This presentation breifly explains the importance and other features of Organisation Culture and its uses.

1. Organizational Culture

2. Questions for Consideration
 What is organizational culture?
 When is organizational culture functional?
Dysfunctional?
 How do employees learn about the culture of
their organization?

3.  “Culture is the soul of the organization — the beliefs
and values, and how they are manifested. I think of
the structure as the skeleton, and as the flesh and
blood. And culture is the soul that holds the thing
together and gives it life force.”

4.  The pattern of shared values, beliefs and assumptions
considered to be the appropriate way to think and act
within an organization.
 Culture is shared
 Culture helps members solve problems
 Culture is taught to newcomers
 Culture strongly influences behaviour

5. Artifacts of Material Symbols
Organizational Language
Culture Rituals
Stories
Organizational Beliefs
Culture Values
Assumptions

6.  Innovation and risk-taking
 The degree to which employees are encouraged to be innovative and take
risks.
 Attention to detail
 The degree to which employees are expected to exhibit precision, analysis,
and attention to detail.
 Outcome orientation
 The degree to which management focuses on results or outcomes rather
than on technique and process.
 People orientation
 The degree to which management decisions take into consideration the
effect of outcomes on people within the organization.

7.  Team orientation
 The degree to which work activities are organized around teams
rather than individuals.
 Aggressiveness
 The degree to which people are aggressive and competitive rather
than easygoing.
 Stability
 The degree to which organizational activities emphasize
maintaining the status quo in contrast to growth.

8.  Stories
 Rituals
 Material Symbols
 Language

9.  Organizational culture represents a common
perception held by the organization members.
 Core values or dominant (primary) values are
accepted throughout the organization.
 Dominant culture
 Expresses the core values that are shared by a majority of the
organization’s members.
 Subcultures
 Tend to develop in large organizations to reflect common
problems, situations, or experiences.

10. Top
Philosophy management
of Selection Organization's
organization's criteria culture
founders
Socialization

11.  Selection
 Identify and hire individuals who will fit in with the
culture
 Top Management
 Senior executives establish and communicate the norms
of the organization
 Socialization
 Organizations need to teach the culture to new
employees

12. Socialization Process Outcomes
Productivity
Prearrival Encounter Metamorphosis Commitment
Turnover

13.  Formal vs. Informal
 Individual vs. Collective
 Fixed vs. Variable
 Serial vs. Random
 Investiture vs. Divestiture

14. High Networked Communal
Sociability
Low Fragmented Mercenary
Low High
Solidarity

15.  Social glue that helps hold an organization together
 Provides appropriate standards for what employees
should say or do
 Boundary-defining
 Conveys a sense of identity for organization members

16.  Facilitates commitment to something larger than one’s
individual self-interest
 Enhances social system stability
 Serves as a “sense-making” and control mechanism
 Guides and shapes the attitudes and behaviour of
employees

17.  Culture can have dysfunctional aspects in some
instances
 Culture as a Barrier to Change
 When organization is undergoing change, culture may impede
change
 Culture as a Barrier to Diversity
 Strong cultures put considerable pressure on employees to
conform
 Culture as a Barrier to Mergers and Acquisitions
 Merging the cultures of two organizations can be difficult, if not
impossible

18.  Have top-management people become positive
role models, setting the tone through their
behaviour.
 Create new stories, symbols, and rituals to replace
those currently in vogue.
 Select, promote, and support employees who
espouse the new values that are sought.
 Redesign socialization processes to align with the
new values.

19.  Change the reward system to encourage
acceptance of a new set of values.
 Replace unwritten norms with formal rules and
regulations that are tightly enforced.
 Shake up current subcultures through transfers,
job rotation, and/or terminations.
 Work to get peer group consensus through
utilization of employee participation and creation
of a climate with a high level of trust.

20.  Employees form an overall subjective perception of the
organization based on such factors as degree of risk
tolerance, team emphasis, and support of people.
 This overall perception becomes, in effect, the organization’s
culture or personality.
 These favourable or unfavourable perceptions then affect employee
performance and satisfaction, with the impact being greater for
stronger cultures.
 Just as people’s personalities tend to be stable over time, so
too do strong cultures.
 This makes strong cultures difficult for managers to change.

21.  One of the more important managerial implications of
organizational culture relates to selection decisions.
 Hiring individuals whose values don't align with those of the
organization is not good.
 An employee's performance depends to a considerable
degree on knowing what he should or should not do.

22.  Why Culture Doesn’t  When Culture Can
Change Change
 Culture develops over
 There is a dramatic crisis
many years, and becomes
part of how the  There is a turnover in
organization thinks and leadership
feels  The organization is young
 Selection and promotion and small
policies guarantee survival  There is a weak culture
of culture
 Top management chooses
managers likely to
maintain culture