Organizational Culture
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Organizational culture refers to the shared values and beliefs that govern how employees within an organization think and act. It provides employees with an understanding of their roles and norms around things like acceptable behavior and the relationship between management and employees. An organizational culture contributes to employee commitment and performance by guiding decision making, socializing new members, and enhancing a sense of belonging. Key aspects of organizational culture include shared values, assumptions, artifacts, stories, and symbols. A strong organizational culture improves sense-making within an organization and leads to better outcomes like high job satisfaction and performance.
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Organizational Culture
- 4. The basic pattern of shared values and assumptions governing the way employees within an organization think about and act on problems and opportunities. A set of values or beliefs that is unique to any one organization
- 5. Organizational culture Shared values and beliefs enabling members to understand their roles and the norms of the organization, including: ▪ Observed behavioral regularities, typified by common language, terminology, rituals ▪ Norms, reflected by things such as the amount of work to do and the degree of cooperation between management and employees ▪ Dominant values that the organization advocates and expects participants to share ▪ low absenteeism, high efficiency
- 6. Why is this topic important? Helps you assess career opportunities and how you might fit into an organization Helps you assess how to succeed within an organization or whether it is possible Taught to new members as the correct way to think, feel, and behave
- 7. Provides sense of organizational identity Two critical functions in organizations: 1. To integrate members so they know how to relate to one another 2. To help organization adapt to external environment Internal Integration – collective identity and know how to work together External Adaption – how the organization meets goals and deals with outsiders 7 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
- 8. Guides decision making Provides identity for members Amplifies commitment Guides employee behavior Provides justification for actions Helps members construct proper attitudes and behaviors Contributes to socialization of new members Enhances member feeling of belonging and commitment.
- 9. Artifacts • • • • Visible Stories/legends Rituals/ceremonies Organizational language Physical structures/décor Shared values • Conscious beliefs • Evaluate what is good or bad, right or wrong Invisible (below the surface) Shared assumptions • Unconscious, taken-for-granted perceptions or beliefs • Mental models of ideals
- 12. Social prescriptions of desired (undesired) behavior Provides a realistic human side to expectations Most effective stories and legends: Describe real people Assumed to be true Known throughout the organization Are prescriptive
- 13. Rituals programmed routines (e.g, how visitors are greeted) Ceremonies planned activities for an audience (e.g, award ceremonies)
- 14. Words used to address people, describe customers, etc. Leaders use phrases and special vocabulary as cultural symbols eg. Referring to “clients” rather than “customers” Language also found in subcultures eg. Whirlpool’s “PowerPoint culture”
- 15. Building structure -- may shape and reflect culture Office design conveys cultural meaning Furniture, office size, wall hangings Courtesy of Microsoft Corp.
- 16. The Clan Culture A very friendly place to work where people share a lot of themselves. It is like an extended family.
- 17. The Hierarchy Culture A very formalized structured place to work. Procedures govern what people do. .
- 18. The Adhocracy Culture A dynamic entrepreneurial, and creative place to work. People stick their necks out and take risks.
- 19. The Market Culture A results oriented organization whose major concern is with getting the job done. People are competitive and goal-oriented. .
- 21. Focus on processes more than goals Strong sense of ownership AP/Wide World External focus -- firm’s success depends on continuous change Proactive --seek out opportunities
- 23. Successful organization is reflected in: Job satisfaction Role clarity High work motivation Understanding of culture, perceived control High job involvement Commitment to organization Tenure High performance Internalized values Unsuccessful organization is reflected in: Job dissatisfaction Role ambiguity and conflict Low work motivation Misunderstanding, tension, perceived lack of control Low job involvement Lack of commitment to organization Absenteeism, turnover Low performance Rejection of values 23