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Organizational Culture

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1. What is Organizational Culture?• Organizational Culture is a system of shared meanings

and values held by members.

• Organizational culture distinguishes the organization from other organizations.

• Organizational Culture is a set of shared values that organization members have regarding the functioning and existence of their organization.

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Characteristics of Org. CultureDefines how much importance a company gives to precision and detail in the workplace.

1 .Attention to detail

Paying more attention to results rather than processes.2 .Outcome

orientation

Defines how much management focus on its people and their outcome

3 .People orientation

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The degree to which employees are aggressive and competitive rather than easy going4 .Aggressiveness

The degree to which the organisation encourages the employees to be innovative and risk taking.

5. Innovation and Risk taking

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The degree to which work activities are organized around teams than individuals

6. Team orientation

The degree to which the organisation focus on maintaining status quo in opposite to growth

7. Stability

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Types of CulturesDominant Culture: A culture that expresses the core

values of the organisation which is shared by majority of members organisation

Sub Cultures: Minicultuers within an organisation. It is based on departments and geographical separation

Core Values: The primary or dominant values that are accepted within the organisation.

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• Functions of culture within an organization:

Culture creates distinctions between one organization and others.

Culture has a boundary-

defining role.

1

The sense of identity is communicated to the organization members.

Culture conveys a sense of identity. 2

Commitment is for something more than one’s individual self-interest.

Culture facilitates the generation of commitment. 3

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This guides and shapes attitudes and behaviours of employees.

Culture serves as a sense-making

and control mechanism.

5

Culture is the social glue that provides appropriate standards for what employees should say and do.

Culture enhances social system

stability.

4

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3. Creating and Sustaining Cultures• How does a culture begin?

Founders hire and keep employees who think and feel the way they do.

First Way

- Ultimate source of an organisation’s culture is founders.

They have a major impact on the organisation’s early culture.

- Culture creation process occurs in three ways:

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Founders’ own behaviour acts as a role model. It encourages employees to adopt their beliefs, values and assumptions.

Third Way

Founders instruct and socialize employees to their way of thinking and feeling.

Second Way

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3. Creating and Sustaining Cultures• Keeping a Culture Alive:

Practices within the organisation to maintain the culture

The selection process.1

Performance evaluation criteria.2

Training and career development activities.3

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Promotion procedures ensuring that employees integrate with the culture.

Rewarding employees who support culture.

Punishing employees who challenging culture.6

5

4

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3. Creating and Sustaining Cultures• Keeping a Culture Alive.

- Forces that sustain a culture:

Actions of top management1

Selection practices2

Socialization methods3

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Top ManagementThe actions of top management establishes the norms for

the organization:

Whether risk taking is appreciated

•How much freedom managers should give to their subordinates

•What actions will be rewarded

•How to get pay rises, promotions and other rewards ,

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SelectionExplicit goal – identifying and hiring individuals

with knowledge, skills and abilities to perform the jobs successfully.

Implicit goal: Individuals having values according to that of the organization are selected

Selection becomes a ‘two-way process it provides information about the organization to

the applicants .

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Socialization Process

Socialization is a process made up of three stages :

Pre-arrival - All the learning occurring before a new member joins.

Encounter - The new employee sees what the organization is really like

There is a possibility that expectations and reality may converge or diverge .

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Metamorphosis - The long-lasting changes take place .

The new employee masters the skills required for the job ,

successfully performs the new roles ,

makes the adjustments according to the work group’s values and norms.

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Socialization Model

Pre-arrival

Encounter

Metamorphosis

Productivity

Commitment

Turnover

Soci

ali

zati

on

Process

Outco

mes

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How do employees learn culture

Stories – Depicting the past events of the organization. Some organizations actually try to manage this element of culture learning.

Rituals – Repetitive activities reinforcing the values of the organization.

Material Symbols – Conveying social equality, desired organizational behavior, etc. by the top management.

Language – Acceptance and preservation of culture.