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What is Organizational Culture?

˜The set of values that helps the organization¶s

employees understand which actions are considered
acceptable and which actions are considered
unacceptable.
Ôenry Mintzberg on Culture

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Organizational Culture

˜The pattern of shared values, beliefs and

assumptions considered to be the
appropriate way to think and act within an
organization.
ºCulture is shared
ºCulture helps members solve problems
ºCulture is taught to newcomers
ºCulture strongly influences behavior
Ôow Cultures Emerge?

Top
Management Behaviors Results Culture
‡ Agrees on ‡ Employees ‡ Financial ‡ Strong culture
shared behave in ways performance emerges
assumptions of that are ‡ Traditions are
‡ Market share
human behavior consistent with maintained
shared values ‡ Employee
‡ Develops a ‡ Socialization
and assumptions commitment
shared vision of practices for new
cultural values employees
Components of Organizational Culture

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Characteristics of Organizational Culture

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The degree to which employees are encouraged to be
innovative and take risks.
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The degree to which employees are expected to exhibit
precision, analysis, and attention to detail.
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The degree to which management focuses on results or
outcomes rather than on technique and process.
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The degree to which management decisions take into
consideration the effect of outcomes on people within the
organization.
Characteristics of Organizational Culture (Cont.)

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The degree to which work activities are organized around
teams rather than individuals.
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The degree to which people are aggressive and
competitive rather than easygoing.
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The degree to which organizational activities emphasize
maintaining the status quo in contrast to growth.
Methods of Maintaining Organizational Culture

 
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Organizational Rites and Ceremonies

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Rites of passage Basic training, U.S. Army Facilitate transition into new
roles; minimize differences in
way roles are carried out
Rites of degradation Firing a manager Reduce power and identity;
reaffirm proper behavior

Rites of Mary Kay Cosmetics Enhance power and identity;

enhancement Company ceremonies emphasize value of proper
behavior
Rites of integration Office party Encourage common feelings
that bind members together
Dramework of Types of Cultures

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ttributes of a Bureaucratic Culture

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ttributes of a Clan Culture

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ttributes of a Clan Culture (Cont.)

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ttributes of an Entrepreneurial Culture

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ttributes of a Market Culture

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Organizational Uses of Culture

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Organizational Uses of Culture

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Relationship Between Culture and Performance

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Relationship Between Culture and Performance

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Effects of Organizational Culture on Employee
Behavior and Performance

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Effects of Organizational Culture on Ethical Behavior

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Ôow Employees Can Change Unethical Behavior

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Creating a Culture that Encourages Ethical behavior

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