A system of shared meanings and common beliefs held
by organizational members that determines, in a large
degree, how they act towards each other.
It is important to consider culture while managing
change in the organization.
Key Characteristics of Corporate
Innovation and Risk Taking
Attention to Detail
Types of Culture
Sub-cultures and Dominant culture
Importance of Organizational
Creates energy and momentum
Changes the view of “work”
Creates greater synergy
Makes everyone more successful
Creating Corporate Culture
The ultimate source of an organization’s culture is its
Culture creation occurs in three ways:
Employees hire and keep employees with same
They indoctrinate and socialize the employees with
the organization’s thinking
The founder’s behavior acts as a role model for the
With the organizational success, the founder’s
personality is embedded in the organizational culture.
Explicit goal – identifying and hiring individuals having
knowledge, skills and abilities to perform the jobs
Individuals having values consistent with those of the
organization are selected as per the decision maker’s
Selection becomes a ‘two-way street’ as it provides
information about the organization to the applicants.
The actions of top management establishes the norms
for the organization as to:
• Whether risk taking is desirable
• How much freedom managers should give to their
• What actions will pay off in terms of pay rises,
promotions and other rewards, etc.
Socialization refers to the preparation of newcomers to
become members of an existing group and to think, feel, and
act in ways the group considers appropriate
New employees are not familiar with the organizational
culture and are potentially likely to disturb the existing culture.
The process through which the employees are proselytized
about the customs and traditions of the organization is known
It is the process of adaptation by which new employees are to
understand the basic values and norms for becoming
‘accepted’ members of the organization.
Socialization is a process made up of three stages:
Pre-arrival - All the learning occurring before a new
Encounter - The new employee sees what the
organization is really like and confronts the possibility
that expectations and reality may diverge.
Metamorphosis - The relatively long-lasting changes take
place. The new employee masters the skills required for
the job, successfully performs the new roles, and makes
the adjustments to the work group’s values and norms.
How Employees Learn Culture
Stories – Depicting the past events of the organization.
Some organizations actually try to manage this element
of culture learning.
Rituals – Repetitive sequential activities reinforcing the
values of the organization.
Material Symbols – Conveying social equality, desired
organizational behavior, etc. by the top management.
Language – Acceptance and preservation of culture.
Organizational Culture — Trends
You Need to Know
It’s hard to believe that the term “corporate
culture” didn’t appear on the business
landscape in a meaningful way until the early
1980’s. By contrast, another business term,
“money”, developed almost 5,000 years ago!
While corporate culture may seem like a
newborn to the business world, important
trends are emerging.
The Katzenback Center at Booz and Company surveyed
2,219 executives to better understand current
perceptions of culture.
Key findings include:
86% of C-suite respondents believe their
organization’s culture is critical to business success
60% said culture is more important than the
company’s strategy or operating model
96% said some form of culture change is needed
within their organization
45% do not think their culture is being effectively
The issue CEO’s face now is how to manage
culture. The opportunity exists to stop
promoting the business case and start
educating CEO’s on the assessments, tools
and processes available to help define,
promote, evolve and monitor organizational
Culture “fit” is becoming a major
In Milewalk’s 2014 Annual Employee Survey
respondents were asked to identify the top
ten elements that they consider when
looking to change jobs. While compensation
and employee benefits still rate number one,
culture was a close second.