1. Business Leadership and Organizational Behavior Organizational Culture Craig W. Fontaine, Ph.D.

2. Organizational Culture An organization’s culture is a set of beliefs, values, and assumptions that an organization’s members share and use to guide their functioning

3. Organizational Culture  Shared view has been in existence long enough to be taken for granted by group members  “Culture” is learned as a result of group experience and may be identified in a group or organization with a significant history

4. Innovation People orientation Outcome orientation Easygoingness Detail Orientation Team Orientation Communication Training & development Rewards Decision making Risk-taking Management practices Dimensions of Organizational Culture

5. Contrasting Organizational Cultures Organization AOrganization B Managers must fully document all decisions. Creative decisions, change, and risks are not encouraged. Extensive rules and regulations exist for all employees. Productivity is valued over employee morale. Employees are encouraged to stay within their own department. Individual effort is encouraged. Management encourages and rewards risk-taking and change. Employees are encouraged to “run with” ideas, and failures are treated as“learning experiences.” Employees have few rules and regulations to follow. Productivity is balanced with treating its people right. Team members are encouraged to interact with people at all levels and functions. Many rewards are team based.

6. Support business strategy Make staffing decisions Set performance criteria Guide style of interpersonal relationships Select appropriate management style Functions of Organizational Culture

7. Layers of Organizational Culture Artifacts of Organizational Culture Material Symbols Language Rituals Stories Organizational Culture Beliefs Values Assumptions

8. Variations in Organizational Culture Core Culture and Subcultures Mini-cultures within an organization, typically defined by department designations and geographical separation. Strong or Weak Culture A culture in which the core values are intensely held and widely shared.

9. Negative Aspects of Organizational Culture 1.Barrier to change. 2.Barrier to diversity 3.Barrier to acquisitions and mergers 1.Barrier to change. 2.Barrier to diversity 3.Barrier to acquisitions and mergers

10. Founding Organizational Culture  The founders’ own behavior often acts as a role model that encourages employees to identify with them and thereby internalize their beliefs, values, and assumptions.  Founders 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.

11. Maintaining Organizational Culture  Selection –Concern with how well the candidates will fit into the organization. –Provides information to candidates about the organization.  Top Management –Senior executives help establish behavioral norms that are adopted by the organization.  Socialization –The process that helps new employees adapt to the organization’s culture.

12. A Socialization Model

13. Stages in the Socialization Process Prearrival Stage The period of learning in the socialization process that occurs before a new employee joins the organization. Metamorphosis Stage The stage in the socialization process in which a new employee changes and adjusts to the work, work group, and organization. Encounter Stage The 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.

14. How Organization Cultures Form

15. How Employees Learn Culture Stories Rituals Material Symbols Language Stories Rituals Material Symbols Language

16. How Organizational Cultures Have an Impact on Performance and Satisfaction