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Institutionalizing Institutionalizing Organizational CultureOrganizational Culture

Dr. Fred Mugambi MwirigiDr. Fred Mugambi Mwirigi

JKUATJKUAT

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What Is Organisational Culture?What Is Organisational Culture? A system of shared meaning held by A system of shared meaning held by

members that distinguishes the members that distinguishes the organisation from other organisations. organisation from other organisations.

a core set of assumptions, a core set of assumptions, understandings, and implicit rules that understandings, and implicit rules that govern day-to-day behaviour in the govern day-to-day behaviour in the workplace.workplace.

This system of shared meaning is a set of This system of shared meaning is a set of key characteristics that the organisation key characteristics that the organisation values. values.

Characteristics of Positive Culture Characteristics of Positive Culture

Innovation and risk takingInnovation and risk taking Attention to detailAttention to detail Outcome orientationOutcome orientation People orientationPeople orientation Team orientationTeam orientation AggressivenessAggressiveness StabilityStability

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Definition contd. Definition contd. Organisational culture is concerned with Organisational culture is concerned with

how employees perceive its how employees perceive its characteristics, not if they like them. characteristics, not if they like them.

Culture by definition is elusive, intangible, Culture by definition is elusive, intangible, implicit, and often taken for granted. implicit, and often taken for granted.

Every organisation develops a core set of Every organisation develops a core set of assumptions, understandings, and implicit assumptions, understandings, and implicit rules that govern day-to-day behaviour in rules that govern day-to-day behaviour in the workplace.the workplace.

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What Differentiates What Differentiates Organizational Cultures?Organizational Cultures?

Individuals with different backgrounds or at Individuals with different backgrounds or at different levels in the organisation will tend different levels in the organisation will tend to describe the organisation’s culture in to describe the organisation’s culture in different terms.different terms.

There can be subcultures. Most large There can be subcultures. Most large organisations have a organisations have a dominantdominant culture and culture and numerous sets of numerous sets of subculturessubcultures

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Dominant vs. sub culturesDominant vs. sub cultures A dominant culture expresses the core values that A dominant culture expresses the core values that

are shared by a majority:are shared by a majority: An organisation’s culture is its dominant culture. An organisation’s culture is its dominant culture. This is the macro view of culture that gives an This is the macro view of culture that gives an

organisation its distinct personality.organisation its distinct personality. Subcultures tend to develop in large organisations Subcultures tend to develop in large organisations

to reflect common problems, situations, or to reflect common problems, situations, or experiences that members face. experiences that members face.

They are defined by department designations and They are defined by department designations and geographical separationgeographical separation

They include the core values plus additional values They include the core values plus additional values unique to members of the subculture.unique to members of the subculture.

The core values are essentially retained but The core values are essentially retained but modified to reflect the subculture.modified to reflect the subculture.

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The value of org. culturesThe value of org. cultures The “shared meaning” aspect of culture The “shared meaning” aspect of culture

makes culture a very potent device for makes culture a very potent device for guiding and shaping behaviour. guiding and shaping behaviour.

We cannot ignore the reality that many We cannot ignore the reality that many organisations also have subcultures that organisations also have subcultures that can influence the behaviour of members.can influence the behaviour of members.

Ultimately decisions made within the Ultimately decisions made within the organization are significantly influenced by organization are significantly influenced by the values and principles at play in the the values and principles at play in the organization organization

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Strong vs. Weak CulturesStrong vs. Weak Cultures Strong cultures have a greater impact on Strong cultures have a greater impact on

employee behaviour and are more directly employee behaviour and are more directly related to reduced turnoverrelated to reduced turnover

This is This is because the high degree of shared-ness because the high degree of shared-ness and intensity creates an internal climate of high and intensity creates an internal climate of high behavioural controlbehavioural control

Some benefits of a strong culture include Some benefits of a strong culture include 1.1. lower employee turnoverlower employee turnover 2.2. behavioural consistencybehavioural consistency3.3. predictabilitypredictability4.4. orderliness of performanceorderliness of performance

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Organisational Culture vs. Organisational Culture vs. Societal CultureSocietal Culture

Societal cultures must be taken into Societal cultures must be taken into account if accurate predictions are to be account if accurate predictions are to be made about organisational behaviour in made about organisational behaviour in different countriesdifferent countries

Research indicates that societal culture Research indicates that societal culture has a greater impact on employees than has a greater impact on employees than does their organisation’s culturedoes their organisation’s culture

Societal culture has a strong bearing on Societal culture has a strong bearing on the development of the organization’s the development of the organization’s cultureculture

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The Functions of CultureThe Functions of Culture 1.1. It has a boundary-defining role. It creates It has a boundary-defining role. It creates

distinctions between one organisation and distinctions between one organisation and others- creates identity others- creates identity

2.2. It conveys a sense of identity for organisation It conveys a sense of identity for organisation members. members.

3.3. Culture facilitates commitment to something Culture facilitates commitment to something larger than one’s individual self-interest.larger than one’s individual self-interest.

4.4. Culture is the social glue that helps hold the Culture is the social glue that helps hold the organisation together. It enhances social organisation together. It enhances social system stability.system stability.

5.5. Culture serves as a sense-making and control Culture serves as a sense-making and control mechanism that guides and shapes the mechanism that guides and shapes the attitudes and behaviour of employees. attitudes and behaviour of employees.

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Can Culture be a Liability?Can Culture be a Liability? There are potentially dysfunctional aspects of There are potentially dysfunctional aspects of

cultureculture. Culture can create:. Culture can create:1.1. Barriers to change- Culture is a liability when Barriers to change- Culture is a liability when

the shared values are not in agreement with the shared values are not in agreement with those that will further the organisation’s those that will further the organisation’s effectiveness. This is most likely to occur when effectiveness. This is most likely to occur when an organisation’s environment is dynamican organisation’s environment is dynamic

2.2. Barrier to diversity- Barrier to diversity- Strong cultures put Strong cultures put considerable pressure on employees to considerable pressure on employees to conform. They limit the range of values and conform. They limit the range of values and styles that are acceptable. styles that are acceptable.

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How a Culture Begins and developsHow a Culture Begins and develops The ultimate source of an organisation’s The ultimate source of an organisation’s

culture is its foundersculture is its founders The founders of an organisation The founders of an organisation

traditionally have a major impact on that traditionally have a major impact on that organisation’s early culture organisation’s early culture (They had the (They had the vision; they are unconstrained by previous customs or vision; they are unconstrained by previous customs or ideologies)ideologies)

The small size of new organisations The small size of new organisations facilitates the founders’ imposition of the facilitates the founders’ imposition of the vision on all organisational membersvision on all organisational members

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Contd. Contd. Culture creation occurs in three ways:Culture creation occurs in three ways:

1.1. First, founders First, founders hire and keephire and keep only employees who only employees who think and feel the way the way they do. think and feel the way the way they do.

2.2. Second, they Second, they indoctrinateindoctrinate and socialise and socialise these these employees to their way of thinking and feeling. employees to their way of thinking and feeling.

3.3. Third, Third, they reinforce itthey reinforce it. The founders’ own behaviour . The founders’ own behaviour acts as a role model that encourages employees to acts as a role model that encourages employees to identify with them and thereby internalise their identify with them and thereby internalise their beliefs, values, and assumptions. beliefs, values, and assumptions.

When the organisation succeeds, the founders’ When the organisation succeeds, the founders’ entire personality becomes embedded in the entire personality becomes embedded in the culture of the organisation.culture of the organisation.

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Keeping a Culture AliveKeeping a Culture Alive Three forces play a particularly important Three forces play a particularly important

part in sustaining a culture: part in sustaining a culture:

1.1. selection practicesselection practices

2.2. the actions of top managementthe actions of top management

3.3. socialisation methods- Socialisation is socialisation methods- Socialisation is process by which the organisation helps process by which the organisation helps new employees adapt to its culturenew employees adapt to its culture

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How Employees Learn CultureHow Employees Learn Culture StoriesStories-- stories anchor the present in the past stories anchor the present in the past

and provide explanations and legitimacy for and provide explanations and legitimacy for current practices.current practices.

RitualsRituals-- these are repetitive sequences of these are repetitive sequences of activities that express and reinforce the key activities that express and reinforce the key values of the organisation, what goals are most values of the organisation, what goals are most important, which people are important, and important, which people are important, and which are expendable.which are expendable.

MaterialMaterial SymbolsSymbols-- e.g unique layouts of offices e.g unique layouts of offices and other office equipment and other office equipment

LanguageLanguage-- Organisations, over time, often Organisations, over time, often develop unique terms to describe equipment, develop unique terms to describe equipment, offices, key personnel, suppliers, customers, or offices, key personnel, suppliers, customers, or products that relate to its business. products that relate to its business.

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What can management do to create an What can management do to create an

ethical culture?ethical culture? Be a visible role modelBe a visible role model Develop as many role models within the Develop as many role models within the

organization as possibleorganization as possible Constantly communicate ethical expectationsConstantly communicate ethical expectations Provide ethical trainingProvide ethical training Visibly reward ethical acts and punish Visibly reward ethical acts and punish

unethical onesunethical ones Provide protective mechanismsProvide protective mechanisms

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Managerial Actions that Improve Managerial Actions that Improve Org. CultureOrg. Culture

Selection processesSelection processes Training and Socialisation Training and Socialisation Structural Design- Organisation structures Structural Design- Organisation structures

need to give employees more control. need to give employees more control. General empowermentGeneral empowerment Leadership Leadership Performance Evaluation Performance Evaluation Reward Systems Reward Systems

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Spirituality and Organisational CultureSpirituality and Organisational Culture Workplace spirituality is not about organised Workplace spirituality is not about organised

religious practices. It is not about God or theology. religious practices. It is not about God or theology. Workplace spiritualityWorkplace spirituality recognises that people have recognises that people have

an inner life that nourishes and is nourished by an inner life that nourishes and is nourished by meaningful work that takes place in the meaningful work that takes place in the organization.organization.

Historical models of management and Historical models of management and organisational behaviour had no room for spirituality. organisational behaviour had no room for spirituality.

The myth of rationality assumed that the well-run The myth of rationality assumed that the well-run organisation eliminated feelings. organisation eliminated feelings.

An awareness of spirituality can help you to better An awareness of spirituality can help you to better understand employee behaviour. understand employee behaviour.

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What differentiates spiritual organisations from What differentiates spiritual organisations from their non-spiritual counterpartstheir non-spiritual counterparts

1.1. Strong Sense of Purpose-Strong Sense of Purpose- Spiritual Spiritual organisations build their cultures around a organisations build their cultures around a meaningful purpose.meaningful purpose.

2.2. Focus on Individual DevelopmentFocus on Individual Development - - Spiritual Spiritual organisations recognise the worth and value of organisations recognise the worth and value of people. They are not just providing jobs. They people. They are not just providing jobs. They seek to create cultures in which employees can seek to create cultures in which employees can continually learn and grow. continually learn and grow.

3.3. Trust and OpennessTrust and Openness - - Spiritual organisations Spiritual organisations are characterised by mutual trust, honesty, and are characterised by mutual trust, honesty, and openness. Managers aren’t afraid to admit openness. Managers aren’t afraid to admit mistakes. They tend to be extremely upfront mistakes. They tend to be extremely upfront with their employees, customers, and suppliers.with their employees, customers, and suppliers.

Contd. Contd.

4. 4. Humanistic work practices-Humanistic work practices- Managers in Managers in spiritually based organisations include flexible spiritually based organisations include flexible work schedules, group and organisation-based work schedules, group and organisation-based rewards, narrowing of pay and status rewards, narrowing of pay and status differentials, guarantees of individual worker differentials, guarantees of individual worker rights, employee empowerment and job rights, employee empowerment and job security.security.

5. 5. Toleration of Employee ExpressionToleration of Employee Expression - - They They allow people to be themselves—to express allow people to be themselves—to express their moods and feelings without guilt or fear of their moods and feelings without guilt or fear of reprimand.reprimand.

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Thank youThank you