What is Organizational Culture?

Organisational Culture Definition

The

collection of relatively uniform and enduring values, beliefs, customs, traditions and practices that are shared by an organization's members, learned by the new recruits and transmitted from one generation of employees to the next Edgar Schein

The way we do things around here

Organisational Culture Why it matters

It is a powerful, latent and often unconscious set of forces

It determines individual and collective behavior, thought patterns and values Cultural elements impact on strategy, objectives and operations The values of leaders and senior managers are influenced by their own cultural backgrounds and shared experiences It will impact positively or negatively - on everything

Characteristics of organization culture

Organizational Culture
A common perception held by the organizations members; a system of shared meaning. Characteristics:
1. Innovation and risk taking 2. Attention to detail 3. Outcome orientation 4. People orientation 5. Team orientation 6. Aggressiveness

7. Stability

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What Do Cultures Do?

Cultures Functions:
1. Defines the boundary between one organization and others. 2. Conveys a sense of identity for its members. 3. Facilitates the generation of commitment to something larger than self-interest. 4. Enhances the stability of the social system. 5. Serves as a sense-making and control mechanism for fitting employees in the organization.

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Scheins Three Levels of Culture Visible structures

Surface Manifestations and Artefacts

and processes (easy to see, harder to decipher)

Espoused Values

Strategies, goals and philosophies (espoused justifications)) Unconscious, taken for granted beliefs, thoughts and perceptions (ultimate source of values and actions)

Basic Assumptions

Artifacts Observable symbols and signs of an organizations culture. eg:., structures, processes etc. Rituals and ceremonie s

Stories and legends

language

Physical structures and symbols

Dress codes

Artifacts
Artifacts are the visible elements in a culture. Artifacts can be recognized by people not part of the culture. The outsider might easily see these artifacts, but might not be able to fully understand why these artifacts have been established.

To understand this, outsiders can look at the espoused values in the culture.

Espoused values
Espoused values are the values normally espoused by the leading figures of a culture. Espoused values could e.g. be represented by the philosophies, strategies and goals sought realized by e.g. leaders. However, the values sought by leaders should be supported by some general and shared assumptions about e.g. how a company should be run, or how employees should be managed. If espoused values by leaders are not in line with the general assumptions of the culture, this might signal trouble.

Assumptions
Assumptions reflects the shared values within the specific culture. These values are often ill-defined, and will oftentimes not be especially visible to the members of the culture. Assumptions and espoused values are possibly not correlated, and the espoused values may not at all be rooted in the actual values of the culture.

This may cause great problems, where the differences between espoused and actual values may create frustrations, lack of morale and inefficiency. Core assumptions can e.g. be assumptions regarding the human nature, human relationships etc.

Creating a Positive Organizational Culture

A positive culture is one that emphasizes the following:
Building on Employee Strengths Rewarding More Than Punishing Emphasizing Vitality and Growth of the Employee
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Effects of organizational culture

Organizational performance Length of employment Person/organization fit

Do Organizations Have Uniform Cultures?

Dominant Culture Expresses the core values that are shared by a majority of the organizations members.

Subcultures Minicultures within an organization, typically defined by department designations and geographical separation.
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Do Organizations Have Uniform Cultures? (contd)

Core Values The primary or dominant values that are accepted throughout the organization.

Strong Culture A culture in which the core values are intensely held and widely shared.
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Culture is formed from

How Organization Cultures Form

Culture is formed from

External Survival Issues Mission, Strategy, Goals Structure, Systems, Processes Measurement and correction

Internal Integration Issues Language and Concepts Group boundaries and Identity Nature of Authority and Relationships Allocation of Rewards and Status

Deeper Assumptions Relationships to nature Reality and Truth Human Nature Human Relationships Time and Space

Creating and maintaining a culture

HOW ORGANIZATIONAL CULTURE STARTS? Founder has an idea of a new enterprise
Founder creates a core group with one or more key people with common vision
The core group begins to act in a concert to create an organization Others are brought in the organization and a common history begins to be built

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.

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How Employees Learn Culture

Stories

Rituals
Material Symbols Language

Stories Depicting the past events of the organization. Some organizations actually try to manage this element of culture learning. Rituals Repetitive sequential activities reinforcing the values of the organization. Material Symbols Conveying social equality, desired organizational behavior, etc. by the top management.

Language Acceptance and preservation of culture.

Surface Manifestations and artefacts

Are the most visible and accessible form, Visible and audible behavior patterns and objects: Dress Codes Formality in relationships Working hours Meeting etiquette Decision making Communications Social events Jargon, uniforms, symbols Conflict handling Work / Life balance

Values The reasons given by an organisation for the way things are done. Eg:strategies, goals, philosophies.

Assumptions The beliefs that are taken for granted by the organisational members. These are ultimate source of values and action that include: unconscious, perceptions, taken for-granted beliefs, thoughts, feelings etc.
Beliefs Represent the individuals perception of reality.

Organisation Values and Beliefs Some Examples

We expect teamwork and collaboration across our organisation for the benefit of all stakeholders A bank We treat one another with respect and communicate openly. We foster collaboration while maintaining individual accountability. We encourage the best ideas to surface from anywhere within the organization. We appreciate the value of multiple perspectives and diverse expertise. Yahoo

Organisation Values and Beliefs

Are said to provide a common direction and act as guidelines for behavior Often originate from the founders of the organization or senior management Typically based on moral, societal or religious precepts learned in childhood and modified through experience Are espoused or alluded to but are

Maintaining culture
Forces that play a significant role in sustaining culture:

Selection practices Concern with how well the candidates will fit into the organization.Provides information to candidates about the organization. Actions of top management Senior executives help establish behavioural norms that are adopted by the organization. Socialisation method. The process that helps new employees adapt to the organizations culture.

A Socialization Model

Success in employee socialization depends on managements selection of socialization method and the closeness of new employees values to those of the organization Prentice Hall Inc.

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.
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Process of socialization
Selection of entry level personnel Placement on the job Job mastery Measuring and rewarding performance

Adherence to important values

Reinforcing Recognition and promotion

Organizational climate

Climate is defined as the recurring patterns of behaviour, attitudes and feelings that characterize life in the organization. The shared perception of the way how things are around here.

culture v/s climate

The two concepts are similar in that both deal with the social context in organizations and both are assumed to effect the behaviour of people.
Climate was based in psychology & Culture was based in anthropology & sociology. Organization climate usually refers to current situation in an organization in other hand culture usually refers to the historical &

 Organizational

cultures are generally deep and stable. Climate, on the other hand, is often defined as the recurring patterns of behaviour, attitudes and feelings that characterize life in the organization.

Although

culture and climate are related, climate often proves easier to assess and change than culture.

Culture adapts to diverse circumstances. Managers need to understand the nature and role of culture. Managers must understand the importance of culture for organizational change. Corporate culture also impacts the day-to-day decision-making of the organization.