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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.

What is Organizational Culture?

A system of meaning shared by the organizations members
Cultural values are collective beliefs, assumptions, and feelings about what things are good, normal, rational, valuable, etc.

What Is Organizational Culture?

Organizational Culture
A common perception held by the organizations members; a system of shared meaning. 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

Dominant Culture Core Values


Dominant Culture

Do Organizations Have Uniform Cultures?

Expresses the core values that are shared by a majority of the organizations members.

Subcultures Minicultures within an organization, typically defined by department designations and geographical separation.

Do Organizations Have Uniform Cultures? (contd)

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.

Cultures Overall Function

Culture is the social glue that helps hold an organization together by providing appropriate standards for what employees should say or do.

What Do Cultures Do?

Cultures 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.

What Do Cultures Do?

Culture as a Liability: 1. Barrier to change

2. Barrier to diversity
3. Barrier to acquisitions and mergers

How Culture Begins

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

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.

The process that helps new employees adapt to the organizations culture.

Stages in the Socialization Process

Prearrival 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.

A Socialization Model

How Organization Cultures Form



How Employees Learn Culture/ How it is reinforced

Material Symbols


Creating An Ethical Organizational Culture

Characteristics of Organizations that Develop High Ethical Standards
High tolerance for risk Low to moderate in aggressiveness Focus on means as well as outcomes

Managerial Practices Promoting an Ethical Culture

Being a visible role model Communicating ethical expectations Providing ethical training Rewarding ethical acts and punishing unethical ones Providing protective mechanisms

How Organizational Cultures Have an Impact on Performance and Satisfaction

Multi-cultural teams
The central operating mode for a global enterprises is the creation, organization and management of multi-cultural teams groups that represent diversity in functional capability, experience levels and cultural backgrounds.
Rheinsmith, The Managers Guide to Globalization (1993)