Organizational Culture Management 201 Notes
Organizational Culture
- Definition: A system of shared meaning held by members that distinguishes an organization from others.
Seven Characteristics of Organizational Culture
- Innovation and Risk Taking: Encouragement of new ideas and experimentation.
- Attention to Detail: Emphasis on precision and accuracy in work processes.
- Outcome Orientation: Focus on results and performance.
- People Orientation: Consideration for the impact on employees and their well-being.
- Team Orientation: Collaboration and teamwork are valued.
- Aggressiveness: Competitiveness among employees and departments.
- Stability: Importance placed on maintaining the status quo and minimizing change.
Culture Understanding
- Descriptive Nature of Culture: Reflects how employees perceive the organization’s culture rather than whether they like it.
- Job Satisfaction: A measure of employees' affective responses to the work environment, focusing on feelings about the organization.
Organizational Culture Types
- Dominant Culture: Core values shared by a majority of members.
- Subcultures: Develop within larger organizations and reflect shared experiences among specific groups, mirroring but potentially modifying dominant culture values.
Strong vs. Weak Cultures
- Strong Culture:
- Core values are intensely held and widely shared.
- Influences behavior, increases cohesiveness, and lowers employee turnover.
- Weak Culture: Less influence on behavior and potential for higher turnover.
- Formalization: High levels create predictability and consistency through rules.
- Culture: A strong culture can stabilize an organization without formal documentation.
Functions of Culture
- Defines Boundaries: Establishes what is acceptable behavior.
- Conveys Identity: Represents the organization’s values and mission.
- Generates Commitment: Inspires employees to feel a part of something larger.
- Enhances Stability: Provides a framework for navigating changes.
- Sense-Making and Control: Aids in understanding and managing organizational direction.
Organizational Climate
- Definition: Shared perceptions among members about the organization and work environment.
- Impact of Positive Climate: Linked to higher customer satisfaction and improved financial performance.
Ethical Work Climate (EWC)
- Definition: Shared concepts of right and wrong behavior reflecting organizational values.
- Effect on Decision Making: Shapes ethical decision-making processes among members.
Challenges of Culture
- Institutionalization: Behaviors and habits can become unquestioned, stifling innovation.
- Barriers to Change: Cultures can be resistant to change, especially in dynamic environments.
- Barriers to Diversity: Minimizing diversity can embed biases and prejudice.
- Mergers and Acquisitions: Cultural incompatibility can hinder successful integration.
- Founders' Influence: The ultimate source of an organization's culture is its founders.
- Hiring Practices: Selecting individuals who align with founding values.
- Indoctrination: Training employees to adopt the founders' worldviews.
- Role Modeling: Founders act as role models for desired behaviors.
Maintaining Culture
- Selection Process: Hiring and retaining employees that fit the culture.
- Top Management Influence: Establishing norms through behavior and actions.
- Socialization: Assisting new employees in adapting to the culture.
Socialization Techniques
- Entry Options:
- Formal: Structured training for new employees.
- Collective and Fixed: Pre-planned activities for group bonding.
- Divestiture: Removing old identity traits to adopt new ones.
- Informal: Immediate immersion into the work environment.
- Individual, Variable, Random: Personalized onboarding with no set timelines.
- Investiture: Recognizing and confirming existing employee characteristics.
Learning Culture**
- Transmitted Through:
- Stories: Narratives that provide context and explanations.
- Rituals: Activities that reinforce key values and behaviors.
- Material Symbols: Physical representations of culture and values.
- Language: Specific terminologies that foster group identity.
Creating a Positive Organizational Culture
- Focus Areas:
- Building on strengths of employees.
- Emphasizing rewards over punishments.
- Encouraging growth and vitality.
- Acknowledging and integrating the external context of the organization.