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Organizational Organizational CultureCulture

CHAPTERCHAPTER

1111 November 2011

-Supervised by: Dr. Nayal Rashed - Presented by: Eyad Al-Samman

I.D.#: 201010047

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1.1. What is Organizational Culture? What is Organizational Culture?2.2. What do cultures do? What do cultures do?3.3. How to create and sustain cultures? How to create and sustain cultures?4.4. How do employees of a certain How do employees of a certain organization learn culture?organization learn culture?5.5. What are the ways for matching people What are the ways for matching people with cultures?with cultures?6.6. What are the key dimensions of What are the key dimensions of differences in cultural values?differences in cultural values?

Main issues to be covered in this Main issues to be covered in this chapter:chapter:

Ch. 11 :: Organizational Culture

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1.1. What is Organizational Culture?What is Organizational Culture?• Organizational CultureOrganizational Culture is a system is a system

of shared meanings held by of shared meanings held by members. This organizational members. This organizational culture distinguishes the culture distinguishes the organization from other organization from other organizations.organizations.


• Organizational CultureOrganizational Culture is a set of is a set of shared values that organization shared values that organization members have regarding the members have regarding the functioning and existence of their functioning and existence of their organization.organization.

Another simple definition:Another simple definition:

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1.1. What is Organizational Culture?What is Organizational Culture?• Characteristics that capture the essence of an Characteristics that capture the essence of an

Organization’s Culture are:Organization’s Culture are:


Defines how much importance a company Defines how much importance a company allocates to precision and detail in the workplace.allocates to precision and detail in the workplace.

11 . .AttentionAttention to detailto detail

Paying more attention to results rather than Paying more attention to results rather than processes.processes.22 . .Outcome Outcome

orientationorientation

Defines how much should be the management Defines how much should be the management focus on its people; as “associates” or as “Work focus on its people; as “associates” or as “Work machines.”machines.”

33 . .People People orientationorientation

Every organization formulates the level of Every organization formulates the level of aggressiveness with which their employees work. aggressiveness with which their employees work. For example, Microsoft is known for its For example, Microsoft is known for its aggression and market dominating strategies.aggression and market dominating strategies.

44 . .AggressivenessAggressiveness

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1.1. What is Organizational Culture?What is Organizational Culture?• Characteristics that capture the essence of an Characteristics that capture the essence of an

Organization’s Culture are:Organization’s Culture are:


(Continued)(Continued)

This characteristic defines how much room This characteristic defines how much room business allows for innovation. Places where you business allows for innovation. Places where you take a risk, the chances of returns are higher. take a risk, the chances of returns are higher. Same goes for innovation.Same goes for innovation.

5. Innovation and 5. Innovation and Risk takingRisk taking

Synergistic teams help giving better results as Synergistic teams help giving better results as compared to individual efforts.compared to individual efforts.

6. Team 6. Team orientationorientation

Some organizations are focused on making Some organizations are focused on making themselves and their operations stable rather themselves and their operations stable rather than looking at unselective or unsystematic than looking at unselective or unsystematic growth.growth.

7. Stability7. Stability

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1.1. What is Organizational Culture?What is Organizational Culture?• Benefits of Strong cultureBenefits of Strong culture

- - Initially,Initially, strong culturestrong culture was conceived as a consistent set of beliefs, was conceived as a consistent set of beliefs, values, assumptions, and practices embraced by members of the values, assumptions, and practices embraced by members of the organization. organization.


- - SomeSome noted that noted that strong culturestrong culture is more important for is more important for organizations than others. For organizations than others. For example, example, volunteer organizationsvolunteer organizations need to stress on culture more need to stress on culture more than than business organizationsbusiness organizations..

- S- Strong culturetrong culture has core values has core values which are intensely held and which are intensely held and widely shared. It increases widely shared. It increases behavioural consistency.behavioural consistency.

Sameness

CommitmentIdentity

Solidarity

Motivation

Strong and

pervasive culture

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1.1. What is Organizational Culture?What is Organizational Culture?• Disadvantages of Strong cultureDisadvantages of Strong culture

- - The internalized controls associated with aThe internalized controls associated with a strong strong cultureculture result in individuals placing unconstrained result in individuals placing unconstrained demands with themselves and acting as a barrier to demands with themselves and acting as a barrier to adaptation and change. adaptation and change.


- - AA strong culturestrong culture contribute to a displacement of goals contribute to a displacement of goals or sub-goals formation. This means that behavioural or sub-goals formation. This means that behavioural ways of doing things become important and ways of doing things become important and overshadow the original purpose of organization.overshadow the original purpose of organization.

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1.1. What is Organizational Culture?What is Organizational Culture?• Culture vs. FormalizationCulture vs. Formalization

- - FormalizationFormalization is the extent to which rules and procedures are followed in is the extent to which rules and procedures are followed in an organization.an organization.


Culture Formalization ofbehaviour

leads to

- - Behavioural consistencyBehavioural consistency results in the predictability of how employees results in the predictability of how employees perform jobs.perform jobs.

StrongCulture

Behavioural consistency increases

- - OpponentsOpponents say that say that Behavioural consistencyBehavioural consistency leads to inflexibility where leads to inflexibility where employees may resist changes.employees may resist changes.

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1.1. What is Organizational Culture?What is Organizational Culture?• Organizational Culture vs. National CultureOrganizational Culture vs. National Culture


-Has a Has a GREAT IMPACTGREAT IMPACT on employees.on employees.

- Different in nature of - Different in nature of organizational cultureorganizational culture..

- Originates from - Originates from consistency in values.consistency in values.

NationalCulture

-Has a Has a LESS IMPACTLESS IMPACT on on employees.employees.

- Different in nature of - Different in nature of national culturenational culture..

- Originates from - Originates from consistency in consistency in practices.practices.

OrganizationalCulture

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1.1. What is Organizational Culture?What is Organizational Culture?• Culture and its effect on OrganizationCulture and its effect on Organization


- It is a working knowledge of theIt is a working knowledge of thecultural variables affectingcultural variables affecting management decisions. management decisions.

- It is a critical skill for managing- It is a critical skill for managing people in other countries. people in other countries.

CulturalSavvy

- It is a sense of awarenessIt is a sense of awarenessand honest caring about and honest caring about another individual’s culture.another individual’s culture.

- It requires to understand and - It requires to understand and empathize the perspective of empathize the perspective of those living in other and very those living in other and very different societies.different societies.

CulturalSensitivity

(Cultural Empathy)

One of many faces of cultures One of many faces of cultures in the Worldin the World

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2. 2. What do Cultures Do?What do Cultures Do?• Functions of culture within an organization:Functions of culture within an organization:


Culture creates distinctions between one Culture creates distinctions between one organization and others.organization and others.

CultureCulture has a boundary- has a boundary-defining role.defining role. 1

This sense of identity is conveyed to the This sense of identity is conveyed to the organization members.organization members.

CultureCulture conveys a sense conveys a sense of identity.of identity. 2

Commitment is for something larger than Commitment is for something larger than one’s individual self-interest.one’s individual self-interest.

CultureCulture facilitates the facilitates the generation of generation of commitment.commitment.

3

Culture is the social glue that provides Culture is the social glue that provides appropriate standards for what employees appropriate standards for what employees should say and do.should say and do.

CultureCulture enhances social enhances social system stability.system stability. 4

This mechanism guides and shapes This mechanism guides and shapes attitudes and behaviours of employees.attitudes and behaviours of employees.

CultureCulture serves as a serves as a sense-making and sense-making and

control mechanism.control mechanism.5

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2. 2. What do Cultures Do?What do Cultures Do?• Culture as a liability:Culture as a liability:


-Culture is a liabilityCulture is a liability when shared values are not in agreement when shared values are not in agreement with those that will foster the organization’s effectiveness in a with those that will foster the organization’s effectiveness in a dynamic surrounding environment. dynamic surrounding environment.

-Organisation’s deep-rooted culture Organisation’s deep-rooted culture may no longer be appropriate.may no longer be appropriate.

Environment Environment is is dynamic and is dynamic and is

undergoing rapid undergoing rapid change, change,

-Consistency of behaviour is an Consistency of behaviour is an asset to an organisation.asset to an organisation.- Consistency of behaviour may, - Consistency of behaviour may, however, burden the organisation however, burden the organisation and make it difficult to respond to and make it difficult to respond to changes in the environment.changes in the environment.

Environment Environment is is stable, stable,

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2. 2. What do Cultures Do?What do Cultures Do?• Cultural Variables:Cultural Variables:


-Individual cultural variablesIndividual cultural variables can be classified in eight can be classified in eight categories that form the subsystems in any society. categories that form the subsystems in any society.

A kinship system is adopted A kinship system is adopted by a given society to guide by a given society to guide

family relationship.family relationship.

KinshipKinship1

The formal or informal The formal or informal education affects education affects

expectations of people in expectations of people in workplace, training programs workplace, training programs

and leadership styles.and leadership styles.

EducationEducation2

A nation’s economic system A nation’s economic system powerfully influences powerfully influences

organizational processes such organizational processes such as distribution, incentive as distribution, incentive

systems and repatriation of systems and repatriation of capital.capital.

EconomyEconomy3

System of government in a System of government in a society imposes varying society imposes varying

constraints on the constraints on the organisation and its freedom organisation and its freedom

to do business.to do business.

PoliticsPolitics4

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2. 2. What do Cultures Do?What do Cultures Do?• Cultural Variables:Cultural Variables:


-Individual cultural variablesIndividual cultural variables can be classified in eight can be classified in eight categories that form the subsystems in any society. categories that form the subsystems in any society.

Spiritual beliefs of a society Spiritual beliefs of a society are powerful that they go are powerful that they go

beyond other cultural beyond other cultural aspects.aspects.

ReligionReligion5

Many types of social Many types of social associations arise in cultures associations arise in cultures

out of formal and informal out of formal and informal groups.groups.

AssociationAssociation6

System of healthcare affects System of healthcare affects employee productivity and employee productivity and attitudes toward physical attitudes toward physical

fitness.fitness.

HealthHealth7

Recreation is the manner in Recreation is the manner in which people use their leisure which people use their leisure

time and attitudes toward time and attitudes toward leisure.leisure.

RecreationRecreation8


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3. 3. Creating and Sustaining Creating and Sustaining Cultures?Cultures?• How does a culture begin?How does a culture begin?


Founders only hire and keep employees who Founders only hire and keep employees who think and feel the way they do.think and feel the way they do.

FirstFirst Way Way

-Ultimate source of an organisation’s culture Ultimate source of an organisation’s culture can be traced to its founders can be traced to its founders who have a major impact on the organisation’s early culture.who have a major impact on the organisation’s early culture.

- Culture creation process occurs in three ways:- Culture creation process occurs in three ways:

Founders instruct and socialize these Founders instruct and socialize these employees to their way of thinking and employees to their way of thinking and feeling.feeling.

SecondSecond Way Way

Founders’ own behaviour acts as a role Founders’ own behaviour acts as a role model which encourages employees to model which encourages employees to adopt their beliefs, values and assumptions.adopt their beliefs, values and assumptions.

ThirdThird Way Way

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3. 3. Creating and Sustaining Creating and Sustaining Cultures?Cultures?• Keeping a Culture Alive:Keeping a Culture Alive:


-Practices within the organisation -Practices within the organisation which which maintain the culture include:maintain the culture include:

The selection process.The selection process.1

Performance evaluation criteria.Performance evaluation criteria.2

Training and career development Training and career development activities.activities.

3

Promotion procedures ensuring that Promotion procedures ensuring that employees integrate with the culture. employees integrate with the culture.

4

Rewarding employees who support Rewarding employees who support culture.culture.

5

Punishing employees who challenging Punishing employees who challenging culture.culture.

6

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3. 3. Creating and Sustaining Creating and Sustaining Cultures?Cultures?• Keeping a Culture Alive.Keeping a Culture Alive.


- Forces that sustain a culture:- Forces that sustain a culture:

Actions of top managementActions of top management1

Selection practicesSelection practices2

Socialization methodsSocialization methods3


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3. 3. Creating and Sustaining Creating and Sustaining Cultures?Cultures?• Hofstede’s Value Dimensions:Hofstede’s Value Dimensions:


-Hofstede Hofstede proposed a framework for understanding how values underlie proposed a framework for understanding how values underlie organizational behaviour. organizational behaviour.

--Hofstede Hofstede proposes four value dimensions as follows:proposes four value dimensions as follows:

The degree to which a society expects there The degree to which a society expects there to be differences in the levels of power.to be differences in the levels of power.Power distancePower distance1

Extent to which people in a society feel Extent to which people in a society feel threatened by ambiguous situations.threatened by ambiguous situations.

UncertaintyUncertainty avoidanceavoidance2

Two concepts are unrelated. Individualism is the Two concepts are unrelated. Individualism is the tendency of people to look after themselves and tendency of people to look after themselves and family only and neglect society.family only and neglect society.

Individualism vs.Individualism vs.CollectivismCollectivism3

Masculine values include materialism and lack of Masculine values include materialism and lack of concern for others. Feminine values include concern for others. Feminine values include concerns for others and quality of life.concerns for others and quality of life.

Masculinity vs.Masculinity vs.Femininity Femininity 4

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