Organization Culture by SAG


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This presentation breifly explains the importance and other features of Organisation Culture and its uses.

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Organization Culture by SAG

  1. 1. Organizational Culture
  2. 2. Questions for Consideration What is organizational culture? When is organizational culture functional? Dysfunctional? How do employees learn about the culture of their organization?
  3. 3.  “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.”
  4. 4.  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
  5. 5. Artifacts of Material Symbols Organizational Language Culture Rituals StoriesOrganizational Beliefs Culture Values Assumptions
  6. 6.  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.
  7. 7.  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.
  8. 8.  Stories Rituals Material Symbols Language
  9. 9.  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.
  10. 10. Top Philosophy management of Selection Organizationsorganizations criteria culture founders Socialization
  11. 11.  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
  12. 12. Socialization Process Outcomes ProductivityPrearrival Encounter Metamorphosis Commitment Turnover
  13. 13.  Formal vs. Informal Individual vs. Collective Fixed vs. Variable Serial vs. Random Investiture vs. Divestiture
  14. 14. High Networked CommunalSociability Low Fragmented Mercenary Low High Solidarity
  15. 15.  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
  16. 16.  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
  17. 17.  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
  18. 18.  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.
  19. 19.  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.
  20. 20.  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.
  21. 21.  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.
  22. 22.  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