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Organizational culture

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Controlling, Information, and Technology- Presented by: Eyad Al-Samman
3. How to create and sustain cultures?
4. How do employees of a certain organization learn culture?
5. What are the ways for matching people with cultures?
6. What are the key dimensions of differences in cultural values?
Main issues to be covered in this chapter:
Ch. 11 :: Organizational Culture
What is Organizational Culture?
Organizational Culture is a system of shared meanings held by members. This organizational culture distinguishes the organization from other organizations.
Organizational Culture is a set of shared values that organization members have regarding the functioning and existence of their organization.
Another simple definition:
What is Organizational Culture?
Characteristics that capture the essence of an Organization’s Culture are:
Ch. 11 :: Organizational Culture
Defines how much importance a company allocates to precision and detail in the workplace.
1. Attention
to detail
2. Outcome orientation
Defines how much should be the management focus on its people; as “associates” or as “Work machines.”
3. People orientation
Every organization formulates the level of aggressiveness with which their employees work. For example, Microsoft is known for its aggression and market dominating strategies.
4. Aggressiveness
What is Organizational Culture?
Characteristics that capture the essence of an Organization’s Culture are:
(Continued)
Ch. 11 :: Organizational Culture
This characteristic defines how much room business allows for innovation. Places where you take a risk, the chances of returns are higher. Same goes for innovation.
5. Innovation and Risk taking
Synergistic teams help giving better results as compared to individual efforts.
6. Team orientation
Some organizations are focused on making themselves and their operations stable rather than looking at unselective or unsystematic growth.
7. Stability
What is Organizational Culture?
Benefits of Strong culture
- Initially, strong culture was conceived as a consistent set of beliefs, values, assumptions, and practices embraced by members of the organization.
- Some noted that strong culture is more important for organizations than others. For example, volunteer organizations need to stress on culture more than business organizations.
- Strong culture has core values which are intensely held and widely shared. It increases behavioural consistency.
Ch. 11 :: Organizational Culture
What is Organizational Culture?
Disadvantages of Strong culture
- The internalized controls associated with a strong culture result in individuals placing unconstrained demands with themselves and acting as a barrier to adaptation and change.
- A strong culture contribute to a displacement of goals or sub-goals formation. This means that behavioural ways of doing things become important and overshadow the original purpose of organization.
Ch. 11 :: Organizational Culture
Culture vs. Formalization
- Formalization is the extent to which rules and procedures are followed in an organization.
- Behavioural consistency results in the predictability of how employees perform jobs.
- Opponents say that Behavioural consistency leads to inflexibility where employees may resist changes.
Ch. 11 :: Organizational Culture
Ch. 11 :: Organizational Culture
- Originates from consistency in values.
National
Culture
- Originates from consistency in practices.
Organizational
Culture
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One of many faces of cultures in the World
Ch. 11 :: Organizational Culture
cultural variables affecting
people in other countries.
and honest caring about
another individual’s culture.
- It requires to understand and empathize the perspective of those living in other and very different societies.
Cultural
Sensitivity
Functions of culture within an organization:
Ch. 11 :: Organizational Culture
Culture has a boundary-defining role.
1
This sense of identity is conveyed to the organization members.
Culture conveys a sense of identity.
2
one’s individual self-interest.
3
Culture is the social glue that provides appropriate standards for what employees should say and do.
Culture enhances social system stability.
4
Culture serves as a sense-making and control mechanism.
5
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Culture as a liability:
Culture is a liability when shared values are not in agreement with those that will foster the organization’s effectiveness in a dynamic surrounding environment.
Ch. 11 :: Organizational Culture
Environment is dynamic and is undergoing rapid change,
Consistency of behaviour is an asset to an organisation.
- Consistency of behaviour may, however, burden the organisation and make it difficult to respond to changes in the environment.
Environment is stable,
Cultural Variables:
Individual cultural variables can be classified in eight categories that form the subsystems in any society.
Ch. 11 :: Organizational Culture
A kinship system is adopted by a given society to guide family relationship.
Kinship
1
The formal or informal education affects expectations of people in workplace, training programs and leadership styles.
Education
2
A nation’s economic system powerfully influences organizational processes such as distribution, incentive systems and repatriation of capital.
Economy
3
System of government in a society imposes varying constraints on the organisation and its freedom to do business.
Politics
4
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Cultural Variables:
Individual cultural variables can be classified in eight categories that form the subsystems in any society.
(Continued)
Ch. 11 :: Organizational Culture
Spiritual beliefs of a society are powerful that they go beyond other cultural aspects.
Religion
5
Many types of social associations arise in cultures out of formal and informal groups.
Association
6
System of healthcare affects employee productivity and attitudes toward physical fitness.
Health
7
Recreation is the manner in which people use their leisure time and attitudes toward leisure.
Recreation
8
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3. Creating and Sustaining Cultures?
How does a culture begin?
Ultimate source of an organisation’s culture can be traced to its founders who have a major impact on the organisation’s early culture.
- Culture creation process occurs in three ways:
Ch. 11 :: Organizational Culture
Founders only hire and keep employees who think and feel the way they do.
First Way
Founders instruct and socialize these employees to their way of thinking and feeling.
Second Way
Founders’ own behaviour acts as a role model which encourages employees to adopt their beliefs, values and assumptions.
Third Way
Keeping a Culture Alive:
Ch. 11 :: Organizational Culture
3
4
5
6
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Keeping a Culture Alive.
(Continued)
Hofstede’s Value Dimensions:
-Hofstede proposes four value dimensions as follows:
Ch. 11 :: Organizational Culture
The degree to which a society expects there to be differences in the levels of power.
Power distance
1
Extent to which people in a society feel threatened by ambiguous situations.
Uncertainty
avoidance
2
Two concepts are unrelated. Individualism is the tendency of people to look after themselves and family only and neglect society.
Individualism vs.
Collectivism
3
Masculine values include materialism and lack of concern for others. Feminine values include concerns for others and quality of life.
Masculinity vs.