Organisational Culture Final

8/8/2019 Organisational Culture Final

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What is Culture

The set of key values, beliefs,

understandings and norms shared

by members of an organization.

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What is organization?

A structured social system

consisting of groups and individuals

working together to meet someagreed-upon objectives.

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Core Organizational Values

Sensitivity to others

Interest in new ideas

Willingness to take risks The value placed on people

Openness of available communication options

Friendliness and congeniality

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Characteristics Of Healthy Culture

Open and Humble

Accountable

Free to take risks Mistakes are opportunities for learning

Integrity unquestioned

High commitment

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Cultures Within Organizations

Dominant

culture

Sub

culture

Large organizations have several

cultures operating within them. 7


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Levels Of Culture

Visible above thesurface but difficult todecode

Can be seen a fewmetres below thesurface- needs a greaterlevel of awareness

Deep below the surface,almost invisible- takenfor granted

Artifacts

Values

Assumptions


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Artifacts/Symbols

Symbols of culture in the physical and social

work environment

Visible objects that represent culture

Most easily changed

Most accessible

Most frequently studied

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Personal enactment

Rites and Ceremonies

Stories and Legends

Rituals

Symbols

Values

Beliefs

Assumptions

Levels of Organizational Culture

Artifacts of

Organizational

Culture

OrganizationalOrganizational

CultureCulture


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Values

- Testable in the physical environment- Testable only by social consensus

TYPES OF VALUES

Espoused values :

What members of an organisation say they value

The leaders first begins as shared value then becomes sharedassumption social validation happens with shared learning

Initially started by founder, leader and then assimilated.

Enacted values :

What are actually converted into employee behaviour Gap could exist and can complicate the interpretation and

understanding of an organization's underlying value system

Different levels of employees may disagree on which valuesmake up the organization's "actual" culture.


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Beliefs

More specific

Usually overt/talked about

Eg: the company should not trade with Iraq

Normative and focus on what is judged to be

important, what is valued and what is considered

to be unacceptable


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Assumptions

Deeply held beliefs that guide behaviour and tellmembers of an organisation how to perceive and thinkabout things

Most fundamental level of an organizations culture Strongly held by the members

Often unconscious

Schein contends that underlying assumptions grow outof values, values that have been integrated with time,until they become taken for granted and drop out ofawareness and unconsciously orient our perceptionsand our reasoning

Powerful because they are less subject to discussionand identification than espoused values and beliefs


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FUNCTIONS OF ORGANIZATIONAL CULTURE

Improves cooperation

Increases commitment

Enhances Decision making Improves Communication

Reinforces standard of behavior

Acts as control mechanism

Provides sense of identity

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ORGANIZATIONAL CULTURE THEORIES

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Relationship between

Organizational culture and

performance

Strong

CulturePerspective

Adaptive

Perspective

Fit

Perspective


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STRONG CULTURE PERSPECTIVE

An organizational culture with a consensus on

the values that drive the company and with an

intensity that is recognizable even to outsiders

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Strong cultures facilitate performance because

They are characterized by goal alignment

They create a high level of motivation becauseof shared values by the members

They provide control without the oppressive

effects of bureaucracy


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FIT PERSPECTIVE

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Argument that a culture is good only if it fits the

industrys or the firms strategy.

Organizational characteristics that may affect culture

Customer requirements

Competitive environment Societal expectations


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ADAPTIVE PERSPECTIVE

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An organizational culture that encouragesconfidence and risk taking among employees,has leadership that produces change, andfocuses on the changing needs of customers

Adaptive Nonadaptive

Most managers care

about themselves,

their work group, or

an associated product

Most managers care

about customers,

stockholders, and

employees

Managers tend to

behave somewhat

insularly, politically,

and bureaucratically

Managers pay close

attention to all

their constituencies,

esp. customers

Core Values

Common

Behavior


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MANAGERIAL IMPLICATIONS

Key Challenges

Down-sizing and restructuring

Globalization

Workforce diversity

Technology

Managing ethical behaviour

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Thank You

Organisational Culture Final

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