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Organizational Culture

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Organizational Culture Organizational Culture the set of shared values and norms that controls organizational members interactions with each other and with people ... – PowerPoint PPT presentation

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Title: Organizational Culture


1
Organizational Culture
2
ORGANISATIONAL STRUCTURE
Policy/Rules
Officialisation
Hierarchy
Language
Facts
Dialect
Heroes
Attitudes Beliefs Rumours
Norms
Socialisation
ORGANISATIONAL CULTURE
3
Organizational Culture
  • the set of shared values and norms that controls
    organizational members interactions with each
    other and with people outside the organization

4
Organizational Culture
  • Values general criteria, standards, or guiding
    principles that people use to determine which
    types of behaviors, events, situations, and
    outcomes are desirable or undesirable
  • Norms kinds of behavior that are considered
    acceptable or typical for a group of people

5
Organizational Culture
  • Based on enduring values embodied in
    organizational norms, rules, standard operating
    procedures, and goals
  • People use these elements to guide their actions
    and decisions when faced with uncertainty and
    ambiguity.
  • Important influence on members behavior and
    response to situations

6
Geert Hofstedes Culture Dimensions
  • Power Distance (PDI)
  • Individualism (IDV)
  • Masculinity (MAS)
  • Uncertainty Avoidance (UAI)
  • Long term Orientation (LTO)

7
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8
Comparison of Cultural Values
Americans Japanese Arabs
Freedom Independence Self-reliance Equality Individualism Competition Efficiency Time Directness Belonging Group harmony Collectivity Age/seniority Group consensus Cooperation Quality Patience Indirectness Family security Family harmony Parental guidance Age Authority Compromise Devotion Patience Indirectness
9
3M Case questions
  • What are the VALUES of 3M culture?
  • What are the main ways in which 3M tries to
    create this culture?

10
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11
Stories
Rituals
Elements of Culture
Symbols Language
Heroes
12
Components of Organizational Culture
  • Routine behaviors.
  • Norms shared by members.
  • Dominant values.
  • Guiding philosophy for policies toward employees
    and customers.
  • The rules of the game for getting along in the
    organization.
  • The climate of the organization.

13
Do Organizations Have Uniform Cultures?
Subcultures
Dominant Culture
Core Values
14
Commitment to Core Values
Intensity of Core Values
Strong Versus Weak Cultures
Level of Employee Turnover
Level of Behavioral Control
15
How A Culture Begins
Indoctrination Socialization
Hiring and Retention
Behavior and Role Modeling
16
How is an Organizations Culture Transmitted to
its Members?
  • Socialization the process by which members learn
    and internalize the values and norms of an
    organizations culture

17
Entry Socialization Options
  • Formal vs. Informal
  • Individual vs. Collective
  • Fixed vs. Variable
  • Serial vs. Random

18
Formal vs. Informal
  • Formal tactics segregate newcomers from existing
    organizational members during the learning
    process.
  • With informal tactics, newcomers learn on the
    job, as members of a team.

19
Collective vs. Individual
  • Collective tactics provide newcomers with common
    learning experiences designed to produce a
    standardized response to a situation.
  • With individual tactics, each newcomers learning
    experiences are unique, and newcomers can learn
    new, appropriate responses for each situation.

20
Fixed vs.Variable
  • Fixed tactics give newcomers precise knowledge of
    the timetable associated with completing each
    stage in the learning process.
  • Variable tactics provide no information about
    when newcomers will reach a certain stage in the
    learning process.

21
Sequential vs. Random
  • Sequential tactics provide newcomers with
    explicit information about the sequence in which
    they will perform new activities or occupy new
    roles as they advance in an organization.
  • With random tactics, training is based on the
    interests and needs of individual newcomers
    because there is no set sequence to the
    newcomers progress in the organization.

22
How Organizational Cultures Sustain
Top Management
Philosophy of the Organizations Founders
Organizational Culture
Selection
Socialization
23
Communicating Cultural Norms
  • Organizations use several types of ceremonial
    rites and ceremonies to communicate cultural
    norms and values.
  • Rites of passage
  • Rites of integration
  • Rites of enhancement

24
Organizational Rites and Ceremonies
TYPE
EXAMPLE
POSSIBLE CONSEQUENCES
Rites of passage
Orientation programmes
Facilitate transition into new roles minimize
differences in way roles are carried out
Enhance power identity emphasize value of
proper behavior
Company ceremonies e.g. Awards
Rites of enhance-ment
Encourage common feelings that bind members
together
Office Party
Rites of integration
25
Maintaining Organizational Culture
  • Methods of Maintaining Organizational Culture
  • What managers and teams pay attention to
  • Reactions to organizational crises
  • Managerial role modeling
  • Criteria for rewards
  • Criteria for selection and promotion
  • Organizational rites, ceremonies, stories

Recruit employees who fit
Remove employees who deviate
Organizational Culture
26
Issues Associated with External Adaptation and
Survival
  • Identifying the organization's primary mission,
    and selecting strategies to pursue it.
  • Setting specific targets.
  • Determining how to pursue the goals, including
    selecting an organizational structure and reward
    system.
  • Establishing criteria to measure individual and
    team goal accomplishment.

27
Issues Associated with Internal Integration
  • Identifying methods of communication, and
    developing a shared meaning for important
    concepts.
  • Establishing criteria for membership in groups
    and teams.
  • Determining rules for acquiring, maintaining, and
    losing power and status.
  • Developing systems for encouraging desirable
    behaviors and discouraging undesirable behaviors.

28
Organizational Culture
Functions
Liabilities
  • Defining boundaries
  • Conveying identity
  • Promoting commitment
  • Controlling behavior
  • Impeding change
  • Inhibiting diversity
  • Stifling creativity
  • Blocking mergers acquisitions

29
Effects of Organizational Culture on Employee
Behavior and Performance
  • Allows employees to understand the firms history
    and current approach.
  • Fosters commitment to corporate philosophy and
    values.
  • Serves as a control mechanism for employee
    behaviors.
  • Certain cultural types may produce greater
    effectiveness and productivity.
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