Organizational Culture Abdulrhman Alzhrani- BSc, MHA T.A, Health Services Administration Dept. Faculty of Public Health and Health Informatics, UQU
Objectives/Outline Know the nature of organizational culture and its manifestations Know how to interpret the culture Understand the importance of organizational culture Describe the four types of organizational culture
What is Organizational Culture? An org’s shared values, norms, guiding beliefs, and understandings It is the the unwritten part of the organization. Shared by members of an org – weakly or strongly Taught to new org members as the correct way to think, feel and behave
Levels of Org. Culture Visible artifacts and observable behaviors people share. Invisible aspect: underlying values, assumptions, beliefs, shared purpose and meaning Unconsciously operated During job interviews, observe symbols to judge org culture – then decide if you would ‘fit’ in that org. Invisible : foundations of culture, so widely shared in the org.
Purpose of Culture Culture serves two critical functions in organizations: Internal Integration: integrates members with shared identity and purpose so they know how to relate to one another and what to expect of others External Adaptation: helps organization adapt to external environment Both functions of culture are related to building the org’s social capital. Social Capital refers to the quality of interaction among people and weather they share a common perspective.
Interpreting Culture Rites and ceremonies Stories and Myths rite of passage, rite of integration Stories and Myths heroes Power Relationships: who influences or has the ability to do so. Symbols Physical artifacts Org. Structures Tall or flat hierarchy Control systems How information is managed, quality control systems, reward systems, and how decisions are made
Org. Design and Culture Managers want a corporate culture that reinforces the strategy and structural design that the org. needs to be effective in its environment. e.g. Internet-based companies The correct relationship among cultural values, organizational structure and strategy, and the environment can enhance performance. Cultures can be assessed along many dimensions such as the extent of collaboration vs. isolation among people and departments.
We focus on two dimensions: The extent to which the environment requires Flexibility or Stability The extent to which the org.’s strategic focus are Internal or External Types: The Adaptability Culture The Mission Culture The Clan Culture The Bureaucratic Culture relate to the fit among cultural values, organizational structure and strategy, and the environment
The Adaptability Culture Strategic focus on External Environment Flexibility and change to meet stakeholders’ needs. Innovation and risk-taking are embraced by employees and leaders. The long-term emphasis is on growth and acquiring new resources. e.g. Internet-Based companies
The Mission Culture It is characterized by emphasis on a clear vision of the org’s purpose. Strategic focus on external environment, but without the need for rapid change. Mission Culture reflects high level of competiveness and a profit making orientation A results-driven organization focuses on job completion. Professionalism, aggressiveness and ambition are key values e.g. General Electric
The Clan Culture Strategic focus on internal environment . The important value is taking care of employees to help them be satisfied as well as productive. Orgs that use clan culture have strong cultures that emphasize shared values and trust. People may be hired because they are committed to the org’s purpose.
The Bureaucratic Culture Internal strategic focus with stable environment Support methodical approach to do business It is a culture of order, discipline, and control Has high level of consistency, conformity, and collaboration among employees Integration and efficiency Less favorable culture It is used in highly predictable environment e.g. Large organizations such as MacDonald’s, Military
Culture Strength and Subcultures Culture Strength refers to the degree of agreement among members of the org. about the importance of specific values. high consensus about the importance of org’s values = cohesive and strong disagreement = weak culture Strong culture is associated with the frequent use of ceremonies, symbols ,..etc. which increase employee commitment to the values and strategy of the org. Subcultures do exist- a branch, or department cab have its own distinctive subculture- e.g. RD dept. vs. manufacturing dept.
Implications Pay attention to corporate culture. Understand the underlying values, assumptions, and beliefs on which culture is based as well as its observable manifestations. Evaluate org. culture based on rites and ceremonies, stories and myths, symbols and the structures, control systems, and power relationships you can observe in the org. Make sure corporate culture is consistent with strategy and environment .
Cont. Shape culture to fit the needs Consciously manage culture to shift values toward high performance and goal accomplishment. To support learning orientation, emphasize cultural values of openness and collaboration, equality and trust, continuous improvement, and risk-taking. Build a strong internal culture that encourages adaptation to changing environmental conditions.
Q & A Thank You