1. WHAT IS ORGANIZATIONAL CULTURE?
System of shared meaning within an organization that determines to a large extent how employees behave and act 25

2. ORGANISATIONAL CULTURE
A cognitive framework consisting of attitudes, values, behavioral norms and expectations shared by organization members;
A set of basic assumptions shared by members of an organization.

3. Dimensions of Organizational Culture
Member identity
Group emphasis
People focus
Unit integration
Control
Risk tolerance
Reward
Conflict tolerance
Means-end orientation
Open-systems focus 26

4. Dimensions of Organizational Culture
Member identity--the degree to which employees identify with the organization as a whole
Group emphasis--the degree to which work activities are organized around groups.
People--does management think about the effect on people within the organization?
Unit integration--the degree to which units operate in a coordinated and interdependent fashion.
Control--the degree to which rules and regulations control employee behaviour.
Risk tolerance--the degree to which employees are encouraged to be innovative and risk-seeking.

5. Dimensions of Organizational Culture
Reward--the degree to which rewards such as salary increases and promotions are based on employee performance compared to non-performance factors such as seniority.
Conflict tolerance--the degree to which the organization encourages employees to openly air conflicts and criticisms.
Means-end orientation--the degree to which the organization focuses on results rather than the techniques or processes to achieve results.
Open-systems focus--the degree to which the organization monitors and responds to changes in the external environment.

6. Functions of organizational culture
1. Mechanism of Behavioral control
2. Encourages stability
3. Provides source of identity
4. Distinguish one organization from another
5. Generation of commitment among employees

7. Drawbacks of organizational culture
1. Barrier to change and improvement
2. Barrier to diversity
3. Barrier to cross departmental and cross organizational cooperation ( conflicts)
4. Barrier to mergers and acquisitions

8. Culture as a Liability Barrier to change Barrier to diversity
Occurs when culture’s values are not aligned with the values necessary for rapid change
Barrier to diversity
Strong cultures put considerable pressure on employees to conform, which may lead to institutionalized bias

9. Types of culture Strong Vs Weak Culture Dominant Vs Sub cultures
Soft Vs Hard Culture
Formal Vs Informal Culture
Organizational Vs National Culture

10. How Culture Begins Stems from the actions of the founders:
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.
The founders’ own behavior acts as a role model that encourages employees to identify with them and thereby internalize their beliefs, values, and assumptions.

11. Keeping Culture Alive Selection Top Management Socialization
Concerned 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. Stages in the Socialization Process
Prearrival
The period of learning prior to a new employee joining the organization
Encounter
When the new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge
Metamorphosis
When the new employee changes and adjusts to the work, work group, and organization

13. How Organizational Cultures Form

14. How Employees Learn Culture
Stories
Anchor the present into the past and provide explanations and legitimacy for current practices
Rituals
Repetitive sequences of activities that express and reinforce the key values of the organization
Material Symbols
Acceptable attire, office size, opulence of the office furnishings, and executive perks that convey to employees who is important in the organization
Language
Jargon and special ways of expressing one’s self to indicate membership in the organization

15. Creating an Ethical Organizational Culture
Characteristics of Organizations that Develop High Ethical Standards
High tolerance for risk
Low to moderate in aggressiveness
Focus on means as well as outcomes
Managerial Practices Promoting an Ethical Culture
Being a visible role model
Communicating ethical expectations
Providing ethical training
Rewarding ethical acts and punishing unethical ones
Providing protective mechanisms

16. Creating a Positive Organizational Culture
A culture that:
Builds on employee strengths
Focus is on discovering, sharing, and building on the strengths of individual employees
Rewards more than it punishes
Articulating praise and “catching employees doing something right”
Emphasizes individual vitality and growth
Helping employees learn and grow in their jobs and careers
Limits of Positive Culture:
May not work for all organizations or everyone within them

17. Spirituality and Organizational Culture
Workplace Spirituality
The recognition that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of the community
NOT about organized religious practices
People seek to find meaning and purpose in their work.

18. Why Spirituality Now?
As a counterbalance to the pressures and stress of a turbulent pace of life and the lack of community many people feel and their increased need for involvement and connection.
Formalized religion hasn’t worked for many people.
Job demands have made the workplace dominant in many people’s lives, yet they continue to question the meaning of work.
The desire to integrate personal life values with one’s professional life.
An increasing number of people are finding that the pursuit of more material acquisitions leaves them unfulfilled.

19. Characteristics of a Spiritual Organization
Concerned with helping people develop and reach their full potential
Directly addresses problems created by work/life conflicts
Four characteristics of spiritual organizations:
Strong sense of purpose
Trust and respect
Humanistic work practices
Toleration of employee expression

20. Criticisms of Spirituality
What is the scientific foundation?
It is still pending: needs more research
Are spiritual organizations legitimate: do they have the right to impose values on employees?
Spirituality is not about God or any religious values
It is an attempt to help employees find meaning and value in their work
Are spirituality and profits compatible?
Initial evidence suggests that they are
Spirituality may result in greater productivity and dramatically lower turnover

21. Culture as an Intervening Variable
Employees form an overall subjective perception of the organization based on these objective factors:
The opinions formed affect employee performance and satisfaction.