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Organizational Culture


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Published in: Business

Organizational Culture

  1. 1. Organizational Culture<br />
  2. 2. Definition<br />Culture is the unique dominant pattern of shared beliefs, assumptions, values, and norms that shape the socialization, symbols, language and practices of a group of people.<br />The attitudes and approaches that typify the way staff carry out their tasks.<br />Culture is developed and transmitted by people, consciously and unconsciously, to subsequent generations.<br />
  3. 3. What must be for culture to exist?<br />It must be shared by the vast majority of members of a group or society;<br />It must be passed on from generation to generation; and<br />It must shape behaviour and perceptions.<br />
  4. 4. Cultural iceberg<br />Observable elements of culture<br /><ul><li>Practices
  5. 5. Language
  6. 6. Symbols
  7. 7. Norms
  8. 8. Values
  9. 9. Assumptions</li></ul>Not observable<br />
  10. 10. Shared assumptions<br />Shared assumptions are the thoughts and feelings that members of a culture take for granted and believe to be true.<br />
  11. 11. Values and norms<br />Values are the basic beliefs people hold that specify general preferences and behaviours, and define what is right and wrong.<br />Cultural values are reflected in a society’s morals, customs and established practices<br />Norms are rules that govern behaviours of groups of people.<br />
  12. 12. Symbols<br />A symbols is any visible object, act, or event that conveys meaning to others. Examples:<br />Artefacts<br />Dress<br />Office layout<br />Slogans<br />ceremonies<br />
  13. 13. Language<br />Language is a shared system of vocal sounds, written signs, and/or gestures used to convey meaning among members of a culture.<br />The Nike swoosh was inspired by the Greek goddess Nike, the winged goddess of victory. The swoosh symbolizes her flight. It conveys the meaning of a brand of sports shoes<br />
  14. 14. Practices<br /> Practices are observable cultural customs such as taboos (culturally forbidden behaviours) and ceremonies <br />
  15. 15. Socialization<br />Socialization is the process by which people lean valves, norms, behaviours and social skills. It is the means by which new members are brought into a culture.<br />
  16. 16. Types of organizational culture<br />The basic types of organizational culture are:<br />Bureaucratic<br />Clan<br />Market<br />Entrepreneurial<br />
  17. 17. Bureaucratic Culture<br />In this type of culture the behaviour of employees is governed by formal rules and standard operating procedures.<br />Such a culture perpetuates stability.<br />Organizations with bureaucratic culture tend to produce standardized goods and services, examples:<br />Government ministries<br />Fast food establishments<br />
  18. 18. Clan Culture<br />In a clan culture the behaviour of individuals are shaped by tradition, loyalty, personal commitment, extensive socialization and self-management.<br />A clan culture achieve unity through socialization.<br />Long-term employees serve as mentors<br />Members are aware of the organization’s history and have an understanding of the expected manner of conduct and organizational style.<br />Members share feelings of pride in membership.<br />Peer pressure to adhere to important norms is strong <br />
  19. 19. Market Culture<br />In a market culture, the values and norms reflect the significance of achieving measurable and demanding goals mainly concerning those that are financial and market based. <br />Companies with a market culture tend to focus on:<br />Sales growth<br />Profitability<br />Market share<br />In a market culture the relationship between individuals and the organization is contractual (previously agreed).<br />Individuals are responsible for their performance; whereas the organization promises specific rewards for levels of performance.<br />Managers are not judge on their effectiveness as role models or mentors; but on monthly, quarterly, and annual performance goals based on profit.<br />
  20. 20. Entrepreneurial Culture<br />Organizations existing in the context of an entrepreneurial culture are characterized by high levels of risk taking and creativity.<br />There is a commitment to experimentation, innovation, and being on the leading edge. <br />Steve Jobs – Apple <br />
  21. 21. Relationship between culture and organizational performance<br />Organizational culture has the potential to enhance organizational performance, individual satisfaction, the sense of certainty about how problems are to be handled.<br />Culture serves as a control mechanism to channel behaviour towards desired behaviours and to prevent undesired behaviours.<br />
  22. 22. Building a strong organizational culture<br />A common behavioural style must be shared by managers and employees.<br />Have the same basic approaches to solving problems, meeting goals, and dealing with stakeholders.<br />Have share common norms that guide rule governing rewards and punishment.<br />A strong organizational culture assists in the creation of a stable organization, the consequence of which lead to the achievement of the company’s strategic goals. <br />
  23. 23. Steps to building a strong organizational culture - socialization<br />
  24. 24. Outcomes of socialization process<br />Job satisfaction<br />Role clarity<br />High work performance<br />Understanding of culture<br />Commitment to organization<br />Internal values<br />Job dissatisfaction<br />Role ambiguity and conflict<br />Misunderstanding, tension, and perceived lack of control<br />Low job involvement<br />Low performance<br />Rejection of values<br />Successful socialization<br />Unsuccessful socialization<br />
  25. 25. Reinforcement video<br />
  26. 26. Reinforcement video<br />