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Organizational Culture. Chapter 13. Learning Objectives. Define organizational culture and know why it is important Distinguish among organizational, national, and global culture and understand the relationships among them

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organizational culture

Organizational Culture

Chapter 13

IBUS 681, Dr. Yang

learning objectives
Learning Objectives
  • Define organizational culture and know why it is important
  • Distinguish among organizational, national, and global culture and understand the relationships among them
  • Evaluate the culture-free approach to understanding organizational culture

IBUS 681, Dr. Yang

learning objectives cont
Learning Objectives (cont.)
  • Identify levels of organizational culture
  • Know what organizational culture does
  • Discuss the cultural dimensions and typology approaches to understanding organizational culture
  • Understand how organizational culture can be managed

IBUS 681, Dr. Yang

organizational culture4
Organizational Culture
  • A pattern of basic assumptions - invented, discovered, or developed by a given group as it learns to cope with 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 (Schien, 1985).

IBUS 681, Dr. Yang

national and global culture
National and Global Culture
  • Relationship between national and corporate culture is complex:
    • “Logic of industrialization" may affect all organizations the same way
    • National culture and other elements in an organization's environment may determine internal organizational culture
    • Globalization also affects organizational culture

IBUS 681, Dr. Yang

henry ford founder of the ford motor company said
Henry Ford, founder of the Ford Motor Company said:
  • Getting together is beginning
  • Keeping together is progress
  • Working together is success

IBUS 681, Dr. Yang

national and global culture7
National and Global Culture
  • One can not understand what’s going on inside an organizational culture without understanding what exists outside the boundary.
    • National culture provides basic assumptions that legitimize and guide organizational behavior.
    • Industrialization promotes changes in national culture.
    • Globalization increases awareness of successful practices elsewhere.
    • Modern communication enhances connections among manufacturers, merchants, financiers, consumers, etc. globally.
    • MNCs seek consistency and shape organizational culture on a global basis.

IBUS 681, Dr. Yang

culture free approach
Culture-Free Approach
  • It argues that technology, policies, rules, organizational structure, and other variables that contribute to efficiency and effectiveness make national culture irrelevant for management.
    • McDonald’s fast food service
    • World Disney
    • IKEA

Disney Paris Ears

IBUS 681, Dr. Yang

understanding organizational culture
Understanding Organizational Culture
  • Organizations are culture free in some respects, but culture bound in many others (Trice & Beyer, 1993).
  • Global, national, and organizational elements interact to influence organizational culture and behavior.

IBUS 681, Dr. Yang

mcdonald s restaurants
Moscow or some others

Types of the restaurant

Food adaptation

Service adaptation

Perceptions of jobs

Workplace culture

Employee commitment


Fast food life style


Temporary jobs

High turnover rate

Standard food items

McDonald's Restaurants

IBUS 681, Dr. Yang

levels of organizational culture
Levels of Organizational Culture
  • Artifacts
  • Espoused Values
  • Actual Values
  • Basic Underlying Assumptions
    • Subcultures

IBUS 681, Dr. Yang


IBUS 681, Dr. Yang

microsoft s mission
Microsoft’s Mission:
  • To enable people and businesses throughout the world to realize their full potentials

IBUS 681, Dr. Yang

great people with great values
Great People with Great Values
  • Delivering on our mission requires great people who are bright, creative, and energetic, and who share the following values:
    • Integrity and honesty.
    • Passion for customers, partners, and technology.
    • Open and respectful with others and dedicated to making them better.
    • Willingness to take on big challenges and see them through.
    • Self-critical, questioning, and committed to personal excellence and self-improvement.
    • Accountable for commitments, results, and quality to customers, shareholders, partners, and employees.

IBUS 681, Dr. Yang

national vs organizational culture
National culture


More complex

Influence org. culture

Primary and secondary socialization

Organizational culture



Secondary socialization


National Vs. Organizational Culture

IBUS 681, Dr. Yang

what organizational culture does

Provides an external identity

Creates a sense of commitment

Acts as source of high reliability

Defines an interpretive scheme

Acts as a social control mechanism


Can create barriers to change

Can create conflict within the organization

Subcultures can change at different rates than other units

What Organizational Culture Does

IBUS 681, Dr. Yang

some underlying dimensions of organizational culture
Some Underlying Dimensions of Organizational Culture

Dimension Questions to be answered

  • The organization’s relationship to its environment
  • The nature of human activity
  • The nature of reality and truth

Does the organization perceive itself to be dominant, submissive, harmonizing, searching out a niche?

Is it the “correct” way for humans to behave to be dominant/proactive, harmonizing, or passive/fatalistic?

How do we define what is true and what is not true; and how is truth ultimately determined both in the physical and social world?

IBUS 681, Dr. Yang

some underlying dimensions of organizational culture cont
Some Underlying Dimensions of Organizational Culture (cont.)

Dimension Questions to be answered

What is our basic orientation in terms of past, present, and future, and what kinds of time units are most relevant for the conduct of daily affairs?

Are humans basically good, neutral, or evil, and is human nature perfectible or fixed?

4. The nature of time

5. The nature of human


IBUS 681, Dr. Yang

some underlying dimensions of organizational culture cont19
Some Underlying Dimensions of Organizational Culture (cont.)

Dimension Questions to be answered

6. The nature of human relationships

7. Homogeneity versus


What is the “correct” way for people to relate to each other, to distribute power and affection? Is life competitive or cooperative? Is the best way to organize society on the basis of individualism or groupism? Is the best authority system autocratic/paternalistic or collegial/participative?

Is the group best off if it is highly diverse or if it is highly homogeneous, and should individuals in a group be encouraged to innovate or conform?

IBUS 681, Dr. Yang

trompenaars four corporate cultures
Trompenaars’ Four Corporate Cultures
  • Family Culture
  • Eiffel Tower Culture
  • Guided Missile Culture
  • Incubator Culture

IBUS 681, Dr. Yang

managing and changing organizational culture
Managing and Changing Organizational Culture
  • Leadership and organizational culture
  • Elements of culture leaders can change
    • Employee selection criteria
    • Socialization of new members
    • Meaning of work
    • Artifacts/surface manifestations of culture

IBUS 681, Dr. Yang

convergence or divergence

Emphasis on standardization

Organizational strategies for managing culture globally

Emphasis on consistency across borders


Global institutions

Use of organizational culture as a competitive tool

Impact of diverse national cultures on organizational culture

Benefits in specific and culturally sensitive ways


Job security

Group versus individual

Convergence or Divergence?

IBUS 681, Dr. Yang

implications for managers
Implications for Managers
  • For managerial effectiveness, it is helpful to analyze organizational cultures in order to coordinate activities or change them;
  • Understand what levels of culture can be influenced and how;
  • Know how national culture and organizational culture can interact to influence management philosophy and employee behaviors.
  • Person-culture fit for individual career success

IBUS 681, Dr. Yang