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Organizational Culture
Organizational Culture is a system of shared beliefsand values that develop within an organization andguide the behavior of its members
The way we do things around here.
Basic assumptions, values, norms
Implications:
Culture is a perception.Culture is shared.
Culture is descriptive.
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Sources of Organizational Culture
The organizations founder
Vision and mission
Past practices of the organization The way things have been done
The behavior of top management
Continuation of the Organizational Culture
Recruitment of like-minded employees who fit
Socialization of new employees to help them adapt to the
culture
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Keeping Culture Alive
Sources of Organizational Culture
The organizations founder
Vision and mission
Past practices of the organization The way things have been done
The behavior of top management
Continuation of the Organizational Culture
Recruitment of like-minded employees who fit
Socialization of new employees to help them adapt to the
culture
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Strong versus Weak Cultures
Strong Cultures
Are cultures in which key values are deeply held and widely
held.
Have a strong influence on organizational members.
Factors Influencing the Strength of Culture
Size of the organization
Age of the organization
Rate of employee turnover Strength of the original culture
Clarity of cultural values and beliefs
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Besides Organizational Culture
Managerial
DiscretionOrganizations EnvironmentOrganizational Culture
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The External Environment
TheOrganization
Suppliers Customers
Public
Pressure
Groups Competitors
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How Culture Affects Managers?
Plan - degree of risk that plans should
contain
Organize - degree of autonomy given to
employees
Lead - degree of concern for employees,style of leadership
Control - what criteria to use when evaluating
performance
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Corporate Culture:
A Global Perspective
Corporate Culture is
1. Influenced by national culture
and
2. Sustained by corporate leadership
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What is corporate culture?
Corporate culture is a manifestation of the
informally sanctioned corporate attitude.
It is often referred to as OrganizationalDNA or the Organizational Soul.
It is a fundamental contributor to the
success or failure of corporate strategies.
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Corporate Culture can evolve from
A leaders vision, policies, and actions
Influential individuals or work groups
Policies & Procedures (Careless, lax, or unclear)
People management philosophy (ignoring employeeharassment)
Employee work-ethic (hire for attitude; train for skill)
Organizational policies (no gifts from suppliers, casualFridays, etc.)
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Corporate Culture is reflected in
A companys
Values, business principles, and ethical standardspreached and practiced by management
Approaches to people managementand problem solving
Relationships with Shareholders, community,
customers, suppliers, government agencies, etc. Entrenched attitudes toward people from
different national cultures
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The First Step on the Path to
Implementing a Successful Global
Strategy
Understanding the Relationship between
National Culture and Corporate Culture
Corporate Culture & National CultureAre Symbiotically Related
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What is national culture?
National culture is the mental programming of
a group of people. It is comprised of the
values, customs, and belief systems shared by
a particular group of individuals.
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Cultural Understanding can translate
to better Business Practices
Contributions of Geert Hofstede
He separated cultures into five dimensions:
Power Distance
Individualism
Uncertainty Avoidance
Masculinity
Short and long-term orientation
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Business Ethics:
It can be argued that some dimensions ofbusiness ethics are fluid.
Cultural norms can differ betweencountries. What is unacceptable in onecountry may be perfectly acceptable inanother.
Thus
A healthy corporate culture will encourageemployees to observe, learn, and avoidpassing judgment too quickly.
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Effective strategic leaders --
Craft global strategies that nurture a healthy
corporate cultureEncourage employees to understand and
appreciate
other national cultures
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Determination to nurture a healthy corporate culture
Courage
Self-confidence
Integrity
The capacity to deal with uncertainty and complexity A willingness to hold people (and themselves)
accountable for their work
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Cultural Core Concepts
Its not about Magic Its about Management
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Corporate Culture
Managements Responsibility
1. Corporate culture refers to the character of acompanys internal work climate andpersonality.
2. In a strong-culture company, culturally-approved behaviors and ways of doing things
are nurtured while culturally-disapprovedbehaviors and work practices arediscouraged.
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3. In adaptive cultures, there is a spirit of doing
what is necessary to ensure long-termorganizational success.
4. Adaptive cultures are exceptionally well suited to
companies with fast-changing strategies andmarket.
5. The tighter the culture-strategy fit, the more the
culture steers company personnel into displayingbehaviors and adopting operating practices thatlead to successful strategy execution.
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6. It is in managements best interest to dedicateconsiderable effort to building a corporate culture
that encourages behaviors and work practicesconducive to good strategy.
7. A companys culture is grounded in and shaped
by its core values and the bar it sets for ethicalbehavior.
8. A multinational company needs to build itscorporate culture around values and operatingpractices that travel well across borders.
