Organizational culture

1. Organizational culture Week 14- 12/12/2008

2. LECTURE PLAN 1. Organisations and culture 2. What is Organizational Culture 3. Organizational culture�s functions 4. Creating & Sustaining Culture

3. ORGANISATIONS AND CULTUREWhy study culture and organisations? Global trends increase the frequency and the degree to which individuals from different cultural backgrounds interact. Perception of challenges to our societies that cannot be tackled by one government alone. Distribution of wealth fosters global migration. More wealth and leisure-time in some parts of the world result in global travel. Improved infrastructure, in particular communication and transport, ease the frequency of interactions. Global business: purchasing, production, and sales.

4. ORGANISATIONS AND CULTUREWhy study culture and organisations? Organisations are challenged by the differences in value-systems across cultures. For example: The western business world (Anglos. & North Europeans) is dominated by the protestant work ethic. Other cultures may mistrust the individual profit motive as value. There may be different perceptions of the line between corruption and networking, and the level to which gift-giving/bribes are accepted as a way of doing business. The family plays different roles in the professional life across cultures.

5. ORGANISATIONS AND CULTUREWhy study culture and organisations? Organisations are challenged by the differences in value-systems within the organisation. For instance, the need for achievement differs. Therefore, career prospects may not be an appropriate reward. Furthermore, individuals may differ with regard to their perception of control over their environment, and therefore, their ability to achieve something. Individuals from different cultural backgrounds may have different expectations with regard to job security, personal relations in the work-place etc.

6. ORGANISATIONS AND CULTUREWhy study culture and organisations? Organisations think of �managing� culture when they: Operate in multiple cultural contexts, i.e. purchase, produce or sell in different countries, or Employ a diverse work-force. Usually, organisations follow one of three approaches: Ignore cultural differences: associated with ignorance. Minimise (the frictions from) cultural differences, which is often associated with ethnocentrism. (Appreciate and) utilise cultural differences.

7. DEFINITIONS OF O.C. �Culture is the pattern of shared beliefs and values that give members of an institution meaning, and provide them with the rules of behaviour in their organization.� (Davis, 1984,1). � �Culture is the set of understandings or meanings shared by a group of people. The meanings are largely tacit among the members, are clearly relevant to a particular group, and are distinctive to the group.� (Louis, 1985, 74). � Culture is a loosely structured and incompletely shared system that emerges dynamically as cultural members experience each other, events, and the organization�s contextual features.� (In Martin, 2002).

8. Culture characteristics Innovation and risk taking Attention to detail Outcome orientation People orientation Team orientation Aggressiveness Stability

9. Contrasting Organizational Cultures

10. Contrasting Organizational Cultures (cont�d)

11. SCHEIN�S MODEL*

12. Artefacts: Organizational Stories Social descriptions of desired behavior Demonstrate that organizational objectives are attainable Most effective stories: Describe real people Assumed to be true Known throughout the organization

13. Artefacts: Rituals and Ceremonies Rituals programmed routines e.g., conducting meetings Ceremonies planned activities for an audience e.g., award ceremonies

14. Artefacts: Organizational Language Words used to address people, describe clients, etc. Leaders use phrases and metaphors as cultural symbols e.g.. General Electric�s �grocery store� Language also found in subcultures

15. Artefacts: Physical Structures/Space Oakley, Inc.�s protective and competitive corporate culture is apparent in its building design and workspace. The building looks like a vault to protect its cherished product designs (eyewear, footwear, apparel and watches).

16. Corporate values-IBM Dedication to every client�s success Innovation that matters, for our company and for the world. Trust and personal responsibility in all relationship.

17. Do Organizations Have Uniform Cultures?

18. Do Organizations Have Uniform Cultures? (cont�d)

19. Effects ofOrganizational Culture Functional Boundary-defining role Conveys a sense of identity Facilitates the generation of commitment Enhances social system stability Sense-making and control mechanism Dysfunctional Shared values do not agree with organization�s effectiveness Environment is dynamic Entrenched culture in rapid change Hinders ability to respond to changes

20. How Culture Begins 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.

21. Keeping Culture Alive Selection Concern 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

22. How Organization Cultures Form