Organizational Culture

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 CULTURE 1. Innovation and risk taking 2. 3. 4. 5. 6. 7.

Attention to detail Outcome orientation People orientation Team orientation Aggressiveness Stability

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FUNCTIONS OF CULTURE 1.

2.

3.

4.

5.

It creates distinction between one organization and another. It conveys a sense of identity to organization members. It generates commitment to something larger than an individuals self interest. It is a social glue that helps hold the organization together. 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. 2. 3.

Barrier to change Barrier to diversity Barrier to acquisitions and mergers.

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ORGANIZATIONAL CULTURE: THE ROLE OF FOUNDER 1.

2.

3.

Founders hire and keep employees who think and feel as they do. They indoctrinate and socialize these employees to think and feel as they do. Founder’s own behaviour acts as role model.

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LEVELS OF ORGANIZATIONAL CULTURE 1.

Observable artifacts of culture a. b. c.

2. 3.

Organizational hero's Ceremonies and rites stories

Shared values Common assumptions

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FRAME WORK OF TYPES OF CORPORATE CULTURE Culture Functioning Orientation Bureaucratic Internal Stable Clan Internal Formal Entrepreneurial External Formal Market ExternalStable

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CORPORATE CULTURE EXPLAINED 

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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 Solidarity Networked Mercenary Fragmented Communal

Sociability

Low High High Low Low Low High High

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GOFFEE & JONES TYPOLOGY EXPLAINED 

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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.) 

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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. UGC/TRIEA/UNOM/DOMS/PTS

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ORGANIZATIONAL CLIMATE 

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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.

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