• Organizational Culture is the basic patterned ofshared assumptions, values and beliefs considered assumptions,to be the correct way of thinking about and actingon problems and opportunities facing theorganization this ways of thinking are shared bythe members of an organization and taught tonew members as correct.Henry Mintzberg• “Culture is the soul of the organization — thebeliefs and values, and how they are manifested. Ithink of the structure as the skeleton, and as theflesh and blood. And culture is the soul that holdsthe thing together and gives it life force.”
Organizational culture exists at 2 levels visible (overt, observable behaviors) invisible (set of underlying beliefs)
•ASSUMPTIONS –represents the deepest partof the organizational culturebecause they areunconscious and taken forgranted.A hypothesis that is takenfor granted •VALUES - this is more stable, long lasting beliefs about what is important.•BELIEFS – represents the individual’s perceptions ofreality
Sub-culture , this culture is the actualization of the organization’s core values. The difference lies in norms and standards, behavior patterns, and artifacts. This culture developed within the organization because it grows from the differences in cultural backgrounds of members of the organization, geographical diversity•COUNTERCULTURE- opposes theorganization’s core/dominant value.
IMPORTANCE OF ORGANIZATIONAL SUB- CULTURE 1st, they maintain the organizational standards of performance and ethical behavior. 2nd, to act as spawning grounds for emerging values that keep the firm aligned with the needs of customer, supplier, society, and other subculture.
DECIPHERINGORAGANIZATIONALCULTURE THROUGH ARTIFACTSUnderstanding an organization’s culturerequires painstaking assessment ofmany artifacts because they are subtleand often ambiguous,
Artifacts are the observable symbols and signs of an organization’s culture.
Categories of Artifacts•Organizational Stories and Legends•Rituals and Ceremonies•Organizational Language•Physical Structure and Symbols
3 FUNCTIONS OF ORGANIZATIONAL CULTURE 1ST, corporate is deeply embedded form of social control. 2nd, it is the “social glue” that bonds people together and makes them feel part of the organizational experience. 3rd, corporate culture helps employee make sense of the workplace.
ORGANIZATIONAL CULTURE STRENGTH AND FIT Strong Organizational Culture Exists when most employees across all subunits hold the dominant values. It is long lasting.There are 3 reason why Strong Organizational Culture canhave a weak relationship,1st, it increases organizational performance only ifit’s appropriate in the organizations environment. 2nd, strong culture locks decision making. 3rd, very strong cultures tend to suppress and take for granted the subculture value.
Adaptive Organizational Cultures ELEMENTS OF ADAPTIVE CULTURE External focus -- firm’s success depends on continuous change Focus on processes Strong sense of ownership Proactive --seek out opportunities
Bicultural audit - diagnoses cultural relations between companies prior to amerges and determines the extent to which cultural clashes will likely occur.There are three steps in bicultural audit: 1.Examine artifacts 2. Analyze data for cultural conflict/compatibility 3. Identify strategies and action plans to bridge cultures
MERGER DESCRIPTION WORKS BESTSTRATEGY WHEN:Assimilation Acquired company Acquired firm has a weak embraces acquiring culture firm/s cultureDeculturation Acquiring firm imposes Rarely works- may be its culture on willing necessary only when acquired firm acquired firms culture doesn’t work but employees don’t realize it. Integration Combining the two or Existing cultures can be more cultures into a new improved. composition culture. Separation Merging companies Firm operation successfully remain distinct entities in different businesses with minimal exchange of requiring different cultures. culture or organization practices.
Changing and strengthening organizational culture Corporate leaders can “unfreeze” the existing culture by removing artifacts and “refreeze” new culture by introducing new artifacts.
STAGES OF SOCIALIZATION1. Pre-employment Socialization: This happens beforefew days were an employee actively search forinformation about the company. This happens prior to thefirst day of employment.2. Encounter: Newcomers degree of reality shock.Newcomers are immediately inundated with unfamiliarsignals. Ex: Migration Employees settle in as they change from outsiders.3. Role management: to insiders. They strengthen theirrelationships with co-workers and supervisors. Theybring a balance between work life and non-work life.
Pre-employment Role Encounter Socialization socialization Management (newcomer) Outcomes (outsider) (insider) •Strengthen work•Learn about the •Test •Higher motivation relationshipsorganization and expectations •Higher Loyalty •Practice new rolejob against •Higher satisfaction behaviors•Form the perceived •Lower stress •Resolve conflictspsychological workplace •Lower turnover between work andcontract realities nonwork
RJP – Realistic Job Preview, giving applicants balance positive and negative information about the job and work context. SOCIALIZATION AGENT:•Supervisors – provide information of duties andperformance by giving challenges, assignments andbuffering from excessive demands to help them fit inand socialize.•Co-workers- an easy accessible can answerquestion and serves as a role model.•“Buddy System” – new comer are assign to co-workers who provide information and social support.