Organizational culture refers to the shared values, beliefs, and assumptions that guide how employees within a company think and act. It consists of observable elements like language, rituals, and norms of behavior, as well as deeper values and mental models. An organization's culture provides a sense of identity for members, guides decision-making, and contributes to socializing new employees. It can be categorized into four types: clan, adhocracy, hierarchy, and market cultures. A strong organizational culture improves performance and job satisfaction by enhancing clarity, motivation, and commitment among employees.

2. The basic pattern of shared values and assumptions
governing the way employees within an organization think
about and act on problems and opportunities.
A set of values or beliefs that is unique to any one
organization

3. Organizational culture
 Shared values and beliefs enabling members to
understand their roles and the norms of the
organization, including:
▪ Observed behavioral regularities, typified by common
language, terminology, rituals
▪ Norms, reflected by things such as the amount of work
to do and the degree of cooperation between
management and employees
▪ Dominant values that the organization advocates and
expects participants to share
▪ low absenteeism, high efficiency

4. Guides decision making
Provides identity for members
Amplifies commitment
Guides employee behavior
Provides justification for actions
Helps members construct proper attitudes
and behaviors
Contributes to socialization of new members
Enhances member feeling of belonging and
commitment.

5. Visible
• Unconscious, taken-for-granted
perceptions or beliefs
• Mental models of ideals
Shared assumptions
• Conscious beliefs
• Evaluate what is good or bad, right or
wrong
Shared values
Artifacts
• Stories/legends
• Rituals/ceremonies
• Organizational language
• Physical structures/décor
Invisible
(below the surface)

6. The Clan Culture
 A very friendly place to
work where people share
a lot of themselves. It is
like an extended family.

7. The Hierarchy Culture
 A very formalized
structured place to work.
Procedures govern what
people do.
.

8. The Adhocracy Culture
 A dynamic
entrepreneurial, and
creative place to work.
People stick their necks
out and take risks.

9. The Market Culture
 A results oriented
organization whose
major concern is with
getting the job done.
People are competitive
and goal-oriented.
.

10. Formal
Control
Orientation
Forms of Attention
Flexible
Stable
Internal External
Clan
Culture
Hierarchy/Bur
eaucratic
Culture
Market
Culture
Adhocracy
culture

11. External focus -- firm’s success
depends on continuous change
Focus on processes more than
goals
Strong sense of ownership
Proactive --seek out
opportunities
AP/Wide World

12. Strong
Organizational
Culture
Social
Control
Improves
Sense-Making
Social
Glue

13. 13
 Job satisfaction
 Role clarity
 High work motivation
 Understanding of culture,
perceived control
 High job involvement
 Commitment to organization
 Tenure
 High performance
 Internalized values
 Job dissatisfaction
 Role ambiguity and conflict
 Low work motivation
 Misunderstanding, tension,
perceived lack of control
 Low job involvement
 Lack of commitment to
organization
 Absenteeism, turnover
 Low performance
 Rejection of values
Successful organization is
reflected in:
Unsuccessful organization is
reflected in: