Organizational culture refers to shared beliefs and expectations within a company that shape employee behavior. It serves functions like defining boundaries, providing a sense of identity and commitment, and acting as implicit guidelines. A company's culture is formed and maintained through leadership, socialization of new employees, communication, and rewards. It is influenced by factors such as company size, market environment, ownership structure, and national culture. When strong, a positive culture can benefit a company through improved job performance, lower turnover, and less need for formal rules, but it can also present barriers to change.

1. WHAT IS
CULTURE???

2. ORGANIZATIONAL CULTURE
“Culture is a pattern of beliefs &
expectations shared by the
organizational members. These
beliefs and expectations produce
norms that powerfully shape the
behavior of individuals and
groups in the organization”
(Schwartz & Davis 1981)

3. FUNCTIONS OF CULTURE
Boundary –
Defining
Role
Sense of
Identity
Sense of
Commitment
Behavioral
Guidelines –
Implicit “dos
and don’ts”

4. Innovation
Results
Vs.
Process
People
Vs. Rank
Team
Work

5. LEVELS OF CULTURE
Schein
 Artifacts
 Beliefs, Values &Attitudes
 Basic Assumptions

6. Handy’s
Typology
Dominant Vs.
Subcultures
Strong Vs.
Weak Cultures

7. HOW IT IS FORMED & MAINTAINED
Top Management / Leadership
Rites of passage & socialization
Incorporation and rejection
Communications
Rewards
Role Models
Training
Rituals, Ceremonies, Stories (Rites of integration)

8. FACTORS INFLUENCING CULTURE
SIZE
ENVIRONMENT / MARKET
OWNERSHIP
NATIONAL CULTURE

9. KLPs
Benefits of a Strong Culture
 “FIT” – Job Performance, Lower Turnover, Job
Satisfaction
 Conflict reduction
 Less Formalization

10. Is Culture a Liability?
Barriers
to
Change
Lack of
Diversity
Mergers