organization culture [new]
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Oriental Institute of ManagementOriental Institute of Management
Organization CultureOrganization Culture
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The Basic Functions of OrganizationalThe Basic Functions of Organizational
CultureCulture
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W hat is Organizational Culture ?
A common perception held by the organization·s
member.
A system of shared meaning held by the members.
Characteristics:
Innovation and risk taking
Attention to detail
Outcome orientation People orientation
Team orientation
Aggressiveness
Stability
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Core Organizational Values Reflected inCore Organizational Values Reflected in
CultureCulture
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Sensitivity to needs of customers and employees.
Freedom to initiate new ideas.
Willingness to tolerate taking risks.
Openness to communication options.
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Values & Culture
y Core Values :
The primary or dominant values
that are accepted throughoutthe organization.
y
Strong CultureCulture in which core values are intensely held and
widely shared.
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Institutionalization: A Forerunner of Culture
66y When an organization becomes
institutionalized, it takes / leads
life of its own, apart from it
founders or any of its members.
y Also when an organization becomes
institutionalized it becomes valued for
itself, not merely for the good &
Services it produce, but acquires
immorality.Example : ¶Ross Perot· created Electronic Data System
(EDS) in early 1960, but he left it in 1987 & found a new company
named ¶Perot Systems·. EDS continued to thrive despite the
departure of Perot.
Sony, Gillette, McDonald·s etc.
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Organizational Culture
y Dominant Culture
Expresses the core values that
are shared by the majority of members
y Subcultures
It tends to develop in large
organization to reflect problems,situations etc that members face.
Typically defined by department
designation and geographical
separation
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W hat 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.
Culture as a Liability:
Barrier to change
Barrier to diversity
Barrier to acquisitions and mergers
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How does a Culture Begins ?
y Organization·s current customs, traditions &
general ways of doing things, degree of success.
y This lead to the ultimate source of an organization
culture : its f o
undersf o
undersy The founder of an organization traditionally have a
major impact on organization culture.
y They have a vision of what organization should be.
y So the founder·s entire personality becomesembedded in the culture.
y E.g. The culture at Hydundai, the giant Korean Co.
is reflection of its founder ¶Chung Ju Yung·.
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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.
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Stages in the Socialization Process11
OutcomesSocialization Process
Prearrival Stage
The period of learning that occurs before a new employee joins the
organization. Encounter Stage
The new employee sees what the organization really like & confronts the
possibility that expectation & reality may diverge
Metamorphosis Stage
The new employee adjust to job, work group & organization.
Prearrival Encounter Metamorphosis
Productivity
Commitment
Turnover
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Entry Socialization Options
Formal vs. Informal.
Individual vs. Collective. Fixed vs. Variable.
Serial vs. Random.
Investiture vs. Divestiture.
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How Organization Culture Forms ?13
Philosophy
of organization
f ounders
Selection
Criteria
Top
Management
Socialization
Organization
Culture
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How Employees Learn Culture ?
Stories
Rituals
Material Symbols
Language
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Spirituality and Organizational Culture
W orkplace Spirituality : W orkplace Spirituality :
The recognition that the people have an inner life that
nourishes and is nourished by meaningful work that
takes place in the context of the community. Characteristics:Characteristics:
Strong sense of purpose
Focus on individual developmentTrust and openness
Employee empowerment
Toleration of employee expression
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Creating an Ethical Organization CultureCreating an Ethical Organization Culture
y The content & strength of a culture influence organization·s
ethical culture
y If the culture is strong & supports high ethical values,
then it has very powerful & positive influence on employee
behavior.
y Following factors helps in creating ethical culture :
Be a visible role model.
Communicate ethical expectations.
Provide ethical expectation.
Visibly reward ethical acts and punish unethical ones.
Provide protective mechanisms.
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Hofstede·sHofstede·s Model of National CultureModel of National Culture
DimensionsDimensions
Small vs. Large Power Distance.
Individualism vs. collectivism.
Achievement vs Nurturing
Uncertainty avoidance.
Long term vs. short term
orientation.
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Small vs Large Power DistanceSmall vs Large Power Distance1818
Large
Inequalities exist
Gap between rich andpoor
Example
Malaysia
Small
y Social welfare programs
reduce gaps
y Example
France
Germany
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Individualism vs. Collectivism1919
Individualism
y Individual achievement
y Freedomy Competition
y Example
United States
Collectivism
y Group harmony
y Cohesivenessy Consensus
y Cooperation
y Example
Japan
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Achievement vs Nurturing Orientation Achievement vs Nurturing Orientation
2020
Achievement
y Assertiveness
y Performancey Success
y Competition
y Results-oriented
y Example
Japan
United States
Nurturing
y Quality of life
y warm personalrelationships
y Service
y Caring
y Example Denmark
Sweden
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Uncertainty AvoidanceUncertainty Avoidance2121
Low
y Easygoing
y Value diversityy Tolerant of
differences
y Example
United States Hong Kong
High
y Rigid
y Intoleranty Conformity
y Structure
y Example
Japan
France
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Long-Term vs Short-Term Orientation2222
Long-term
y Thrift
y Persistencey High savings rate
y Patience
y Example
Japan
Hong Kong
Short-term
y Personal stability
y Happinessy Living in the present
y Example
United States
France
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