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1
ORGANIZATIONAL CULTURE
2
What Is Organizational
Culture?
Characteristics:
1. Innovation and risk taking
2. Attention to detail
3. Outcome orientation
4. People orientation
5. Team orientation
6. Aggressiveness
7. Stability
3
4
CULTURE REVIEWED
 Organizations also have a learned,
shared, interrelated set of symbols and
patterns of basic assumptions
 The culture help the organizations cope
with problems it faces
external adaptation
internal integration
5
CULTURE HELPS ORGANIZATIONS INTEGRATE
INTERNALLY (PPS) AND ADAPT/SHAPE
EXTERNALITIES (6 GLOBAL ENVIRONMENTS)
TO SURVIVE
 Culture permeates the organization
 Through knowledge acquisition
 Organizational symbols
 Organizational stories
 Organizational rites
,
6
ORGANIZATIONAL KNOWLEDGE
 Explicitformalized and widely
distributed
 Implicitnorms or how we do things
around here
7
EXAMINE ORGANIZATIONAL
SYMBOLS
 What language is in use and where?
 Who is pictured on annual reports, web
pages, or brochures?
 What colors represent the company;
where are they used?
 What logos are in use?
8
ORGANIZATIONAL STORIES
TELL US
 what the employee is supposed to do
when in doubt
 what to do when a high-status person
breaks the rules
 how the little person advances within
the organization
9
ORGANIZATIONAL RITES
REINFORM NORMS
 Rituals of degradation dissolve a persons
organizational identity
 Rituals of enhancement recognize
accomplishments or enhance power
 Rituals of renewal lubricate social relations
 Rituals of conflict reduction reduces conflict
by partitioning it
 Rituals of integration revive common feeling
10
NATIONS TRADITIONALLY
SHAPE ORGANIZATIONS
HOW DOES CULTURE
AFFECT FIRMS?
Traditionally: national culture shapes business
INDIVIDUALS
INDIVIDUALS
FAMILIES
FAMILIES
NATIONAL CULTURE
NATIONAL CULTURE
BUSINESS ACTIVITIES
BUSINESS ACTIVITIES
Business culture
11
BUT INFLUENCES COME FROM
MULTIPLE SOURCES
 Professional training/groups
 Family
 Subgroups, e.g., R&D or accounting
12
INCREASINGLY WE ALSO SEE
 business influences come not only from
domestic influences but also from
international and global business
activities, e.g.,
 subsidiaries
 joint ventures and other strategic alliances
13
OFTEN CREATING CULTURE
CLASH
 between parent and subsidiary
 among managers
 Between SBUs
 Between departments
14
BUSINESS INFLUENCES
CULTURE THROUGH
 Global entertainment and electronic media
 Global travel
 Global language
 Global demographic groups
 Global elite
 Global teens
 Business behaviors
15
GLOBAL INFLUENCES OF
BUSINESS ON CULTURE
 Make global businesses more central to
 Cultural change
 Cultural concerns
 And cause them to interact more with
social actors such as NGOs and
governments

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Organizational Culture.pdf

  • 2. 2 What Is Organizational Culture? Characteristics: 1. Innovation and risk taking 2. Attention to detail 3. Outcome orientation 4. People orientation 5. Team orientation 6. Aggressiveness 7. Stability
  • 3. 3
  • 4. 4 CULTURE REVIEWED Organizations also have a learned, shared, interrelated set of symbols and patterns of basic assumptions The culture help the organizations cope with problems it faces external adaptation internal integration
  • 5. 5 CULTURE HELPS ORGANIZATIONS INTEGRATE INTERNALLY (PPS) AND ADAPT/SHAPE EXTERNALITIES (6 GLOBAL ENVIRONMENTS) TO SURVIVE Culture permeates the organization Through knowledge acquisition Organizational symbols Organizational stories Organizational rites ,
  • 6. 6 ORGANIZATIONAL KNOWLEDGE Explicitformalized and widely distributed Implicitnorms or how we do things around here
  • 7. 7 EXAMINE ORGANIZATIONAL SYMBOLS What language is in use and where? Who is pictured on annual reports, web pages, or brochures? What colors represent the company; where are they used? What logos are in use?
  • 8. 8 ORGANIZATIONAL STORIES TELL US what the employee is supposed to do when in doubt what to do when a high-status person breaks the rules how the little person advances within the organization
  • 9. 9 ORGANIZATIONAL RITES REINFORM NORMS Rituals of degradation dissolve a persons organizational identity Rituals of enhancement recognize accomplishments or enhance power Rituals of renewal lubricate social relations Rituals of conflict reduction reduces conflict by partitioning it Rituals of integration revive common feeling
  • 10. 10 NATIONS TRADITIONALLY SHAPE ORGANIZATIONS HOW DOES CULTURE AFFECT FIRMS? Traditionally: national culture shapes business INDIVIDUALS INDIVIDUALS FAMILIES FAMILIES NATIONAL CULTURE NATIONAL CULTURE BUSINESS ACTIVITIES BUSINESS ACTIVITIES Business culture
  • 11. 11 BUT INFLUENCES COME FROM MULTIPLE SOURCES Professional training/groups Family Subgroups, e.g., R&D or accounting
  • 12. 12 INCREASINGLY WE ALSO SEE business influences come not only from domestic influences but also from international and global business activities, e.g., subsidiaries joint ventures and other strategic alliances
  • 13. 13 OFTEN CREATING CULTURE CLASH between parent and subsidiary among managers Between SBUs Between departments
  • 14. 14 BUSINESS INFLUENCES CULTURE THROUGH Global entertainment and electronic media Global travel Global language Global demographic groups Global elite Global teens Business behaviors
  • 15. 15 GLOBAL INFLUENCES OF BUSINESS ON CULTURE Make global businesses more central to Cultural change Cultural concerns And cause them to interact more with social actors such as NGOs and governments