Organizational Culture

1. Organizational Culture

2. ORGANISATIONAL STRUCTURE Policy/Rules Officialisation Language Hierarchy Facts Dialect Heroes Attitudes Beliefs Rumours Norms Socialisation ORGANISATIONAL CULTURE

3. Organizational Culture • the set of shared values and norms that controls organizational members’ interactions with each other and with people outside the organization

4. Organizational Culture • Values: general criteria, standards, or guiding principles that people use to determine which types of behaviors, events, situations, and outcomes are desirable or undesirable • Norms: kinds of behavior that are considered acceptable or typical for a group of people

5. Geert Hofstede’s Culture Dimensions • Power Distance (PDI) • Individualism (IDV) • Masculinity (MAS) • Uncertainty Avoidance (UAI) • Long term Orientation (LTO)

7. Comparison of Cultural Values

8. 3M Case questions • What are the VALUES of 3M culture? • What are the main ways in which 3M tries to create this culture?

10. Stories Rituals Elements of Culture Heroes Symbols & Language

11. Do Organizations Have Uniform Cultures? Subcultures Dominant Culture Core Values

12. Intensity of Core Values Commitment to Core Values Strong Versus Weak Cultures Level of Behavioral Control Level of Employee Turnover

13. How A Culture Begins Hiring and Retention Indoctrination & Socialization Behavior and Role Modeling

14. How is an Organization’s Culture Transmitted to its Members? • Socialization: the process by which members learn and internalize the values and norms of an organization’s culture

15. Entry Socialization Options • Formal vs. Informal • Individual vs. Collective • Fixed vs. Variable • Serial vs. Random

16. Formal vs. Informal • Formal tactics segregate newcomers from existing organizational members during the learning process. • With informal tactics, newcomers learn on the job, as members of a team.

17. Collective vs. Individual • Collective tactics provide newcomers with common learning experiences designed to produce a standardized response to a situation. • With individual tactics, each newcomer’s learning experiences are unique, and newcomers can learn new, appropriate responses for each situation.

18. Fixed vs.Variable • Fixed tactics give newcomers precise knowledge of the timetable associated with completing each stage in the learning process. • Variable tactics provide no information about when newcomers will reach a certain stage in the learning process.

19. Sequential vs. Random • Sequential tactics provide newcomers with explicit information about the sequence in which they will perform new activities or occupy new roles as they advance in an organization. • With random tactics, training is based on the interests and needs of individual newcomers because there is no set sequence to the newcomers’ progress in the organization.

20. How Organizational Cultures Sustain Top Management Organizational Culture Philosophy of the Organization’s Founders Selection Socialization

21. Communicating Cultural Norms • Organizations use several types of ceremonial rites and ceremonies to communicate cultural norms and values. • Rites of passage • Rites of integration • Rites of enhancement

22. Organizational Rites and Ceremonies TYPE EXAMPLE POSSIBLE CONSEQUENCES Rites of passage Orientation programmes Facilitate transition into new roles; minimize differences in way roles are carried out Rites of enhance-ment Company ceremonies e.g. Awards Enhance power & identity; emphasize value of proper behavior Rites of integration Office Party Encourage common feelings that bind members together

23. Maintaining Organizational Culture • Methods of Maintaining Organizational Culture • What managers and teams pay attention to • Reactions to organizational crises • Managerial role modeling • Criteria for rewards • Criteria for selection and promotion • Organizational rites, ceremonies, stories Recruit employees who fit Remove employees who deviate Organizational Culture

24. Issues Associated withExternal Adaptation and Survival • Identifying the organization's primary mission, and selecting strategies to pursue it. • Setting specific targets. • Determining how to pursue the goals, including selecting an organizational structure and reward system. • Establishing criteria to measure individual and team goal accomplishment.

25. Issues Associated with Internal Integration • Identifying methods of communication, and developing a shared meaning for important concepts. • Establishing criteria for membership in groups and teams. • Determining rules for acquiring, maintaining, and losing power and status. • Developing systems for encouraging desirable behaviors and discouraging undesirable behaviors.

26. Defining boundaries Conveying identity Promoting commitment Controlling behavior Impeding change Inhibiting diversity Stifling creativity Blocking mergers & acquisitions Organizational Culture Functions Liabilities

27. Effects of Organizational Culture onEmployee Behavior and Performance • Allows employees to understand the firm’s history and current approach. • Fosters commitment to corporate philosophy and values. • Serves as a control mechanism for employee behaviors. • Certain cultural types may produce greater effectiveness and productivity.