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Chapter 15 Organizational Culture

Chapter 15 Organizational Culture. What Is Organizational Culture?. Organizational Culture The norms, values, beliefs, assumptions, shared mental models, etc., held by the organization’s members; a system of shared meaning. Sample Culture Bases: Innovative and risk-taking

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Chapter 15 Organizational Culture

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  1. Chapter 15Organizational Culture

  2. What Is Organizational Culture? • Organizational Culture • The norms, values, beliefs, assumptions, shared mental models, etc., held by the organization’s members; a system of shared meaning. • Sample Culture Bases: • Innovative and risk-taking • Attentive to detail • Outcome orientated • People orientated • Team orientated • Aggressive, competitive • Stable, predictable

  3. Culture and Performance Culture impacts performance via: • Social control, generates commitment to something larger than “self” • Social glue and stability, sense of identity • Sense-making: • Reduces confusion (especially with diversity)

  4. Elements of Org. Culture Espoused Culture vs. Enacted Culture? Stories (Heroes) Language/Usage Rules & Policies Physical Structures Rituals/Ceremonies Norms Beliefs Values Assumptions Mental Models Artifactsof Culture Core of Culture

  5. How Employees Learn Culture? • Stories • Rituals • Material Symbols • Language

  6. How are organizational cultures created and maintained? • Founding leaders, legends, histories • Subsequent leadership influence: • What’s rewarded and punished? • Where are budgets allocated? • Who’s hired, how are they socialized? • Member exchanges and interactions • Stability of workforce

  7. Keeping Culture Alive • Top Management: • Managers establish norms that permeate the company; this happens as they reward and/or punish different behaviors, establish rules and policies, emphasize stories and rituals, set company budgets and priorities, and so on. • Selection (when hiring): • Hiring candidates who “fit” into the company. • Provides information to candidates about the company (and candidates also choose). • Socialization: • Helps new employees adapt to the culture.

  8. What else can cultures do? • Cultures as liability: • Barriers to change • Barriers to mergers and acquisitions • Barriers to diversity

  9. Creating an Ethical Culture • Strong culture • High risk tolerance • Low-to-moderate aggressiveness • Focus on means as well as outcomes • Managers must: • be visible role models • communicate ethical expectations • provide ethics training • visibly reward ethical and punish unethical acts • provide protective mechanisms

  10. Creating a Positive Culture Positive cultures emphasize: • Building on employee strengths • Rewarding more than punishing • Clear and unambiguous reinforced (and consistently lived) community values • Emphasizing vitality and growth of the employee: • Clear and unambiguous trust

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