Organizational culture can be defined as the shared beliefs, assumptions, values, and norms that shape how an organization functions. There are three key aspects for a culture to exist: it must be shared by most group members, passed down over generations, and influence behaviors and perceptions. An organization's culture includes both observable elements like practices and language as well as deeper levels involving values, assumptions, and socialization. Maintaining a strong organizational culture involves having consistent behaviors across the organization, shared approaches to problem-solving, and common rules around rewards and punishments. The socialization process is key to building and transmitting an organization's culture to new members.

1. ORGANIZATIONAL
CULTURE

2. Definition
 Culture is the unique dominant pattern of
shared beliefs, assumptions, values, and
norms that shape the socialization, symbols,
language and practices of a group of people.
 The attitudes and approaches that typify the
way staff carry out their tasks.
 Culture is developed and transmitted by
people, consciously and unconsciously, to
subsequent generations.

3. What must be for culture to
exist?
1. It must be shared by the vast majority of
members of a group or society;
2. It must be passed on from generation to
generation; and
3. It must shape behaviour and perceptions.

4. Cultural iceberg
Observable
elements of
culture
Not observable
•Practices
•Language
•Symbols
•Norms
•Values
•Assumptions

5. Shared assumptions
 Shared assumptions are the thoughts and
feelings that members of a culture take for
granted and believe to be true.

6. Values and norms
 Values are the basic beliefs people hold that
specify general preferences and behaviours,
and define what is right and wrong.
 Cultural values are reflected in a society’s morals,
customs and established practices
 Norms are rules that govern behaviours of
groups of people.

7. Symbols
 A symbols is any visible object, act, or event
that conveys meaning to others. Examples:
 Artefacts
 Dress
 Office layout
 Slogans
 ceremonies

8. Language
 Language is a shared system of vocal sounds,
written signs, and/or gestures used to convey
meaning among members of a culture.
The Nike swoosh was inspired by the
Greek goddess Nike, the winged goddess
of victory. The swoosh symbolizes her
flight. It conveys the meaning of a brand of
sports shoes

9. Practices
 Practices are observable cultural customs
such as taboos (culturally forbidden
behaviours) and ceremonies

10. Socialization
 Socialization is the process by which people
learn values, norms, behaviours and social
skills. It is the means by which new members
are brought into a culture.

11. Types of organizational culture
 The basic types of organizational culture
are:
1. Bureaucratic
2. Clan
3. Market
4. Entrepreneurial

12. Bureaucratic Culture
 In this type of culture the behaviour of
employees is governed by formal rules and
standard operating procedures.
 Such a culture perpetuates stability.
 Organizations with bureaucratic culture tend to
produce standardized goods and services,
examples:
 Government ministries
 Fast food establishments

13. Clan Culture
 In a clan culture the behaviour of individuals are
shaped by tradition, loyalty, personal commitment,
extensive socialization and self-management.
 A clan culture achieve unity through socialization.
 Long-term employees serve as mentors
 Members are aware of the organization’s history
and have an understanding of the expected
manner of conduct and organizational style.
 Members share feelings of pride in membership.
 Peer pressure to adhere to important norms is
strong

14. Market Culture
 In a market culture, the values and norms reflect the
significance of achieving measurable and demanding goals
mainly concerning those that are financial and market based.
 Companies with a market culture tend to focus on:
 Sales growth
 Profitability
 Market share
 In a market culture the relationship between individuals and
the organization is contractual (previously agreed).
 Individuals are responsible for their performance; whereas
the organization promises specific rewards for levels of
performance.
 Managers are not judge on their effectiveness as role models
or mentors; but on monthly, quarterly, and annual
performance goals based on profit.

15. Entrepreneurial Culture
 Organizations
existing in the
context of an
entrepreneurial
culture are
characterized by high
levels of risk taking
and creativity.
 There is a
commitment to
experimentation,
innovation, and being
Steve Jobs – Apple

16. Relationship between culture and
organizational performance
 Organizational culture has the potential to
enhance organizational performance,
individual satisfaction, the sense of certainty
about how problems are to be handled.
 Culture serves as a control mechanism to
channel behaviour towards desired behaviours
and to prevent undesired behaviours.

17. Maintaining a strong organizational
culture
1. A common behavioural style must be shared by
managers and employees.
2. Have the same basic approaches to solving
problems, meeting goals, and dealing with
stakeholders.
3. Have share common norms that guide rule
governing rewards and punishment.
4. A strong organizational culture assists in the
creation of a stable organization, the
consequence of which lead to the achievement
of the company’s strategic goals.

18. Steps to building a strong
organizational culture -
socialization
•Careful
selection
Step 1
•Challenging
early work
assignments
Step 2 •Training to
develop
capabilities
with culture
Step 3
•Reward and
sustain culture
Step 4
•Adoption of
cultural value
policies
Step 5
•Reinforce
culture with
ritual, stories
rites
Step 6 •Role model to
sustain culture
Step 7

19. Outcomes of socialization
process
 Job satisfaction
 Role clarity
 High work
performance
 Understanding of
culture
 Commitment to
organization
 Internal values
 Job dissatisfaction
 Role ambiguity and
conflict
 Misunderstanding,
tension, and
perceived lack of
control
 Low job involvement
 Low performance
 Rejection of values
Successful socialization Unsuccessful socialization

20. Reinforcement video

21. Reinforcement video