organizational culture (1)
TRANSCRIPT
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Organizational Culture
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Organizational Culture
A system of shared meaning held by members that distinguishes the organization from other
organizations
•Composed of seven key characteristics
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Seven Characteristics of Organizational Culture
1. Innovation and Risk Taking2. Attention to Detail3. Outcome Orientation4. People Orientation5. Team Orientation6. Aggressiveness7. Stability
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Culture Is a Descriptive Term
Culture• Organizational culture is
concerned with how employees perceive an organization’s culture, not whether or not they like it
• Descriptive
Job Satisfaction• Measures affective responses to
the work environment: concerned with how employees feel about the organization
• Evaluative
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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
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Strong Cultures• In a strong culture, the organization’s core values are both intensely held
and widely shared • Strong cultures will:
Have great influence on the behavior of its members
Increase cohesiveness Result in lower employee
turnover
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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
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Culture’s Five Basic Functions
• Defines Boundaries• Conveys a Sense of Identity • Generates Commitment Beyond Oneself • Enhances Social Stability• Sense-making and Control Mechanism
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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
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Creating 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
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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
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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
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Dimensions of Socialization Programs
Intense 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
Moderate Programs• Informal – new workers
immediately put to work• Individual – one-on-one• Variable – no timetables• Random – on your own• Investiture – accepts and confirms
existing characteristics
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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
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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
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Creating an EthicalOrganizational 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
Managers must be visible role models Communicate ethical expectations Provide ethical training Visibly reward ethical acts and punish unethical ones Provide protective mechanisms
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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
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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
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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