ORGANIZATIONAL CULTURE

Definition Culture is the unique dominant pattern

of shared beliefs, assumptions, values, and norms that shape the socialization, symbols, language and practices of a group of people.

The attitudes and approaches that typify the way staff carry out their tasks.

Culture is developed and transmitted by people, consciously and unconsciously, to subsequent generations.

What must be for culture to exist?

1. It must be shared by the vast majority of members of a group or society;

2. It must be passed on from generation to generation; and

3. It must shape behaviour and perceptions.

Cultural icebergObservable elements of culture

Not observable

• Practices• Language• Symbols

• Norms• Values

• Assumptions

Shared assumptions

Shared assumptions are the thoughts and feelings that members of a culture take for granted and believe to be true.

Values and norms Values are the basic beliefs people hold

that specify general preferences and behaviours, and define what is right and wrong. Cultural values are reflected in a society’s

morals, customs and established practices Norms are rules that govern behaviours

of groups of people.

Symbols A symbols is any visible object, act, or

event that conveys meaning to others. Examples: Artefacts Dress Office layout Slogans ceremonies

Language

Language is a shared system of vocal sounds, written signs, and/or gestures used to convey meaning among members of a culture.

The Nike swoosh was inspired by the Greek goddess Nike, the winged goddess of victory. The swoosh symbolizes her flight. It conveys the meaning of a brand of sports shoes

Practices Practices are observable cultural

customs such as taboos (culturally forbidden behaviours) and ceremonies

Socialization Socialization is the process by which

people learn values, norms, behaviours and social skills. It is the means by which new members are brought into a culture.

Types of organizational culture

The basic types of organizational culture are:1. Bureaucratic2. Clan3. Market4. Entrepreneurial

Bureaucratic Culture In this type of culture the behaviour of

employees is governed by formal rules and standard operating procedures.

Such a culture perpetuates stability. Organizations with bureaucratic culture

tend to produce standardized goods and services, examples: Government ministries Fast food establishments

Clan Culture In a clan culture the behaviour of individuals are

shaped by tradition, loyalty, personal commitment, extensive socialization and self-management.

A clan culture achieve unity through socialization. Long-term employees serve as mentors Members are aware of the organization’s history

and have an understanding of the expected manner of conduct and organizational style.

Members share feelings of pride in membership. Peer pressure to adhere to important norms is

strong

Market Culture In a market culture, the values and norms reflect the significance

of achieving measurable and demanding goals mainly concerning those that are financial and market based.

Companies with a market culture tend to focus on: Sales growth Profitability Market share

In a market culture the relationship between individuals and the organization is contractual (previously agreed).

Individuals are responsible for their performance; whereas the organization promises specific rewards for levels of performance.

Managers are not judge on their effectiveness as role models or mentors; but on monthly, quarterly, and annual performance goals based on profit.

Entrepreneurial Culture Organizations existing

in the context of an entrepreneurial culture are characterized by high levels of risk taking and creativity.

There is a commitment to experimentation, innovation, and being on the leading edge.

Steve Jobs – Apple

Relationship between culture and organizational performance

Organizational culture has the potential to enhance organizational performance, individual satisfaction, the sense of certainty about how problems are to be handled.

Culture serves as a control mechanism to channel behaviour towards desired behaviours and to prevent undesired behaviours.

Maintaining a strong organizational culture

1. A common behavioural style must be shared by managers and employees.

2. Have the same basic approaches to solving problems, meeting goals, and dealing with stakeholders.

3. Have share common norms that guide rule governing rewards and punishment.

4. A strong organizational culture assists in the creation of a stable organization, the consequence of which lead to the achievement of the company’s strategic goals.

Steps to building a strong organizational culture - socialization

•Careful selection

Step 1

•Challenging early work assignments

Step 2 •Training to

develop capabilities with cultureStep

3

•Reward and sustain culture

Step 4

•Adoption of cultural value policiesStep

5

•Reinforce culture with ritual, stories rites

Step 6 •Role model

to sustain culture

Step 7

Outcomes of socialization process

Job satisfaction Role clarity High work performance Understanding of

culture Commitment to

organization Internal values

Job dissatisfaction Role ambiguity and

conflict Misunderstanding,

tension, and perceived lack of control

Low job involvement Low performance Rejection of values

Successful socialization Unsuccessful socialization

Reinforcement video

Reinforcement video