Organizational culture

chapter three

McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Terminologies

Organization: collections of people who work together and

coordinate their actions to achieve a wide variety of goals or desired future outcomes

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Terminologies

Culture Culture is central to what we see, how we

see ,how we make sense of what we see & how we express ourselves Example:

When you shape a round finger it mean zero in Indonesia but in Brazil it mean rude

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Terminologies

Shared values• Deeply held, widely shared principles that exist with in

& across all the world's religious &philosophical perspectives.

• Grand values such as – justice &service – Hospitality– protection of environment – care for the poor etc

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Terminologies

Cultural values are collective beliefs, assumption & feelings

about what things are good,bad,normal, rational,valuable.

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What is organizational culture?

Consist of beliefs, values & assumptions shared within an org, distinguishing the one org from other

• Defines what is imp & un imp in the company & directs every one in the org towards “right way” of doing things.• Some author called it DNA & some soul of the org .its

invisible to naked eyes, yet a powerful template that shapes what happens in the workplace

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Measurements to know org culture

The way the org conducts its business treat its employees, customers & wider community.

The extent to which freedom is allowed in decision making ,developing new ideas & personal expression.

How power & info flow through its hierarchy. How employees work to achieve organizational goals

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Strong vs. weak org culture

Strong culture Org core values are held strongly & shared

widely ,when the org members accept the shared values, they become more committed to them.

Beliefs & values are shared relatively consistently through an org.

Great influence on the behavior of org members.

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Strong culture

Goal oriented. High level of employee motivation. Better able to learn from past. Lower employee turn over. Loyalty. Interaction between employees. Bring employees on common platform. Healthy competition between employees.

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Weak culture

Do not subscribe shared values, beliefs and norms.

Increase employees turn over. Hold different beliefs that do not necessarily

address the core goal of the org.

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How employees learn org culture

Stories &legends Rituals. ceremonies. Physical structure & symbols

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Stories and legends

Example:└ Many years ago. so the story goes, a security

guard stopped IBM CEO Thomas Watson jr, as he was enter on company area with out the identification badge. Watson explain “who he was” but the guard insisted that a badge must be worn in secured area of the building. Rather that discipline the guard, Watson praised him & used this experience to tell other to performing their job well.

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Rituals

Rituals are the programmed routines of daily life that dramatized the organizational culture└ It include • How visitors are greeted • How often senior executives visit sub-

ordinates• How people communicate each other• How much time employee take for lunch and

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Rituals

Example: Peter Delisi notes that digital company

employees seems to fight a lot each other, shouting matches are frequent occurrence. He come to conclude that digital people did not like each other recalled the marketing executive. Eventually Delisi learn that digital employees did not dislike each other but were engaged in the rituals pushing back defending idea until the truth ultimate prevailed.

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Physical Structures and Symbols

“The physical layout of the building also reflects the culture,”

└ It include• size,• shape• location• age of buildings• organization’s emphasis on teamwork• risk aversion

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Physical Structures and Symbols

Even if the building doesn’t make much of a statement

• Desks• Chairs• cafeteria food• wall hangings

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