Organizational culture


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Organizational culture

  1. 1. An organization has a personality, which we call its culture. And that culture influences the way employees act and interact with others. Definition: Is the shared values, principles, traditions, and ways of doing things that influence the way organizational members act & that distinguish the organization from other organizations. (It is; how things are done around here)
  2. 2. It is not something that can be physically touched or seen. It is concerned with how members perceive the culture and describe it, not with whether they like it. Aspects of culture are shared even though individuals may have different backgrounds or work at different organizational levels.
  3. 3. Organizational Culture Attention to Detail Outcome Orientation People Orientation Team Orientation Aggressiveness Stability Innovation & Risk Taking Degree to which employees are expected to exhibit precision, analysis, and attention to detail Degree to which managers focus on results or outcomes are achieved Degree to which employees are encouraged to be innovative and to take risks Degree to which management decisions take into account the effects on people in the organization Degree to which employees are aggressive and competitive rather than cooperative Degree to which organizational decisions and actions emphasize maintaining the status quo Degree to which work is organized around teams rather than individuals
  4. 4. Describing an organization using these seven dimensions gives a picture of the organization’s culture. In many organizations, one cultural dimension often is emphasized more than the others and essentially shapes the organization’s personality and the way organizational members work. SONY Corporation the focus is Product Innovation. SOUTHWEST Airlines is People oriented
  5. 5. Organizational cultures in which the key values are intensely held and widely shared. Why is having strong culture is important? Organizations with strong culture, employees are more loyal than employees in organizations with weak cultures. Strong cultures are associated with high organizational performance.
  6. 6. Weak CultureStrong Culture Values limited to a few people (usually top management) Values widely shared Culture sends contradictory messages about what’s important Culture conveys consistent messages about what’s important Employees have little knowledge of company history or heroes Most employees can tell stories about company history or heroes Employees have little identification with culture Employees strongly identify with culture Little connection between shared values and behaviors Strong connection between shared values and behaviors
  7. 7. Philosophy of Organization Founders Selection Criteria Top Management Socialization Organization’s culture The original source of the culture usually reflects the vision of the founder. Selection process impacted by the culture of the organization. Actions of top Managers have a major impact on the organization’s culture. Socialization is a process that helps new employees learn the organization’s way of doing things.
  9. 9. 1)Planning: The degree of risk that plans should contain. Whether plans should be developed by individuals or teams. The degree of environmental scanning in which management will engage. 2)Organizing: How much autonomy should be designed into employees’ job. whether tasks should be done by individual or in teams The degree to which managers interact with each others. 3)Leading: The degree to which managers are concerned with increasing employee job satisfaction. What leadership styles are appropriate. whether all disagreements should be eliminated. 4)Controlling: Whether to impose external controls or to allow employees to control their actions. What criteria should be emphasized in employee performance evaluations. What repercussions will occur from exceeding one’s budget.
  10. 10. 1) Creating an Innovative Culture 2) Creating a Customer-Responsive Culture 3) Spirituality and Organizational Culture
  11. 11. Challenge & Involvement Freedom Trust & Openness Idea Time Playfulness/Humor Conflict Resolution Debates Risk-Taking
  12. 12. Responsive-CustomerCharacteristics of Culture: 1) Type of employee 2) Type of job environment 3) Empowerment 4) Role clarity 5) Consistent desire to satisfy & delight customers
  13. 13. Workplace Spirituality: A culture where organizational values promote a sense of purpose through meaningful work that takes place in the context of community. Cultural Characteristics of Spiritual organizations: 1)Strong sense of Purpose 2)Focus on individual development 3)Trust & openness 4)Employee empowerment 5)Tolerance of employee expression