Organizational Culture

1. Organizational Culture January 23, 2019 International Organizational Behavior

2. Organizational or Corporate Culture • A pattern of basic assumptions that are considered valid and that are taught to new members as the way to perceive, think and feel in the organization • Very much parallel to national culture in the way it is structured and operates

3. Organizational Culture and National Culture • We earlier discussed national culture • Organizational culture has similar features • Levels—artifacts, espoused values, and underlying assumptions • Organizational cultures may reflect the national culture of home country of the firm • Not perfectly, organizations differ in same country

4. Levels of Description for Culture • Artifacts • Physical structures, language, rituals and ceremonies, stories and legends • Espoused values • Conscious beliefs, moral evaluations (good/bad, right/wrong) • Basic underlying assumptions • Non-conscious beliefs (taken for granted), implicit mental models and ideal prototypes of behavior

5. General Dimensions of Organizational Culture • Sensitivity to others • Interest in new ideas • Willingness to take risks • Value placed on people • Openness of available communication channels/options • Friendliness and congeniality

6. Hofstede’s Dimensions of Organizational Culture • We discussed Hofstede’s dimensions of national culture earlier • He also has proposed six dimensions of organizational culture • Hofstede uses these to analyze the potential for organizational change • What is the current culture, the desired culture, and is the organization ready to make necessary changes • What are the dimensions?

7. Means-Oriented vs. Goal-Oriented • These deal with the effectiveness of the organization • In a means-oriented culture, the employees focus on the “how” • Concern is with the way that tasks are carried out • People avoid risks—make a limited effort in their jobs, see every day as a repeat of every other day

8. Means-Oriented vs. Goal-Oriented (continued) • In a goal-oriented culture, employees strive for the “what” instead of the “how” • Risk taking is encouraged as a means of achieving specific internal goals or results for the organization • Employees take necessary risks to move the organization ahead

9. Internally Driven vs. Externally Driven • Internally driven organizations see their task as to the outside world as a given • Employees are driven by internal ethical standards, honesty, and the belief that the employees know what’s best for customers • Externally driven organizations do what is needed to meet customer requirements • Pragmatic results are favored over ethical behavior

10. Easygoing Work Discipline vs. Strict Work Discipline • Deals with the amount of structuring, control and discipline in the organization • In an easygoing culture the organization has a fluid internal structure, little control or discipline, and there results a lot of improvisation and potential surprises • Strict work discipline is the opposite • People are very cost-conscious, punctual and serious

11. Local vs. Professional • In a local company, employees identify with their boss and/or their work unit • Employees are very short-term directed, internally focused, and the presence of social controls function to make a person like everyone else • In a professional firm, an employee’s identity is determined by his or her profession, or job content • Characteristics are just the opposite of local characteristics above

12. Open System vs. Closed System • This deals essentially with the accessibility of the organization • In an open culture, newcomers are welcomed immediately into the firm • Insiders and outsiders are equally welcome, and it is believed that almost anyone would fit into the organization • A closed organization is the opposite, and newcomers are held at a distance

13. Employee-Oriented vs. Work-Oriented • This relates primarily to the management philosophy of the firm • Employee-oriented firms members feel that personal problems are taken into account • The organization takes responsibility for the welfare of employees, even at the expense of work and tasks

14. Employee-Oriented vs. Work-Oriented (continued) • In a work-oriented organization, there is heavy pressure to perform tasks, even if it is at the expense of the employees

15. Variations of Cultures • Dominant culture • Subcultures • Countercultures

16. Sources of Organizational Culture • Founders • Usually at core of a strong organizational culture • Tend to hire initially those who match values • Experiences with the external environment • Organizational memory

17. Deciphering Cultures Through Artifacts • Stories, legends, myths • Rituals and ceremonies • Organizational language • Physical structures and symbols • Statements of principle

18. Functions of Organizational Culture • Provides sense of identity to members, thus increasing commitment • Is a “sense-making” device • Allows us to structure how we think • Reinforces the values of the organization • Serves as a control mechanism to shape and mold behavior

19. Strong Culture Perspective • A strong culture is good—it drives the organization, provides intensity • This results in goal alignment • Shared values of members increases motivation • Creates behavioral control without bureaucracy and related costs and issues

20. Fit Perspective • Argues that organizational culture is only good if it fits the necessary strategy of the industry or firm • Must fit: • Societal expectations • Customer requirements • Competitive environment

21. Adaptive Perspective • Culture is good when it helps the firm to adapt • This in turn requires culture to encourage risk taking as needed, leadership that can enact change, and a focus on requirements of the customers