Organizational Culture
1
What Is Institutionalization?
Permanence
Value
Immortality
Behavior
2
What Is Organizational Culture?
A system of shared meaning held by members that distinguishes the organization from other organizations.
3
What Is Organizational Culture?
• Innovation and risk taking • Attention to detail
• Outcome orientation
• People orientation • Team orientation • Aggressiveness • Stability
4
Do Organizations Have Uniform Cultures?
Dominant Culture Core Values
Subcultures
5
Intensity of Core Values
Commitment to Core Values
Strong Versus Weak Cultures
High Behavioral Control Low Employee Turnover
6
Organizational Culture
Functions
Defining boundaries
Conveying identity
Liabilities
Impeding change
Inhibiting diversity
Promoting commitment
Controlling behavior
Blocking mergers
Blocking acquisitions
7
How A Culture Begins
Hiring and Retention
Indoctrination & Socialization
Behavior and Role Modeling
8
Selection
Sustaining a Culture
Top Management
Socialization
9
How Organizational Cultures Form
Top Management Philosophy of the Organization¡¯s Founders
Selection
Organizational Culture
Socialization
10
Stories
Rituals
How Employees Learn Culture
Language
Material Symbols
11
Four-Culture Typology
High
Networked
Sociability
Communal
Fragmented
Low
Mercenary
Low
Cohesiveness
High
12
Institutional Theory
Power Roles
Task
Person
13
Power Culture
•Central power source •Traditionally small, entrepreneurial organizations •Power rings are centers for activity and influence
•Strings are functions and specialties
•Usually spawns other organizations
•Must concentrate on a few activities to work well
•More¡
14
Power Culture
•Based upon trust, empathy and personal conversation •May be abrasive and competitive and result in turnover •Few policies, procedures •Control exercised by selection of key people •Proud, strong, flexible •Lots of faith placed in individuals, little in committees •Trade unions, property, trading and finance companies
15
Role Culture
•Strength in pillars (functions or specialties)
•Work and interaction in pillars controlled by:
•Procedures for roles (job descriptions)
•Procedures for communication
•Procedures for disputes
•Coordinated at top by narrow band of senior management
16
Role Culture
•Strength in pillars (functions or specialties)
•Work and interaction in pillars controlled by: •Procedures for roles (job descriptions) •Procedures for communication •Procedures for disputes •Coordinated at top by narrow band of senior management
•More¡
17
Task Culture
•Job/project oriented
•Bring together appropriate resources (right people at right level) •Influence based more on expert power than position or personal power
•Groups/project teams ¨C mutual objective of
accomplishing task •More¡
18
Task Culture
•Adaptable culture
•TMT mainly