A simple discussion of Organizational Culture, principles, and related models and importance.

1. Organizational Culture
PORLARES, CHARL VINCE L.
MAED- EML
EML 704 | DR. C. CARILLO

2. ORGANIZATIONAL CULTURE
• Defining Organization, Culture and Organizational
Culture
• Characteristics and Elements of Organizational
Culture
• Types of Organizational Culture (Models)
• Establishing an Organizational Culture
• Importance of Organizational Culture

3. What is an Organization?
A social unit of people that
is structured and
managed to meet a need
or to pursue collective
goals.
Organization. BusinessDictionary.com. Retrieved September 13, 2020, from
BusinessDictionary.com website:
http://www.businessdictionary.com/definition/organization.html
An administrative and
functional structure (such
as a business or a political
party)
Merriam-Webster. (n.d.). Organization. In Merriam-Webster.com dictionary.
Retrieved September 14, 2020, from
https://www.merriam-webster.com/dictionary/organization

4. What is a Culture?
The cumulative deposit of
knowledge, experience, beliefs,
values, attitudes, meanings,
hierarchies, religion, notions of
time, roles, spatial relations,
concepts of the universe, and
material objects and possessions
acquired by a group of people in
the course of generations through
individual and group striving.
http://people.tamu.edu/~i-choudhury/culture.html
The set of shared
attitudes, values, goals,
and practices that
characterizes an
institution or
organization.
Merriam-Webster. (n.d.). Culture. In Merriam-Webster.com dictionary. Retrieved
September 14, 2020, from https://www.merriam-webster.com/dictionary/culture

5. What is an Organizational Culture?
• A pattern of shared basic assumptions that the group
learned as it solved its problems of external adaptation
and internal integration, that has worked well enough
to be considered valid and, therefore, to be taught to
new members as the correct way to perceive, think, and
feel in relation to those problems (Schein, 1985, cited
by Tharp, 2009; & Hatch, 1993).

6. What is an Organizational Culture?
Organizations, just like individuals, have their own
personalities—more typically known as
organizational cultures. Understanding how culture
is created, communicated, and changed will help
one to be a more effective manager.

7. Organizational Culture
Coined the term
Dr. Elliott Jaques
>A psychoanalyst, social scientist
and management consultant
> Worked on Managerial
Organization
~ Requisite Organization
~ Human Capability &
Maturation
~ Time-span of discretion
Father of O.C.
Dr. Edgar Schein
> A professor, social psychologist
and business theorist
> Prominent in the field of
Organizational Development
~Process Consultation
~Organizational Culture
~Career Development

8. Characteristics of an Organizational Culture
According to Furnham and Gunter (1993):
• It is difficult to define (often a pointless exercise).
• It is multi-dimensional, with many different components at different levels.
• It is not particularly dynamic and ever-changing (being relatively stable
over short periods of time).
• It takes time to establish and therefore time to change a corporate culture.
• Culture is learnt over a period of time.

9. Characteristics of an Organizational Culture
Dimensions of
Organizational
Culture Profile
(OCP)Source: Adapted from information in
O’Reilly, C. A., III, Chatman, J. A., & Caldwell,
D. F. (1991). People and organizational
culture: A profile comparison approach to
assessing person-organization fit. Academy
of Management Journal, 34, 487–516.
https://courses.lumenlearning.com/suny-o
rgbehavior/chapter/15-3-characteristics-of
-organizational-culture/

10. Organizational Culture Profile
● Innovation and risk taking. The degree to which
employees are encouraged to be innovative and take risks.
● Aggressiveness. The degree to which people are
aggressive and competitive rather than easygoing.
● Outcome orientation. The degree to which management
focuses on results or outcomes rather than on technique
and process.
● Stability. The degree to which organizational activities
emphasize maintaining the status quo in contrast to growth.

11. Organizational Culture Profile
● 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.
● Attention to detail. The degree to which employees
are expected to exhibit precision, analysis, and
attention to detail.
https://www.csus.edu/indiv/s/sablynskic/ch18.htm

12. On Schein, in culture in an organization (cited by Hitch,
1993)

14. Hitch (1993) Cultural Dynamics Model of an
organization

15. Elements of Organizational Culture
Observable
Artifacts
> Corporate logos, uniforms,
rituals, stories, events, “heroes”,
language, posters, buildings, layout,
purported organizational structure.
Underlying/Hidden
Espoused Values
> Buzzwords and phrases,
renaming roles/units, values and
culture explicitly espoused by the
organization, technical or
professional norms and rules.
Rules imposed by the organization
Basic Assumptions
> sense of identity, attitudes,
understanding and feelings, and
tacit knowledge

16. Artifact
Culture
Physical Structure
& Material Symbol
Rituals &
Ceremonies
Stories & Legends
LanguageArtifacts

17. Artifact: Rituals & Ceremonies
Rituals
> Programmed routine
> Repetitive activities within an
organization that have cultural
meaning.
e.g., conducting meetings,
employee forums, X-mas parties
Ceremonies
> Planned activities for the benefit
of an audience
e.g., awards ceremonies

18. Artifacts: Stories and Legends
> Most effective and colorful way to transmit culture,
> Critical event an organization faced and the
organization’s response to it, or a heroic effort of a single
employee illustrating the company’s values (emergence of
‘Heroes’),
> Communicate the company’s history, its values and
priorities, and create a bond between the new employee
and the organization,

19. Artifact: Organizational Language
> Words used to address people, describe customers, place, etc.
e.g., Ma’am, Sir, Dr., Prof., TARC
> Use of phrase/special vocabulary as cultural symbols
e.g. Instead of client/customer, you use interested parties.
> Slogan
e.g. Apple Slogan: “Think Different”, L'Oréal Paris: "Because You're Worth
It."
> Language is also present among subcultures.

20. Artifact: Physical Structure & Material Symbols
Physical Structure
> Organization’s buildings,
facilities, remarkable structures,
office design, spacing, etc.
Material Symbols
> Logos and related symbolism
(can be a structural symbol such as
a Bust)

21. Reinforced
Culture
Physical Structure
& Material Symbol
Rituals &
Ceremonies
Stories & Legends
Language
Learning
Culture

22. Do
Organizations
Have A
Single
Culture?

23. Dominant Culture and Subcultures
Core Values
Dominant
Culture
Subculture Counterculture
Multiple cultures
may coexist in a
single organization
in the form of
subcultures and
countercultures.

24. Types of Organizational Culture (Selected Models)
1. Handy-Harrison Cultural Typology
2. Quinn-Cameron Cultural Typology
3. Hofstede Cultural Dimensions Theory

25. Handy (1981)-Harrison(1972) Cultural Typology
> It is based on the works of Charles
Handy and Roger Harrison.
> The model reinforces the effects
of organizational structure to
organizational culture.
> Expressed in four dimensions
> Categorized in X-Y Axis value

26. Handy-Harrison Cultural Typology
1. The role culture in which work is controlled by
procedures and rules and the role, or job description, is
more important than the person who fills it. Power is
associated with positions not people.
2. The power culture is one with a central power source that
exercises control. There are few rules or procedures and the
atmosphere is competitive, power-oriented and political.

27. Handy-Harrison Cultural Typology
3. The person culture in which the individual is the central
point. The organization exists only to serve and assist the
individuals in it.
4. The task culture in which the aim is to bring together the
right people and let them get on with it. Influence is based
more on expert power than in position or personal power. The
culture is adaptable and teamwork is important.

28. Quinn-Cameron Cultural Typology
> It is based on the works of Kim
Cameron and Robert Quinn (1999) on
organizational effectiveness and success
> The model applies the six
characteristics of the organization –
dominant characteristics, organizational
leadership, management of employees,
organizational glue, strategic emphases
and criteria of success (Naranjo-Valencia
et al., 2011)
> AKA: Competing Values Framework
(Naranjo-Valencia et al., 2011)
> Expressed in four dimensions,
Categorized in X-Y Axis value

29. Quinn-Cameron Cultural Typology
1. Adhocracy culture (external focus and flexible) – A
dynamic workplace with leaders that stimulate
innovation.
2. Clan culture (internal focus and flexible) – A friendly
workplace where leaders act like father figures.
3. Hierarchy culture (internal focus and controlled) – A
structured and formalized workplace where leaders act
like coordinators.
4. Market culture (external focus and controlled) – A
competitive workplace with leaders like hard drivers
More on: https://worldofwork.io/2019/10/cameron-quinns-competing-values-culture-model/

30. Hofstede Cultural Dimensions Theory
> Hofstede’s Cultural Dimensions Theory
was created in 1980 by Dutch
management researcher, Geert Hofstede.
> The aim of the study was to determine
the dimensions in which cultures vary.
> It is a framework used to understand the
differences in culture across countries and
to discern the ways that business is done
across different cultures.
Read more at:
https://corporatefinanceinstitute.com/resources/knowledge/other/hofstedes-cultural-dime
nsions-theory/

31. Hofstede Cultural Dimensions Theory

32. Hofstede Cultural Dimensions Theory
Power Distance Index
The power distance index considers the extent to which inequality and
power are tolerated. In this dimension, inequality and power are viewed
from the viewpoint of the followers – the lower level.
Individualism vs. Collectivism
The individualism vs. collectivism dimension considers the degree to
which societies are integrated into groups and their perceived obligations
and dependence on groups.

33. Uncertainty Avoidance Index
The uncertainty avoidance index considers the extent to which uncertainty
and ambiguity are tolerated. This dimension considers how unknown
situations and unexpected events are dealt with.
Masculinity vs. Femininity
The masculinity vs. femininity dimension is also referred to as “tough vs.
tender,” and considers the preference of society for achievement, attitude
towards sexuality equality, behavior, etc.
Hofstede Cultural Dimensions Theory

34. Long-Term Orientation vs. Short-Term Orientation
The long-term orientation vs. short-term orientation dimension considers
the extent to which society views its time horizon.
Indulgence vs. Restraint
The indulgence vs. restraint dimension considers the extent and tendency
for a society to fulfill its desires. In other words, this dimension revolves
around how societies can control their impulses and desires.
Hofstede Cultural Dimensions Theory

35. Establishing an Organizational Culture
Model
Describing
How
Cultures Are
Created and
Maintained
https://open.lib.umn.edu/
principlesmanagement/ch
apter/8-5-creating-and-m
aintaining-organizational-
culture-2/

36. Culture Creation
Founder Values
> A company’s culture, particularly during its early years, is
inevitably tied to the personality, background, and values of its
founder or founders, as well as their vision for the future of the
organization.
Industry Demands
> At the same time, the industry characteristics and demands act
as a force to create similarities among organizational cultures.

37. Culture Maintenance
Attraction-Selection-Attrition
> Organizational culture is maintained through a process known as
attraction-selection-attrition (ASA). Because of the ASA process, the
company attracts, selects, and retains people who share its core values,
whereas those people who are different in core values will be excluded
from the organization either during the hiring process or later on through
naturally occurring turnover.
New Employee Onboarding
> Onboarding refers to the process through which new employees learn the
attitudes, knowledge, skills, and behaviors required to function effectively
within an organization.

38. Culture Maintenance
Leadership
> Leaders are instrumental in creating and changing an organization’s
culture. There is a direct correspondence between the leader’s style and an
organization’s culture.
Reward Systems
> The company culture is shaped by the type of reward systems used in the
organization and the kinds of behaviors and outcomes it chooses to reward
and punish. One relevant element of the reward system is whether the
organization rewards behaviors or results.

39. Importance of Organizational Culture
WHY DOES IT MATTER?
1. An organization’s culture may be one of its strongest
assets or its biggest liability.
2. Culture, or shared values within the organization, may
be related to increased performance.
3. Culture may be a competitive advantage for an
organization.
4. Organizational culture is an effective control
mechanism dictating employee behavior (Yiing & Bin
Ahmad, 2009).

40. What’s your cultural
experience?

41. THANK YOU!

42. References
Furnham, A and Gunter, B (1993) Corporate Assessment, Routledge,
London
Hatch, M. J. (1993). The Dynamics of Organizational Culture. The
Academy of Management Review, 18(4), 657. doi:10.2307/258594
Yiing, L. H., & Bin Ahmad, K. Z. (2009). The moderating effects of
organizational culture on the relationships between leadership
behaviour and organizational commitment and between organizational
commitment and job satisfaction and performance. Leadership &
Organization Development Journal, 30(1), 53–86.
doi:10.1108/01437730910927106
Naranjo-Valencia, J. C., Jiménez-Jiménez, D., & Sanz-Valle, R. (2011).
Innovation or imitation? The role of organizational culture.
Management Decision, 49(1), 55–72.
doi:10.1108/00251741111094437
Tharp, B. M. (2009). Defining “Culture” and “Organizational Culture”:
From Anthropology to the Office. HAWORTH. Available at
https://www.thercfgroup.com/files/resources/Defining-Culture-and-
Organizationa-Culture_5.pdf Accessed on 15 September 2020