organizational Culture Material Symbols Language Rituals Stories Organizational Culture Beliefs Values Assumptions
  6. 6. Levels of Culture Artifacts ◦ Aspects of an organization’s culture that you see, hear, and feel Beliefs ◦ The understandings of how objects and ideas relate to each other Values ◦ The stable, long-lasting beliefs about what is important Assumptions ◦ The taken-for-granted notions of how something should be in an organization
  7. 7. Characteristics of Organizational Culture Innovation and risk-taking ◦ The degree to which employees are encouraged to be innovative and take risks. Attention to detail ◦ The degree to which employees are expected to exhibit precision, analysis, and attention to detail. Outcome orientation ◦ The degree to which management focuses on results or outcomes rather than on technique and process. People orientation ◦ The degree to which management decisions take into consideration the effect of outcomes on people within the organization.
  8. 8. Characteristics of Organizational Culture Team orientation ◦ The degree to which work activities are organized around teams rather than individuals. Aggressiveness ◦ The degree to which people are aggressive and competitive rather than easygoing. Stability ◦ The degree to which organizational activities emphasize maintaining the status quo in contrast to growth.
  9. 9. Do Organizations Have Uniform Cultures? Organizational culture represents a common perception held by the organization members. Core values or dominant (primary) values are accepted throughout the organization. ◦ Dominant culture ◦ Expresses the core values that are shared by a majority of the organization’s members. ◦ Subcultures ◦ Tend to develop in large organizations to reflect common problems, situations, or experiences.
  10. 10. Exhibit 10-3 How Organizational Culture Forms Selection criteria Socialization Organization's culture Philosophy of organization's founders Top management
  11. 11. Keeping a Culture Alive Selection ◦ Identify and hire individuals who will fit in with the culture Top Management ◦ Senior executives establish and communicate the norms of the organization Socialization ◦ Organizations need to teach the culture to new employees
  12. 12. Culture’s Functions  Social glue that helps hold an organization together ◦ Provides appropriate standards for what employees should say or do  Boundary-defining  Conveys a sense of identity for organization members
  13. 13. Culture’s Functions  Facilitates commitment to something larger than one’s individual self-interest  Enhances social system stability  Serves as a “sense-making” and control mechanism ◦ Guides and shapes the attitudes and behavior of employees
  14. 14. Culture as a Liability Culture can have dysfunctional aspects in some instances ◦ Culture as a Barrier to Change ◦ When organization is undergoing change, culture may impede change ◦ Culture as a Barrier to Diversity ◦ Strong cultures put considerable pressure on employees to conform ◦ Culture as a Barrier to Mergers and Acquisitions ◦ Merging the cultures of two organizations can be difficult, if not impossible
  15. 15. Conditions for Culture Change oA dramatic crisis oTurnover in leadership oYoung and small organizations oWeak culture
  16. 16. Suggestions for Changing Culture Have top-management people become positive role models, setting the tone through their behavior. Create new stories, symbols, and rituals to replace those currently in vogue. Select, promote, and support employees who espouse the new values that are sought. Redesign socialization processes to align with the new values.
  17. 17. Suggestions for Changing Culture (cont’d) Change the reward system to encourage acceptance of a new set of values. Replace unwritten norms with formal rules and regulations that are tightly enforced. Shake up current subcultures through transfers, job rotation, and/or terminations. Work to get peer group consensus through utilization of employee participation and creation of a climate with a high level of trust.
  18. 18. Thank you

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