Organizational Culture Overview

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What does a strong organizational culture imply regarding core values?

Core values are rarely communicated to members.

Core values are non-existent in strong cultures.

Core values are widely shared and intensely held. (correct)

Core values are weakly held by members.

What is a primary role of organizational culture in a workplace?

Conveying a sense of identity for its members. (correct)

Establishing a framework for external competition.

Promoting individualism among employees.

Limiting communication among subcultures.

Which statement best describes subcultures within large organizations?

Subcultures do not exist in uniform cultures.

Subcultures are always weaker than the dominant culture.

Subcultures form due to differing core values among members.

Subcultures develop to address common challenges faced by members. (correct)

What does the ethical climate of an organization influence?

The ethical decision-making of its members. Signup and view all the answers

Which of the following is NOT considered a primary characteristic of organizational culture?

Conflict avoidance Signup and view all the answers

How does organizational climate differ from organizational culture?

Organizational climate focuses on individual perceptions about the organization. Signup and view all the answers

Which cultural framework categorizes organizations into the Clan, Adhocracy, Market, and Hierarchy?

Cultural Framework Model Signup and view all the answers

What aspect differentiates organizational culture from job satisfaction?

Organizational culture focuses on perceived characteristics. Signup and view all the answers

Which of the following characteristics is likely to indicate a results/outcome orientation in an organization?

Focus on individual achievements Signup and view all the answers

Organizational culture can be transmitted to employees through which of the following methods?

Company policies and informal interactions Signup and view all the answers

What is the primary influence of ethical climate on an organization?

It affects how individual members feel they should behave. Signup and view all the answers

Which of the following is NOT a category of ethical climate mentioned?

Profit-oriented Signup and view all the answers

What is suggested as essential for developing a truly sustainable business?

Cultivating a long-term culture aligned with core values. Signup and view all the answers

What characteristic is frequently found in companies with innovative cultures?

Collaborative and vision-driven approaches. Signup and view all the answers

How does culture contribute to an organization's success?

By significantly impacting the organization's bottom line. Signup and view all the answers

Study Notes

Organizational Culture

Organizational culture refers to a system of shared meaning held by members that distinguishes the organization from other organizations.
Primary characteristics that capture the essence of an organization's culture include adaptability, detail orientation, results/outcome orientation, people/customer orientation, collaboration/team orientation, and integrity.
Another common cultural framework that groups organizations into categories includes the Clan, the Adhocracy, the Market, and the Hierarchy.
Organizational culture is descriptive, not evaluative. It describes employees' perceptions of the culture's characteristics, not whether they like them.
Most organizations have a dominant culture and numerous sets of subcultures.
The dominant culture expresses the core values a majority of members share and gives the organization its personality.
Subcultures tend to develop in large organizations to reflect common problems, situations, or experiences faced by members.
Strong cultures have intensely held and widely shared core values. More members accepting core values signifies a stronger culture with greater influence on member behavior.
Cultural functions include boundary-defining, conveying a sense of identity, facilitating commitment generation, enhancing stability, and acting as a sense-making and control mechanism.
Organizational climate is the shared perceptions about an organization and work environment, including team spirit at the organizational level and how climates interact with one another to produce behavior.

Ethical Dimensions of Culture

Organizational cultures are not neutral in their ethical orientation, even without openly pursuing ethical goals.
Over time, the ethical workplace culture, or the concept of right and wrong behavior, develops as part of the organizational climate.
The ethical climate reflects the organization's true values and shapes the ethical decision-making of its members.

Culture as an Asset/Liability

Culture can significantly contribute to an organization's bottom line in many ways.
There are more cases of business success because of excellent organizational cultures than stories of success despite bad cultures.
Culture can be a liability in the form of:
- Institutionalization
- Barriers to change
- Barriers to diversity
- Toxicity and dysfunctions
- Barriers to acquisitions and mergers

Creating and Sustaining Culture

The ultimate source of an organization's culture is its founders. Founders envision what the organization should be.
New organizations are typically small, facilitating founders' vision-imparting on members.
Culture creation occurs through:
- Founders hiring employees who think and feel similarly.
- Employees being indoctrinated and socialized into founders' ways of thinking.
- Founders' behavior encouraging employees to identify with and internalize their beliefs, values, and assumptions.
Keeping a culture alive involves:
- Selection of individuals with knowledge, skills, and abilities for success
- Top management establishing norms for behavior

How Culture is Transmitted to Employees

Culture is transmitted through stories, rituals, symbols (including material symbols), and language.

Influencing Organizational Culture

Management can create a more ethical culture by:
- Being visible role models
- Communicating ethical expectations
- Providing ethics training
- Visibly rewarding ethical acts and punishing unethical ones
Creating a positive culture emphasizes building on employee strengths, rewarding more than punishing, and emphasizing individual vitality growth.
Workplace spirituality is about the inner life that's nourished by work in the context of community. It's not about organized religious practices or God or theology.
Reasons for interest in workplace spirituality include: counterbalancing the pressure of life, contemporary lifestyles that foster a lack of community, and dissatisfaction with formalized religion and the meaninglessness of work.
Characteristics of spiritual organizations include benevolence, a strong sense of purpose, trust and respect, and open-mindedness.
Leaders demonstrate values, attitudes, and behaviors that trigger intrinsic motivation and sense of calling. Encouraging employee consideration of how work provides a sense of purpose through community building is important in achieving a spiritual workplace.
Critics of workplace spirituality question its scientific foundation, legitimacy of organizations imposing spiritual values on employees, and compatibility of spirituality with profits.

The Global Context

Organizational cultures often reflect national culture. U.S. managers need to be culturally sensitive.
Managing ethical behavior is an area where national and corporate cultures can conflict.

Implications for Managers

Organizational cultures are relatively fixed in the short term. To effect change, involve top management and create a long-term strategy.
Hire individuals whose values align with the organization.
Employees perform best when they know what is expected and when their job roles change. Clearly train and keep employees informed.
Managers can shape organizational culture. Culture influences and is influenced by managers, especially as it relates to ethical behavior, spirituality, and creating a positive culture.
Be aware that organizational culture may not be "transportable" from one country to another. Cultural context for each organization should be considered when introducing plans or initiatives.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Explore the essential characteristics and frameworks of organizational culture, including the dominant culture and subcultures within an organization. This quiz delves into how shared values and perceptions play a role in defining the organizational identity and adaptability. Test your knowledge of the key components that distinguish various organizational cultures.