BUS3 160 Chapter 16 Org Culture

Organizational Culture

A system of shared meaning held by an organization’s members that distinguishes the organization from others. This system is characterized by values, beliefs, and underlying assumptions.

Organizational culture put into practice is…

1. Filters what employees pay attention to

2. Are physically manifested as material symbols and stories

3. Form the foundation for shared meaning among members of an organization

Organizational culture shows…

how employees perceive the essence of an organization, NOT whether they like them

4 ways to categorize organizational culture:

1. The Clan

2. The Adhocracy

3. The Market

4. The Hierarchy

The Clan (O.C)

A culture based on human affiliation. Employees value attachment, collaboration, trust and support.

The Clan is…

internally focused and flexible

The Adhocracy (O.C)

A culture based on change. Employees value growth, variety, attention to detail, stimulation, and autonomy

The Adhocracy is…

externally focused and flexible

The Market (O.C)

A culture based on achievement. Employees value communication, competence, and competition.

The Market is…

externally focused and stable

The Hierarchy (O.C)

A culture based on stability. Employees value communication, formalization, and routine.

The Hierarchy is…

internally focused and stable

Which organizational cultures are best aligned with customer-oriented outcomes?

Clan or market

Which organizational cultures is best for profitability and revenue growth?

Hierarchical

Dominant culture

A culture that expresses the core values that are shared by most of the organization’s members

Core values

The primary or dominant values that are accepted throughout the organization

Subcultures

Mini-cultures within an organization, typically defined by department designations or geographical separation

When do subcultures develop?

Develops in large organizations in response to common problems or experiences that a group of members face

Subcultures can…

be strong that they reject “official” culture and do not conform

Strong culture

A culture in which the core values are intensely held and widely shared

Strong culture demonstrates effects and demonstrates what?

Should more directly affect organizational outcomes because it demonstrates high agreement

Strong cultures build…

1. Cohesiveness

2. Loyalty

3. Meaning

4. Organizational commitment

Weak cultures

Most employees opinions vary widely about the organization’s mission and values

How to transmit organizational culture (how employees learn culture)?

1. Stories

2. Rituals

3. Material symbols

4. Langauge

5. Selection of candidates

6. Jargon

7. Statements of principles

Stories do what?

Anchor the present in the past and legitimize current practices

Stores include…

1. Narratives about the organization’s founders

2. Rule breaking

3. Rags-to-riches successes

4. Workforce reductions

5. Relocations of employees

6. Reactions to past mistakes

7. Organizational coping

Stores are incredibly…

transformational, persuasive, and motivational

Rituals

Repetitive sequences of activities that express and reinforce the key values of the organization, which goals are most important, which people are important, and which are expendable

Rituals inspire what?

a sense of control in their participants and, as a result, reduce anxiety

Material symbols

Physical objects, or artifacts, that symbolize values, beliefs, or assumptions inherent in the organization’s culture

Jargon

Use of unique language or slang to identify people as members of cultures

Statements of principles

distributed to people to reinforce values and membership

Socialization

A process which enables new employees to acquire the social knowledge and necessary skills in order to adapt to the organization’s culture

Socialization Model steps are:

1. Pre-arrival stage

2. Encounter stage

3. Metamorphosis stage

Prearrival Stage

the period of learning in the socialization process that occurs before a new employee joins the 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

Metamorphosis stage

The stage in the socialization process in which a new employee changes and adjusts to the job, work group, and organization

Organizational climate

The shared perceptions that organizational members have about their organization and work environment; particularly, the policies, practices, and procedures that are in place

Ethical culture

The shared concept of right and wrong behavior in the workplace that reflects the true values of the organization and shapes the ethical decision making of its members

Developing an ethical culture:

1. Be a visible role model

2. Communicate ethical expectations

3. Provide ethical training

4. Visibly reward ethical acts and punish unethical ones

5. Provide protective mechanisms

Be a visible role model

Employees looking to the action of top management as a benchmark for appropriate behavior (everyone can be a positive role model)

Communicate ethical expectations

Minimize ethical ambiguities by sharing a code of ethics that states the organization’s primary values and the judgement rules employees must follow

Provide ethical training

Set up seminars, workshops, and training programs to reinforce the organization’s standards of conduct, clarify what practices are permissible, and address potential ethical dilemmas

Visibly reward ethical acts and punish unethical ones

Evaluate subordinates on how their decisions compare with the organization’s code of ethics

Provide protective mechanisms

Seek formal mechanisms so everyone can discuss ethical dilemmas and report unethical behavior without fear of reprimand (identifying ethical counselors, ombudspeople, or ethical officers for liaison roles)

Sustainability

Maintaining practices over a long period of time because the tools or structures that support them are not damaged by the processes

Positive organizational culture

A culture that emphasizes building on employee strengths, rewards more than punishes, and emphasizes individual vitality and growth

Sources of Innovation

1. Organic structures positively influence innovation

2. Contingent rewards positively influence innovation

3. Innovation is nurtured when there are slack resources

4. Interunit communication is high in innovative organizations

National Culture

first level of a culture, a set of values and beliefs shared by people within a nation

Power distance

A national culture attribute that describes the extent to which a society accepts that power in institutions and organizations is distributed unequally

Individualism

A national culture attribute that describes the degree to which people prefer to act as individuals rather than as members of group

Collectivism

A national culture attribute that describes a tight social framework in which people expect others in groups of which they are a part to look after them and protect them

Masculinity

A national culture attribute that describes the extent to which the culture favors traditional masculine work roles of achievement, power, and control. Societal values are characterized by assertiveness and materialism.

Feminity

A national culture attribute that indicates little differentiation between male and female roles; a high rating indicates that women are treated as the equals of men in all aspects of the society

Uncertainty avoidance

A national culture attribute that describes the extent to which a society feels threatened by uncertain and ambiguous situations and tries to avoid them

Long-term orientation

A national culture attribute that emphasizes the future, thrift, and persistence

Short-term orientation

A national culture attribute that emphasizes the past, honors traditions, and upholds its image

Terminal values

Desirable end states of existence; the goals a person would like to achieve during their lifetime

Instrumental values

Preferable modes of behavior or means of achieving one’s terminal values