Questions for Consideration What is organizational culture? When is organizational culture functional? Dysfunctional? How do employees learn about the culture of their organization?
“Culture is the soul of the organization — the beliefs and values, and how they are manifested. I think of the structure as the skeleton, and as the flesh and blood. And culture is the soul that holds the thing together and gives it life force.”
The pattern of shared values, beliefs and assumptions considered to be the appropriate way to think and act within an organization. Culture is shared Culture helps members solve problems Culture is taught to newcomers Culture strongly influences behaviour
Artifacts of Material Symbols Organizational Language Culture Rituals StoriesOrganizational Beliefs Culture Values Assumptions
Innovation and risk-taking The degree to which employees are encouraged to be innovative and take risks. Attention to detail The degree to which employees are expected to exhibit precision, analysis, and attention to detail. Outcome orientation The degree to which management focuses on results or outcomes rather than on technique and process. People orientation The degree to which management decisions take into consideration the effect of outcomes on people within the organization.
Team orientation The degree to which work activities are organized around teams rather than individuals. Aggressiveness The degree to which people are aggressive and competitive rather than easygoing. Stability The degree to which organizational activities emphasize maintaining the status quo in contrast to growth.
Organizational culture represents a common perception held by the organization members. Core values or dominant (primary) values are accepted throughout the organization. Dominant culture Expresses the core values that are shared by a majority of the organization’s members. Subcultures Tend to develop in large organizations to reflect common problems, situations, or experiences.
Top Philosophy management of Selection Organizationsorganizations criteria culture founders Socialization
Selection Identify and hire individuals who will fit in with the culture Top Management Senior executives establish and communicate the norms of the organization Socialization Organizations need to teach the culture to new employees
Socialization Process Outcomes ProductivityPrearrival Encounter Metamorphosis Commitment Turnover
Formal vs. Informal Individual vs. Collective Fixed vs. Variable Serial vs. Random Investiture vs. Divestiture
High Networked CommunalSociability Low Fragmented Mercenary Low High Solidarity
Social glue that helps hold an organization together Provides appropriate standards for what employees should say or do Boundary-defining Conveys a sense of identity for organization members
Facilitates commitment to something larger than one’s individual self-interest Enhances social system stability Serves as a “sense-making” and control mechanism Guides and shapes the attitudes and behaviour of employees
Culture can have dysfunctional aspects in some instances Culture as a Barrier to Change When organization is undergoing change, culture may impede change Culture as a Barrier to Diversity Strong cultures put considerable pressure on employees to conform Culture as a Barrier to Mergers and Acquisitions Merging the cultures of two organizations can be difficult, if not impossible
Have top-management people become positive role models, setting the tone through their behaviour. Create new stories, symbols, and rituals to replace those currently in vogue. Select, promote, and support employees who espouse the new values that are sought. Redesign socialization processes to align with the new values.
Change the reward system to encourage acceptance of a new set of values. Replace unwritten norms with formal rules and regulations that are tightly enforced. Shake up current subcultures through transfers, job rotation, and/or terminations. Work to get peer group consensus through utilization of employee participation and creation of a climate with a high level of trust.
Employees form an overall subjective perception of the organization based on such factors as degree of risk tolerance, team emphasis, and support of people. This overall perception becomes, in effect, the organization’s culture or personality. These favourable or unfavourable perceptions then affect employee performance and satisfaction, with the impact being greater for stronger cultures. Just as people’s personalities tend to be stable over time, so too do strong cultures. This makes strong cultures difficult for managers to change.
One of the more important managerial implications of organizational culture relates to selection decisions. Hiring individuals whose values dont align with those of the organization is not good. An employees performance depends to a considerable degree on knowing what he should or should not do.
Why Culture Doesn’t When Culture Can Change Change Culture develops over There is a dramatic crisis many years, and becomes part of how the There is a turnover in organization thinks and leadership feels The organization is young Selection and promotion and small policies guarantee survival There is a weak culture of culture Top management chooses managers likely to maintain culture