Organizational Culture

Organizational Culture
⦿Organizational Culture
⚫ A common perception held by the organization’s
members; a system of shared meaning, that distinguishes
organization from other organizations.
⚫ Seven primary characteristics
1. Innovation and risk taking
2. Attention to detail
3. Outcome orientation
4. People orientation
5. Team orientation
6. Aggressiveness
7. Stability
Do Organizations Have Uniform Cultures?
⦿ Culture is a descriptive term: it may act as a substitute for

formalization
⚫ Dominant Culture
○ Expresses the core values that are shared by a majority of the organization’s
members
⚫ Subcultures
○ Minicultures within an organization, typically defined by department
designations and geographical separation
⚫ Core Values
○ The primary or dominant values that are accepted throughout the organization
⚫ Strong Culture
○ A culture in which the core values are intensely held and widely shared
Tata Group
Encouraging a performance-oriented culture while

nurturing diversity within our workforce.
Core values:
–Integrity
–Responsibility
–Excellence
–Pioneering
–Unity
What Do Cultures Do?
⦿ Culture’s Functions
1. Defines the boundary between one organization and
others
2. Conveys a sense of identity for its members
3. Facilitates the generation of commitment to something
larger than self-interest
4. Enhances the stability of the social system
5. Serves as a sense-making and control mechanism for
fitting employees in the organization
Culture as a Liability
⦿ Barrier to change
⚫ Occurs when culture’s values are not aligned with the values
necessary for rapid change
⦿ Barrier to diversity
⚫ Strong cultures put considerable pressure on employees to
conform, which may lead to institutionalized bias
⦿ Barrier to acquisitions and mergers

⚫ Incompatible cultures can destroy an otherwise successful
merger
How Culture Begins
– Stems from the actions of the founders:

– Founders hire and keep only employees who think and feel the
same way they do.
– Founders indoctrinate and socialize these employees to their
way of thinking and feeling.
– The founders’ own behavior acts as a role model that encourages
employees to identify with them and thereby internalize their
beliefs, values, and assumptions.
Keeping Culture Alive
⦿ Selection
⚫ Concerned with how well the candidates will fit into the
organization
⚫ Provides information to candidates about the organization
⦿ Top Management
⚫ Senior executives help establish behavioral norms that are
adopted by the organization
⦿ Socialization
⚫ The process that helps new employees adapt to the
organization’s culture
Stages in the Socialization
Process
⦿ Prearrival
⚫ The period of learning prior to a new employee joining the
organization
⦿ Encounter
⚫ When the new employee sees what the organization is really
like and confronts the possibility that expectations and
reality may diverge
⦿ Metamorphosis
⚫ When the new employee changes and adjusts to the work,
work group, and organization
How Employees Learn Culture
• Stories
• Anchor the present into the past and provide explanations and
legitimacy for current practices
• Rituals
• Repetitive sequences of activities that express and reinforce
the key values of the organization
• Material Symbols
• Acceptable attire, office size, opulence of the office furnishings,
and executive perks that convey to employees who is important
in the organization
• Language
• Jargon and special ways of expressing one’s self to indicate
membership in the organization
Creating a Positive
• Positive Organizational Culture
• A culture that:
• Builds on employee strengths
• Focus is on discovering, sharing, and building on the
strengths of individual employees
• Rewards more than it punishes
• Articulating praise and “catching employees doing
something right”
• Emphasizes individual vitality and growth
• Helping employees learn and grow in their jobs and
careers
• Limits of Positive Culture:
• May not work for all organizations or everyone within
them
Summary and Managerial
Implications
⦿ Strong cultures are difficult for managers to change

⚫ In the short run, strong cultures should be considered fixed
⦿ Selecting new hires that fit well in the organizational
culture is critical for motivation, job satisfaction,
commitment, and turnover
⦿ Socialization into the corporate culture is important
⦿ As a manager, your actions as a role model help create
the cultural values of ethics, spirituality, and a positive
culture

Organizational Culture

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Organizational Culture

⦿ Culture is a descriptive term: it may act as a substitute for

Encouraging a performance-oriented culture while

⦿ Barrier to acquisitions and mergers

– Stems from the actions of the founders:

⦿ Strong cultures are difficult for managers to change

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