BUS 272 Chapter 10: Ch. 10 Notes

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Ch. 10 – Organizational Culture
- a strong org culture can guide indiv decisions & help everyone work together toward same goals
- culture is soul of org
 beliefs & values, how they are manifested
 soul that holds thing together & gives it life force
- culture provides stability to org & gives employees clear understanding of “way things are done here”
 sets tone for how org operates & how indivs w/in org interact
- org culture = sys of shared meaning held by members that distinguishes the org form other orgs
1) innovation & risk-taking = degree to which employees encouraged to be innovative & take risks
2) attention to detail = degree to which employees expected to work w/ precision, analysis,
attention to detail
3) outcome orientation = degree to which management focuses on results rather than techniques
& processes used to achieve them
4) ppl orientation = degree to which management decisions take into consideration effect of
outcomes on ppl w/in org
5) team orientation = degree to which work activities organized around teams rather than indivs
6) aggressiveness = degree to which ppl aggressive & competitive vs easygoing & supportive
7) stability = degree to which org activities emphasize maintaining status quo vs growth
- org culture can be represented by a simmering volcano
 beliefs, values, assumptions bubble below, producing observable aspects of culture at surface
 if we can uncover them, help us understand why orgs do the things that we observe
 we rely on visible artifacts (material symbols, special language used, rituals carried out, stories)
to help us uncover org’s beliefs values & assumptions
- beliefs = understandings of how objects & ideas relate to each other
- values = stable, long-lasting beliefs about what is important
- assumptions = taken-for-granted notions of how sth should be
- culture’s functions
1) boundary-defining role = creates distinction b/t one org & others
2) conveys sense of identity to org members
3) helps create commitment to sth larger than indiv’s self-interest
4) enhances stability
 social glue that helps hold org together by providing standards for what employees
should say & do
5) serves as control mechanism that guides & shapes attitudes & behaviour of employees & helps
them make sense of org
- in virtual orgs, lack of face-to-face contact makes est common set of norms difficult
- innovative orgs need strong leadership that communicates frequently about common goals & priorities
- org climate = shared perceptions org members have about their org & work environment
 like team spirit at org level
- dominant culture = sys of shared meaning that expresses core values shared by majority of org’s
members
- subcultures tend to dvlp in large orgs by group members in same department/location
- if orgs were only composed of subcultures, org culture as independent variable would be significantly
less powerful
 “shared meaning” aspect of culture makes is such a potent device for guiding & shaping
behaviour
- strong culture = org’s core values both intensely held & widely shared
 high degree of shared values & intensity create climate of high behavioural control
 builds cohesiveness, loyalty, org commitment
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