Organizational Culture

Components of organizational culture

Artifacts A symbol A story A hero A slogan Rites and rituals

4 categories of CVF

-Collaborate (Clan) Culture is an open and friendly place where collaboration is valued and organizational members are thought of as an extended family. There is a strong concern for people, teamwork, consensus, and long-term goals. This type of culture is characterized by a strong sense of loyalty among organizational members. -Create (Adhocracy) Cultures reflect a dynamic, entrepreneurial, and creative workplace. The organization embraces innovation and risk taking. Organizational leaders emphasize growth and new resources. -Control (Hierarchy) Cultures are highly structured and formal. Rules and procedures govern behavior, and the organization focuses on efficiency and effectiveness. Stability, performance, dependability, security, and predictability are common values in this culture. -Compete (Market) Cultures are results-driven organizations, were organizational members are competitive and goal oriented. There is an emphasis on winning in this culture. The organizational leaders in this culture are demanding, productive, and focused on action and achievement of measurable goals and targets.

Selection

Process through which individuals are brought into the organization. Attraction is the phase in which individuals are attracted to the organization because they perceive it has having similar values, interests, and goals as them. Selection is the phase of the process when the organization hires individuals who are similar to others currently in the organization. Attrition occurs when individuals with values, interests, and goals that are different from the organization leave the organization.

Outcomes of Culture

The advantages of a strong corporate culture are that it acts as a control that influences behaviors and decisions of employees; it can bring people together and fosters cohesiveness, as well as assisting in sense making of organizational members. Strong corporate culture has a modest, positive relationship with performance; however the link to performance is dependent on the appropriateness of the culture (given the firm's environment), and the relationship between culture and performance tends to be a stronger relationship in stable environments. The disadvantages of a strong corporate culture are that it can make it more difficult to adapt; it will mean that employees/organization only see the world in one way, and it has a tendency to suppress dissent among organizational members.

Values are the shared beliefs of an organization.... 2 types

These beliefs are harder to change, less visible than artifacts. They also tend to persist over time, even as there is turnover within the organization. Enacted values are those values that are reflected in the way that employees of the organization behave. Espoused values are those things that the members of an organization say they value.

Reward systems

can reinforce cultures by rewarding specific actions. This strengthens employees beliefs and assumptions about the values of the organization.

Competing values framework (CVF)

general framework used to evaluate an organization's values based on two dimensions, which is then used to categorize an organization's culture into one of four basic categories. The framework focuses on predictability versus adaptability, and an external focus versus an internal focus.

Subcultures exist...

in all organizations, and they are different types of cultures with the larger organizational culture.

Socialization

process through which values, beliefs, and organizational norms are transferred to employees as they join the organization (how the employee comes to understand the culture of the organization. Socialization is occasionally described as the process of changing from an "outsider" to becoming an organizational "insider". Getting in is the anticipatory stage of socialization, which reflects all of the learning an individual does prior to the new comer's first day on the job. Breaking in is the stage of socialization when newcomers learn their job duties, clarify their roles, and establish new relationships at work. Settling in is the stage of socialization were the newcomer begins to feel like an "insider".

Three primary methods of creation of culture

selection, socialization, reward

Organizational culture

sometimes called corporate culture, is a system of shared beliefs, values, and norms that develop within an organization and guides the behavior of its members letting them know what types of behaviors are acceptable and unacceptable.

Strength of an organization's culture depends on...

whether or not employees agree about what is supposed to happen within a culture (consensus) and whether or not behaviors are consistent with those expectations (intensity).

Shared behavioral norms

widely held beliefs about the acceptable behaviors for members of the organization. These behaviors are usually visible and will be consistent across members of the organization. They reflect things like the way employees dress and way they act in the presence of customers or clients.