By Daniel Damaris Novarianto S. Organization Culture By Daniel Damaris Novarianto S.

Organization Culture A system of shared meaning held by members that distinguishes the organization from other organizations. The seven primary characteristics seem to capture the essence of an organization’s culture: Innovation and Risk Tasking Attention to Detail Outcome Orientations 1. Innovation and risk taking. The degree to which employees are encouraged to be innovative and take risks. 2. Attention to detail. The degree to which employees are expected to exhibit precision, analysis, and attention to detail. 3. Outcome orientation. The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve them.

Organization Culture The seven primary characteristics seem to capture the essence of an organization’s culture: (cont.) People Orientation Team Orientation Aggressiveness Stability 4. People orientation. The degree to which management decisions take into consideration the effect of outcomes on people within the organization. 5. Team orientation. The degree to which work activities are organized around teams rather than individuals. 6. Aggressiveness. The degree to which people are aggressive and competitive rather than easygoing. 7. Stability. The degree to which organizational activities emphasize maintaining the status quo in contrast to growth.

Organization Culture The other research has conceptualized culture into four different types based on competing values: The collaborative and cohesive clan The innovative and adaptable adhocracy The controlled and consistent hierarchy The competitive and customer focused market A review of 94 studies found that job attitudes were especially positive in clan-based cultures, innovation was especially strong in market cultures, and financial performance was especially good in market cultures.

Culture is a Descriptive Term Organizational culture shows how employees perceive the characteristics of an organization’s culture, not whether they like them The organizational culture is descriptive, whereas job satisfaction is evaluative

The Uniform Culture Dominant culture Subculture Strong culture Weak culture A dominant culture expresses the core values a majority of members share and that give the organization its distinct personality. Subcultures tend to develop in large organizations to reflect common problems or experiences members face in the same department or location. Example: The purchasing department can have a subculture that includes the core values of the dominant culture plus additional values unique to members of that department. In a strong culture, the organization’s core values are both intensely held and widely shared. If opinions vary widely, the culture is weak.

Culture Vs Formalization The high formalization creates predictability, orderliness, and consistency A strong culture achieves the same end without the need for written documentation.

Culture’s Functions A boundary-defining role: it creates distinctions between one organization and others. It conveys a sense of identity for organization members. Culture facilitates commitment to something larger than individual self-interest It enhances the stability of the social system. It is a sense-making and control mechanism that guides and shapes employees’ attitudes and behavior

Culture Creates Climate Organizational climate refers to the shared perceptions organizational members have about their organization and work environment. This is like team spirit at the organizational level

Polling News

Culture as Liability Institutionalization Barriers to Change Barriers to Diversity Barriers to Acquisition and Mergers

How a Culture Begins The founders hire and keep only employees who think and feel the same way they do They indoctrinate and socialize these employees to their way of thinking and feeling The founders’ own behavior encourages employees to identify with them and internalize their beliefs, values, and assumptions E.g: in Hyundai The fierce, competitive style and disciplined, authoritarian nature of Hyundai same characteristics often used to describe founder Chung Ju-Yung

How a Culture Begins (cont.)

How to Sustaining the Culture Selection practices The action of the top management Socialization methods

A Socialization Model

Socialization Process Pre-arrival Stage: The period of learning in the socialization process that occurs before a new employee joins the 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.

Socialization Process (cont.) Metamorphosis Stage: The stage in the socialization process in which a new employee changes and adjusts to the job, work group, and organization.

Entry Socialization Option Formal Vs Informal Individual Vs Collective Fixed Vs Variables Serial Vs Random Investiture Vs Divestiture Formal vs. Informal The more a new employee is segregated from the ongoing work setting and differentiated in some way to make explicit his or her newcomer’s role, the more socialization is formal. Specific orientation and training programs are examples. Informal socialization puts the new employee directly into the job, with little or no special attention. Individual vs. Collective New members can be socialized individually. This describes how it’s done in many professional offices. They can also be grouped together and processed through an identical set of experiences, as in military boot camp. Fixed vs. Variable This refers to the time schedule in which newcomers make the transition from outsider to insider. A fixed schedule establishes standardized stages of transition. This characterizes rotational training programs. It also includes probationary periods, such as the 8- to 10-year “associate” status used by accounting and law firms before deciding on whether or not a candidate is made a partner. Variable schedules give no advance notice of their transition timetable. Variable schedules describe the typical promotion system, in which one is not advanced to the next stage until one is “ready.” Serial vs. Random Serial socialization is characterized by the use of role models who train and encourage the newcomer. Apprenticeship and mentoring programs are examples. In random socialization, role models are deliberately withheld. New employees are left on their own to figure things out. Investiture vs. Divestiture Investiture socialization assumes that the newcomer’s qualities and qualifications are the necessary ingredients for job success, so these qualities and qualifications are confirmed and supported. Divestiture socialization tries to strip away certain characteristics of the recruit. Fraternity and sorority “pledges” go through divestiture socialization to shape them into the proper role.

How Employees Learn Culture Stories Rituals Material Symbols Language (Acronyms or Jargons)

Creating an Ethical Organization Culture What can managers do to create a more ethical culture? Be a visible role model Communicate ethical expectations Provide ethical training Visibly reward ethical acts and punish unethical acts Provide protective mechanism

Creating a Positive Organization Culture Building on Employees Strength Rewarding More Than Punishing Emphasizing Growth and Vitality Limits of Positive Culture

Spirituality and Organization Culture Workplace spirituality is not about organized religious practices It’s not about God or theology Workplace spirituality recognizes that people have an inner life that nourishes and is nourished by meaningful work in the context of community. People seek to find meaning and purpose in their work and desire to connect with other human beings as part of a community.

Characteristics of Spiritual Organization Benevolence Strong sense of purpose Trust and respect Open-mindedness Benevolence. Spiritual organizations value showing kindness toward others and promoting the happiness of employees and other organizational stakeholders. Strong sense of purpose. Spiritual organizations build their cultures around a meaningful purpose. Although profits may be important, they’re not the primary value of the organization. Trust and respect. Spiritual organizations are characterized by mutual trust, honesty, and openness. Employees are treated with esteem and value, consistent with the dignity of each individual. Open-mindedness. Spiritual organizations value flexible thinking and creativity among employees.

Growing Interest in Spirituality Reason for the growing interest in spirituality: Spirituality can counterbalance the pressures and stress of a turbulent pace of life Formalized religion hasn’t worked for many people, and they continue to look for anchors to replace lack of faith and to fill a growing feeling of emptiness

Growing Interest in Spirituality (cont.) Reason for the growing interest in spirituality: (cont.) Job demands have made the workplace dominant in many people’s lives, yet they continue to question the meaning of work. People want to integrate personal life values with their professional life An increasing number of people are finding that the pursuit of more material acquisitions leaves them unfulfilled

Summary and Implications for Managers

Thank You !