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Organizational
Culture
Subject : Organizational Behavior
URVIN PATEL
urvinpatel18@gmail.com
Organizational culture is a system
of shared assumptions, values, reality,
which governs how people behave in
organizations. These shared values
have a strong influence on the people in
the organization and dictate how they
dress, act, and perform their jobs.
Definition
7 Key Characteristics of
Organizational Culture
Innovation and risk taking- The degree to
which employee are encouraged to be
innovation and take risks.
Attention to Detail - The degree to which
Employees expected to be accurate in their
work.
Teamwork - Companies that organize work
activities around teams instead of individuals place
a high value on this characteristic of organizational
culture.
- companies tend to have a positive relationship
with their coworkers and managers.
People Orientation- The degree to
which management decisions are take
into consideration and the effect of
outcomes on people within the
organization.
Stability- The degree to which
organizational activities emphasize
maintaining the status quo in contrast to
growth.
Aggressiveness – The degree to which
people are aggressive and competitive
rather than easygoing.
Reward system- Rewards allocation
are based on employee performance.
Culture Is a Descriptive Term
Culture Job
Satisfaction
 Organizational
culture is concerned
with how employees
perceive an
organization’s culture,
not whether or not they
like it.
 Descriptive
 Measures affective
responses to the work
environment:
concerned with how
employees feel about
the organization.
Evaluative
Do Organizations Have Uniform
Cultures?
 The 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 of
members.
 Subcultures mirror the dominant culture
but may add to or modify the core values.
Strong Cultures
 In a strong culture, the organization’s core
values are both intensely held and widely
shared.
 The more members who accept the core
values and the greater their commitment to
those values, the stronger the culture is.
 Strong cultures will:
 Have great influence on
the behavior of its members
 Result in lower employee
Culture Versus Formalization
 Both seek predictability,
orderliness, and consistency.
 Culture controls by increasing
behavioral consistency.
 Formalization controls through
policies and written documentation.
 Strong cultures can be a substitute
for formalization.
Culture’s Five Basic
Functions
 Defines Boundaries
 Conveys a Sense of Identity
 Generates Commitment Beyond Oneself
 Enhances Social Stability
 Sense-making and Control Mechanism
Culture as a Liability
 Barrier to Change
Culture is slow to change – even in a
dynamic environment.
 Barrier to Diversity
 Culture seeks to minimize diversity
 Can embed prevalent bias and
prejudice
 Barrier to Acquisitions and Mergers
 Most mergers fail due to cultural
incompatibility.
Creating Culture and sustaining
culture
 Ultimate source of an organization’s
culture is its founders.
Founders create culture in three ways:
 By hiring and keeping those who think
and feel the same way they do
 Indoctrinating and socializing those
employees to their way of thinking and
feeling
 Acting as a role model and
encouraging employees to identify with
them
Keeping a Culture Alive
Selection – seek out those who fit in
Top Management – establish norms
of behavior by their actions
Socialization – help new employees
adapt to the existing culture
A Socialization Model
 Pre-arrival – initial knowledge about the
organization and own unique ideas
 Encounter – exposed to the
organization
 Metamorphosis – member changed to
fit within the organization
Dimensions of
Socialization Programs
Intense
Programs
Moderate Programs
Formal – new
workers separated
for training
Collective – group
basis
Fixed – planned
activities
Serial – role
models used
Divestiture – strip
away characteristics
to build up new ones
Informal – new
workers
immediately put to
work
Individual – one-
on-one
Variable – no
timetables
Random – on
your own
Investiture –
accepts and
confirms existing
How Organization Cultures Form
Success in employee socialization
depends on management’s selection of
socialization method and the closeness of
new employees’ values to those of the
organization
How Employees Learn
Culture
Culture is
transmitted to
employees through:
Stories – provide
explanations
Rituals – reinforce
key values
Material Symbols –
convey importance
Language – identify
and segregate
members
Creating an Ethical
Organizational Culture
 A strong culture with high risk tolerance,
low-to-moderate aggressiveness, and
focuses on means as well as outcomes is
most likely to shape high ethical standards
 Visible role model
 Communicate ethical expectations
 Provide ethical training
 Visibly reward ethical acts and
punish unethical ones
 Provide protective mechanisms
Creating a Positive
Organizational Culture
A positive culture is one that
emphasizes the following:
 Building on Employee
Strengths
 Rewarding More Than
Punishing
 Emphasizing Vitality and
Growth of the Employee
Global Implications
National and Organizational Cultures:
 Organizations exist in a global context
 Must be aware of local and national cultures
Suggestions and Observations:
 Organizations heavily dependent on foreign
markets and labor
 National culture does influence organizational
culture
 All managers must be culturally sensitive
Implications for Managers
 Create the culture you want
when the organization is small
and new.
 If established culture needs to
be changed, expect it to take
years
Organizational Culture by Urvin

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Organizational Culture by Urvin

  • 1. Organizational Culture Subject : Organizational Behavior URVIN PATEL urvinpatel18@gmail.com
  • 2. Organizational culture is a system of shared assumptions, values, reality, which governs how people behave in organizations. These shared values have a strong influence on the people in the organization and dictate how they dress, act, and perform their jobs. Definition
  • 3. 7 Key Characteristics of Organizational Culture Innovation and risk taking- The degree to which employee are encouraged to be innovation and take risks. Attention to Detail - The degree to which Employees expected to be accurate in their work.
  • 4. Teamwork - Companies that organize work activities around teams instead of individuals place a high value on this characteristic of organizational culture. - companies tend to have a positive relationship with their coworkers and managers.
  • 5. People Orientation- The degree to which management decisions are take into consideration and the effect of outcomes on people within the organization. Stability- The degree to which organizational activities emphasize maintaining the status quo in contrast to growth.
  • 6. Aggressiveness – The degree to which people are aggressive and competitive rather than easygoing. Reward system- Rewards allocation are based on employee performance.
  • 7. Culture Is a Descriptive Term Culture Job Satisfaction  Organizational culture is concerned with how employees perceive an organization’s culture, not whether or not they like it.  Descriptive  Measures affective responses to the work environment: concerned with how employees feel about the organization. Evaluative
  • 8. Do Organizations Have Uniform Cultures?  The 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 of members.  Subcultures mirror the dominant culture but may add to or modify the core values.
  • 9. Strong Cultures  In a strong culture, the organization’s core values are both intensely held and widely shared.  The more members who accept the core values and the greater their commitment to those values, the stronger the culture is.  Strong cultures will:  Have great influence on the behavior of its members  Result in lower employee
  • 10. Culture Versus Formalization  Both seek predictability, orderliness, and consistency.  Culture controls by increasing behavioral consistency.  Formalization controls through policies and written documentation.  Strong cultures can be a substitute for formalization.
  • 11. Culture’s Five Basic Functions  Defines Boundaries  Conveys a Sense of Identity  Generates Commitment Beyond Oneself  Enhances Social Stability  Sense-making and Control Mechanism
  • 12. Culture as a Liability  Barrier to Change Culture is slow to change – even in a dynamic environment.  Barrier to Diversity  Culture seeks to minimize diversity  Can embed prevalent bias and prejudice  Barrier to Acquisitions and Mergers  Most mergers fail due to cultural incompatibility.
  • 13. Creating Culture and sustaining culture  Ultimate source of an organization’s culture is its founders. Founders create culture in three ways:  By hiring and keeping those who think and feel the same way they do  Indoctrinating and socializing those employees to their way of thinking and feeling  Acting as a role model and encouraging employees to identify with them
  • 14. Keeping a Culture Alive Selection – seek out those who fit in Top Management – establish norms of behavior by their actions Socialization – help new employees adapt to the existing culture
  • 15. A Socialization Model  Pre-arrival – initial knowledge about the organization and own unique ideas  Encounter – exposed to the organization  Metamorphosis – member changed to fit within the organization
  • 16. Dimensions of Socialization Programs Intense Programs Moderate Programs Formal – new workers separated for training Collective – group basis Fixed – planned activities Serial – role models used Divestiture – strip away characteristics to build up new ones Informal – new workers immediately put to work Individual – one- on-one Variable – no timetables Random – on your own Investiture – accepts and confirms existing
  • 17. How Organization Cultures Form Success in employee socialization depends on management’s selection of socialization method and the closeness of new employees’ values to those of the organization
  • 18. How Employees Learn Culture Culture is transmitted to employees through: Stories – provide explanations Rituals – reinforce key values Material Symbols – convey importance Language – identify and segregate members
  • 19. Creating an Ethical Organizational Culture  A strong culture with high risk tolerance, low-to-moderate aggressiveness, and focuses on means as well as outcomes is most likely to shape high ethical standards  Visible role model  Communicate ethical expectations  Provide ethical training  Visibly reward ethical acts and punish unethical ones  Provide protective mechanisms
  • 20. Creating a Positive Organizational Culture A positive culture is one that emphasizes the following:  Building on Employee Strengths  Rewarding More Than Punishing  Emphasizing Vitality and Growth of the Employee
  • 21. Global Implications National and Organizational Cultures:  Organizations exist in a global context  Must be aware of local and national cultures Suggestions and Observations:  Organizations heavily dependent on foreign markets and labor  National culture does influence organizational culture  All managers must be culturally sensitive
  • 22. Implications for Managers  Create the culture you want when the organization is small and new.  If established culture needs to be changed, expect it to take years