1. DEFINITION:
Beliefs, values, and behavioral expectations shared informally by an organization’s members; “the way things are done around here.”
2. LAYERS OF CULTURE
3. Components of Culture
• Assumptions:
Taken-for-granted (implicit) beliefs, represent the core of organizational culture; ultimate source of values and action.
•Values:
Stated values and norms preferred by an organization; closely related to strategies and goals.
•Artifacts:
Visible, physical manifestations of organizational culture.
-Manner of dress
-Physical settings, i.e. parking spaces, cafeteria
-Stories
-Ceremonies; organizational “rites”
-Work schedules/work hours
4. Why Is Organizational Culture Important?
-Provides a sense of identity
-Generates commitment to the organization’s mission
-Clarify and reinforce standards of behavior
-Culture--- Reputation --- Selective applications
5. INSTILLING CULTURE
Selection
Socialization
Internalization/Commitment
6. Consequences of Strong Culture
BENEFITS:
Shapes employees’ attitudes & behaviors
Unifies the vision/identity
Increases commitment
Enhances stability
Selective applicants
BURDENS:
Conformity pressure
Restricted class of employees --- Groupthink
Resists change
7. Changing Culture
Disruptive Change:
-Dramatic crisis
-Turnover in leadership
Systematic change:
-Change the composition of the workforce
-Mergers and acquisitions
-Change the reward system
8. Org culture matters the most for managers WHEN :
-When first joining an organization
-When one company acquires another
-When coordinating efforts of different functional groups
-When changing strategic direction of the company
9. ADVANTAGE OF OB and Strategy:
-Distinguishes companies from competitors
-Provides positive economic benefits
-Not easily duplicated
10. Pfeffer’s 13 Practices for Managing People
Employment security
Selectivity in recruiting
High wages
Incentive pay
Employee ownership
Information sharing
Participation and empowerment
Self-managed teams
Training and skill development
Cross-utilization and cross-training
Symbolic egalitarianism
Wage compression
Promotion from within
11. WHY CHANGE IS HARD
-Short-term pressures
-Multiple pieces need to be in place at once
12. SUM UP
• Organizational culture can create value when culture is consistent with the firm’s strategy and operations.
• Strong organizational culture is one of the most effective tools for maintaining motivation and organizational performance.
• Remember that there are burdens as well as benefits associated with an organization having a strong culture.
