Organizational Culture

By Dr. Abdelaziz Zeid

Organizational Culture

An organization has a personality, which we call its culture. And that culture influences the way employees act and interact with others.

Definition:

Is the shared values, principles, traditions, and ways of doing things that influence the way organizational members act & that distinguish the organization from other organizations.

(It is; how things are done around here)

Organizational culture is a shared descriptive perception

♦It is not something that can be physically touched or seen.

♠It is concerned with how members perceive the culture and describe it, not with whether they like it.

♣ Aspects of culture are shared even though individuals may have different backgrounds or work at different organizational levels.

Dimensions of Organizational Culture

Organizational Culture

Attention to Detail

Outcome Orientation

People Orientation

Team OrientationAggressiveness

Stability

Innovation & Risk Taking

Degree to which employees are

expected to exhibit precision, analysis,

and attention to detailDegree to which

managers focus on results or outcomes

are achieved

Degree to which employees are

encouraged to be innovative and to

take risks

Degree to which management

decisions take into account the effects

on people in the organization

Degree to which employees are aggressive and

competitive rather than cooperative

Degree to which organizational decisions and

actions emphasize maintaining the

status quo

Degree to which work is organized

around teams rather than individuals

Describing an organization using these seven dimensions gives a picture of the organization’s culture.

In many organizations, one cultural dimension often is emphasized more than the others and essentially shapes the organization’s personality and the way organizational members work.

SONY Corporationthe focus is Product Innovation.SOUTHWEST Airlinesis People oriented

Dimensions of Organizational Culture

Strong Culture

Organizational cultures in which the key values are intensely held and widely shared.

Why is having strong culture is important?

♥Organizations with strong culture, employees are more loyal than employees in organizations with weak cultures.

♥Strong cultures are associated with high organizational performance.

Weak Culture Strong Culture

Values limited to a few people (usually top management)

Values widely shared

Culture sends contradictory messages about what’s important

Culture conveys consistent messages about what’s important

Employees have little knowledge of company history or heroes

Most employees can tell stories about company history or heroes

Employees have little identification with culture

Employees strongly identify with culture

Little connection between shared values and behaviors

Strong connection between shared values and behaviors

Establishing & Maintaining Culture

Philosophy of Organization

FoundersSelection Criteria

Top Management

Socialization

Organization’s culture

♦ The original source of the culture usually reflects the vision of the founder.♦ Selection process impacted by the culture of the organization.♦ Actions of top Managers have a major impact on the organization’s culture.♦ Socialization is a process that helps new employees learn the organization’s way of doing things.

How Employees Learn Culture

1)STORIES

2)RITUALS

3)MATERIAL SYMPOLS

4)LANGUAGES

How Culture Affects Managerial Decisions

1)Planning :►The degree of risk that plans should contain.

►Whether plans should be developed by individuals or teams.

►The degree of environmental scanning in which management will engage.

2)Organizing :►How much autonomy should be designed into employees’ job.

►whether tasks should be done by individual or in teams

►The degree to which managers interact with each others.

3)Leading :►The degree to which managers are concerned with increasing employee job satisfaction.

►What leadership styles are appropriate.

►whether all disagreements should be eliminated.

4)Controlling :►Whether to impose external controls or to allow employees to control their actions.

►What criteria should be emphasized in employee performance evaluations.

►What repercussions will occur from exceeding one’s budget.

Current Issues in Organizational Culture

1 )Creating an Innovative Culture

2 )Creating a Customer-Responsive Culture

3 )Spirituality and Organizational Culture

1 )Creating an Innovative Culture

●Challenge & Involvement

●Freedom

●Trust & Openness

●Idea Time

●Playfulness/Humor

●Conflict Resolution

●Debates

●Risk-Taking

2 )Creating a Customer-Responsive Culture

Characteristics of Customer-Responsive Culture:

1) Type of employee2) Type of job environment3) Empowerment4) Role clarity5) Consistent desire to satisfy & delight customers

3 )Spirituality and Organizational Culture

Workplace Spirituality:A culture where organizational values promote a sense of purpose through meaningful work that takes place in the context of community.

Cultural Characteristics of Spiritual organizations: 1)Strong sense of Purpose

2)Focus on individual development3)Trust & openness4)Employee empowerment5)Tolerance of employee expression