Organizational Culture

Components, function and examples

What is Organizational Culture?

A system of meaning shared by the organizations members
Cultural values are collective beliefs, assumptions, and feelings about what things are good, normal, rational, valuable, etc.

Aspects of culture
Values Symbols

Customs

Language

Stories

Rituals

How Employees Learn Culture/ How it is reinforced

Material Symbols

Language

How Organizational Cultures Form

Philosophy of the Organizations Founders: Bill Gates Top Management

Selection

Organizational Culture

Socialization

Cultural Diversity

Why doesnt McDonalds sell hamburgers in India?

Culture and the workplace (Hofstede)

Purpose: understanding of business situations across-cultures MUST understand own culture AND other culture(s)

Geert Hofstedesampled 100,000 IBM employees 1963-1973 Compared employee attitudes and values across 40 countries

Isolated 4 dimensions summarizing culture: Power distance Individualism vs. collectivism Uncertainty avoidance Masculinity vs. feminity

Oakley, Inc.s headquarters symbolizes a corporate culture in which employees believe they are at war with competitors.

Examples of few culture

Innovation and risk taking (3M) Outcome orientation (Bausch & Lomb) Aggressiveness (Microsoft)

Importance of Organizational Culture

Talent attractor Talent Retainer Engages People Creates energy and momentum

Changes the view of work

Creates greater Synergy

Types of Organizational Culture

Organizational culture can vary in a number of ways. It is these variances that differentiate one organization from the others. Some of the bases of the differentiation are presented here:

Strong Vs weak culture

Soft Vs hard culture Formal Vs informal culture

Types of Cultures
The Clan Culture: A very friendly place to work where people share a lot of themselves. It is like an extended family.

The Hierarchy Culture: A very formalized structured place to work. Procedures govern what people do.

Types of Culture
The Adhocracy Culture: A dynamic entrepreneurial, and creative place to work. People stick their necks out and take risks.

The Market Culture: A results oriented organization whose major concern is with getting the job done. People are competitive and goal-oriented.

Cultures Overall Function

Culture is the social glue that helps hold an organization together by providing appropriate standards for what employees should say or do.

 Culture provides a sense of identity to members and increases their commitment to the organization Culture is a sense-making device for organization members Culture reinforces the values in the organization

Culture serves as a control mechanism for shaping behavior