Chapter 16: Organizational Culture

What is organizational culture?
A system of shared meaning held by members that distinguishes the organization from other organizations
What are the seven characteristics of organizational culture?
Innovations and risk taking
Attention to detail
Outcome orientation
People Orientation
Team orientation
Aggressiveness
Stability
What is outcome orientation?
the degree to which management focuses on results rather than techniques and processes used to achieve them
What is people orientation?
Degree to which management decisions take into account the outcomes on people within the organization
What is team orientation?
Degree to which activities are organizes around teams rather than individuals
What is stability?
degree to which organizational activities emphasize maintaining the status quo in contrast to growth
What is the difference between organizational culture and job satisfaction?
Organizational culture is a description, whereas job satisfaction is an evaluation.
What is a dominant culture?
expresses the core values a majority of members share that give the company’s its distinctpersonality
What are subcultures?
reflect common problems or experiences members face in the same department or location. (Core values + additional shared values)
What is a strong culture?
when the organization’s core values are both intensely held and widely shared.
The stronger the culture, the grater influence on __________ ________
member behavior
True or False: Strong cultures reduce employee turnover.
True. Unanimity of purpose builds cohesiveness, loyalty, and organizational commitment
How is culture related to formalization?
Culture achieves the same ends as formalization (preictability, orderliness, consistency) without the need for written documentation
Do decentralized organizations need cultures?
It is more necessary to have an organizational culture in a decentralized org, but it is more difficult to establish
Individual-organization “fit” means
whether the employee’s attitudes and behavior are compatible witht he culture.
What could individual-organization fit influence?
Job selection, promotions, and performance reviews
What is organizational climate?
shared perceptions organization members have about their organization and work environment (like team spirit!)
________ climate is strongly related to individual’s level of job satisfaction, involvement, commitment, and motivation.
Psychological
What occurs during institutionalization?
an organization is valued for itself and not the goods and services it produces
How can organizational culture create barriers to change?
when shared values aren’t conducive to furthering the organization’s effectiveness
How can organizational culture create barriers to diversity?
Strong cultures can sometimes eliminate the benefits of diversity. Sometimes Cultures can be discriminatory which undermine formal diversity policies
How can organizational culture create barriers to acquisitions and mergers?
There is a need for cultural compatibility in M&A
Where does an organizational culture begin?
The founders
How do founders create an organizational culture?
-Impose vision of company at an early stage
-Only hire and keep employees who are similar to the founders
-Socialize employees to their way of thinking/feeling
-Display behavior for employees to internalize and identify with
How does selection help sustain a company culture?
Employers final decision on candidate are highly dependent on how well the candidate fits into company culture
How does top management help sustain an organizational culture?
Senior executives establish norms.
What is socialization?
Getting new employees adapted to the culture?
What are the three stages of socialization?
Pre-arrival, encounter stage, metamorphosis stage
What happens during the pre-arrival stage?
Individuals arrive with set of values, attitudes and expectations of the work and organization
What happens during the encounter stage?
Individual encounter differences between expectations and reality
What happens during the metamorphosis stage?
individual changes.
What kind of practices emphasize divestiture?
Institutional
What kind of practices emphasize investiture?
Individual
How do stories help employees learn a culture?
Show consistency of values and legitimize current practices. Employees create their own narratives
What are rituals?
Rituals are repetitive sequences of activities that express and reinforce the key values of the organization
How do symbols help employees learn a culture?
Shows who is important, the degree of egalitarianism top management wants, and appropriate behaviors
Example of how language makes individuals learn an organizational culture?
use of jargon
How can managers create a more ethical culture?
Be a visible role model
Communicate ethical expectations
Visible reward/punish ethical and unethical acts
Provide a platform where employees can openly express ethical dilemmas without consequence.
How are positive organizational cultures characterized?
Emphasize building on employee strengths
Rewards more than it punishes
Emphasize individual vitality and growth
What kind of rewards should be given to create a positive organizational culture?
Intrinsic as well as extrinsic. Appraisal.