What Is an Organization?

A consciously coordinated social unit, composed of a

group of people, which functions on a relatively
continuous basis to achieve a common goal or set of
goals.
 ORGANIZATIONAL CULTURE
Just as individuals have a personality, so, too, do
organizations. We refer to an organizations personality as its
culture.
Organizational culture is shared assumptions a given group
has developed to deal with the problems of external
adaptation and internal integration
The way we do things around here (and why)
Historical (transferred to newcomers)
Moral force (normative: what is right and good)
Associated with intensity of common problems
Associated with stability of the group
Changes across time, but slowly and in small steps
 ORGANIZATIONAL CULTURE.Introduction

Culture is the soul of the organization the beliefs and values, and
how they are manifested. I think of the structure as the skeleton,
and as the flesh and blood. And culture is the soul that holds the
thing together and gives it life force.- Henry Mintzberg
Organizational Culture is the pattern of shared values,
beliefs and assumptions considered to be the appropriate
way to think and act within an organization. Thus
Culture is shared;
Culture helps members solve problems;
Culture is taught to newcomers;
Culture strongly influences behavior.
 ORGANIZATIONAL CULTURE-
Definition & Characteristics
Definition: Organizational culture is the shared values, principles,
traditions, and ways of doing things that influence the way
organizational members act.
This definition implies:
1. Individuals perceive organizational culture based on what they
see, hear, or experience within the organization.
2. Organizational culture is shared by individuals within the
organization.
3. Organizational culture is a descriptive term. It describes, rather
than evaluates.
4. Organizational Culture have Passed on to new employees
through the process of socialization
5. Organizational Culture Influences our behavior at work
 What do Cultures do ?
1. culture has a boundary-defining role: it creates distinctions
between organizations.
2. Second, it conveys a sense of identity for members.
3. Third, culture facilitates commitment to something larger than
individual self-interest. Fourth, it enhances the stability of the
social system. Culture is the social glue that helps hold the
organization together by providing standards for what
employees should say and do.
4. Fourthly, it is a sense-making and control mechanism that
guides and shapes employees attitudes and behavior.
5. Culture defines the rules of the game.
6. Culture Creates Climate: Organizational climate refers to the
shared perceptions organizational members have about their
organization and work environment. This aspect of culture is
like team spirit at the organizational level. When everyone has
the same general feelings about whats important or how well
 INNOVATIVE CULTURE : Characteristics
An innovative culture should have these characteristics:
Challenge and involvement
Freedom
Trust and openness
Playfulness/humor
Conflict resolution
Debates
Risk taking
 Organizational Culture: Functions

Culture is the social glue that helps hold an organization

together by providing appropriate standards for what
employees should say or do.
It has a boundary-defining role.
It conveys a sense of identity for organization members.
It facilitates the generation of commitment to something
larger than ones individual self-interest.
It enhances social system stability.
It serves as a sense-making and control mechanism that
guides and shapes the attitudes and behaviour of
employees.
 Culture as a Liability
Culture can have dysfunctional aspects in some
instances
Culture as a Barrier to Change
When organization is undergoing change, culture may impede
change
Culture as a Barrier to Diversity
Strong cultures put considerable pressure on employees to
conform
Culture as a Barrier to Mergers and Acquisitions
Merging the cultures of two organizations can be difficult, if not
impossible
 Point-CounterPoint
Why Culture Doesnt
Change
s Culture develops over
When Culture Can
many years, and Change
becomes part of how the s There is a dramatic
organization thinks and crisis
feels s There is a turnover in
s Selection and promotion leadership
policies guarantee s The organization is
survival of culture young and small
s Top management s There is a weak culture
chooses managers likely
to maintain culture
 CULTURE :How Does Organizational Culture
Change
Natural evolution as adaptations
Managed evolution (organizational development)
Challenges to cultural assumptions
Scandals and disasters
Charismatic leaders as role models
Infusion of outsiders, merger/acquisition
Coercive persuasion (turnarounds)
Technological changes
 How to Change Culture
Have top-management people become positive role models, setting
the tone through their behavior.
Create new stories, symbols, and rituals to replace those currently in
vogue.
Select, promote, and support employees who espouse the new values
that are sought.
Redesign socialization processes to align with the new values.
Change the reward system to encourage acceptance of a new set of
values.
Replace unwritten norms with formal rules and regulations that are
tightly enforced.
Shake up current subcultures through transfers, job rotation, and/or
terminations.
Work to get peer group consensus through utilization of employee
participation and creation of a climate with a high level of trust.
 Levels of Culture
Artifacts
Aspects of an organizations culture that you see, hear,
and feel.
Beliefs
The understandings of how objects and ideas relate to
each other.
Values
The stable, long-lasting beliefs about what is important.
Assumptions
The taken-for-granted notions of how something should
be in an organization
 Organizational Culture- Approaches
The Interpretative Approach : This approach is less concerned with managers
but more focused on the complex process of organizational life.
1. All membersnot just managersare thought to create and shape the
organizations culture through everyday communication practices.
2. It Centers on the processes through which organizational members makes
sense or create their experiences.
3.Rituals, myths, jokes, and other cultural performances are not viewed as static
entities to be transmitted from management to employees.
4.Culture is not merely another variable that the organization has, rather, culture is
something the organization is.
5.Interpretive view is not anti-management, but rather see the organization from
multiple levels and each level having influence on the organizations culture.
This approach provides a more in-depth understanding of corporate life.
The critics of this approach say this is a bit politically about people and how they
(and the powers they use) behave in organizations. And while this approach gives a
richer look at the organization as a complex entity, it does not offer guidelines or
prescriptions for organizations to employ to strengthen the culture.
 The Critical Approach
It Extends the research of the Interpretative Approach
into the realm of the critique and evaluation.
This approach evaluates existing cultures; calls into
question the ideologies and power structures that
underscore organizational cultures.
This approach is grounded in the goal of freeing people
from dominance and oppression.
This tries to look at the dark side of otherwise excellent
corporate cultures, and suggests that managers need to
be on guard and watch for misuses of corporations
 ORGANIZATIONAL CULTURE-Dimensions
Seven dimensions of an organizations culture have
been proposed. These are :
a. Innovation and risk taking (the degree to which
employees are encouraged to be innovative and take
risks)
b. Attention to detail (the degree to which employees
are expected to exhibit precision, analysis, and
attention to detail)
c. Outcome orientation (the degree to which managers
focus on results or outcomes rather than on the
techniques and processes used to achieve those
outcomes)
 Dimensions.
d. People orientation (the degree to which management
decisions take into consideration the effect on people
within the organization)
e. Team orientation (the degree to which work activities
are organized around teams rather than individuals)
f. Aggressiveness (the degree to which people are
aggressive and competitive rather than easygoing and
cooperative)
g. Stability (the degree to which organizational activities
emphasize maintaining the status quo in contrast to
growth)
 Do Organizations Have Uniform Cultures?
Organizational culture represents a common perception held by the organization
members.
Core values or dominant (primary) values are accepted throughout the organization.
.
Dominant culture :Expresses the core values that are
shared by a majority of the organizations members.

Subcultures : Tend to develop in large organizations to

reflect common problems, situations, or experiences.
These are Mini-cultures within an organization, typically
defined by department designations and geographical
separation.
Strong Culture : A culture in which the core values are intensely held and widely
shared.
 Do Organizations Have Uniform Cultures?

Culture Versus Formalization

A strong culture increases behavioral consistency and can act as a substitute for
formalization.

Organizational Culture Versus National Culture

National culture has a greater impact on employees than does their organizations
culture.

Nationals selected to work for foreign companies may be atypical of the local/native
population.
 CULTURE : STRONG -WEAK
Strong cultures are found in organizations where key values are
intensely held and widely shared.
the stronger the culture more members accept the core values
and the greater is their commitment.
the stronger the culture and the greater its influence on member
behavior, because the high degree of sharing and intensity creates
a climate of high behavioral control.
A strong culture should reduce employee turnover because
it demonstrates high agreement about what the organization
represents. Such unanimity of purpose builds cohesiveness, loyalty,
and organizational commitment. These qualities, in turn, lessen
employees propensity to leave.
 CULTURE : For Having A Strong And
Pronounced Corporate Culture
The company tends to be more competitive in the
marketplace and leads to increased employee
satisfaction and consequently a lower turn-over rate.
The Deal and Kennedy book Corporate Cultures: The Rites and
Rituals of Corporate Life outlines the keys in their mind
enhancing the business environment, stressing and
living up to the company values, recognizing its
heroes, and practicing the corporate rites and rituals.
The Peters and Waterman book In Search of Excellence: Lessons
from Americas Best Run Companies argues that managers are
capable of using communication to shape and form an
organizations culture.
How Organization Cultures Form
 How Culture Begins
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.
 Keeping Culture Alive
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
organizations culture.
A Socialization Model
 Stages in the Socialization Process
Prearrival 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.

Metamorphosis Stage
The stage in the socialization process in which a new employee
changes and adjusts to the work, work group, and organization.
How Employees Learn Culture

Stories
Rituals
Material Symbols
Language
 CULTURE : Elements and Transmission
Culture is transmitted and learned by employees
principally through metaphors (language), rituals,
stories, heroes, cultural artifacts, performances and
values.
1.MetaphorsThis language device can serve to create vivid and memorable pictures
in our head. When used well it causes us to see the usual in unusual ways and therefore
imprints the ideas in a deeper and sometimes more meaningful way. We use military
and sports language frequently in our culture. And these terms along with others can
be used in the workplace to describe the environment.
2.Ritualspractices that are performed regularly and with some specific purpose in
mind. May be individual actions, department actions, or organizational actions. For
example, one department may have a tradition of holiday parties, Friday afternoon
Happy Hours, or any number of specific behaviors that help define who this group is
and what they stand for.
3.StoriesStorytelling are important indicators of the values the participants
share. Hearing the stories of those who have come before and how those behaviors
helped shape the company are good ways to integrate people into an organization.
 CULTURE : Elements and Transmission

4.HeroesOftentimes the stories are told about the heroes of the

company. The organizational members who have taken great strides
and performed at the highest levels that made the company what it is
today.
5.Cultural ArtifactsTangible/Physical features of the company;
ranging from colors, to design, to artwork, to physical symbols, etc; all
contributing to shaping the personality and attitude of the company.
6.Performanceshow the members of the company interact with each
other; learning the rules on talking with bosses, with co-workers, when
to use humor or not; how laid-back versus how structured and strict in
communication style.
7.ValuesThis is often linked the companys mission statement; what
the organization stands for and the behaviors expected to perform.
The values typically flow downward from the President or CEO and
permeate throughout the organization. Must practice externally what
is preached internally.
 Embedding Organizational Culture
1. Formal statements
2. The design of physical space
3. Slogans, language, acronyms, and sayings
4. Deliberate role modeling, training programs, teaching and coaching
5. Explicit rewards, status symbols (e.g., titles),
and promotion criteria
6. Stories, legends, and myths about key people and events
7. The organizational activities, processes, or outcomes that leaders pay
attention to, measure, and control
8. Leader reactions to critical incidents and organizational crises
9. The workflow and organizational structure
10. Organizational systems and procedures
11. Organizational goals and the associated criteria used for recruitment,
selection, development, promotion, layoffs, and retirement of people
 Layers of Culture

Artifacts of Material Symbols

Organizational Language
Culture Rituals
Stories

Organizational Beliefs
Culture Values
Assumptions
 Types of Organizational Culture
Constructive
Passive-defensive
Aggressive-defensive

Constructive : Employees are encouraged to interact with others.

Associated with achievement, self-actualizing, humanistic-encouraging, and affiliative

Passive-defensive : Employees must interact with others in ways that do not

threaten their own job security.
Associated with approval, convention, dependent, and avoidance.

Aggressive-defensive: Employees approach tasks in forceful ways to protect their

status and job security.
Associated with oppositional power, is competitive and perfectionistic
 CULTURE : Example
8 Jungle Cruise skippers fired for veering from the
companys official script and telling their own jokes to
park guests. Official Disney statement: We entertain
our guests with quality family entertainment and put on
performances every day. Our goal is to deliver a
consistent quality show daily.
A week ago the Disney Co. ordered John Magness, a
65-year-old Navy veteran, to shave off the moustache
he has worn for more than 40 years to comply with
company grooming rules or be fired from his job as first
officer of the Queen Mary, now a Disney tourist
attraction in Long Beach, California. He did not shave.
He was fired.
 Wal-Marts 10-foot Rule
One of our secrets to customer service is the 10-
foot rule, handed down to us by our founder, Sam
Walton. During his many store visits, he
encouraged associates to take a pledge with him:
"I want you to promise that whenever you come
within 10 feet of a customer, you will look him in
the eye, greet him, and ask him if you can help
him."

This pledge is what we call our "10-foot

attitude," and it was something Sam had
practiced since childhood.
From Walmart.com
Example :Contrasting Organizational Cultures
Organization A
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.
Organization B
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.
 Summary and Implications
Employees form an overall subjective perception of the
organization based on such factors as degree of risk
tolerance, team emphasis, and support of people.
This overall perception becomes, in effect, the organizations culture
or personality.
These favourable or unfavourable perceptions then affect employee
performance and satisfaction, with the impact being greater for
stronger cultures.
Just as peoples personalities tend to be stable over time,
so too do strong cultures.
This makes strong cultures difficult for managers to change.
 Summary and Implications
One of the more important managerial implications of
organizational culture relates to selection decisions.
Hiring individuals whose values don't align with those of the
organization is not good.
An employee's performance depends to a considerable
degree on knowing what he should or should not do.
Significantly correlated with employee behavior
and attitudes, Organizational commitment, job
satisfaction, intention to quit, and turnover Did
not predict financial performance.
Mergers frequently failed due to incompatible
cultures.
 HR Implications: Creating an
Ethical Culture
Visibly reward ethical acts and punish unethical
ones.
Performance appraisals should consider how decisions
and behavior measure against the organizations code of
ethics.
Provide protective mechanisms.
Employees need to be able to discuss ethical dilemmas
and report unethical behavior without fear of punishment.
 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
How Organizational Cultures Have an Impact on Performance and
Satisfaction
 Creating a Customer-Responsive
Culture
Key Variables Shaping Customer-
Responsive Cultures
1. The types of employees hired by the
organization.
2. Low formalization: the freedom to meet
customer service requirements.
3. Empowering employees with decision-
making discretion to please the customer.
4. Good listening skills to understand
customer messages.
5. Role clarity that allows service employees
to act as boundary spanners.
6. Employees who engage in organizational
citizenship behaviors.
 Creating a Customer-Responsive Culture (contd)

Managerial Actions:
Select new employees with personality and attitudes
consistent with high service orientation.
Train and socialize current employees to be more
customer focused.
Change organizational structure to give employees
more control.
Empower employees to make decisions about their
jobs.
 Creating a Customer-Responsive Culture (contd)

Managerial Actions (contd) :

Lead by conveying a customer-focused vision and
demonstrating commitment to customers.
Conduct performance appraisals based on
customer-focused employee behaviors.
Provide ongoing recognition for employees who
make special efforts to please customers.
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.

Characteristics:
Strong sense of purpose
Focus on individual development
Trust and openness
Employee empowerment
Toleration of employee expression
 Reasons for the Growing
Interest in Spirituality
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 hasnt worked for many people.
Job demands have made the workplace dominant in many
peoples lives, yet they continue to question the meaning of work.
The desire to integrate personal life values with ones professional
life.
An increasing number of people are finding that the pursuit of
more material acquisitions leaves them unfulfilled.