Professional & Enterprise

Development
CT024-3-1

Organization Structure
Introduction to Organizations
Organization Socialization, Culture and
Mentoring
Level 1

Prepared by: CDV First Prepared on: January 2013

Copyright 2013 Asia Pacific Institute of Information Technology

Structure of the Lesson

Defining and understanding organization

and its culture

The role of socialization and
mentoring in it.

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Learning Outcomes

To define organizational culture &

understand its three layers
Discuss the four types of
organizational culture
associated with the competing
values framework
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Key Terms You Must be Able to

Use
If you have mastered this topic, you should
be able to use the following terms correctly in
your assignments and exams:
Organizational culture
Clan culture
Adhocracy culture
Market culture
Hierarchy culture
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Organizational Culture: Definition

& Context

Organization Culture
Set of shared, taken-for-granted
implicit assumptions that a group
holds and that determines how it
perceives, thinks about, and reacts
to its various environments.
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Organizational Culture
When is an organizations culture most
apparent?
They are through shared (objects), shared
sayings (talk), shared doings (behavior) and
shared feelings (emotions)
One can collect cultural info within an
organization by asking, observing, reading &
feeling
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Organizational Culture
Culture - a complex issue that essentially
includes all of a groups shared values, attitudes,
beliefs, assumptions, artifacts, and behaviors.
Decades of empirical research has established
abundant links between organizational culture
and organizational performance.
Organizations recognize that it can be used for
competitive advantage
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Cont

Example: By leveraging their culture of

innovation toward product and internal
processes, Apple has been able to
survive despite incredible
competition as well as venture into
new and profitable markets.
To use culture strategically, a company
first needs to understand its culture.
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Characteristics of Organization
Culture

1. Passed on to new employee

through the process of
socialization
2. It influences our behavior at work
3. Operates at different levels.

What is the culture at APU?

Eg Level 1 instead of Year 1, Freshman or First Year
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Dynamics of Organizational Culture Layers

of Organizational Culture

1. Observable artifact
Artifacts consist of the physical
manifestation of an organizations culture.
This includes acronyms, dress code,
awards, myths and stories told about the
organization, published lists of values,
observable rituals & ceremonies, etc.
This level includes visible behaviors
exhibited by people and groups
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Dynamics of Organizational Culture Layers

of Organizational Culture

2. Espoused Values
Value : Enduring belief in a mode of conduct or
end state
Values possess five key components.
1.Concepts or beliefs
2.Pertain to desirable end-states or behaviors
3.Transcend situations
4.Guide selection or evaluation of behavior &
events
5.Ordered by relative importance
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Espoused Values Cont

It represents the explicitly stated values and
norms that are preferred by an organization.
Established by the founder of a small/new
company and by the top management team in a
larger organization.
It represents value aspirations that are explicitly
communicated to employees, managers hope
that those values will directly influence employee
behaviors.
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Espoused Values

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Dynamics of Organizational Culture Layers

of Organizational Culture

3. Enacted Values
Represents the values and norms that
actually are exhibited or converted into
employee behavior.
Represents the values that employees
ascribe to an organization based on
their observations of what occurs on a
daily basis.
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Espoused & Enacted Values

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Dynamics of Organizational Culture

Layers of Organizational Culture - Examples

1. An organization that hangs a Trust

sign in its hallway as its driving
principle BUT searches its staff
belongings when they report for
work?
2. A multinational that stresses worklife balance but schedules meetings
over the weekends?
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Dynamics of Organizational Culture

Layers of Organizational Culture

4. Basic Assumptions
Are unobservable and represent the core of
organizational culture e.g. integrity, courtesy
Organizational values that have been taken for
granted over time that they become assumptions
that guide organizational behavior.
They are highly resistant to change.

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Dynamics of Organizational Culture

Layers of Organizational Culture
When basic assumptions are widely held
among employees, people will find behavior
based on an inconsistent value inconceivable.
Example: Southwest Airlines operates
according to basic assumptions that value
employees welfare and high quality service
Hence, employees at Southwest Airlines would
be shocked to see management act in ways
that did not value employee & customer needs
eg rude and impolite towards customers, staff
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Four Functions of Organizational

Culture
1. Gives members an organizational identity

Identity given to employees not only give

them a sense of uniqueness but instills
values and how they react to overcome a
particular challenge.
Example: Southwest Airlines is known as a
fun place to work, valuing staff satisfaction
and customer loyalty over corporate profits

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Four Functions of Organizational

Culture

2. Facilitate collective commitment

The unique identity formed, hence facilitates a
collective commitment by all members of the
team (organization); as everyone practices
the values and norms of the organization.
Southwest Airlines Mission: Dedication to the
highest quality of Customer Service delivered
with warmth, friendliness

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Four Functions of Organizational

Culture

3. Promote social system stability

Reflects the extent the work environment is
perceived as positive and reinforcing, and
the extent to which conflict and change are
effectively managed.
Southwest has performance-based and
service-based awards to reinforce and award
employees
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Four Functions of Organizational

Culture
4. Shapes behavior by helping members make
sense of their surroundings.
This function helps employees understand why the
organization does what it does and how it intends to
accomplish its long-term goals.
Southwests vision to be the best short-haul, low-fare, highfrequency carrier in the US
Staff understand why they need to achieve exceptional
performance e.g. turning a plane in 20 mins to keep costs
down

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Types of Organizational Culture

1. Clan Culture
Internal focus and values flexibility rather than stability
and control
Employee-focused & strive to instill cohesion through
consensus and job satisfaction through employee
involvement
Devote resources to hiring and developing employees
& views customers as partners
E.g. Southwest Airlines, Nucor, AirASia
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Types of Organizational Culture

2. Adhocracy Culture
External focus & values flexibility
Fosters creation of innovative products & services by being
adaptable, creative & fast to respond to changes in the market
place.
Does not rely on centralised power & authority
Encourages risk taking, thinks outside the box &
experimentation (R & D)
Suited for new start-ups
E.g. Apple, Intel, Microsoft

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Types of Organizational Culture

3. Market Culture
Strong external focus and values stability & control
Driven by competition & goal oriented
Customer and profits are priority due to focus on
external environment
Employees are expected to react fast, work hard
and deliver work on time eg Finance, Banking & IT
Industry

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Types of Organizational Culture

4. Hierarchy Culture
Driving force within a hierarchical culture.
Internal focus & values stability and control over
flexibility
Development of reliable internal process, extensive
measurement & implementation of a variety of control
mechanism.

Likely to use Total Quality Management (TQM)

Focused on Doing Things Right e.g. Exelon and Dell

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Question and Answer Session

Q&A
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Next Session
Topic and Structure of next session
Organizational Socialization and Mentoring

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