Organisational culture
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Organisational Culture PowerPoint PPT Presentation

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Organisational Culture. Refers to the “context” – the organisational environment Determines the the type of communication that will take place. Organisational Culture. “How things are done around here” Reflects underlying assumptions about the way work is performed

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Organisational Culture

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Organisational culture

Organisational Culture

  • Refers to the “context” – the organisational environment

  • Determines the the type of communication that will take place

Organisational culture1

Organisational Culture

  • “How things are done around here”

  • Reflects underlying assumptions about the way work is performed

  • What is acceptable and not acceptable

  • What behaviour and actions are encouraged or discouraged

Strong culture

“Strong culture”

  • Core values are intensely held

  • High agreement

  • Shared purpose

  • Builds cohesiveness

  • Loyalty

National culture

National Culture

  • Usually takes precedence over organsiational culture

  • Mercedes Benz in Alabama

    • Abandoned strict heirarchy of German plant

    • Employee teams

    • Employee intervention

    • Sense of ownership

Culture s functions

Culture’s Functions

  • identity for organisation

  • sense of identity for members

  • social system stability

    • provides “social glue”

    • provides appropriate standards

  • guides and shapes attitudes and behaviours

What are the characteristics of organsiational cultures

What are the characteristics of organsiational cultures?

  • innovation & risk taking

  • interest in having employees generate new ideas

  • openness of communication

  • Sensitivity to the needs of customers and employees

How does a culture begin

How does a culture begin?

1. The founders

  • Philosophy/vision of the founders influences

  • Indoctrinate and socialize employees

  • Founder’s behaviour acts as model

    2. Selection of candidates

    3. Socialization methods

    - A process that adapts employees to the culture

Organisational values

Organisational Values

  • Formal Statement of Values

    • Found in mission statements, value statements or coporate credos

Organisational culture

  • What we believe in The Body Shop is a stake-holder led company. It believes its success is dependent upon its relationships with all its stakeholders, including its employees, franchisees, customers, communities, suppliers, shareholders and NGOs.

  • The Body Shop approach to ethical business operates on three levels:

    1) compliance: opening up to defined standards of human rights, social welfare and worker safety, environmental protection and, where relevant, wider ethical issues like animal protection 2) disclosure: only through public disclosure can a real process of dialogue and discussion with stakeholders be achieved and the right direction charted for the future 3) campaigning: to play an active part in campaigning for positive change in the way the business world works, with the ultimate aim of making a positiveimpact on the world at large.

Organisational culture

  • We believe in making a difference. In our customer’s eyes, Virgin stands for value for money, quality, innovation, fun and a sense of competitive challenge. We deliver a quality service by empowering our employees and we facilitate and monitor customer feedback to continually improve the customer’s experience through innovation

Values in use

Values – in - Use

The way people in the company actually behave

  •       May differ from the “espoused values”

Ford pinto case study

Ford Pinto Case Study

Pinto crash tests

Pinto Crash Tests

Cost benefit analysis

Cost Benefit Analysis

  • if the cost is greater than the benefit, the project is not worth it—no matter what the benefit.

  • Examine the cost of every action, decision, contract part or change, then carefully evaluate the benefits to be certain that they exceed the cost before you begin a program

Organisational culture


Savings: 180 burn deaths, 180 serious burn injuries, 2,100 burned vehicles. 

Unit Cost: $200,000 per death, $67,000 per injury, $700 per vehicle. 

Total Benefit: 180 X ($200,000) + 180 X ($67,000) + $2,100 X ($700)  = $49.5 million.


Sales: 11 million cars, 1.5 million light trucks. 

Unit Cost: $11 per car, $11 per truck. 

Total Cost: 11,000,000 X ($11) + 1,500,000 X ($11) = $137 million. 

Stakeholder vs stockholder approach

Stakeholder vs Stockholder Approach

  • Stakeholder Approach

  • Stockholder Approach



  • Read the Ford Pinto case study enclosed in the course packet

  • Answer the following questions in your communciations notebook:

    • How would you describe the culture that existed at Ford Motor Company in the 1970s?

    • How did that culture affect internal and external communciation?

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