Chapter 18: Organizational Culture What are you expected to learn?
What is Institutionalization? What is Organizational Culture? Institutionalization = when an organization takes on a life of its own, apart from any of its members, and acquires immortality. The org is valued for itself, not just for what it produces or sells. (Ex: Disney, McDonalds, Sony) Organizational culture = A system of shared meaning held by members that distinguishes the organization from other organizations. Key Characteristics of an Organizational Culture:
*Culture is a descriptive term, that is, it is not evaluative. Organizational culture is concerned with how the characteristics of the company/organization are perceived – NOT if they are liked or disliked.* It is not about job satisfaction. Do Organizations Have Uniform Cultures? Organizational culture represents a common perception held by the organization members.
Strong vs. Weak Cultures Strong = cultures in which the core values are intensely held and widely shared Culture vs. Formalization · Often, rules and regulations re: performance are transmitted through culture – they do NOT need to be formally (explicitly) written in order to function. Thus, culture can act like formalization in some ways. Org Culture vs. National Culture · National culture has more influence on employees than org culture – so, for multinational orgs, the goal could be to hire applicants who fit the organizational (dominant) culture What do Cultures “Do”?.....Culture’s Functions Culture is the social glue that helps hold an organization together by providing appropriate standards for what employees should say or do. · It has a boundary-defining role. · It conveys a sense of identity for organization members. · It facilitates the generation of commitment to something larger than one’s individual self-interest. · It enhances social system stability. · It serves as a "sense-making" and control mechanism that guides and shapes the attitudes and behavior of employees. Culture as a Liability · Barrier to change · Barrier to diversity · Barrier to acquisitions and mergers Creating & Sustaining Culture
How Employees Learn Culture
Matching People With Cultures
Creating an Ethical Organizational Culture
Creating a Customer-Responsive Culture
Spirituality and Organizational Culture Workplace spirituality: The recognition that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of community. Ex) strong sense of purpose, individual development, trust and openness, employee empowerment, tolerance of expression. Summary and Implications for Managers
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