Ch15: ORGANIZATIONAL CULTURE

WHAT IS AN ORG CULTURE?

Definition
o System of shared meaning held by members that
distinguishes the org from others
o 7 characteristics
Innovation & risk taking
Attention to detail
Outcome orientation
People orientation
Team orientation
Aggressiveness
Stability

Culture is a Descriptive term

o How employees perceive the characteristics of an orgs
culture?
o from job satisfaction
Evaluative

Uniforms cultures?
o Dominant culture
Core values
Gives the org its unique personality
o Subcultures
Core values + specific values

Strong vs. weak cultures

o Strong culture
Core values intensely held & widely shared
++ Influence
Reduce employee turnover

Culture vs formalization
o High formalization
Predictability
Orderliness
Consistency

WHAT DO CULTURES DO?

Cultures functions
Culture creates climate
Culture as a Liability
o Institutionalization
Valued for itself and not the goods or services it
produces

Life of its own

founders or members
o Barriers to change
When shared values those that further
effectiveness
Stable environment
Consistency of behavior
o Barriers to diversity
Pressure on members to conform
o Barriers to acquisition and mergers
Need for cultural comptability

CREATING AND SUSTAINING CULTURE

How a Culture Begins
o Founders
Vision of what the org should be
Small size: easy to impose culture
o 3 ways
Hiring employees who think/feel the same way
Indoctrination/socialization
Encouraging employees to identify with them
Internalize value

Keeping a Culture Alive

o Selection
Identify individuals with knowledge, skills &
abilities
Values = essential
2 ways street
o Top mgmt
Establish norms
o Socialization
3 stages
Prearrival
o Each individual = his own set of values
Encounter
o Expectations differ from reality
Metamorphosis
Entry options
Formal vs Informal
Individual vs Collective
Fixed vs Variable
o Fixed
Standardized stages of transition
Rotational training programs
Probationary periods (laws, acct)

o Variable
No advance notive of transition
timetable
Serial vs Random
o Serial
Use of role models
o Random
Role models deliberately
withheld
Left on their own to figure out
things
Investiture vs Divestiture
o Investiture
Newcomers qualities =
necessary ingredients for job
success
o Divestiture
Attempt to strip away some of
the individuals characteristics

HOW EMPLOYEES LEARN CULTURES

Stories
o Narrative of events
About founders, rule breakings
Rituals
o Repetitive sequences of activities that express and
reinforce the key values of the org
Material Symbols
o Layout of headquarters, automobile of head execs, size
of offices
o Who is important?
o The degree of egalitarianism
o Top mgmt desire
Language
o Acronyms, jargon
CREATING AN ETHICAL ORG CULTURE
Most likely to high ethical standards
o Risk tolerance: high
o Aggressiveness: low to mdeorate
o Focused on means & outcomes
o Long term perspective
To create a more ethical culture
o Be a more visible role model
o Communicate ethical expectations
o Provide ethical training
o Visibly reward ethical acts & punish unethical ones

o Provide protective machines

CREATING A POSITIVE ORG CULTURE
Definition
o Building on employee strengths
o Rewarding more than punishing
o Emphasizing vitality & growth
Limits of positive culture