ORGANIZATIONAL CULTURE AND CLIMATE

By: Jason Santos, MBAConnect with me on LinkedIn

Organizational Culture

Source: study.com/academy/lesson/what-is-organizational-culture-definition-characteristics.html

Organizational culture is the foundation, a system of shared assumptions, values, and beliefs, which governs how people behave in organizations. These shared values have a strong influence on the people in the organization and dictate how they dress, act, and perform their jobs.

Organizational Climate

Source: https://en.wikipedia.org/wiki/Organisation_climate

Organizational climate is the process of quantifying the “culture” of an organization, and it precedes the notion of organizational culture. It is a set of properties of the work environment, perceived directly or indirectly by the employees, that is assumed to be a major force in influencing employee behavior.

Key Elements of an Organizational Culture

Source: https://www.bridgespan.org/insights/library/organizational-effectiveness/key-elements-effective-organizations

Source: http://genuineevaluation.com/what-does-a-learning-enabled-organizational-culture-look-like/

Org. Culture vs. Org. Climate

Organizational Culture Organizational Climate

Based on anthropology and sociology

Based on psychology

Members learn and communicate what is

acceptable or unacceptable in the organization

It does not deal with values & norms, it is concerned

with the current atmosphere in the

organizationIt is long lasting It is developed through the

managerial prescriptions

What is the Importance of Org. Culture?

• It attracts and retains talent• Engages People• Creates energy and keeps

them in momentum• Changes their view of

“work”• Creates greater synergy• Makes them successful. All

the more, the Business successful.

ORGANIZATIONAL CULTURE

DIFFERENCES ACROSS THE WORLD

CHINA

• Bureaucratic and hierarchic with high power distance• Decision making without delegation• Punishment for negative results• Poor flow of information (passive communication)• Decision based on intuition and past experience• Case by case approach• Limited use of support systems• A paternalistic leadership model means workers’

immediate supervisors are expected to be hands-on and personable. Managers are expected to socialize with employees.

• Workers expect explicit directions on tasks.• Qualified workers switch companies easily.• Chinese people are among the longest working in the

world; the workday is officially set at 8 hours, but at least 25% put in 9-11 hours every day.

• Long lunch breaks provide time to eat, rest or even take a nap to re-energize

JAPAN

• Silence is Golden• Group solidarity is paramount• Business cards are talismans• Age equals seniority• Hard sell doesn’t sell• Privacy is valued• Tradition of Business Gift Exchange• Chopstick manners and etiquette • Follow the business and official dress code• Japanese are service oriented

AMERICA

• Highly Informal, people prefer to be called by their first names., even bosses or supervisors.

• Meetings are highly common and long• Straightforward – they prefer saying “yes” or “no”• People come to work early and leave on time• Highly liberal & democratic• Often luxurious amenities• Dress codes vary widely• Requirement to participate in corporate social life

PHILIPPINES

• Unique communication style• Respect to Seniors• Hospitable, warm & friendly• Generosity in the workplace• Deep sense of camaraderie and belonging –

“bayanihan”• Value of praise & recognition for hard work• Relaxed environment, thus the “mañana habit” &

“filipino time” are often prevalent• Requirement to participate in social corporate culture –

“pakikisama”

RUSSIA

• Pessimistic work styles, Russia is a country that considers itself isolated from the rest of the world.

• Greeting with gifts, usually during first, official business meetings. Particularly during Intl. Women’s day (march 8)

• Patient & serious workers – prefers not to joke or goof around at work

• Prefers face to face interactions over emails, faxes and the like.

• Connections and Bureaucracy

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