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  • 1. Organizational Behavior Session 26
  • 2. Organizational culture
  • 3. Definition “refers to a system of shared meaning held by members that distinguishes the organization from other organizations” (Robbins et al., 2004). “an organization’s culture consists largely of what people believe about what works and what does not” (Wilkins & Patterson, 1985). “the traditions and beliefs of an organization that distinguish it from other organizations and infuse a certain life into the skeleton of its structure” (Mintzberg, 1989).
  • 4. Dimensions (Robbins) Innovation and risk taking Attention to details Outcome orientation People orientation Team orientation Aggressiveness Stability
  • 5. National culture andorganizational culture National culture and organizational culture are different phenomena; Although national culture may influence employee’s fundamental values and beliefs, organizational cultures may vary due to different practices and leadership styles. Dimensions used for organizational culture may differ from dimensions of national cultures.
  • 6. Dominant culture andsubcultures A dominant culture expresses the core values that are shared by a majority of the organizations’ members. Subcultures are not dominant and are likely to be defined by department designations and geographical separation. According to Schein (1996), three subcultures may exist in companies, which may foster or hinder organizational learning.
  • 7. Sub-cultures (Schein) Operational sub-culture: emphasis on human resources for improving services and products; Engineering sub-culture: emphasis on processes, systems, and technology in order to increase precision and efficiency; Top management sub-culture: emphasis on profit, political aspects of management, relationships with stakeholders.
  • 8. Strength of organizational culture Organizational culture may be strong or weak. In a strong culture, the organization’s core values are both intensely held and widely shared.
  • 9. Functions of organizational culture Conveys a sense of identity for organization members; Facilitate the generation of commitment to something larger than one’s individual self-interest; It enhances the stability of the social system; Provides employees with work values and standards and establishes norms; May foster or hinder organizational change; Facilitate communication; Influence innovation.
  • 10. Antecedents of organizationalcultures Founders: vision, employee selection, role modeling; Performance evaluation criteria and processes; Training and development activities; Promotion procedures; Leadership style; Socialization; Codes of ethics.
  • 11. How employees learn theirorganization’s culture Stories; Rituals; Material symbols; Language.
  • 12. Reading Please read page 496 to 520 of the text book.