Organizational culture refers to the shared meanings and behaviors within an organization. It is created through the actions of founders, top management, selection processes, and socialization of new employees. Employees learn the culture through stories, rituals, and shared language. Managers can shape culture by acting as role models, communicating expectations, providing training, and rewarding ethical behavior while punishing unethical acts. Creating a positive culture emphasizes employee strengths, growth, and vitality over punishment. National culture also influences organizational culture in global contexts.

1. ORGANIZATIONAL CULTURE Presented by: ENGR. JOHN A. LIWANAG Master in Management Engineering Human Behavior in Organization 1 st Semester 2011 Pangasinan State University Graduate School Urdaneta City

2. 1. Institutionalization: A Forerunner of Culture Institutionalization A condition that occurs when an organization takes on a life of its own, apart from any of its members and acquires immortality. It operates to produce a common understanding of what makes up an organization’s culture to enhance the ability to explain and explain the behavior of people at work.

3. 2. What is Organizational Culture? A system of shared meaning held by members that distinguishes the organization from other organizations. This system of shared meaning is a set of key characteristics that the organization value.

4. 2. What is Organizational Culture? 7 Primary Characteristics: 1. Innovation and risk taking 2. Attention to detail 3. Outcome orientation 4. People orientation 5. Team orientation 6. Aggressiveness 7. Stability

5. 3. What do Cultures do? It has a boundary-defining role which creates distinctions between one organization and others; It conveys a sense of identity for organization members; Culture facilitates the generation of commitment to something larger than one’s individual self-interest;

6. 3. What do Cultures do? 4. It enhances the stability of the social system by providing appropriate standards for what employees should say and do; and 5. Culture serves as a sense-making and control mechanism that guides and shapes the attitudes and behaviors of employees.

7. 4. Creating and Sustaining Culture The Founders – the ultimate source of an organization’s culture Selection Process – the explicit goal of identifying and hiring individuals who have the knowledge, skills and abilities to perform jobs within the organization successfully

8. 4. Creating and Sustaining Culture Top Management – The actions of top management play a major role on the organization’s culture by establishing norms that filter down through the organization. Socialization – The process that adapts employees to the organization’s culture

9. 4. Creating and Sustaining Culture 3-Stage Process of Socialization: 1. Prearrival stage – the period of learning in the socialization process that occurs before a new employee joins the organization; 2. Encounter stage – the stage in the socialization process in which a new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge; and 3. Metamorphosis stage – the stage in the socialization process in which a new employee changes and adjusts to the job, work group, and organization.

10. 5. How Employees Learn Culture Stories – a narrative of events about the organization’s founders, rags-to-riches successes, etc. that anchor the present in the past and provide explanations and legitimacy for current practices. Rituals – repetitive sequences of activities that express and reinforce the key values of the organization, which goals are most important, and which are expendable. Language – organizations use language as a way to identify members of a culture or subculture who will attest to their acceptance of the culture and, in so doing, help to preserve it.

11. 6. 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.

12. 7. Creating a Positive Organizational Culture A positive organizational culture is a culture that emphasize building on employee strengths, rewards more than it punishes, and emphasizes individual vitality and growth.

13. 7. Creating a Positive Organizational Culture Areas for consideration: Building on employee strengths; Rewarding more than punishing; Emphasizing vitality and growth; and Limits of positive culture.

14. 8. Spirituality and Organizational Culture Workplace Spirituality recognizes that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of community.

15. 8. Spirituality and Organizational Culture Characteristics of an Spiritual Organization: - Strong sense of purpose; - Trust and respect; - Humanistic work practices; - Toleration of employee expressions

16. 9. Global Implications In a global context, organizational cultures are so powerful that they often transcend national boundaries. National cultures differ that explains why organizational cultures often reflect national cultures. Global cultural values ( collectivism-individualism, power distance, etc.) likewise affect organizational culture.

17. SUMMARY: As a manager, we can shape the culture of our work environment by doing our part to create an ethical, spiritual and positive organizational culture. Often, we can do as much to shape our organizational culture as the culture of the organization shape us. Changing an organization’s culture is a long and difficult process wherein managers should treat their organization’s culture as relatively fixed.

18. Reference: Organizational Behavior, 13 th Edition, Stephen P. Robbins and Timothy A. Judge Prentice Hall

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