2. Meaning
Organizational culture is a system of shared assumptions,
values, and beliefs, which governs how people behave in
organizations. These shared values have a strong influence on
the people in the organization and dictate how they dress, act,
and perform their jobs. Every organization develops and
maintains a unique culture, which provides guidelines and
boundaries for the behaviour of the members of the
organization. Let's explore what elements make up an
organization's culture.
3. Characteristics
• Innovation & risk taking: The degree to which employees
are encouraged to be innovative and take risks.
• Attention to detail: The degree to which employees are
expected to exhibit precision, analysis, and attention to detail.
• Outcome orientation: The degree to which management
focuses on results or outcomes rather than on the techniques
and process used to achieve those outcomes.
• People orientation: The degree to which managements
decisions take into consideration the effects of outcome on
people within the organization.
• Team orientation: The degree which work activities are
organized around teams rather than individuals.
4. Continue…
• Aggressiveness : The degree to which people are aggressive
and competitive rather than easygoing.
• Stability : The degree to which organizational activities
emphasize maintaining the status quo in contrast to growth.
5. Types of Culture
• Dominant and Subculture
A Dominant culture express the core values that are shared by a majority of
the organization’s members.
Subculture tend to develop in large organization to reflect common problems,
situations, or experiences that members etc.
• Strong Vs Weak Cultures
In a strong culture, the organization’s core values are both intensely held and
widely shared
In a Weak culture, the more widely held a culture is and the higher the
agreement among members on its values, the more difficult it will be to
change. Conversely, weak cultures are more amenable to change than
strong ones.
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• Culture versus Formalization
A strong organizational culture increases behavioral consistency. We should
recognize that a strong culture can act as a substitute for formalization.
High formalization in an organization creates predictability, orderliness,
and consistency.
7. Functions
• Defines boundaries
• Conveys sense of Identity
• Generates commitment beyond oneself
• Enhances social stability
• Sense making and control mechanism
9. How employees learn culture
• Rituals – Reinforce key values
• Material symbols – Covey importance
• Stories – Provides explanation
• Language – Identify and segregate members
10. Creating an Ethical Organizational Culture
A strong culture with high risk tolerance, low-to-
moderate aggressiveness, and focuses on means as
well as outcomes is most likely to shape high ethical
standards
– Managers must be visible role models
– Communicate ethical expectations
– Provide ethical training
– Visibly reward ethical acts and punish unethical
ones
– Provide protective mechanisms
11. Creating a Positive Organizational Culture
A positive culture is one that emphasizes the following:
•Building on Employee Strengths
•Rewarding More Than Punishing
•Emphasizing Vitality and Growth of the Employee
