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Organizational CultureOrganizational Culture

and Changeand Change


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5-2

Management ChallengesManagement Challenges

Describe how organizational culture helpsDescribe how organizational culture helpsmanagement achieve its objectives.management achieve its objectives.

Understand how cultural symbols, rites,Understand how cultural symbols, rites,

ceremonies, heroes, and stories are used toceremonies, heroes, and stories are used tosustain an organizations culture.sustain an organizations culture.

Recognize the differences between strong andRecognize the differences between strong andweak organizational cultures, and identify situationsweak organizational cultures, and identify situations

in which each of these cultures may bein which each of these cultures may beadvantageous.advantageous.


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Skills for managing organizational culture andSkills for managing organizational culture andchange:change:

Cultural diagnostic skillsCultural diagnostic skills

Cultural strategic skills

Cultural strategic skills

Managing culture skillsManaging culture skills

Change management skillsChange management skills


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Organizational CultureOrganizational Culture

A system of shared values, assumptions,A system of shared values, assumptions,

beliefs, and norms that unite the members ofbeliefs, and norms that unite the members of

an organization.an organization. Reflects employees views aboutReflects employees views about the waythe way

things are done around here.things are done around here.

The culture specific to each firm affects howThe culture specific to each firm affects how

employees feel and act and the type ofemployees feel and act and the type of

employee hired and retained by theemployee hired and retained by the

company.company.


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CoreCoreValuesValues

ExpressedExpressed

ValuesValues

VisibleVisible

CultureCulture

Levels of CorporateLevels of Corporate

CultureCulture


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Functions performedbyorganizationalFunctions performedbyorganizationalculture:culture:

Employee SelfEmployee Self--ManagementManagement

Sense of shared identitySense of shared identity

Generation of commitmentGeneration of commitment StabilityStability

Sense of continuitySense of continuity

Satisfies need for predictability, security, andSatisfies need for predictability, security, andcomfortcomfort


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Functions performedbyorganizationalFunctions performedbyorganizationalculture:culture: (continued)(continued)

SocializationSocialization

Internalizing or taking organizational valuesInternalizing or taking organizational values

as ones ownas ones own Implementation Support of the OrganizationsImplementation Support of the Organizations

StrategyStrategy

If strategy and culture reinforce each other,If strategy and culture reinforce each other,

employees find it natural to be committed toemployees find it natural to be committed to

the strategythe strategy


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Types of cultureTypes of culture

Mechanistic & organic cultureMechanistic & organic culture

Dominant & sub cultureDominant & sub culture

StrongStrong vsvs weak cultureweak culture Authoritarian & participative cultureAuthoritarian & participative culture


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Creating andSustaining OrganizationalCreating andSustaining OrganizationalCultureCulture

CulturalSymbolsCulturalSymbols CompanyRitualsCompanyRituals

and Ceremoniesand Ceremonies

CompanyHeroesCompanyHeroes

StoriesStories

LanguageLanguage

LeadershipLeadership

OrganizationalOrganizationalPolicies andPolicies and

Decision MakingDecision Making


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ManagingManaging Organizational ChangeOrganizational Change

Organization culture can facilitate or inhibitOrganization culture can facilitate or inhibit

changechange in an organization.in an organization.

A firm attempts to change organizationalA firm attempts to change organizationalculture because the current culture hindersculture because the current culture hinders

the attainment of corporate goals.the attainment of corporate goals.

EnvironmentalEnvironmentalandand internalinternalforces canforces can

stimulate the need for organization change.stimulate the need for organization change.


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Formal & informal components ofFormal & informal components oforganizational cultureorganizational culture Informal componentsInformal components

Shared values, Beliefs, AssumptionsShared values, Beliefs, Assumptions

Power culturePower culture

Role cultureRole culture

Task cultureTask culture Person culturePerson culture

Formal componentsFormal components

Mission/ VisionMission/ Vision

PoliciesPolicies

ProceduresProcedures

RulesRules

State of organizationalState of organizational devptdevpt


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Functions of organizational cultureFunctions of organizational culture& change& change

Culture supplements rational mgtCulture supplements rational mgt

Culture facilitates induction & socializationCulture facilitates induction & socialization

Culture promotes code of conduct &Culture promotes code of conduct &customer focuscustomer focus

Sub culture contributes to organizationalSub culture contributes to organizational

diversitydiversity


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Research on cultural difference inResearch on cultural difference inorgorg

Work behaviour across cultureWork behaviour across culture

Change in culture : cross culture researchChange in culture : cross culture research

Individualism/collectivismIndividualism/collectivism Power distance orientationPower distance orientation

UncertainityUncertainity avoidanceavoidance

MesculinityMesculinity/femininity/femininity

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