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Organizational Culture

SUBMMITTED BY:
NOMAN GHALIB

15-1
Organizational culture
• A system of shared meanings that are held
by members that distinguishes the
organization from other organizations

15-2
Characteristics of Organizational
Culture
1.
2.
3.
4.
5.
6.
7.

Innovation and risk taking
Attention to detail
Outcome orientation
People orientation
Team orientation
Aggressiveness
Stability
15-3
Do Organizations Have Uniform
Cultures?
• A dominant culture expresses the core
values that are shared by a majority of the
organization’s members
• A multiculture is Minicultures within the
organization, typically defined by
department designations and geographical
separations
15-4
Strong vs. Weak Cultures
• In a strong culture, the organization’s core
values are both intensely held and widely
shared
• Core values are primary
and dominant values that
are accepted through out
the organization
15-5
Culture’s Functions
•
•
•
•
•

Boundary-defining role
Conveys a sense of identity
Facilitates the generation of commitment
Enhances social system stability
Sense-making and control mechanism

15-6
Culture vs. formalization
• The stronger an organizational culture, the
less management need to be concerned
with developing formalization

15-7
Culture as a Liability
• Barriers to change
• Barriers to diversity
• Barriers to acquisition and mergers

15-8
How a Culture Begins

• Culture is created in three ways:
 Founders hire and keep those who think and
feel the same way they do
 They indoctrinate and socialize these
employees to their way of thinking and feeling
 Their behavior acts as a role model
encouraging employees to identify with them
15-9
Keeping a Culture Alive
• Selection – seek out those who would fit in
• Top Management – Senior executives
establish norms of behavior through what
they say and do
• Socialization – process that adapts
employees to the organization culture

15-10
A Socialization Model

15-11
How Organization Cultures Form

15-12
How Employees Learn Culture
•
•
•
•

Stories
Rituals
Material Symbols
Language

15-13
Managing Cultural Change
• Cultural change is most likely to take when
the following conditions exist:





Dramatic crisis exists or is created
Turnover
Young and small organization
Weak culture

15-14
Creating an Ethical
Organizational Culture
•
•
•
•

Be a visible role model
Communicate ethical expectations
Provide ethical training
Visibly reward ethical acts and punish
unethical ones
• Provide protective mechanisms

15-15
Managerial Action to Make Culture
More Customer Responsive
•
•
•
•
•
•
•

Selection
Training
Structural design
Empowerment
Leadership
Performance evaluation
Reward systems
15-16
Implications for Managers
• Create the culture you want when the
organization is small
• If established culture needs to be changed,
expect it to take years

15-17

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Org culture

  • 2. Organizational culture • A system of shared meanings that are held by members that distinguishes the organization from other organizations 15-2
  • 3. Characteristics of Organizational Culture 1. 2. 3. 4. 5. 6. 7. Innovation and risk taking Attention to detail Outcome orientation People orientation Team orientation Aggressiveness Stability 15-3
  • 4. Do Organizations Have Uniform Cultures? • A dominant culture expresses the core values that are shared by a majority of the organization’s members • A multiculture is Minicultures within the organization, typically defined by department designations and geographical separations 15-4
  • 5. Strong vs. Weak Cultures • In a strong culture, the organization’s core values are both intensely held and widely shared • Core values are primary and dominant values that are accepted through out the organization 15-5
  • 6. Culture’s Functions • • • • • Boundary-defining role Conveys a sense of identity Facilitates the generation of commitment Enhances social system stability Sense-making and control mechanism 15-6
  • 7. Culture vs. formalization • The stronger an organizational culture, the less management need to be concerned with developing formalization 15-7
  • 8. Culture as a Liability • Barriers to change • Barriers to diversity • Barriers to acquisition and mergers 15-8
  • 9. How a Culture Begins • Culture is created in three ways:  Founders hire and keep those who think and feel the same way they do  They indoctrinate and socialize these employees to their way of thinking and feeling  Their behavior acts as a role model encouraging employees to identify with them 15-9
  • 10. Keeping a Culture Alive • Selection – seek out those who would fit in • Top Management – Senior executives establish norms of behavior through what they say and do • Socialization – process that adapts employees to the organization culture 15-10
  • 13. How Employees Learn Culture • • • • Stories Rituals Material Symbols Language 15-13
  • 14. Managing Cultural Change • Cultural change is most likely to take when the following conditions exist:     Dramatic crisis exists or is created Turnover Young and small organization Weak culture 15-14
  • 15. Creating an Ethical Organizational Culture • • • • Be a visible role model Communicate ethical expectations Provide ethical training Visibly reward ethical acts and punish unethical ones • Provide protective mechanisms 15-15
  • 16. Managerial Action to Make Culture More Customer Responsive • • • • • • • Selection Training Structural design Empowerment Leadership Performance evaluation Reward systems 15-16
  • 17. Implications for Managers • Create the culture you want when the organization is small • If established culture needs to be changed, expect it to take years 15-17