Understanding Organizational Culture: Key Characteristics and Impact

1. Organizational Behavior15th Global Edition Chapter16 Robbins and Judge Organizational Culture

2. Define organizational culture and describe its common characteristics LO 1 • Organizational culture refers to a system of shared meaning held by members that distinguishes the organization from other organizations. 1

3. Define organizational culture and describe its common characteristics LO 1 • Research identifies seven primary characteristics that capture the essence of an organization’s culture: • Innovation and risk taking. • Attention to detail. • Outcome orientation. • People orientation. • Team orientation. • Aggressiveness. • Stability. 1

4. Define organizational culture and describe its common characteristics LO 1 • Organizational culture is concerned with employees’ perception culture. • Research asks questions • Does it encourage teamwork? • Does it reward innovation? • Does it stifle initiative? • It differs from job satisfaction • Job satisfaction is evaluative. • Organizational culture is descriptive. 1

5. Define organizational culture and describe its common characteristics LO 1 • High formalization creates predictability, orderliness, and consistency. • Formalization and culture are two different roads to a common destination. • The stronger an organization’s culture, the less management needs to develop formal rules and regulations. • Employees internalize guides when they accept the organization’s culture. 1

6. Compare the functional and dysfunctional effects of organizational culture on people and the organization LO 2 Culture’s Functions • Boundary-defining role • Conveys a sense of identity for members • Facilitates the generation of commitment • Enhances the stability of the social system • Serves as a sense-making and control mechanism • Guides and shapes attitudes and behavior of employees 1

7. Compare the functional and dysfunctional effects of organizational culture on people and the organization LO 2 • Institutionalization • Barriers to Change • Barriers to Diversity • Barriers to Acquisitions and Mergers 1

8. Identify the factors that create and sustain an organization’s culture LO 3 • How a Culture Begins • Ultimate source of an organization’s culture is its founders. • Founders have vision of what the organization should be. • Unconstrained by previous ideologies or customs. • New organizations are typically small; facilitates the founders’ imparting of their vision on all organizational members. 1

9. Identify the factors that create and sustain an organization’s culture LO 3 • Culture creation occurs in three ways: • Founders hire employees who feel the way they do. • Employees are indoctrinated and socialized into the founders’ way of thinking. • Founders’ behaviors act as role models. 1

10. Identify the factors that create and sustain an organization’s culture LO 3 • Sustain Through Selection • The explicit goal of the selection process is to identify and hire individuals with the knowledge, skills, and abilities to perform successfully. • Top Management • The actions of top management also have a major impact on the organization’s culture. 1

11. Identify the factors that create and sustain an organization’s culture LO 3 1

12. Show how culture is transmitted to employees LO 4 • Culture is transmitted to employees through • Stories, • Rituals, • Material symbols, and • Language. 1

13. Demonstrate how an ethical culture can be created LO 5 • Characteristics shaping high ethical standards: • High in risk tolerance • Low to moderate in aggressiveness • Focuses on means as well as outcomes • Managers are • Supported for taking risks and innovating, • Discouraged from unbridled competition, and • Guided to not just what is achieved but also how. 1

14. Demonstrate how an ethical culture can be created LO 5 • If the culture is strong and supports high ethical standards, it should have a very powerful and positive influence on employee behavior. • The negative consequences of a systematic culture of unethical behavior can be severe and include customer boycotts, fines, lawsuits, and government regulation of an organization’s practices. 1

15. Demonstrate how an ethical culture can be created LO 5 • How can management create a more ethical culture? • Be a visible role model. • Communicate ethical expectations. • Provide ethical training. • Reward ethical acts and punish unethical ones. • Provide protective mechanisms. 1

16. Describe a positive organizational culture LO 6 • There is a trend today for organizations to attempt to create a positive organizational culture. • A positive organizational cultureemphasizes building on employee strengths, rewards more than it punishes, and emphasizes individual vitality growth. 1

17. Show how national culture may affect the way organizational culture is transported to a different country LO 8 • Organizational cultures often reflect national culture. • One of the primary things U.S. managers can do is to be culturally sensitive. • The management of ethical behavior is one area where national culture can rub up against corporate culture. • U.S. employees are not the only ones who need to be culturally sensitive. 1

18. Summary and Implications for Managers 1