1What Is Organizational Culture? A common perception held by the organization’s members; a system of shared meaning.Characteristics:Innovation and risk takingAttention to detailOutcome orientationPeople orientationTeam orientationAggressivenessStability
2What is Organizational Culture??? Organizational culture is defined as“A pattern of shared basic assumptions invented, discovered, or developed by a given group as it learns to cope with its problems of external adaptation and internal integration"that have worked well enough to be considered valid and therefore, to be taught to new members as the correct way to perceive, think and feel in relation to those problems”
3Organizational culture is a commonly held –in-the-mind framework of organizational members. This framework contains basic assumptions and values. These basic assumptions and values are taught to new members as the way to perceive, think, feel, behave, and expect others to behave in the organization.
4Organizational culture is developed over time as people in the organization learn to deal successfully with problems of external adaptation and internal integration. It becomes the common language and the common background.So culture arises out of what has been successful for the organization.
5Organizational culture is a collection of values, norms and behaviour, shared by workers that control the way workers interact with each other.Organizational culture is a set of shared mental assumptions that guide interpretation and action in organizations by defining appropriate behavior for various situations.
6Do Organizations Have Uniform Cultures? Dominant CultureExpresses the core values that are shared by a majority of the organization’s members.SubculturesMinicultures within an organization, typically defined by department designations and geographical separation.
7Do Organizations Have Uniform Cultures? Core ValuesThe primary or dominant values that are accepted throughout the organization.Strong CultureA culture in which the core values are intensely held and widely shared.
8What Is Organizational Culture? Culture Versus FormalizationA strong culture increases behavioral consistency and can act as a substitute for formalization.Organizational Culture Versus National CultureNational culture has a greater impact on employees than does their organization’s culture.
9What Do Cultures Do? Culture’s Functions: Defines the boundary between one organization and others.Conveys a sense of identity for its members.Facilitates the generation of commitment to something larger than self-interest.Enhances the stability of the social system.Serves as a sense-making and control mechanism for fitting employees in the organization.
10What Do Cultures Do? Culture as a Liability: Barrier to change Barrier to diversityBarrier to acquisitions and mergers
11How Culture BeginsFounders hire and keep only employees who think and feel the same way they do.Founders indoctrinate 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.
12Keeping Culture Alive Selection Top Management Socialization Concern with how well the candidates will fit into the organization.Provides information to candidates about the organization.Top ManagementSenior executives help establish behavioral norms that are adopted by the organization.SocializationThe process that helps new employees adapt to the organization’s culture.
13Stages in the Socialization Process Prearrival StageThe period of learning in the socialization process that occurs before a new employee joins the organization.Encounter StageThe stage in the socialization process in which a new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge.Metamorphosis StageThe stage in the socialization process in which a new employee changes and adjusts to the work, work group, and organization.
17Creating An Ethical Organizational Culture Characteristics of Organizations that Develop High Ethical StandardsHigh tolerance for riskLow to moderate in aggressivenessFocus on means as well as outcomesManagerial Practices Promoting an Ethical CultureBeing a visible role modelCommunicating ethical expectationsProviding ethical trainingRewarding ethical acts and punishing unethical onesProviding protective mechanisms
18How Organizational Cultures Have an Impact on Performance and Satisfaction
19Hofstede’s Framework Power Distance Individualism vs. Collectivism Masculinity vs. FemininityUncertainty AvoidanceLong-term and Short-term orientation
20Hofstede’s Framework for Assessing Cultures Power DistanceThe extent to which a society accepts that power in institutions and organizations is distributed unequally.Low distance: relatively equal power between those with status/wealth and those without status/wealthHigh distance: extremely unequal power distribution between those with status/wealth and those without status/wealth
21Hofstede’s Framework Individualism The degree to which people prefer to act as individuals rather than a member of groups.CollectivismA tight social framework in which people expect others in groups of which they are a part to look after them and protect them.Vs.
22Hofstede’s Framework Masculinity Femininity The extent to which the society values work roles of achievement, power, and control, and where assertiveness and materialism are also valued.Vs.FemininityThe extent to which there is little differentiation between roles for men and women.
23Uncertainty Avoidance Hofstede’s FrameworkUncertainty AvoidanceThe extent to which a society feels threatened by uncertain and ambiguous situations and tries to avoid them.High Uncertainty Avoidance: Society does not like ambiguous situations & tries to avoid them.Low Uncertainty Avoidance: Society does not mind ambiguous situations & embraces them.
24Hofstede’s Framework Long-term Orientation A national culture attribute that emphasizes the future, and persistence.Vs.Short-term OrientationA national culture attribute that emphasizes the present and the here and now.