Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Graduate School
Master of Science in Industrial Engineering and Management Society

IEM 631:Organization and Strategy

Organizational Culture
Elbenson P. Rescober, ChE
 After this presentation, we should be
OBJECTIVES

able to:

 Define organizational culture and describe its

common characteristics.
 Explain the factors that create and sustain an
LEARNING

organization’s culture
 Show how culture is transmitted to employees
 Demonstrate how an ethical culture can be created
 Describe a positive organizational culture
 Show how national culture may affect the way
organizational culture is transported to a different
country
What Is Organizational Culture?

Organizational Culture
A common perception Characteristics:
held by the organization’s 1. Innovation and risk
taking
members; a system of
shared meaning. 2. Attention to detail
3. Outcome orientation
4. People orientation
5. Team orientation
6. Aggressiveness
7. Stability
What Do Cultures Do?

Culture’s 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.
What Do Cultures Do?

Culture as a Liability:
1. Barrier to change.
2. Barrier to diversity
3. Barrier to acquisitions and mergers
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
organization’s culture.
Stages in the Socialization Process
A Socialization Model

E X H I B I T 16–2
How Organization Cultures Form
How Employees Learn Culture

• Stories
• Rituals
• Material Symbols
• Language
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.
Creating a Positive Organizational Culture

A culture than:
• Builds on employee strengths
• Rewards more than it punishes
• Emphasizes individual vitality and growth

Limits of Positive Culture

May not work for all organizations or everyone
within them
How Organizational Cultures Have an Impact
on Performance and Satisfaction
Global Implications

• Organization cultures, while strong, can’t ignore

local culture
• Managers should be more culturally sensitive
by:
o Speaking slowly and in a low tone
o Listening more
o Avoiding discussions of religion or politics
• All global firms (not just U.S. firms) need to be
more culturally sensitive
 SUMMARY

• Strong cultures are difficult for managers to change

– In the short run, strong cultures should be considered
fixed
• Selecting new hires that fit well in the
organizational culture is critical for motivation, job
satisfaction, commitment, and turnover
• Socialization into the corporate culture is important
• As a manager, your actions as a role model help
create the cultural values of ethics, spirituality, and
a positive culture.