ORGANIZATIONAL CULTURE

"...We believe that organizations

will ultimately get only as far as
their organizational cultures
take them."

Dfinition
The basic pattern of shared assumptions,
values, and beliefs considered to be the correct
way of thinking about and acting on problems
and opportunities facing the organization.

The Philosophy that guides an Organizations

policy towards employees & customers.

ORGANIZATIONAL CULTURE
The culture of an organization represents certain predefined
policies which guide the employees and give them a sense of
direction at the workplace.
The culture decides the way employees interact at their
workplace.

IMPORTANCE OF ORGANIZATIONAL CULTURE

The Culture decides the way employees

interact at their workplace.
The organization culture brings all the
employees on a common platform.
It is the culture of the organization which
extracts the best out of each team member

IMPORTANCE(contd)

The culture of the workplace also goes a long way in promoting

healthy competition at the workplace.
The culture of an organization represents certain predefined
policies which guide the employees and give them a sense of
direction at the workplace

Organizational Culture
Organizational Culture

A common perception held by the organizations members; a

system of shared meaning
Seven primary characteristics
1.
2.
3.
4.
5.
6.
7.

Innovation and risk taking

Attention to detail
Outcome orientation
People orientation
Team orientation
Aggressiveness
Stability

16-7

 for example : When you shape a round finger, it

means zero in Indonesia but in Brazil that is
rude.

OVERVIEW OF TATA AND FORD

MOTORS

Jamsetji Nusserwanji Tata

Henry Ford

Do Organizations Have Uniform

Cultures?
Culture is a descriptive term: it may act as a substitute for
formalization
Dominant Culture
Expresses the core values that are shared by a majority of
the organizations members

Subcultures

Minicultures within an organization, typically defined by

department designations and geographical separation

Core Values

The primary or dominant values that are accepted

throughout the organization

Strong Culture

A culture in which the core values are intensely held and

widely shared
16-10

What Do Cultures Do?

Cultures Functions
1. Defines the boundary between one
organization and others
2. Conveys a sense of identity for its members
3. Facilitates the generation of commitment to
something larger than self-interest
4. Enhances the stability of the social system
5. Serves as a sense-making and control
mechanism for fitting employees in the
organization

16-11

Culture as a Liability/Dysfunction
Institutionalization
A company can become institutionalized where it is valued
for itself and not for the goods and services it provides

Barrier to change
Occurs when cultures values are not aligned with the
values necessary for rapid change

Barrier to diversity
Strong cultures put considerable pressure on employees to
conform, which may lead to institutionalized bias

Barrier to acquisitions and mergers

Incompatible cultures can destroy an otherwise successful
merger
16-12

Summary: How Organizational

Cultures Form
Organizational cultures are derived from the
founder
They are sustained through the selection
process, managerial action, and socialization
methods

16-13

How Culture Begins (Building)

Stems from the actions of the founders:
Founders hire and keep only employees who think
and feel the same way they do.
Founders instruct and socialize these employees
to their way of thinking and feeling.
The founders own behavior acts as a role model
that encourages employees to identify with them
and thereby internalize their beliefs, values, and
assumptions.

16-14

Keeping a Culture Alive (Maintaining)

Three forces play a particularly important role in
sustaining a culture:
Selection
Identify and select individuals who are high performers
and whose values are consistent with at least a good
portion of the organizations values

Top Management
Through words and behaviors, senior executives establish
norms that filter through the organization

Socialization
The process that helps new employees adapt to the
prevailing organizational culture
16-7

How Employees Learn Culture

Stories
Anchor the present into the past and provide explanations and
legitimacy for current practices

Rituals
Repetitive sequences of activities that express and reinforce the
key values of the organization

Material Symbols
Acceptable attire, office size, lavishness of the office furnishings,
and executive perks that convey to employees who are
important in the organization

Language
Jargon and special ways of expressing ones self to indicate
membership in the organization

16-16

Creating an Ethical Organizational

Culture
Characteristics of Organizations that Develop High
Ethical Standards
Has high tolerance for risk
Low to moderate in aggressiveness
Focused on means as well as outcomes

Managerial Practices Promoting an Ethical Culture

Being a visible role model

Communicating ethical expectations
Providing ethical training
Visibly rewarding ethical acts and punishing unethical ones
Providing protective mechanisms
16-17

Creating a Positive Organizational

Culture
Positive Organizational Culture
A culture that:
Builds on employee strengths
Focus is on discovering, sharing, and building on the strengths of
individual employees

Rewards more than it punishes

Articulating praise and catching employees doing something
right

Emphasizes individual vitality and growth

Helping employees learn and grow in their jobs and careers

Limits of Positive Culture:

May not work for all organizations or everyone within
them
16-18