CULTURE

Kelvin Klien F. Ferranco

Master in Business Administration

CULTURE

Values, norms, guiding beliefs, and understandings that are shared by

members of an organization

FUNCTIONS OF ORGANIZATIONAL
CULTURE
Culture provides a sense of identity to members and increases their

commitment to the organization

Culture is a sense-making device for organization members

Culture reinforces the values of the organization

Culture serves as a control mechanism for shaping

behavior

Values
Espoused: what members of
an organization say they value
Enacted: reflected in the way
individuals actually behave
Artifacts symbols of
culture in the physical
and social work environment

LEVELS OF ORGANIZATIONAL
CULTURE
Visible, often not
decipherable

Greater level
of awareness

Assumptions deeply held

beliefs that guide behavior and tell
members of an organization how
to perceive and think about things

Taken for granted,

Invisible, Preconscious

TYPES OF ARTIFACTS
Personal Enactment
Ceremonies and Rites
Stories
About the boss
About getting fired
About relocating
About promotions
About crisis situations
About status considerations
Rituals
Symbols

TYPES OF CULTURES
Constructive
Valuing members, self-actualizing, affiliative, and
humanistic/encouraging normative beliefs (expected behavior or
conduct)
Passive-defensive
Approval-oriented, traditional and bureaucratic, dependent and
nonparticipative, punish mistakes but ignore success
Aggressive-defensive
Confrontation and negativism are rewarded, nonparticipative, positional
power, winning valued, competitiveness rewarded, perfectionistic

CONSTRUCTIVE CULTURE
Normative
Beliefs

Organizational
Characteristics

Achievement

Goal and achievement

oriented

Selfactualizing

Value self-development
and creativity

Humanisticencouraging
Affiliative

Participative, employee
centered, and
supportive
High priority on constructive
interpersonal relationships, and focus
on work group satisfaction

PASSIVE DEFENSIVE
CULTURE
Normative
Beliefs

Organizational
Characteristics

Approval

Avoid conflict, strive to

be liked by others, and
approval oriented

Conventional

Conservative,
bureaucratic, and
people follow the rules
Nonparticipative, centralized decision
making, and employees do what they
are told
Negative reward system and Defensive
avoid accountability

Dependent

Avoidance

AGGRESSIVE-DEFENSIVE
CULTURE
Normative
Beliefs

Organizational
Characteristics

Oppositional

Confrontation and
negativism rewarded

Power

Nonparticipative, take
charge of Defensive
subordinates, and
responsive to superiors
Winning is values and a
win-lose approach is
used
Perfectionistic, persistent, and hard
working

Competitive
Perfectionistic

Theories on the relationship

between organizational
culture and performance
Strong Culture Perspective
Fit Perspective
Adaptive Perspective

STRONG CULTURE
An organizational culture with a consensus on the values that drive the
company and with an intensity that is recognizable even to outsiders

Strong Cultures Facilitate

Performance

BECAUSE

They are characterized by goal

alignment
They create a high level of motivation
because of shared values by the
members
They provide control without the
oppressive effects of bureaucracy

FIT PERSPECTIVE
A culture is good only if it fits the industry or the
firms strategy

Fit Perspective
Three particular industry
characteristics affect culture:
1.Competitive environment
2.Customer requirements
3.Societal expectations

ADAPTIVE CULTURE
An organizational culture that encourages confidence and risk taking
among employees, has leadership that produces change, and focuses on
the changing needs of customers

MOST IMPORTANT ELEMENTS

IN MANAGING CULTURE
What leaders pay attention to
How leaders react to crises
How leaders behave
How leaders allocate rewards
How leaders hire and fire individuals

HOW CULTURES ARE EMBEDDED

IN ORGANIZATIONS
Formal/public statements
Physical Layout
Slogans, co. lingo
Mentoring, modeling
Explicit rewards, promotion criteria
Stories, legends, myths
Processes and outcomes, measurement
Workflow and systems

THANK YOU!