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.