Module 4
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MASEEI (AGBS Chd)
Transcript of Module 4
AMITY GLOBALBUSINESS SCHOOL
What is Organizational Culture?
A system of shared values, assumptions, beliefs, and norms that unite the members of an organization.
Reflects employees’ views about “the way things are done around here.”
The culture specific to each firm affects how employees feel and act and the type of employee hired and retained by the company.
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Do Organizations Have Uniform Cultures?
CoreCoreValuesValues
SubculturesSubculturesDominantDominantCultureCulture
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Culture & SubculturesDominant culture -- most widely shared values and assumptions
SubculturesLocated throughout the organizationCan enhance or oppose (countercultures) firm’s dominant culture
Are “countercultures” useful?Provide surveillance and critique, ethicsSource of emerging values
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Elements of Organizational Culture
The Artefacts of Org. Culture
Culture
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Organizational Culture Profile
Org Culture Dimensions Dimension Characteristics
Innovation Experimenting, opportunity seeking, risk taking, few rules, low cautiousness
Stability Predictability, security, rule-orientedRespect for people Fairness, tolerance
Outcome orientation
Action oriented, high expectations, results oriented
Attention to detail Precise, analytic
Team orientation Collaboration, people-oriented
Aggressiveness Competitive, low emphasis on social responsibility
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Artifacts of Organizational Culture
Observable symbols and signs of culture
Physical structures, ceremonies, language, stories
Maintain and transmit organization’s culture
Not easy to decipher artifacts -- need many of them
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Artifacts – Stories & Legends
Social prescriptions of desired (undesired) behavior
Provides a realistic human side to expectations
Most effective stories and legends:
Describe real people
Assumed to be true
Known throughout the organization
Are prescriptive
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Artifacts – Rituals & Ceremonies
RitualsProgrammed routines (eg., how visitors are greeted, marking attendance, call for meeting etc…)
CeremoniesPlanned activities for an audience(eg., award ceremonies, celebrating occassions etc…)
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Artifacts – Organizational Language
Words used to address people, describe customers, etc.
Leaders use phrases and special vocabulary as cultural symbols
Language also found in subcultures
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Artifacts – Physical Structures
Building structure -- may shape and reflect culture
Office design conveys cultural meaningFurniture, office size, wall hangings
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Strength of Organizational CultureHow widely and deeply employees hold the company’s dominant values and assumptions
Strong cultures exist when:
Most employees understand/embrace the dominant values
Values and assumptions are institutionalized through well-established artifacts
Culture is long lasting -- often traced back to founder
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Functions of Strong Corporate Culture
Functions ofStrong Cultures
Functions ofStrong Cultures
• Control system• Social glue• Sense-making
• Control system• Social glue• Sense-making
OrganizationalOutcomes
OrganizationalOutcomes
• Org performance• Employee well-being
• Org performance• Employee well-being
Culture strength advantages depend on::
Culture strength advantages depend on::
• Environment fit• Not cult-like• Adaptive culture
• Environment fit• Not cult-like• Adaptive culture
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BUSINESSCULTURE
ORGANIZATIONCULTURE
OCCUPATIONALCULTURE
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Hofstede’s Cultural Dimensions
Finds national culture dimensions meaningful to business
Basis:
Work related values not universalNational values may persist over MNC efforts to create corporate cultureHome country values often used to determine HQ policies
MNC may create morale problems with uniform moral norms
Purpose: understanding of business situations across-cultures
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Hofstede’s Cultural Dimensions
Geert Hofstede – sampled 100,000 IBM employees 1963-1973
Compared employee attitudes and values across 40 countries
Isolated 4 dimensions summarizing culture:
1. Power distance2. Individualism vs. Collectivism3. Uncertainty avoidance4. Masculinity vs. Feminity
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Power DistanceDegree of social inequality considered normal by people
Distance between individuals at different levels of a hierarchy
Scale: from equal (small power distance) to extremely unequal (large power distance)
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Individualism Vs. Collectivism
Degree to which people in a country prefer to act as individuals rather than in groups
Describes the relations between the individual and his/her fellows
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Uncertainty AvoidanceDegree of need to avoid uncertainty about the future
Degree of preference for structured versus unstructured situations
Structured situations: have tight rules may or may not be written down
High uncertainty avoidance: people with more nervous energy (Vs. easy-going), rigid society, "what is different is dangerous."
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Masculinity Vs. FeminityDivision of roles and values in a society
Masculine values prevail:
Assertiveness, success, competition
Feminine values prevail:
Quality of life, maintenance of warm personal relationships, service, care for the weak, solidarity
