HND – 13. Organizational CultureLim Sei Kee @ cK

A system of shared meaning held by members that

distinguishes the organization from other organization.

Characteristics: Innovation and risk takingAttention to detailOutcome orientationPeople orientationTeam orientationAggressivenessStability

Organizational Culture

Organizational Culture ProfileOrg Culture Dimensions Dimension Characteristics

Innovation Experimenting, opportunity seeking, risk taking, few rules, low cautiousness

Stability Predictability, security, rule-oriented

Respect for people Fairness, tolerance

Outcome orientation Action oriented, high expectations, results oriented

Attention to detail Precise, analytic

Team orientation Collaboration, people-oriented

Aggressiveness Competitive, low emphasis on social responsibility

How Organizational Cultures Have an Impact on Performance and Satisfaction

Do Organizations Have Uniform Cultures?

Do Organizations Have Uniform Cultures?

1. Defines the boundary between one organization and others.

2. Conveys a sense of identity for its members.

3. Facilitates the generation of commitment to something larger than self-interest.

4. Enhances the stability of the social system.

What Do Cultures Do?

• Barrier to change– Occurs when culture’s values are not aligned with the values

necessary for rapid change

• Barrier to diversity– Strong cultures put considerable pressure on employees to

conform, which may lead to institutionalized bias

• Barrier to acquisitions and mergers– Incompatible cultures can destroy an otherwise successful

merger

Culture as a Liability

Institutionalization

Operates to produce common understandings among members about what is appropriate and, fundamentally, meaningful behavior.

Stems from the actions of the founders:

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

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

◦The founders’ own behavior acts as a role model that encourages employees to identify with them and thereby internalize their beliefs, values, and assumptions.

How Culture Begins

• Selection– Concerned with how well the candidates will fit into the

organization– Provides information to candidates about the organization

• Top Management– Senior executives help establish behavioral norms that are

adopted by the organization

• Socialization– The process that helps new employees adapt to the

organization’s culture

Keeping Culture Alive

Prearriva

l

Encounter

Metamorphosis

Outcomes• Produc

tivity• Commit

ment• Turnov

er

Socialization process

Prearrival – the period of learning that occurs before the new employee

joins the organization.

Encounter – the stage in which a new employee sees what the organization

is really like and confronts the possibility that expectations and reality may diverge.

Metamorphosis – the stage in which a new employee changes and adjusts

to the job, work group and organization.

Stories◦ Anchor the present into the past and provide explanations and

legitimacy for current practices

Rituals◦ Repetitive sequences of activities that express and reinforce the

key values of the organization

Material Symbols◦ Acceptable attire, office size, and executive perks that convey to

employees who is important in the organization

Language◦ Jargon and special ways of expressing one’s self to indicate

membership in the organization

How Employees Learn Culture

Managerial Practices Promoting an Ethical Culture

◦Being a visible role model.◦Communicating ethical expectations.◦Providing ethical training.◦Visibly rewarding ethical acts and punishing

unethical ones.◦Provide protective mechanisms.

Creating An Ethical Organizational Culture

A positive organizational culture emphasizes building on employee strengths, rewards more than it punishes, and emphasizes individual vitality and growth.

A) Building on Employee Strengths B) Rewarding More than Punishing C) Emphasizing Vitality and Growth

Creating a Positive Organizational Culture

A positive organizational culture does emphasize showing workers how they can capitalize on their strengths.

Organizations must help their employees to discover the strengths.

A- Building on Employee Strengths

Part of creating a positive organizational culture is “catching employees doing something right.”

It is important to not just focus on extrinsic rewards such as pay and promotions, but also power of smaller (and cheaper) rewards such as praise.

B- Rewarding more than Punishing

A positive culture recognizes the difference between a job and a career.

It supports not only what the employee contributes to organizational effectiveness but also how the organization can make the employee more effective.

C- Emphasizing Vitality and Growth

Key Variables Shaping Customer-Responsive Cultures

1. The types of employees hired by the organization.2. Low formalization: the freedom to meet customer service

requirements.3. Empowering employees with decision-making discretion

to please the customer.4. Good listening skills to understand customer messages.5. Role clarity that allows service employees to act as

“boundary spanners.”6. Employees who engage in organizational citizenship

behaviors.

Creating a Customer-Responsive Culture

Spirituality and Organizational Culture

Characteristics:• Strong sense of purpose• Focus on individual

development• Trust and openness• Employee empowerment• Toleration of employee

expression

◦Spirituality can counterbalance the pressures and stress of a turbulent pace of life.

◦Job demands have made the workplace dominant in many people’s lives, yet they continue to question the meaning of work.

◦The desire to integrate personal life values with one’s professional life.

◦An increasing number of people are finding that the pursuit of more material acquisitions leaves them unfulfilled.

Why Spirituality Now?