Organizational Culture

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ORGANISATIONAL CULTURE

Institutionalization: A Forerunner of Culture
Institutionalization When an organization takes on a life of its own, apart from any of its members, becomes valued for itself, and acquires immortality. Institutionalization operates to produce common understandings among members about what is appropriate and fundamentally , meaningful behavior.

What Is Organizational Culture?
Characteristics: • 1. Innovation and risk A common perception taking held by the organization’s • 2. Outcome orientation members; a system of • 3. Attention to detail shared meaning , that • 4. Outcome orientation distinguishes the • 5. People orientation organization from other • 6.Team orientation organizations. • 7. Aggressiveness • 8. Stability • 9. Attention to detail
Organizational Culture

Each of these characteristics exists on a continuum from low to high. These characteristics becomes the basis for the feelings of shared understanding that members have about the organization , how things are done in it , and the way members are supposed to behave.

Culture is a Descriptive term
Job satisfaction is different from Organization culture Research on organization culture measures how employees see their organizations. Do they 1. encourage team work 2. reward innovations 3. stifle initiative Job Satisfaction includes How employees feel about the organization’s expectations , reward practices and like. These two terms are having overlapping characteristics. Organization culture : descriptive Job Satisfaction : evaluative

Do Organizations Have Uniform Cultures?
Most large organizations have a dominant cultures and numerous set of subcultures. Dominant Culture Expresses the core values that are shared by a majority of the organization’s members. It is macro view of culture that gives an organization its distinct personality. Subcultures

Minicultures within an organization, typically defined by department designations and geographical separation. It wil include the core values of the dominant culture plus additional value unique to the member to that department

Do Organizations Have Uniform Cultures? (cont’d)
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. A strong culture will have a great influence on the behavior of its members because the high degree of sharedness and intensity creates an internal climate of high behavioral control. One specific result of a strong culture should be lower employee turnover.

What Is Organizational Culture? (cont’d)
 Culture Versus Formalization
• A strong culture increases behavioral consistency and a substitute for formalization. can act as

Formalization : rules and regulations act to regulate employee behavior.

We should view formalization and culture as two different roads to a common destination.
The stronger an organization’s culture , the less management need to be concerned with developing formal rules and regulations to guide employee behavior.

 Organizational Culture Versus National Culture
• National culture has a greater impact on employees than does their organization’s culture. • Nationals selected to work for foreign companies may be atypical

What Do Cultures Do?

Culture’s Functions:


 

 

Defines the boundary between one organization and others. Conveys a sense of identity for its members. Facilitates the generation of commitment to something larger than self-interest. Enhances the stability of the social system. Serves as a sense-making and control mechanism for fitting employees in the organization.

The role of culture in influencing employees behavior appears to be increasingly important in today’s workplace.

As organizations have widened spans of control , flattened structures , introduced teams , reduced formalization and empowered employees , the shared meaning provided by a strong culture ensures that everyone in pointed in the same direction.

What Do Cultures Do?
Culture enhances organizational commitment and increases the consistency of employee behavior. (Organization’s point of view)
Culture is valuable because it reduces “ambiguity” , it tells employees how things are done and what is important (employee point of view) But we should not ignore the dysfunctional aspects of culture.

Culture as a Liability:
Barrier to change. Barrier to diversity Barrier to acquisitions and mergers

Barrier to change. Barrier to diversity Barrier to acquisitions and mergers

How Culture Begins
The source of an organization’s cultures : its 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.  When the organization succeeds ,the founder’s vision becomes seen as a primary determinant of that success.

Keeping Culture Alive
Practices within the organization that act to maintain culture by giving employess a set of similar experiences  Selection
• Concern 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
Pre arrival Stage
The period of learning in the socialization process that occurs before a new employee joins the organization.

Encounter Stage
The stage in the socialization process in which a new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge.

Metamorphosis Stage
The stage in the socialization process in which a new employee changes and adjusts to the work, work group, and organization.

This three-stage process has an impact on the new employee’s 1. Work productivity 2. Commitment to organization’s objectives 3. Employee turnover (decision to stay with the organization)

Metamorphosis stage : to bring employees into desired metamorphosis stage , management relies on some socialization programs that are

- formal , collective , fixed , serial , and emphasize divestiture that will help in removing differences and perspectives , and replacing it with standardized behaviors and predictable behaviors.

ENTRY SOCIALIZATION OPTIONS
1. Formal vs. Informal 2. Individual vs. Collective 3. Fixed vs. variable 4. Serial vs. Random 5. Investiture vs. Divestiture

How Culture is developed in employees

1. 2. 3. 4.

Stories Rituals Material Symbols Language

Creating the ethical organizational culture
The content and strength of a culture influence an organization's ethical climate and ethical behaviors of its members. If the culture is strong and supports high ethical standards , it should have a very powerful and positive influence on employee behavior By using the following practices , management can create a more ethical culture. (1) be a visible role model (2) Communicate ethical expectations (3) Provide ethical trainings (4) visibly reward ethical acts and punish unethical ones (5) Provide protective mechanisms

Creating a positive organizational culture

Creating a positive Organizational culture Positive culture is defined as a culture that emphasizes building on employee strengths , rewards more than it punishes and emphasizes individual vitality and growth

1. Building on employee strengths: Finding strength 2. Rewarding more than punishing : Extrinsic and intrinsic rewards 3. Emphasizing vitality and growth : Focus on individuals' growth , comparison with other organizations

Limitations of Positive culture

An organization should be careful to be objective , and not pursue it past the points of effectiveness.

Spirituality and Organizational Culture
Workplace Spirituality The recognition that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of the community. Characteristics of a spiritual organizations 1. Strong sense of purpose 2. Trust and respect 3. Humanistic work practices 4. Toleration of employee expression

Criticism of Spirituality (1) it is not scientific (2) Spiritual organizations legitimate (3) Spirituality and profits are not compatible

GLOBAL IMPLICATIONS

Cultures differ widely in terms of
1. 2. 3. 4. 5. concepts , attitudes and behavior , social institutions , public policy and legal framework, and social values

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