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Organizational CultureOrganizational Culture

Dr. Fred Mugambi MwirigiDr. Fred Mugambi Mwirigi

JKUATJKUAT

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What Is Organisational Culture?What Is Organisational Culture? ““a system of shared meaning held by members that a system of shared meaning held by members that

distinguishes the organisation from other distinguishes the organisation from other organisations.” organisations.”

This system of shared meaning is a set of key This system of shared meaning is a set of key characteristics that the organisation values. Research characteristics that the organisation values. Research suggests seven primary characteristics:suggests seven primary characteristics: Innovation and risk takingInnovation and risk taking Attention to detailAttention to detail Outcome orientationOutcome orientation People orientationPeople orientation Team orientationTeam orientation AggressivenessAggressiveness StabilityStability

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Definition contd. Definition contd. Organisational culture is concerned with how Organisational culture is concerned with how

employees perceive its characteristics, not if employees perceive its characteristics, not if they like them. Research on organisational they like them. Research on organisational culture has sought to measure how employees culture has sought to measure how employees see their organisation.see their organisation.

Culture by definition is elusive, intangible, Culture by definition is elusive, intangible, implicit, and taken for granted. implicit, and taken for granted.

Every organisation develops a core set of Every organisation develops a core set of assumptions, understandings, and implicit rules assumptions, understandings, and implicit rules that govern day-to-day behaviour in the that govern day-to-day behaviour in the workplace.workplace.

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What Differentiates What Differentiates Organizational Cultures?Organizational Cultures?

Individuals with different backgrounds or at Individuals with different backgrounds or at different levels in the organisation will tend different levels in the organisation will tend to describe the organisation’s culture in to describe the organisation’s culture in different terms.different terms.

There can be subcultures. Most large There can be subcultures. Most large organisations have a organisations have a dominantdominant culture and culture and numerous sets of numerous sets of subculturessubcultures

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Dominant vs. sub culturesDominant vs. sub cultures A dominant culture expresses the core values that are A dominant culture expresses the core values that are

shared by a majority:shared by a majority: An organisation’s culture is its dominant culture. An organisation’s culture is its dominant culture. This macro view of culture that gives an organisation its This macro view of culture that gives an organisation its

distinct personality.distinct personality. Subcultures tend to develop in large organisations to Subcultures tend to develop in large organisations to

reflect common problems, situations, or experiences that reflect common problems, situations, or experiences that members face and members face and

• Are defined by department designations and Are defined by department designations and geographical separationgeographical separation

• will include the core values plus additional values will include the core values plus additional values unique to members of the subculture.unique to members of the subculture.

• The core values are essentially retained but modified The core values are essentially retained but modified to reflect the subculture.to reflect the subculture.

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The value of org. culturesThe value of org. cultures If organisations had no dominant culture and If organisations had no dominant culture and

were composed only of numerous subcultures, were composed only of numerous subcultures, the value of organisational culture as an the value of organisational culture as an independent variable would be independent variable would be significantly significantly lessenedlessened

It is the “shared meaning” aspect of culture that It is the “shared meaning” aspect of culture that makes it such a potent device for guiding and makes it such a potent device for guiding and shaping behaviour. shaping behaviour.

We cannot ignore the reality that many We cannot ignore the reality that many organisations also have subcultures that can organisations also have subcultures that can influence the behaviour of members.influence the behaviour of members.

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Strong vs. Weak CulturesStrong vs. Weak Cultures Strong cultures have a greater impact on Strong cultures have a greater impact on

employee behaviour and are more directly employee behaviour and are more directly related to reduced turnoverrelated to reduced turnover

This is This is because the high degree of shared-ness because the high degree of shared-ness and intensity creates an internal climate of high and intensity creates an internal climate of high behavioural control.behavioural control.

A specific result of a strong culture should be A specific result of a strong culture should be lower employee turnoverlower employee turnover

Also, a strong organisational culture increases Also, a strong organisational culture increases behavioural consistency. A strong culture can behavioural consistency. A strong culture can act as a substitute for formalisationact as a substitute for formalisation

High formalisation in an organisation creates High formalisation in an organisation creates predictability, orderliness, and consistencypredictability, orderliness, and consistency

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Organisational Culture vs. Organisational Culture vs. National CultureNational Culture

National or societal cultures must be taken National or societal cultures must be taken into account if accurate predictions are to into account if accurate predictions are to be made about organisational behaviour in be made about organisational behaviour in different countriesdifferent countries

Research indicates that national culture Research indicates that national culture has a greater impact on employees than has a greater impact on employees than does their organisation’s culturedoes their organisation’s culture

The national culture has a strong bearing The national culture has a strong bearing on the development of the organization’s on the development of the organization’s cultureculture

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The Functions of CultureThe Functions of Culture 1.1. It has a boundary-defining role. It creates It has a boundary-defining role. It creates

distinctions between one organisation and distinctions between one organisation and others- creates identity others- creates identity

2.2. It conveys a sense of identity for organisation It conveys a sense of identity for organisation members. members.

3.3. Culture facilitates commitment to something Culture facilitates commitment to something larger than one’s individual self-interest.larger than one’s individual self-interest.

4.4. Culture is the social glue that helps hold the Culture is the social glue that helps hold the organisation together. It enhances social organisation together. It enhances social system stability.system stability.

5.5. Culture serves as a sense-making and control Culture serves as a sense-making and control mechanism that guides and shapes the mechanism that guides and shapes the attitudes and behaviour of employees. attitudes and behaviour of employees.

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Can Culture be a Liability?Can Culture be a Liability? There are potentially dysfunctional aspects of There are potentially dysfunctional aspects of

cultureculture. Culture can create:. Culture can create:1.1. Barriers to change- Culture is a liability when Barriers to change- Culture is a liability when

the shared values are not in agreement with the shared values are not in agreement with those that will further the organisation’s those that will further the organisation’s effectiveness. This is most likely to occur when effectiveness. This is most likely to occur when an organisation’s environment is dynamican organisation’s environment is dynamic

2.2. Barrier to diversity- Barrier to diversity- Strong cultures put Strong cultures put considerable pressure on employees to considerable pressure on employees to conform. They limit the range of values and conform. They limit the range of values and styles that are acceptable. styles that are acceptable.

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How a Culture Begins and developsHow a Culture Begins and develops The ultimate source of an organisation’s The ultimate source of an organisation’s

culture is its founders.culture is its founders. The founders of an organisation The founders of an organisation

traditionally have a major impact on that traditionally have a major impact on that organisation’s early culture:organisation’s early culture:

They had the vision; they are unconstrained They had the vision; they are unconstrained by previous customs or ideologies. by previous customs or ideologies.

The small size of new organisations The small size of new organisations facilitates the founders’ imposition of the facilitates the founders’ imposition of the vision on all organisational members.vision on all organisational members.

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Contd. Contd. Culture creation occurs in three ways:Culture creation occurs in three ways:

1.1. First, founders First, founders hire and keephire and keep only employees who only employees who think and feel the way the way they do. think and feel the way the way they do.

2.2. Second, they Second, they indoctrinateindoctrinate and socialise these and socialise these employees to their way of thinking and feeling. employees to their way of thinking and feeling.

3.3. Third, they reinforce it. The founders’ own behaviour Third, they reinforce it. The founders’ own behaviour acts as a role model that encourages employees to acts as a role model that encourages employees to identify with them and thereby internalise their identify with them and thereby internalise their beliefs, values, and assumptions. beliefs, values, and assumptions.

When the organisation succeeds, the founders’ When the organisation succeeds, the founders’ entire personality becomes embedded in the entire personality becomes embedded in the culture of the organisation.culture of the organisation.

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Keeping a Culture AliveKeeping a Culture Alive Three forces play a particularly important Three forces play a particularly important

part in sustaining a culture: part in sustaining a culture:

1.1. selection practicesselection practices

2.2. the actions of top managementthe actions of top management

3.3. socialisation methods- Socialisation is socialisation methods- Socialisation is process by which the organisation helps process by which the organisation helps new employees adapt to its culturenew employees adapt to its culture

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How Employees Learn CultureHow Employees Learn Culture Stories-Stories- stories anchor the present in the past stories anchor the present in the past

and provide explanations and legitimacy for and provide explanations and legitimacy for current practices.current practices.

Rituals-Rituals- these are repetitive sequences of these are repetitive sequences of activities that express and reinforce the key activities that express and reinforce the key values of the organisation, what goals are most values of the organisation, what goals are most important, which people are important, and important, which people are important, and which are expendable.which are expendable.

Material Symbols-Material Symbols- e.g unique layouts of offices e.g unique layouts of offices and other office equipment and other office equipment

Language-Language- Organisations, over time, often Organisations, over time, often develop unique terms to describe equipment, develop unique terms to describe equipment, offices, key personnel, suppliers, customers, or offices, key personnel, suppliers, customers, or products that relate to its business. products that relate to its business.

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What can management do to create an What can management do to create an

ethical culture?ethical culture? Be a visible role model.Be a visible role model. Employees will look Employees will look

to top-management behaviour as a to top-management behaviour as a benchmark for defining appropriate behaviour. benchmark for defining appropriate behaviour.

Communicate ethical expectationsCommunicate ethical expectations. . Ethical Ethical ambiguities can be minimised by creating and ambiguities can be minimised by creating and disseminating an organisational code of disseminating an organisational code of ethics. ethics.

Provide ethical trainingProvide ethical training. . Use training Use training sessions to reinforce the organisation’s sessions to reinforce the organisation’s standards of conduct; to clarify what practices standards of conduct; to clarify what practices are and are not permissible; and to address are and are not permissible; and to address possible ethical dilemmas.possible ethical dilemmas.

Contd.Contd.

Visibly reward ethical acts and punish unethical Visibly reward ethical acts and punish unethical onesones. . Performance appraisals of managers should Performance appraisals of managers should include a point-by-point evaluation of how his or her include a point-by-point evaluation of how his or her decisions measure against the organisation’s code of decisions measure against the organisation’s code of ethics. ethics.

Provide protective mechanismsProvide protective mechanisms. . The organisation The organisation needs to provide formal mechanisms so that needs to provide formal mechanisms so that employees can discuss ethical dilemmas and report employees can discuss ethical dilemmas and report unethical behaviour without fear of reprimand. This unethical behaviour without fear of reprimand. This might include creation of ethical counsellors, might include creation of ethical counsellors, ombudsmen, or ethical officers.ombudsmen, or ethical officers.

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Managerial Actions that Improve Managerial Actions that Improve Org. CultureOrg. Culture

Selection of employeesSelection of employees Training and Socialisation Training and Socialisation Structural Design- Organisation structures Structural Design- Organisation structures

need to give employees more control. need to give employees more control. EmpowermentEmpowerment Leadership Leadership Performance Evaluation Performance Evaluation Reward Systems Reward Systems

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Spirituality and Organisational CultureSpirituality and Organisational Culture Workplace spirituality is not about organised Workplace spirituality is not about organised

religious practices. It is not about God or religious practices. It is not about God or theology. theology.

Workplace spiritualityWorkplace spirituality recognises that people recognises that people have an inner life that nourishes and is have an inner life that nourishes and is nourished by meaningful work that takes place nourished by meaningful work that takes place in the context of community.in the context of community.

Historical models of management and Historical models of management and organisational behaviour had no room for organisational behaviour had no room for spirituality. The myth of rationality assumed that spirituality. The myth of rationality assumed that the well-run organisation eliminated feelings. the well-run organisation eliminated feelings.

An awareness of spirituality can help you to An awareness of spirituality can help you to better understand employee behaviour. better understand employee behaviour.

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What differentiates spiritual organisations from What differentiates spiritual organisations from their non-spiritual counterpartstheir non-spiritual counterparts

1.1. Strong Sense of Purpose-Strong Sense of Purpose- Spiritual Spiritual organisations build their cultures around a organisations build their cultures around a meaningful purpose.meaningful purpose.

2.2. Focus on Individual DevelopmentFocus on Individual Development - Spiritual - Spiritual organisations recognise the worth and value of organisations recognise the worth and value of people. They are not just providing jobs. They people. They are not just providing jobs. They seek to create cultures in which employees can seek to create cultures in which employees can continually learn and grow. continually learn and grow.

3.3. Trust and OpennessTrust and Openness - Spiritual organisations - Spiritual organisations are characterised by mutual trust, honesty, and are characterised by mutual trust, honesty, and openness. Managers aren’t afraid to admit openness. Managers aren’t afraid to admit mistakes. They tend to be extremely upfront mistakes. They tend to be extremely upfront with their employees, customers, and suppliers.with their employees, customers, and suppliers.

4. Humanistic work practices-4. Humanistic work practices- Managers in Managers in spiritually based organisations include flexible spiritually based organisations include flexible work schedules, group and organisation-based work schedules, group and organisation-based rewards, narrowing of pay and status rewards, narrowing of pay and status differentials, guarantees of individual worker differentials, guarantees of individual worker rights, employee empowerment and job rights, employee empowerment and job security.security.

5. Toleration of Employee Expression5. Toleration of Employee Expression - They - They allow people to be themselves—to express allow people to be themselves—to express their moods and feelings without guilt or fear of their moods and feelings without guilt or fear of reprimand.reprimand.

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Thank youThank you