Organisational Culture Final
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Transcript of Organisational Culture Final
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What is Culture
The set of key values, beliefs,
understandings and norms shared
by members of an organization.
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What is organization?
A structured social system
consisting of groups and individuals
working together to meet someagreed-upon objectives.
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Core Organizational Values
Sensitivity to others
Interest in new ideas
Willingness to take risks The value placed on people
Openness of available communication options
Friendliness and congeniality
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Characteristics Of Healthy Culture
Open and Humble
Accountable
Free to take risks Mistakes are opportunities for learning
Integrity unquestioned
High commitment
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Cultures Within Organizations
Dominant
culture
Sub
culture
Large organizations have several
cultures operating within them. 7
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Levels Of Culture
Visible above thesurface but difficult todecode
Can be seen a fewmetres below thesurface- needs a greaterlevel of awareness
Deep below the surface,almost invisible- takenfor granted
Artifacts
Values
Assumptions
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Artifacts/Symbols
Symbols of culture in the physical and social
work environment
Visible objects that represent culture
Most easily changed
Most accessible
Most frequently studied
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Personal enactment
Rites and Ceremonies
Stories and Legends
Rituals
Symbols
Values
Beliefs
Assumptions
Levels of Organizational Culture
Artifacts of
Organizational
Culture
OrganizationalOrganizational
CultureCulture
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Values
- Testable in the physical environment- Testable only by social consensus
TYPES OF VALUES
Espoused values :
What members of an organisation say they value
The leaders first begins as shared value then becomes sharedassumption social validation happens with shared learning
Initially started by founder, leader and then assimilated.
Enacted values :
What are actually converted into employee behaviour Gap could exist and can complicate the interpretation and
understanding of an organization's underlying value system
Different levels of employees may disagree on which valuesmake up the organization's "actual" culture.
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Beliefs
More specific
Usually overt/talked about
Eg: the company should not trade with Iraq
Normative and focus on what is judged to be
important, what is valued and what is considered
to be unacceptable
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Assumptions
Deeply held beliefs that guide behaviour and tellmembers of an organisation how to perceive and thinkabout things
Most fundamental level of an organizations culture Strongly held by the members
Often unconscious
Schein contends that underlying assumptions grow outof values, values that have been integrated with time,until they become taken for granted and drop out ofawareness and unconsciously orient our perceptionsand our reasoning
Powerful because they are less subject to discussionand identification than espoused values and beliefs
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FUNCTIONS OF ORGANIZATIONAL CULTURE
Improves cooperation
Increases commitment
Enhances Decision making Improves Communication
Reinforces standard of behavior
Acts as control mechanism
Provides sense of identity
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ORGANIZATIONAL CULTURE THEORIES
12/23/2010 15
Relationship between
Organizational culture and
performance
Strong
CulturePerspective
Adaptive
Perspective
Fit
Perspective
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STRONG CULTURE PERSPECTIVE
An organizational culture with a consensus on
the values that drive the company and with an
intensity that is recognizable even to outsiders
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Strong cultures facilitate performance because
They are characterized by goal alignment
They create a high level of motivation becauseof shared values by the members
They provide control without the oppressive
effects of bureaucracy
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FIT PERSPECTIVE
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Argument that a culture is good only if it fits the
industrys or the firms strategy.
Organizational characteristics that may affect culture
Customer requirements
Competitive environment Societal expectations
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ADAPTIVE PERSPECTIVE
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An organizational culture that encouragesconfidence and risk taking among employees,has leadership that produces change, andfocuses on the changing needs of customers
Adaptive Nonadaptive
Most managers care
about themselves,
their work group, or
an associated product
Most managers care
about customers,
stockholders, and
employees
Managers tend to
behave somewhat
insularly, politically,
and bureaucratically
Managers pay close
attention to all
their constituencies,
esp. customers
Core Values
Common
Behavior
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MANAGERIAL IMPLICATIONS
Key Challenges
Down-sizing and restructuring
Globalization
Workforce diversity
Technology
Managing ethical behaviour
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Thank You