Presentation purpose only.

1. TOPIC 13:
ORGANISATIONAL
CULTURE

2. 1. Describe institutionalization and its relationship to
organizational culture.
2. Define the common characteristics making up
organizational culture.
3. Contrast strong and weak cultures.
4. Identify the functional and dysfunctional effects of
organizational culture on people and the
organization.
5. Explain the factors determining an organization’s
culture.
AFTER STUDYING THIS CHAPTER,
STUDENTS SHOULD BE ABLE TO:
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3. INSTITUTIONALIZATION: A
FORERUNNER OF CULTURE
Institutionalization: When an organization
takes on a life of its own, apart from any of
its members, becomes valued for itself,
and acquires immortality.

4.  The tree represent the culture of the organisation. They go
deep. They hold everything in place. The values, beliefs &
corporate assumptions are the roots. The 2nd factor that
affects the well being / life of our organisational tree is the
climate. Water in the form of rain & light from the sun
sustains our tree. The seasons interact. The climate obviously
has an impact on how much our tree can thrive. Climate
represents the behaviour, attitudes & feelings of the
organisation which in turn affect its operational processes (or
life) in terms of communications, problem solving, decision
making & how it learns. Not all trees are the same. Each has a
different root system & each reacts to the local climate in
differing ways.
THE CLIMATE FOR INNOVATION

5. WHAT IS ORGANIZATIONAL
CULTURE?
Characteristics:
1. Innovation and risk
taking
2. Attention to detail
3. Outcome orientation
4. People orientation
5. Team orientation
6. Aggressiveness
7. Stability
Organizational Culture
A common perception
held by the organization’s
members; a system of
shared meaning.

6. DO ORGANIZATIONS HAVE UNIFORM
CULTURES?
Dominant Culture: Expresses the
core values that are shared by a
majority of the organization’s
members.
Subcultures
Minicultures within an
organization, typically defined
by department designations
and geographical separation.

7. 16–7
DO ORGANIZATIONS HAVE UNIFORM
CULTURES?
Core Values
The primary or dominant values that are accepted
throughout the organization.
Strong Culture
A culture in which the
core values are intensely
held and widely shared.

8.  Culture Versus Formalization
▪A strong culture increases behavioral
consistency and can act as a substitute
for formalization.
WHAT IS ORGANIZATIONAL
CULTURE?

9. WHAT DO CULTURES DO?
Culture’s Functions:
1. Defines the boundary between one organization and others.
2. Conveys a sense of identity for its members.
3. Facilitates the generation of commitment to something larger
than self-interest.
4. Enhances the stability of the social system.
5. Serves as a sense-making and control mechanism for fitting
employees in the organization.

10. WHAT DO CULTURES DO?
Culture as a Liability:
1.Barrier to change.
2.Barrier to diversity
3.Barrier to acquisitions and mergers

11. Founders hire and keep only employees who
think and feel the same way they do.
Founders indoctrinate and socialize these
employees to their way of thinking and
feeling.
The founders’ own behavior acts as a role
model that encourages employees to identify
with them and thereby internalize their
beliefs, values, and assumptions.
HOW CULTURE BEGINS

12. Selection
▪Concern with how well the candidates will fit into
the organization.
▪Provides information to candidates about the
organization.
Top Management
▪Senior executives help establish behavioral norms
that are adopted by the organization.
Socialization
▪The process that helps new employees adapt to the
organization’s culture.
KEEPING CULTURE ALIVE

13. 16–13
STAGES IN THE SOCIALIZATION PROCESS
Pre arrival Stage:
The period of learning in the socialization process that occurs before a
new employee joins the organization.
Metamorphosis Stage
The stage in the socialization process in which a new employee changes
and adjusts to the work, work group, and organization.
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.

14. A SOCIALIZATION MODEL

15. HOW ORGANIZATION CULTURES FORM

16. HOW EMPLOYEES LEARN CULTURE
• Stories
• Rituals
• Material Symbols
• Language