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Mgmt 371 organizational culture
MGMT 371:Organizational Culture

  • “A pattern of basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think and feel in relation to those problems.”

    Edgar Schein, 1992

Levels of organizational culture

Artifacts – symbols of

culture in the physical

and social work environment

Levels of Organizational Culture


Espoused: what members of

an organization say they value

Enacted: reflected in the way

individuals actually behave

Assumptions –deeply held

beliefs that guide behavior and tell

members of an organization how

to perceive and think about things

Organizational Culture

Artifacts – symbols of

culture in the physical

and social work environment

Visible, often not



Espoused: what members of

an organization say they value

Enacted: reflected in the way

individuals actually behave

Greater level

of awareness

Assumptions –deeply held

beliefs that guide behavior and tell

members of an organization how

to perceive and think about things

Taken for granted,

Invisible, Preconscious

Types of artifacts
Types of Artifacts

  • Personal Enactment

  • Ceremonies and Rites

  • Stories

    • About the boss

    • About getting fired

    • About relocating

    • About promotions

    • About crisis situations

    • About status considerations

  • Rituals

  • Symbols

Functions of organizational culture
Functions of Organizational Culture

  • Culture provides a sense of identity to members and increases their commitment to the organization

  • Culture is a sense-making device for organization members

  • Culture reinforces the values of the organization

  • Culture serves as a control mechanism for shaping behavior

Understanding organizational culture


Group & Social Processes

Organizational Structure & Practices

  • Founder’s values

  • Industry & business

  • environment

  • National culture

  • Senior leaders’

  • vision and behavior

Organizational Culture

  • Socialization

  • Mentoring

  • Decision

  • making

  • Group

  • dynamics

  • Communication

  • Influence &

  • empowerment

  • Leadership

  • Reward systems

  • Organizational

  • design

  • Observable artifacts

  • Espoused values

  • Basic assumptions

  • Collective Attitudes & Behavior

  • Work attitudes

  • Job satisfaction

  • Motivation

  • Organizational Outcomes

  • Effectiveness

  • Innovation &

  • stress

Understanding Organizational Culture

Types of cultures
Types of Cultures

  • Constructive

    • Valuing members, self-actualizing, affiliative, and humanistic/encouraging normative beliefs (expected behavior or conduct)

  • Passive-defensive

    • Approval-oriented, traditional and bureaucratic, dependent and nonparticipative, punish mistakes but ignore success

  • Aggressive-defensive

    • Confrontation and negativism are rewarded, nonparticipative, positional power, winning valued, competitiveness rewarded, perfectionistic

Constructive culture

Organizational Characteristics

Normative Beliefs

Goal and achievement oriented



Value self-development and creativity

Participative, employeecentered, and supportive


High priority on constructive interpersonal relationships, and focus on work group satisfaction


Constructive Culture

Passive defensive culture

Organizational Characteristics

Normative Beliefs

Avoid conflict, strive to be liked by others, and approval oriented


Conservative, bureaucratic, and people follow the rules



Nonparticipative, centralized decision making, and employees do what they are told

Negative reward system and Defensive avoid accountability


Passive Defensive Culture

Aggressive defensive culture

Organizational Characteristics

Normative Beliefs

Confrontation and negativism rewarded



Nonparticipative, take charge of Defensive subordinates, and responsive to superiors

Winning is values and a win-lose approach is used


Perfectionistic, persistent, and hard working


Aggressive-Defensive Culture

Organizational culture research suggests
Organizational Culture Research Suggests:

  • Organizational culture correlated with employee attitudes and behavior

  • Congruence between an individual’s values and the organization’s values associated with organizational commitment, job satisfaction, intentions to quit, and turnover

  • Organizational culture did not predict a company’s financial performance

  • Mergers frequently failed due to incompatible cultures

Theories on the relationship between organizational culture and performance

Strong Culture Perspective

Fit Perspective

Adaptive Perspective

Strong culture
Strong Culture and performance

an organizational culture with a consensus on the values that drive the company and with an intensity that is recognizable even to outsiders

Strong Cultures Facilitate Performance and performance


  • They are characterized by goal

    • alignment

  • They create a high level of motivation

    • because of shared values by the members

  • They provide control without the

    • oppressive effects of bureaucracy

Fit perspective
Fit Perspective and performance

a culture is good only if it fits the industry or the firm’s strategy

Fit Perspective and performance

  • Three particular industry characteristics affect culture:

  • Competitive environment

  • Customer requirements

  • Societal expectations

Adaptive culture
Adaptive Culture and performance

an organizational culture that encourages confidence and risk taking among employees, has leadership that produces change, and focuses on the changing needs of customers

Most important elements in managing culture
Most Important Elements and performancein Managing Culture

  • What leaders pay attention to

  • How leaders react to crises

  • How leaders behave

  • How leaders allocate rewards

  • How leaders hire and fire individuals

Organizational socialization
Organizational Socialization and performance

Phase 1: Anticipatory

Phase 2: Encounter

Phase 3: Change and acquisition

Organizational socialization1

  • Anticipating realities about the organization and the new job

  • Anticipating organization’s needs for one’s skills and abilities

  • Anticipating organization’s sensitivity to one’s needs and values

Organizational Socialization


Perceptual and Social Processes

Organizational socialization2
Organizational Socialization joining the organization


Perceptual and Social Processes

  • Encounter values, skills, and attitudes start to shift as new recruit discovers what the organization is truly like

  • Managing lifestyle-versus-work conflicts

  • Managing intergroup role conflicts

  • Seeking role definition and clarity

  • Becoming familiar with task and group dynamics

Organizational socialization3
Organizational Socialization joining the organization


Perceptual and Social Processes

  • Change and acquisition recruit masters skills and roles and adjusts to work group’s values and norms

  • Competing role demands are resolved

  • Critical tasks are mastered

  • Group norms and values are internalized

Outcomes of socialization
Outcomes of Socialization joining the organization

Newcomers who are successfully socialized should exhibit:

  • Good performance

  • High job satisfaction

  • Intention to stay with organization

  • Low levels of distress symptoms

  • High level of organizational commitment

How cultures are embedded in organizations
How cultures are embedded in organizations joining the organization

  • Formal/public statements

  • Physical Layout

  • Slogans, co. lingo

  • Mentoring, modeling

  • Explicit rewards, promotion criteria

  • Stories, legends, myths

  • Processes and outcomes, measurement

  • Workflow and systems

Mentoring joining the organization

  • Outcomes for Mentees

  • Outcomes for Mentors

  • Outcomes for Organizations

  • Maintaining the Culture

Functions of mentoring
Functions of Mentoring joining the organization

  • Career Functions

    • Sponsorship

    • Exposure-and-Visibility

    • Coaching

    • Protection

    • Challenging Assignments

  • Psychological Functions

    • Role Modeling

    • Acceptance-and-Confirmation

    • Counseling

    • Friendship

Organizational culture inventory
Organizational Culture Inventory joining the organization

Focuses on behaviors that help employees fit into the organization and meet coworker expectations

Uses Maslow’s hierarchy of needs to measure twelve cultural styles

Kilmann saxton culture gap survey
Kilmann-Saxton Culture-Gap Survey joining the organization

Focuses on what actually happens in the organization and the expectations of others

Two underlying dimensions – technical/human and time.

Interventions for Changing joining the organization

Organizational Culture

Questions on culture
Questions on Culture joining the organization

  • Can the organizational culture change?

    • How?

  • Where does the culture come from?




  • Does the culture look the same from the top and from the bottom?