JT

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.

Culture vs. Formalization

  • 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.

Formation of Culture

  • 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.