Organizational Culture
Meaning
• Organizational Culture is the set of shared
values, beliefs, and norms that influence the
way employees think, feel, and behave within
an organization.
• It shapes the organization's identity and can
significantly impact employee satisfaction,
motivation, and overall performance.
Values
• Definition: Values are the fundamental
principles or standards that guide behavior
within an organization or society.
• They represent what is considered important,
desirable, and worthy of respect.
• Values shape how individuals make decisions
and interact with others.
Examples:
• Integrity: Valuing honesty and ethical
behavior.
• Innovation: Prioritizing creativity and the
development of new ideas.
• Customer Focus: Placing importance on
meeting the needs of customers.
Belief
• Beliefs are the convictions or assumptions
that individuals hold to be true, often without
requiring evidence.
• In an organizational context, beliefs refer to
the shared understandings about how the
organization operates, what is possible, and
how success is achieved.
Examples
• Belief in Meritocracy: The idea that success in
the organization is based on merit and hard
work.
• Belief in Teamwork: The belief that
collaborative efforts produce better results
than individual efforts.
• Belief in Customer Satisfaction: The
conviction that satisfied customers are the key
to long-term success.
Norms
• Norms are the informal, unwritten rules and
expectations that govern behavior within a
group or organization.
• Norms dictate what is considered acceptable
or unacceptable behavior and help maintain
order and predictability in social interactions.
Examples
• Punctuality: The norm that employees should
be on time for meetings.
• Dress Code: The expectation that employees
should dress in a certain way, whether formal
or casual.
• Communication Style: Norms around how
openly or formally communication should be
conducted within the organization.
Components of Organizational Culture
• Values: Core principles that guide an
organization's internal conduct and its
relationship with the external world.
• Norms: The unwritten rules of behavior that
are considered acceptable in the organization.
• Symbols and Language: Logos, slogans, and
specific terminology that communicate the
organization's culture.
• Rituals and Ceremonies: Regular activities and
events that reinforce the organization's values
and norms.
• Stories and Legends: Narratives about the
organization’s past that shape its current
culture.
Types of Organizational
Culture
Clan Culture:
Characteristics: Family-like environment,
collaboration, participation, and a focus on
employee welfare.
Leadership Style: Mentorship and coaching.
Example: Many nonprofit organizations and
small businesses often have a clan culture.
Adhocracy Culture
• Characteristics: Innovation, creativity, and a
willingness to take risks. Flexibility and
adaptability are highly valued.
• Leadership Style: Visionary, risk-taking.
• Example: Startups and R&D departments in
larger companies often exhibit an adhocracy
culture.
Market Culture
• Characteristics: Competitive, results-oriented,
with a focus on achieving targets and
profitability.
• Leadership Style: Hard-driving, demanding.
• Example: Sales-driven organizations or
companies in highly competitive industries
may have a market culture.
Hierarchy Culture
• Characteristics: Structured and formalized
environment, clear procedures and
responsibilities, efficiency, and stability.
• Leadership Style: Organizing, monitoring, and
coordinating.
• Example: Government agencies and large
corporations often exhibit a hierarchy culture.
Impact on Performance
• Positive Culture: Leads to high employee
morale, strong teamwork, effective
communication, and higher productivity.
• Negative Culture: Can result in low morale,
high turnover, and reduced efficiency.
Changing Organizational Culture
• Leadership: Leaders play a crucial role in
shaping and changing the culture through
their actions and decisions.
• Communication: Transparent and consistent
communication is key to aligning employees
with the desired culture.
• Training and Development: Providing
employees with the necessary tools and
knowledge to embrace cultural changes.
• Reinforcement Mechanisms: Implementing
systems that reward behaviors aligned with
the desired culture.
Dominant Culture
• This refers to the core values shared by the
majority of the organization’s members. The
dominant culture is what defines the
organization’s overall character and is usually
established by the organization's leadership.
• Example: In a tech company, the dominant
culture might emphasize innovation,
risk-taking, and continuous learning.
Sub Culture
• Subcultures exist within the larger dominant
culture and are formed around specific teams,
departments, or groups within the
organization.
• These subcultures may share many of the
dominant culture's values but also have
unique characteristics.
• Example: A marketing department might have
a subculture that emphasizes creativity and
customer engagement, while the finance
department might focus on precision and
analytical thinking.
Strong Culture
• A strong culture exists when the core values
and norms of the organization are intensely
held and widely shared across the
organization.
• Employees deeply understand and embrace
these values, which significantly influence
their behavior.
• Companies like Google and Apple are often
cited as having strong cultures, where
innovation, creativity, and a commitment to
excellence are deeply embedded in their
organizational DNA.
Weak Culture
• A weak culture exists when the core values
and norms of the organization are not clearly
defined or widely shared among employees.
• As a result, there is less influence on
employees' behavior, and the culture may
vary widely across different parts of the
organization.
• Organizations undergoing significant changes,
such as mergers or leadership transitions,
often experience weak cultures as they work
to integrate different values and practices.
• Strong Culture: Refers to the intensity and
depth of the cultural values and norms shared
across the organization.
• Dominant Culture: Refers to the most
prevalent or widespread culture in the
organization, even if not uniformly strong in
all areas.
Examples
• A company where all employees, from top management to
entry-level staff, share a strong commitment to innovation
and quality, resulting in consistent, high-performance
outcomes is a strong culture.
• In a large multinational corporation, the dominant culture
might emphasize customer satisfaction and operational
efficiency, which is practiced across all departments, even
though specific departments might have their own
subcultures that emphasize creativity or technical expertise.
Keeping the culture alive
• Selection
• Top Management
• Socialization
Selection
• Cultural Fit: During the hiring process, it’s essential to select candidates
who not only have the necessary skills and qualifications but also align
with the organization’s core values and culture.
• This ensures that new hires naturally contribute to and reinforce the
existing culture.
• Behavioral Interviews: Implementing behavioral interviews focused on
past experiences and responses to specific situations can help assess
whether candidates align with the organization's cultural expectations.
Top Management
• Leadership Example: Top management sets the tone for the
organization's culture. Leaders who live by the company's values
demonstrate to employees what is expected, serving as role models.
• Cultural Vision: Leaders must articulate and promote a clear vision of the
company's culture, ensuring that all levels of the organization understand
and buy into it. This involves embedding cultural values into the
company’s strategic goals and day-to-day operations.
• Decision-Making: The decisions made by top management should
consistently reflect and reinforce the cultural values of the organization,
ensuring that culture remains a priority even in challenging times.
Socialization
• Onboarding and Training: Effective socialization begins with a
comprehensive onboarding process that immerses new employees in the
company's culture from day one. Ongoing training and development
programs further reinforce cultural values.
• Mentorship and Peer Support: Establishing a mentorship program where
new employees are paired with experienced team members who embody
the company’s culture can help new hires acclimate more quickly.
• Cultural Rituals: Regularly scheduled cultural events, team-building
activities, and recognition programs that celebrate cultural alignment help
maintain and strengthen the culture throughout the organization.
A socialization Model
• Prearrival
• Encounter
• Metamorphosis
• Outcomes: productivity, Commitment,
Turnover
Prearrival Stage
• This stage occurs before a new employee joins
the organization.
• It involves the individual's initial expectations,
attitudes, and experiences that shape their
perception of the company and its culture.
Key Elements:
• Recruitment: The organization's communication
during the recruitment process, including job
descriptions, interviews, and onboarding materials,
sets expectations.
• Preparation: The potential employee’s previous
work experiences, education, and personal values
influence their readiness to fit into the new
organizational culture.
Encounter Stage
• This stage begins when the new employee
officially joins the organization.
• It is characterized by the individual’s first
interactions with the actual work
environment, colleagues, and organizational
culture.
Key Elements
• Reality Check: The new employee compares their prearrival expectations
with the reality of the organization. Discrepancies can lead to adjustment
challenges.
• Onboarding and Orientation: The organization’s onboarding process,
including training and orientation programs, plays a critical role in helping
the employee understand the organizational culture, norms, and
expectations.
• Support Systems: The presence of mentors, buddies, or supportive
colleagues can help ease the transition during this stage.
Metamorphosis Stage
• In this stage, the employee has fully adapted
to the organizational culture and has
undergone the necessary changes to become
a functioning member of the organization.
Key Elements
• Cultural Integration: The employee internalizes the
organization’s values, norms, and expected behaviors.
• Role Clarity: The employee gains a clear understanding of
their role within the organization, including their
responsibilities and how they contribute to the overall
mission.
• Behavioral Changes: The employee adopts new behaviors,
skills, and attitudes that align with the organizational culture.
Outcomes
• Productivity: Effective socialization leads to higher productivity as employees
become more efficient and effective in their roles. They understand how to
navigate the organization and leverage its resources.
• Commitment: Employees who successfully navigate the socialization process
are more likely to develop a strong commitment to the organization. This
commitment reduces the likelihood of turnover and increases overall job
satisfaction.
• Turnover: Poor socialization can result in higher turnover rates as employees
may struggle to fit in or feel disconnected from the organizational culture.
Conversely, successful socialization decreases turnover by fostering a sense of
belonging and loyalty.
Discussion question
• What is the difference between organizational
culture and organizational climate?
• Which is more dynamic? Explain
Thank you!

ORGANIZATION CULTURE, IT INLUDES MEANING, FEATURES, TYPES

  • 1.
  • 2.
    Meaning • Organizational Cultureis the set of shared values, beliefs, and norms that influence the way employees think, feel, and behave within an organization. • It shapes the organization's identity and can significantly impact employee satisfaction, motivation, and overall performance.
  • 3.
    Values • Definition: Valuesare the fundamental principles or standards that guide behavior within an organization or society. • They represent what is considered important, desirable, and worthy of respect. • Values shape how individuals make decisions and interact with others.
  • 4.
    Examples: • Integrity: Valuinghonesty and ethical behavior. • Innovation: Prioritizing creativity and the development of new ideas. • Customer Focus: Placing importance on meeting the needs of customers.
  • 5.
    Belief • Beliefs arethe convictions or assumptions that individuals hold to be true, often without requiring evidence. • In an organizational context, beliefs refer to the shared understandings about how the organization operates, what is possible, and how success is achieved.
  • 6.
    Examples • Belief inMeritocracy: The idea that success in the organization is based on merit and hard work. • Belief in Teamwork: The belief that collaborative efforts produce better results than individual efforts. • Belief in Customer Satisfaction: The conviction that satisfied customers are the key to long-term success.
  • 7.
    Norms • Norms arethe informal, unwritten rules and expectations that govern behavior within a group or organization. • Norms dictate what is considered acceptable or unacceptable behavior and help maintain order and predictability in social interactions.
  • 8.
    Examples • Punctuality: Thenorm that employees should be on time for meetings. • Dress Code: The expectation that employees should dress in a certain way, whether formal or casual. • Communication Style: Norms around how openly or formally communication should be conducted within the organization.
  • 9.
    Components of OrganizationalCulture • Values: Core principles that guide an organization's internal conduct and its relationship with the external world. • Norms: The unwritten rules of behavior that are considered acceptable in the organization. • Symbols and Language: Logos, slogans, and specific terminology that communicate the organization's culture.
  • 10.
    • Rituals andCeremonies: Regular activities and events that reinforce the organization's values and norms. • Stories and Legends: Narratives about the organization’s past that shape its current culture.
  • 11.
    Types of Organizational Culture ClanCulture: Characteristics: Family-like environment, collaboration, participation, and a focus on employee welfare. Leadership Style: Mentorship and coaching. Example: Many nonprofit organizations and small businesses often have a clan culture.
  • 12.
    Adhocracy Culture • Characteristics:Innovation, creativity, and a willingness to take risks. Flexibility and adaptability are highly valued. • Leadership Style: Visionary, risk-taking. • Example: Startups and R&D departments in larger companies often exhibit an adhocracy culture.
  • 13.
    Market Culture • Characteristics:Competitive, results-oriented, with a focus on achieving targets and profitability. • Leadership Style: Hard-driving, demanding. • Example: Sales-driven organizations or companies in highly competitive industries may have a market culture.
  • 14.
    Hierarchy Culture • Characteristics:Structured and formalized environment, clear procedures and responsibilities, efficiency, and stability. • Leadership Style: Organizing, monitoring, and coordinating. • Example: Government agencies and large corporations often exhibit a hierarchy culture.
  • 15.
    Impact on Performance •Positive Culture: Leads to high employee morale, strong teamwork, effective communication, and higher productivity. • Negative Culture: Can result in low morale, high turnover, and reduced efficiency.
  • 16.
    Changing Organizational Culture •Leadership: Leaders play a crucial role in shaping and changing the culture through their actions and decisions. • Communication: Transparent and consistent communication is key to aligning employees with the desired culture.
  • 17.
    • Training andDevelopment: Providing employees with the necessary tools and knowledge to embrace cultural changes. • Reinforcement Mechanisms: Implementing systems that reward behaviors aligned with the desired culture.
  • 18.
    Dominant Culture • Thisrefers to the core values shared by the majority of the organization’s members. The dominant culture is what defines the organization’s overall character and is usually established by the organization's leadership. • Example: In a tech company, the dominant culture might emphasize innovation, risk-taking, and continuous learning.
  • 19.
    Sub Culture • Subculturesexist within the larger dominant culture and are formed around specific teams, departments, or groups within the organization. • These subcultures may share many of the dominant culture's values but also have unique characteristics.
  • 20.
    • Example: Amarketing department might have a subculture that emphasizes creativity and customer engagement, while the finance department might focus on precision and analytical thinking.
  • 21.
    Strong Culture • Astrong culture exists when the core values and norms of the organization are intensely held and widely shared across the organization. • Employees deeply understand and embrace these values, which significantly influence their behavior.
  • 22.
    • Companies likeGoogle and Apple are often cited as having strong cultures, where innovation, creativity, and a commitment to excellence are deeply embedded in their organizational DNA.
  • 23.
    Weak Culture • Aweak culture exists when the core values and norms of the organization are not clearly defined or widely shared among employees. • As a result, there is less influence on employees' behavior, and the culture may vary widely across different parts of the organization.
  • 24.
    • Organizations undergoingsignificant changes, such as mergers or leadership transitions, often experience weak cultures as they work to integrate different values and practices.
  • 25.
    • Strong Culture:Refers to the intensity and depth of the cultural values and norms shared across the organization. • Dominant Culture: Refers to the most prevalent or widespread culture in the organization, even if not uniformly strong in all areas.
  • 26.
    Examples • A companywhere all employees, from top management to entry-level staff, share a strong commitment to innovation and quality, resulting in consistent, high-performance outcomes is a strong culture. • In a large multinational corporation, the dominant culture might emphasize customer satisfaction and operational efficiency, which is practiced across all departments, even though specific departments might have their own subcultures that emphasize creativity or technical expertise.
  • 27.
    Keeping the culturealive • Selection • Top Management • Socialization
  • 28.
    Selection • Cultural Fit:During the hiring process, it’s essential to select candidates who not only have the necessary skills and qualifications but also align with the organization’s core values and culture. • This ensures that new hires naturally contribute to and reinforce the existing culture. • Behavioral Interviews: Implementing behavioral interviews focused on past experiences and responses to specific situations can help assess whether candidates align with the organization's cultural expectations.
  • 29.
    Top Management • LeadershipExample: Top management sets the tone for the organization's culture. Leaders who live by the company's values demonstrate to employees what is expected, serving as role models. • Cultural Vision: Leaders must articulate and promote a clear vision of the company's culture, ensuring that all levels of the organization understand and buy into it. This involves embedding cultural values into the company’s strategic goals and day-to-day operations. • Decision-Making: The decisions made by top management should consistently reflect and reinforce the cultural values of the organization, ensuring that culture remains a priority even in challenging times.
  • 30.
    Socialization • Onboarding andTraining: Effective socialization begins with a comprehensive onboarding process that immerses new employees in the company's culture from day one. Ongoing training and development programs further reinforce cultural values. • Mentorship and Peer Support: Establishing a mentorship program where new employees are paired with experienced team members who embody the company’s culture can help new hires acclimate more quickly. • Cultural Rituals: Regularly scheduled cultural events, team-building activities, and recognition programs that celebrate cultural alignment help maintain and strengthen the culture throughout the organization.
  • 31.
    A socialization Model •Prearrival • Encounter • Metamorphosis • Outcomes: productivity, Commitment, Turnover
  • 32.
    Prearrival Stage • Thisstage occurs before a new employee joins the organization. • It involves the individual's initial expectations, attitudes, and experiences that shape their perception of the company and its culture.
  • 33.
    Key Elements: • Recruitment:The organization's communication during the recruitment process, including job descriptions, interviews, and onboarding materials, sets expectations. • Preparation: The potential employee’s previous work experiences, education, and personal values influence their readiness to fit into the new organizational culture.
  • 34.
    Encounter Stage • Thisstage begins when the new employee officially joins the organization. • It is characterized by the individual’s first interactions with the actual work environment, colleagues, and organizational culture.
  • 35.
    Key Elements • RealityCheck: The new employee compares their prearrival expectations with the reality of the organization. Discrepancies can lead to adjustment challenges. • Onboarding and Orientation: The organization’s onboarding process, including training and orientation programs, plays a critical role in helping the employee understand the organizational culture, norms, and expectations. • Support Systems: The presence of mentors, buddies, or supportive colleagues can help ease the transition during this stage.
  • 36.
    Metamorphosis Stage • Inthis stage, the employee has fully adapted to the organizational culture and has undergone the necessary changes to become a functioning member of the organization.
  • 37.
    Key Elements • CulturalIntegration: The employee internalizes the organization’s values, norms, and expected behaviors. • Role Clarity: The employee gains a clear understanding of their role within the organization, including their responsibilities and how they contribute to the overall mission. • Behavioral Changes: The employee adopts new behaviors, skills, and attitudes that align with the organizational culture.
  • 38.
    Outcomes • Productivity: Effectivesocialization leads to higher productivity as employees become more efficient and effective in their roles. They understand how to navigate the organization and leverage its resources. • Commitment: Employees who successfully navigate the socialization process are more likely to develop a strong commitment to the organization. This commitment reduces the likelihood of turnover and increases overall job satisfaction. • Turnover: Poor socialization can result in higher turnover rates as employees may struggle to fit in or feel disconnected from the organizational culture. Conversely, successful socialization decreases turnover by fostering a sense of belonging and loyalty.
  • 39.
    Discussion question • Whatis the difference between organizational culture and organizational climate? • Which is more dynamic? Explain
  • 40.