organizational culture

UGC/TRIEA/UNOM/DOMS/PTS OB/L15/S

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CHAPTER FIFTEEN

ORGANIZATIONAL CULTURE


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DEFINITION

Organizational culture is a system of shared beliefs and attitudes that develop within an organization and guides the behaviour of its members.


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PRIMARY CHARACTERISTICS OF ORGANIZATIONAL

CULTURE1. Innovation and risk taking2. Attention to detail3. Outcome orientation4. People orientation5. Team orientation6. Aggressiveness7. Stability


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FUNCTIONS OF CULTURE

1. It creates distinction between one organization and another.

2. It conveys a sense of identity to organization members.

3. It generates commitment to something larger than an individuals self interest.

4. It is a social glue that helps hold the organization together.

5. It is a sense making and control mechanism that guides and shapes the attitudes and behaviour of people.


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DYSFUNCTIONAL ASPECTS OF CULTURE

1. Barrier to change2. Barrier to diversity3. Barrier to acquisitions and

mergers.


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ORGANIZATIONAL CULTURE: THE ROLE OF FOUNDER

1. Founders hire and keep employees who think and feel as they do.

2. They indoctrinate and socialize these employees to think and feel as they do.

3. Founder’s own behaviour acts as role model.


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LEVELS OF ORGANIZATIONAL CULTURE

1. Observable artifacts of culture a. Organizational hero'sb. Ceremonies and ritesc. stories

2. Shared values3. Common assumptions


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FRAME WORK OF TYPES OF CORPORATE CULTURE

Culture Functioning Orientation

Bureaucratic Internal StableClan Internal FormalEntrepreneurial External Formal Market External Stable


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CORPORATE CULTURE EXPLAINED

Bureaucratic- values formality, rules, stable operating

procedure Clan -tradition, loyalty, team

work, extensive socialization, pride in membership,

peer pressure, an obligation beyond simple exchange of salary.


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CORPORATE CULTURE EXPLAINED (Contd.) Entrepreneurial- high levels of risk

taking, dynamism, creativity.Produce-new, unique products.

Market- achievement of measurable and demanding goals-financial and market based. Hard driving competitiveness and profit orientation. Organization does not promise security, and individuals does not promise loyalty.


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MATCHING PEOPLE WITH CULTURES

Goffee & Jones typology

Culture SolidaritySociability

Networked Low HighMercenaryHigh LowFragmented Low LowCommunal High High


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GOFFEE & JONES TYPOLOGY EXPLAINED

Networked : organizations view members as family. People like each other. Focus on friendship. Tolerance of poor performance.

Mercenary: organizations fiercely go focussed. Can lead to inhuman

treatment of poor performers.


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GOFFEE & JONES TYPOLOGY EXPLAINED (Contd.)

Fragmented:organization made up of individuals.

Commitment to individual members. People judged on their productivity. Critiquing of others.

Communal:values both friendship and performance.

Feeling of belonging, also focus on goal achievement. Charismatic leaders-creates disciples than followers.


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ORGANIZATIONAL CULTURE Vs. ORGANIZATIONAL

CLIMATE

Organizational culture is concerned with the nature of beliefs and expectations about organizational life, while climate is an indicator whether those beliefs and expectations are being fulfilled.


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ORGANIZATIONAL CLIMATE

Overt factors: hierarchy, financial resources, skill

and ability of personnel, technological state.

Covert factors: attitudes, feelings, values,

supportiveness, satisfaction.


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CONCLUSION

The strength of the primary culture characteristics leads to performance and satisfaction of the employees.

organizational culture

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