ORGANIZATIONAL CULTURE

Culture is a set of values, norms, guiding beliefs and understanding that is shared
by

members of an organization and taught to new members. It represents the

unwritten,

feeling part of the organization. It exists at two levels;

Level 1: on the surface are visible artifacts and observable behaviours- the way
people

dress and act, symbols, stories and ceremonies organization members share.

Level 2: underlying values, assumptions, beliefs, attitudes, feelings and thought

processes are the true culture.

Sub cultures: cultures existing within parts of organization rather than entirely
through out

them. They develop to reflect the common problems goals and experiences that
members

of a team or unit share.

Dominant culture: the distinctive, overarching personality of an organization. The

core

values the dominant perceptions shared throughout the organization.

Role of culture

Culture provides a sense of identity.

Culture generates commitment to the organization’s mission.

Culture clarifies and reinforces standards of behavior

Two critical functions of culture

Internal integration

External adaptation

Creating and sustaining organizational culture

Culture of discipline

•Leadership

•The right values: values of freedom and responsibility but within the frame work of
organizational goals and systems

•The right people in the right job: determined, delligent, systematic, consistent,
focussed, accountable

•Knowing where to go: i) what they can be the best in the world at ii) what they are
deeply passionate about and iii) what makes economic sense for the organization

Company founders

Experience with the environment

Contact with others

Tools for transmitting culture

•Rites and ceremonies

Rites of passage

Rites of enhancement

Rites of renewal

Rites of integration

•Symbols

•Language
Organizational design and culture

Two specific dimensions:

The extent to which competitive environment requires flexibility or stability.

The extent to which the organization’s strategic focus and strength are internal
or external.

Four categories of culture

The Adaptability culture

Mission culture

The Clan culture

The Bureaucratic culture

The Adaptability culture

Entrepreneurial values, norms, and beliefs are encouraged.

Company does not react to changes but actively creates change.

Innovation, risk taking and creativity are valued and rewarded.

Mission culture

Emphasis on clear vision of the organization’s purpose and the achievement of

goals.

Individual employee responsible for specified level of performance.

Managers shape behavior by envisioning and communicating a desired future

state of organization.

Vision can be translated into measurable goals and evaluate employee

performance.

In some cases it reflects a high level of competitiveness and a profit making
orientation.
The Clan culture

Focuses on the needs of the employees as a route to high performance.

Involvement and high participation creates a sense of responsibility and

ownership and hence greater commitment to the organization

The Bureaucratic culture

Internal focus and a consistency orientation for a stable environment

Symbols, heroes, and ceremonies support cooperation.

Tradition and following of established policies and practices are the ways to
achieve goals.
The impact of strong culture is not always positive. Typically healthy cultures not
only

provide for smooth internal integration but also encourage adaptation to the
external

environment. Non- adaptive cultures encourage rigidity and stability .

Learning organizations incorporate following values

The whole is more important than parts and boundaries between the parts are
minimized

Equality and trust are primary values

The culture encourages risk taking, change and improvement

Managerial ethics are principles that guide the decisions and behaviours of managers
with regard to whether they are right or wrong in a moral sense

Social responsibility refers to management’s obligation to make choices and take action
so that the organization contributes to the welfare and interest of society as well itself.
Organizational success relies largely on social capital--- need to build on a reputation for

honesty and fairness

Sources of ethical values

Personal ethics

•Beliefs and values

•Moral development

•Ethical framework

Organizational culture

•Rituals, ceremonies, Stories, language, slogans,

symbols ,history
Organizational systems

•Structure

•Policies

•Code of ethics

•Reward system

•Selection

•training

External stakeholders

•Government regulation

•Customers

•Special interest groups global market forces

Values based leadership:

leaders define a vision of proper values, communicate it throughout the

organization

and institutionalize it through every day behaviour, rituals, ceremonies and

symbols.

Formal structure and systems

Ethics committee

Disclosure mechanisms

Code of ethics

Training programs