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Organizational culture
Organizational culture
Organizational culture
Organizational culture
Organizational culture
Organizational culture
Organizational culture
Organizational culture
Organizational culture
Organizational culture
Organizational culture
Organizational culture
Organizational culture
Organizational culture
Organizational culture
Organizational culture
Organizational culture
Organizational culture
Organizational culture
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Organizational culture

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  • 1. 1 - 19 OrganizationalOrganizational CultureCulture CHAPTERCHAPTER 1111 November 2011 -Supervised by: Dr. Nayal Rashed -Presented by: Eyad Al-Samman I.D.#: 201010047
  • 2. 2 - 19 1.1. What is Organizational Culture?What is Organizational Culture? 2.2. What do cultures do?What do cultures do? 3.3. How to create and sustain cultures?How to create and sustain cultures? 4.4. How do employees of a certainHow do employees of a certain organization learn culture?organization learn culture? 5.5. What are the ways for matching peopleWhat are the ways for matching people with cultures?with cultures? 6.6. What are the key dimensions of differencesWhat are the key dimensions of differences in cultural values?in cultural values? Main issues to be covered in thisMain issues to be covered in this chapter:chapter: Ch. 11 :: Organizational Culture
  • 3. 3 - 19 1.1. What is Organizational Culture?What is Organizational Culture? • Organizational CultureOrganizational Culture is a systemis a system of shared meanings held byof shared meanings held by members. This organizationalmembers. This organizational culture distinguishes theculture distinguishes the organization from otherorganization from other organizations.organizations. Ch. 11 :: Organizational Culture • Organizational CultureOrganizational Culture is a set ofis a set of shared values that organizationshared values that organization members have regarding themembers have regarding the functioning and existence of theirfunctioning and existence of their organization.organization. Another simple definition:Another simple definition:
  • 4. 4 - 19 1.1. What is Organizational Culture?What is Organizational Culture? • Characteristics that capture the essence of anCharacteristics that capture the essence of an Organization’s Culture are:Organization’s Culture are: Ch. 11 :: Organizational Culture Defines how much importance a companyDefines how much importance a company allocates to precision and detail in the workplace.allocates to precision and detail in the workplace. 11..AttentionAttention to detailto detail 11..AttentionAttention to detailto detail Paying more attention to results rather thanPaying more attention to results rather than processes.processes.22..OutcomeOutcome orientationorientation 22..OutcomeOutcome orientationorientation Defines how much should be the managementDefines how much should be the management focus on its people; as “associates” or as “Workfocus on its people; as “associates” or as “Work machines.”machines.” 33..PeoplePeople orientationorientation 33..PeoplePeople orientationorientation Every organization formulates the level ofEvery organization formulates the level of aggressiveness with which their employees work.aggressiveness with which their employees work. For example, Microsoft is known for itsFor example, Microsoft is known for its aggression and market dominating strategies.aggression and market dominating strategies. 44..AggressivenessAggressiveness 44..AggressivenessAggressiveness
  • 5. 5 - 19 1.1. What is Organizational Culture?What is Organizational Culture? • Characteristics that capture the essence of anCharacteristics that capture the essence of an Organization’s Culture are:Organization’s Culture are: Ch. 11 :: Organizational Culture (Continued)(Continued) This characteristic defines how much roomThis characteristic defines how much room business allows for innovation. Places where youbusiness allows for innovation. Places where you take a risk, the chances of returns are higher.take a risk, the chances of returns are higher. Same goes for innovation.Same goes for innovation. 5. Innovation5. Innovation and Risk takingand Risk taking 5. Innovation5. Innovation and Risk takingand Risk taking Synergistic teams help giving better results asSynergistic teams help giving better results as compared to individual efforts.compared to individual efforts. 6. Team6. Team orientationorientation 6. Team6. Team orientationorientation Some organizations are focused on makingSome organizations are focused on making themselves and their operations stable ratherthemselves and their operations stable rather than looking at unselective or unsystematicthan looking at unselective or unsystematic growth.growth. 7. Stability7. Stability7. Stability7. Stability
  • 6. 6 - 19 1.1. What is Organizational Culture?What is Organizational Culture? • Benefits of Strong cultureBenefits of Strong culture -- Initially,Initially, strong culturestrong culture was conceived as a consistent set of beliefs, values,was conceived as a consistent set of beliefs, values, assumptions, and practices embraced by members of the organization.assumptions, and practices embraced by members of the organization. Ch. 11 :: Organizational Culture -- SomeSome noted thatnoted that strong culturestrong culture is more important foris more important for organizations than others. Fororganizations than others. For example,example, volunteer organizationsvolunteer organizations need to stress on culture moreneed to stress on culture more thanthan business organizationsbusiness organizations.. - S- Strong culturetrong culture has core valueshas core values which are intensely held andwhich are intensely held and widely shared. It increaseswidely shared. It increases behavioural consistency.behavioural consistency. SamenessSameness Com m itm ent Com m itm entIdentity Identity SolidaritySolidarity MotivationMotivation Strong and pervasive culture Strong and pervasive culture
  • 7. 7 - 19 1.1. What is Organizational Culture?What is Organizational Culture? • Disadvantages of Strong cultureDisadvantages of Strong culture -- The internalized controls associated with aThe internalized controls associated with a strongstrong cultureculture result in individuals placing unconstrainedresult in individuals placing unconstrained demands with themselves and acting as a barrier todemands with themselves and acting as a barrier to adaptation and change.adaptation and change. Ch. 11 :: Organizational Culture -- AA strong culturestrong culture contribute to a displacement of goalscontribute to a displacement of goals or sub-goals formation. This means that behaviouralor sub-goals formation. This means that behavioural ways of doing things become important and overshadowways of doing things become important and overshadow the original purpose of organization.the original purpose of organization.
  • 8. 8 - 19 1.1. What is Organizational Culture?What is Organizational Culture? • Culture vs. FormalizationCulture vs. Formalization -- FormalizationFormalization is the extent to which rules and procedures are followed inis the extent to which rules and procedures are followed in an organization.an organization. Ch. 11 :: Organizational Culture CultureCulture Formalization of behaviour Formalization of behaviour leads to -- Behavioural consistencyBehavioural consistency results in the predictability of how employeesresults in the predictability of how employees perform jobs.perform jobs. Strong Culture Strong Culture Behavioural consistency Behavioural consistencyincreases -- OpponentsOpponents say thatsay that Behavioural consistencyBehavioural consistency leads to inflexibility whereleads to inflexibility where employees may resist changes.employees may resist changes.
  • 9. 9 - 19 1.1. What is Organizational Culture?What is Organizational Culture? • Organizational Culture vs. National CultureOrganizational Culture vs. National Culture Ch. 11 :: Organizational Culture -Has aHas a GREAT IMPACTGREAT IMPACT on employees.on employees. - Different in nature of- Different in nature of organizational cultureorganizational culture.. - Originates from- Originates from consistency in values.consistency in values. National Culture National Culture -Has aHas a LESS IMPACTLESS IMPACT onon employees.employees. - Different in nature of- Different in nature of national culturenational culture.. - Originates from- Originates from consistency inconsistency in practices.practices. Organizational Culture Organizational Culture
  • 10. 10 - 19 1.1. What is Organizational Culture?What is Organizational Culture? • Culture and its effect on OrganizationCulture and its effect on Organization Ch. 11 :: Organizational Culture - It is a working knowledge of theIt is a working knowledge of the cultural variables affectingcultural variables affecting management decisions.management decisions. - It is a critical skill for managing- It is a critical skill for managing people in other countries.people in other countries. Cultural Savvy Cultural Savvy - It is a sense of awarenessIt is a sense of awareness and honest caring aboutand honest caring about another individual’s culture.another individual’s culture. - It requires to understand and- It requires to understand and empathize the perspective ofempathize the perspective of those living in other and verythose living in other and very different societies.different societies. Cultural Sensitivity )Cultural Empathy( Cultural Sensitivity )Cultural Empathy( One of many faces of culturesOne of many faces of cultures in the Worldin the World
  • 11. 11 - 19 2.2. What do Cultures Do?What do Cultures Do? • Functions of culture within an organization:Functions of culture within an organization: Ch. 11 :: Organizational Culture Culture creates distinctions between oneCulture creates distinctions between one organization and others.organization and others. CultureCulture has a boundary-has a boundary- defining role.defining role. CultureCulture has a boundary-has a boundary- defining role.defining role. 1 This sense of identity is conveyed to theThis sense of identity is conveyed to the organization members.organization members. CultureCulture conveys a senseconveys a sense of identity.of identity. CultureCulture conveys a senseconveys a sense of identity.of identity. 2 Commitment is for something larger thanCommitment is for something larger than one’s individual self-interest.one’s individual self-interest. CultureCulture facilitates thefacilitates the generation ofgeneration of commitment.commitment. CultureCulture facilitates thefacilitates the generation ofgeneration of commitment.commitment. 3 Culture is the social glue that providesCulture is the social glue that provides appropriate standards for what employeesappropriate standards for what employees should say and do.should say and do. CultureCulture enhances socialenhances social system stability.system stability. CultureCulture enhances socialenhances social system stability.system stability. 4 This mechanism guides and shapesThis mechanism guides and shapes attitudes and behaviours of employees.attitudes and behaviours of employees. CultureCulture serves as aserves as a sense-making andsense-making and control mechanism.control mechanism. CultureCulture serves as aserves as a sense-making andsense-making and control mechanism.control mechanism. 5
  • 12. 12 - 19 2.2. What do Cultures Do?What do Cultures Do? • Culture as a liability:Culture as a liability: Ch. 11 :: Organizational Culture -Culture is a liabilityCulture is a liability when shared values are not in agreementwhen shared values are not in agreement with those that will foster the organization’s effectiveness in awith those that will foster the organization’s effectiveness in a dynamic surrounding environment.dynamic surrounding environment. -Organisation’s deep-rooted cultureOrganisation’s deep-rooted culture may no longer be appropriate.may no longer be appropriate. EnvironmentEnvironment isis dynamic and isdynamic and is undergoing rapidundergoing rapid change,change, EnvironmentEnvironment isis dynamic and isdynamic and is undergoing rapidundergoing rapid change,change, -Consistency of behaviour is an assetConsistency of behaviour is an asset to an organisation.to an organisation. - Consistency of behaviour may,- Consistency of behaviour may, however, burden the organisationhowever, burden the organisation and make it difficult to respond toand make it difficult to respond to changes in the environment.changes in the environment. EnvironmentEnvironment isis stable,stable, EnvironmentEnvironment isis stable,stable,
  • 13. 13 - 19 2.2. What do Cultures Do?What do Cultures Do? • Cultural Variables:Cultural Variables: Ch. 11 :: Organizational Culture -Individual cultural variablesIndividual cultural variables can be classified in eightcan be classified in eight categories that form the subsystems in any society.categories that form the subsystems in any society. A kinship system is adoptedA kinship system is adopted by a given society to guideby a given society to guide family relationship.family relationship. A kinship system is adoptedA kinship system is adopted by a given society to guideby a given society to guide family relationship.family relationship. KinshipKinshipKinshipKinship1 The formal or informalThe formal or informal education affects expectationseducation affects expectations of people in workplace,of people in workplace, training programs andtraining programs and leadership styles.leadership styles. The formal or informalThe formal or informal education affects expectationseducation affects expectations of people in workplace,of people in workplace, training programs andtraining programs and leadership styles.leadership styles. EducationEducationEducationEducation2 A nation’s economic systemA nation’s economic system powerfully influencespowerfully influences organizational processes suchorganizational processes such as distribution, incentiveas distribution, incentive systems and repatriation ofsystems and repatriation of capital.capital. A nation’s economic systemA nation’s economic system powerfully influencespowerfully influences organizational processes suchorganizational processes such as distribution, incentiveas distribution, incentive systems and repatriation ofsystems and repatriation of capital.capital. EconomyEconomyEconomyEconomy3 System of government in aSystem of government in a society imposes varyingsociety imposes varying constraints on theconstraints on the organisation and its freedomorganisation and its freedom to do business.to do business. System of government in aSystem of government in a society imposes varyingsociety imposes varying constraints on theconstraints on the organisation and its freedomorganisation and its freedom to do business.to do business. PoliticsPoliticsPoliticsPolitics4
  • 14. 14 - 19 2.2. What do Cultures Do?What do Cultures Do? • Cultural Variables:Cultural Variables: Ch. 11 :: Organizational Culture -Individual cultural variablesIndividual cultural variables can be classified in eightcan be classified in eight categories that form the subsystems in any society.categories that form the subsystems in any society. Spiritual beliefs of a societySpiritual beliefs of a society are powerful that they goare powerful that they go beyond other cultural aspects.beyond other cultural aspects. Spiritual beliefs of a societySpiritual beliefs of a society are powerful that they goare powerful that they go beyond other cultural aspects.beyond other cultural aspects. ReligionReligionReligionReligion5 Many types of socialMany types of social associations arise in culturesassociations arise in cultures out of formal and informalout of formal and informal groups.groups. Many types of socialMany types of social associations arise in culturesassociations arise in cultures out of formal and informalout of formal and informal groups.groups. AssociationAssociationAssociationAssociation6 System of healthcare affectsSystem of healthcare affects employee productivity andemployee productivity and attitudes toward physicalattitudes toward physical fitness.fitness. System of healthcare affectsSystem of healthcare affects employee productivity andemployee productivity and attitudes toward physicalattitudes toward physical fitness.fitness. HealthHealthHealthHealth7 Recreation is the manner inRecreation is the manner in which people use their leisurewhich people use their leisure time and attitudes towardtime and attitudes toward leisure.leisure. Recreation is the manner inRecreation is the manner in which people use their leisurewhich people use their leisure time and attitudes towardtime and attitudes toward leisure.leisure. RecreationRecreationRecreationRecreation8 (Continued)(Continued)
  • 15. 15 - 19 3.3. Creating and SustainingCreating and Sustaining Cultures?Cultures?• How does a culture begin?How does a culture begin? Ch. 11 :: Organizational Culture Founders only hire and keep employees whoFounders only hire and keep employees who think and feel the way they do.think and feel the way they do. FirstFirst WayWayFirstFirst WayWay -Ultimate source of an organisation’s cultureUltimate source of an organisation’s culture can be traced to its founderscan be traced to its founders who have a major impact on the organisation’s early culture.who have a major impact on the organisation’s early culture. - Culture creation process occurs in three ways:- Culture creation process occurs in three ways: Founders instruct and socialize theseFounders instruct and socialize these employees to their way of thinking andemployees to their way of thinking and feeling.feeling. SecondSecond WayWaySecondSecond WayWay Founders’ own behaviour acts as a roleFounders’ own behaviour acts as a role model which encourages employees to adoptmodel which encourages employees to adopt their beliefs, values and assumptions.their beliefs, values and assumptions. ThirdThird WayWayThirdThird WayWay
  • 16. 16 - 19 3.3. Creating and SustainingCreating and Sustaining Cultures?Cultures?• Keeping a Culture Alive:Keeping a Culture Alive: Ch. 11 :: Organizational Culture -Practices within the organisation-Practices within the organisation whichwhich maintain the culture include:maintain the culture include: The selection process.The selection process.The selection process.The selection process.1 Performance evaluation criteria.Performance evaluation criteria.Performance evaluation criteria.Performance evaluation criteria.2 Training and career developmentTraining and career development activities.activities. Training and career developmentTraining and career development activities.activities. 3 Promotion procedures ensuring thatPromotion procedures ensuring that employees integrate with the culture.employees integrate with the culture. Promotion procedures ensuring thatPromotion procedures ensuring that employees integrate with the culture.employees integrate with the culture. 4 Rewarding employees who supportRewarding employees who support culture.culture. Rewarding employees who supportRewarding employees who support culture.culture. 5 Punishing employees who challengingPunishing employees who challenging culture.culture. Punishing employees who challengingPunishing employees who challenging culture.culture. 6
  • 17. 17 - 19 3.3. Creating and SustainingCreating and Sustaining Cultures?Cultures?• Keeping a Culture Alive.Keeping a Culture Alive. Ch. 11 :: Organizational Culture - Forces that sustain a culture:- Forces that sustain a culture: Actions of top managementActions of top managementActions of top managementActions of top management1 Selection practicesSelection practicesSelection practicesSelection practices2 Socialization methodsSocialization methodsSocialization methodsSocialization methods3 (Continued)(Continued)
  • 18. 18 - 19 3.3. Creating and SustainingCreating and Sustaining Cultures?Cultures?• Hofstede’s Value Dimensions:Hofstede’s Value Dimensions: Ch. 11 :: Organizational Culture -HofstedeHofstede proposed a framework for understanding how values underlieproposed a framework for understanding how values underlie organizational behaviour.organizational behaviour. --HofstedeHofstede proposes four value dimensions as follows:proposes four value dimensions as follows: The degree to which a society expects thereThe degree to which a society expects there to be differences in the levels of power.to be differences in the levels of power. Power distancePower distancePower distancePower distance1 Extent to which people in a society feelExtent to which people in a society feel threatened by ambiguous situations.threatened by ambiguous situations. UncertaintyUncertainty avoidanceavoidance UncertaintyUncertainty avoidanceavoidance2 Two concepts are unrelated. Individualism is theTwo concepts are unrelated. Individualism is the tendency of people to look after themselves andtendency of people to look after themselves and family only and neglect society.family only and neglect society. Individualism vs.Individualism vs. CollectivismCollectivism Individualism vs.Individualism vs. CollectivismCollectivism3 Masculine values include materialism and lack ofMasculine values include materialism and lack of concern for others. Feminine values includeconcern for others. Feminine values include concerns for others and quality of life.concerns for others and quality of life. Masculinity vs.Masculinity vs. FemininityFemininity Masculinity vs.Masculinity vs. FemininityFemininity4
  • 19. 19 - 19 Thank You forThank You for Your Attention …Your Attention … www.facebook.com/eyadnalsammanwww.facebook.com/eyadnalsamman OUM-Yemen 2011OUM-Yemen 2011

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