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How Organizational Cultures Form
MBA Cairo University
1. A Definition of Organizational Culture
2. What Organizational Culture Does
3. Dimensions of Organizational Culture
4. The factors that create organizational culture
5. Stages in the Socialization Process
6. How Organizational Cultures Form
7. How Employees Learn Culture
8. The managerial tools that manager use to create organizational culture
1. A Definition of Organizational Culture
Organizational culture is civilization in the workplace
Culture compound contains knowledge creed Art ethics law habits values
Traditions derived by an individual from the community
All this acquires and accumulates and is committed by an individual's behaviors
within the community
A Definition of Organizational Culture
Organizational culture refers to a system of shared meaning held by members that
distinguishes the organization from other organizations
How Organizational Cultures Form
MBA Cairo University
 What Organizational Culture Does
Provides an external identity
Creates a sense of commitment
Acts as source of high reliability
Defines an interpretive scheme
Acts as a social control mechanism
 Dimensions of Organizational Culture
The organization’s relationship to its environment
The nature of human activity
The nature of reality and truth
The nature of time
The nature of human nature
The nature of human relationships
Homogeneity versus Diversity
How Organizational Cultures Form
MBA Cairo University
 The factors that create organizational culture
 Organizational socialization
 Organizational commitment
 Job satisfaction
 Stages in the Socialization Process
 Prearrival
– The period of learning prior to a new employee joining the
organization
 Encounter
– When the new employee sees what the organization is really like and
confronts the possibility that expectations and reality may diverge
 Metamorphosis
– When the new employee changes and adjusts to the work, work
group, and organization
How Organizational Cultures Form
MBA Cairo University
The socialization process involves a few steps. The employee will learn about the
organization through literature, interviews, and other people in the prearrival stage.
Once the employee starts interacting with other employees, they enter the
encounter stage where they see what the organization is really like. In this stage
often their expectations are measured against the reality and sometimes they do
not align. The third stage is called metamorphosis, when the new employee adjusts
to the organization and their work.
When the socialization process matches an organization’s culture, they have
positive outcomes including higher productivity, greater commitment, and lower
turnover.
 Socialization outcomes:
– Higher productivity
– Greater commitment
– Lower turnover
How Organizational Cultures Form
MBA Cairo University
 How Organizational Cultures Form
 Organizational cultures begin with the founder of
the organization, continue through the hiring of
people who see things similarly, and are enforced
through top management and socialization.
 Organizational cultures are derived from the
founder
 They are sustained through managerial action
How Organizational Cultures Form
MBA Cairo University
How Employees Learn Culture
 Stories
 . They can gain an understanding of culture by hearing
stories that present the past and provide explanations for
current practices
 Rituals
 repetitive sequences of activities, can reinforce the key
values of the organization and provide insight into the
culture.
 Material Symbols
 Material symbols such as dress codes, formal or informal,
office size or style, and perks for key employees can denote
who is important in an organization.
 Language
 Language is another way to learn about organizational
culture as employees will express themselves in certain
ways to indicate membership in the organization.
How Organizational Cultures Form
MBA Cairo University
The managerial tools that manager use to create
organizational culture
On the short run
 leadership
The ability to influencea group toward the achievement of a vision or set of
goals
Organizations need both strong
leadership and strong management for optimal effectiveness.
While a good leader may tell the organization where to go, it
still takes good managers to ensure they get there in one piece.
 motivation
The processes that account for an individual’s intensity, direction, and
persistence of effort toward attaining a goal.
 Communication
The transfer and understanding of meaning.
Formal channels
Communication channels established by an organization to transmit
messages related to the professional activities of members.
Informal channels
Communication channels that are created spontaneously and that emerge as
Responses to individual choices.
How Organizational Cultures Form
MBA Cairo University
On the long run
Training
The most obvious effect of training programs is direct improvement in
The skills necessary to successfully complete the job.
.
● a second benefit of training is that it increases an employee’s self
efficacy—
That is, a person’s expectation that he or she can successfully
Execute the behaviors required to produce an outcome Employees with high
self-efficacy have strong expectations about their Abilities to perform in new
situations. They’re confident and expect to Be successful.
Performance evaluation
● a major goal of performance evaluation is to assess an individual’s
Performance accurately as a basis for allocating rewards. If evaluation
Is inaccurate or emphasizes the wrong criteria, employees will be
Over- or under rewarded

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organizational cultures

  • 1. How Organizational Cultures Form MBA Cairo University 1. A Definition of Organizational Culture 2. What Organizational Culture Does 3. Dimensions of Organizational Culture 4. The factors that create organizational culture 5. Stages in the Socialization Process 6. How Organizational Cultures Form 7. How Employees Learn Culture 8. The managerial tools that manager use to create organizational culture 1. A Definition of Organizational Culture Organizational culture is civilization in the workplace Culture compound contains knowledge creed Art ethics law habits values Traditions derived by an individual from the community All this acquires and accumulates and is committed by an individual's behaviors within the community A Definition of Organizational Culture Organizational culture refers to a system of shared meaning held by members that distinguishes the organization from other organizations
  • 2. How Organizational Cultures Form MBA Cairo University  What Organizational Culture Does Provides an external identity Creates a sense of commitment Acts as source of high reliability Defines an interpretive scheme Acts as a social control mechanism  Dimensions of Organizational Culture The organization’s relationship to its environment The nature of human activity The nature of reality and truth The nature of time The nature of human nature The nature of human relationships Homogeneity versus Diversity
  • 3. How Organizational Cultures Form MBA Cairo University  The factors that create organizational culture  Organizational socialization  Organizational commitment  Job satisfaction  Stages in the Socialization Process  Prearrival – The period of learning prior to a new employee joining the organization  Encounter – When the new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge  Metamorphosis – When the new employee changes and adjusts to the work, work group, and organization
  • 4. How Organizational Cultures Form MBA Cairo University The socialization process involves a few steps. The employee will learn about the organization through literature, interviews, and other people in the prearrival stage. Once the employee starts interacting with other employees, they enter the encounter stage where they see what the organization is really like. In this stage often their expectations are measured against the reality and sometimes they do not align. The third stage is called metamorphosis, when the new employee adjusts to the organization and their work. When the socialization process matches an organization’s culture, they have positive outcomes including higher productivity, greater commitment, and lower turnover.  Socialization outcomes: – Higher productivity – Greater commitment – Lower turnover
  • 5. How Organizational Cultures Form MBA Cairo University  How Organizational Cultures Form  Organizational cultures begin with the founder of the organization, continue through the hiring of people who see things similarly, and are enforced through top management and socialization.  Organizational cultures are derived from the founder  They are sustained through managerial action
  • 6. How Organizational Cultures Form MBA Cairo University How Employees Learn Culture  Stories  . They can gain an understanding of culture by hearing stories that present the past and provide explanations for current practices  Rituals  repetitive sequences of activities, can reinforce the key values of the organization and provide insight into the culture.  Material Symbols  Material symbols such as dress codes, formal or informal, office size or style, and perks for key employees can denote who is important in an organization.  Language  Language is another way to learn about organizational culture as employees will express themselves in certain ways to indicate membership in the organization.
  • 7. How Organizational Cultures Form MBA Cairo University The managerial tools that manager use to create organizational culture On the short run  leadership The ability to influencea group toward the achievement of a vision or set of goals Organizations need both strong leadership and strong management for optimal effectiveness. While a good leader may tell the organization where to go, it still takes good managers to ensure they get there in one piece.  motivation The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal.  Communication The transfer and understanding of meaning. Formal channels Communication channels established by an organization to transmit messages related to the professional activities of members. Informal channels Communication channels that are created spontaneously and that emerge as Responses to individual choices.
  • 8. How Organizational Cultures Form MBA Cairo University On the long run Training The most obvious effect of training programs is direct improvement in The skills necessary to successfully complete the job. . ● a second benefit of training is that it increases an employee’s self efficacy— That is, a person’s expectation that he or she can successfully Execute the behaviors required to produce an outcome Employees with high self-efficacy have strong expectations about their Abilities to perform in new situations. They’re confident and expect to Be successful. Performance evaluation ● a major goal of performance evaluation is to assess an individual’s Performance accurately as a basis for allocating rewards. If evaluation Is inaccurate or emphasizes the wrong criteria, employees will be Over- or under rewarded