Institutionalization When an organization takes on a life of its own, apart from any of its members, and acquires immortality. Operates to produce common understandings among members about what is appropriate and, fundamentally, meaningful behavior.
Organizational Culture A system of shared meaning held by members that distinguishes the organization from other organization. Characteristics: Innovation and risk taking Attention too detail Outcome orientation People orientation Team orientation Aggressiveness Stability
Dominant Culture – expresses the core values that are shared by a majority of the organization’s members. Subcultures – mini cultures 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.
Culture’s functions o Controlling behavior o Defining boundaries o Conveying identity o Promoting commitment
Culture as a liability Barriers to change Barriers to diversity Barriers to Acquisition and Mergers
Culture begins Founders hire and keep only employees who think and feel the same way they do Indoctrinate(train) and socialize these employees to their way of thinking and feeling Founders’ own behavior acts as a role model that encourages employees to identify with them and thereby internalize their beliefs, values and assumptions.
Keeping a culture alive Selection practices Actions of top management Socialization methods – process that adapts employees to the organization’s culture
Socialization process PrearrivalEncounterMetamorphosis Outcomes Productivity Commitment Turnover Prearrival – the period of learning in the socialization process that occurs before the new employee joins the organization. Encounter – the stage in the socialization process in which a new employee sees what the organization is really like and confronts the possibility tat expectations and reality may diverge. Metamorphosis – the stage in the socialization process in which a new employee changes and adjusts to the job, work group and organization.
How organization cultures form Philosophy of Organization’s founders Selection Criteria Top Management Socialization Organization Culture
How employees learn culture Stories Rituals – repetitive sequences of activities that express and reinforce the key values of the organization, which goals are most important, which people are important, and which are expendable. Material Symbols Language
An ethical organizational culture Be a visible role model Communicate ethical expectations Provide ethical training Visibly reward ethical acts and punish unethical ones Provide protective mechanisms
A customer-responsive culture Shaping customer-responsive cultures Type of employee themselves Low formalization Empowerment Good listening skills Role clarity Exhibit organizational citizenship behavior
A customer-responsive culture Managerial Action Selection Training and socialization Structural Design Empowerment Leadership Performance evaluation Reward system
Spirituality and organizational culture Spirituality – the recognition that people have an inner life that nourished by meaningful work that takes place in the context of community. Characteristics – Strong sense of purpose Focus on individual development Trust and respect Humanistic work practices Toleration of employee expression