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Chapter 10

OB Chapter 10 - Organizational Culture.docx

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Department
Business Administration
Course Code
BUS 272
Professor
Christopher Zatzick

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Chp 10: Organizational Culture What Is Organizational Culture? Organizational Culture - The pattern of shared values, beliefs, and assumptions considered to be the appropriate way to think and act within an organization Key features of culture: 1. Culture is shared by members of the organization 2. Culture helps members solve and understand things that they encounter, both internally and externally 3. Assumptions, beliefs, and expectations that make up culture have worked over time, so members feel it is valid 4. It strongly influences how people perceive, think, feel and behave within organization Levels of Culture Artifacts - Aspects of an organization's culture that you see, hear, and feel o Very visible Beliefs - The understandings of how objects and ideas relate to each other Values - The stable, long-lasting beliefs about what is important Assumptions - The taken-for-granted notions of how something should be Characteristics of Culture Seven primary characteristics: Innovation and risk-taking Degree of encouragement to be innovative and take risks Attention to detail Degree of precision, analysis, and attention to detail Outcome orientation Degree to which focus is on results rather than process People Orientation Degree of consideration of effects of outcomes on people Team Orientation Degree to which activities are in teams or individual-based Aggressiveness Degree of competitiveness rather than supportiveness Stability Degree of emphasis on maintaining status quo in contrast to growth Culture's Functions  Boundary-defining role, distinction between organization and others  Conveys a sense of identity  Create commitment to something larger  Enhances stability and holds organization together Do Organizations Have Uniform Cultures? Dominant Culture - A system of shared meaning that expresses the core values shared by a majority of the organization's members Subcultures - Mini-cultures within an organization, typically defined by department designations and geographical separation Core Values - The primary, or dominant, values that are accepted throughout the organization Reading an Organization's Culture Strong Culture - A culture in which the core values are intensely held and widely shared o High degree of shared experiences create an internal climate of high behavioural control o Demonstrates high agreement of what the company stands for Stories  About organization's founders, rule breaking, rags-to-riches, reductions in workforce, relocating employees, past mistakes, organizational coping  Provide reasons for current practices Rituals - Repetitive sequences of activities that express and reinforce the key values of the organization; what goals are most important; and which people are important, and which ones are expendable Material Symbols  Ex. Layout of offices, executives' cars, elegance of furnishing, perks, dress code, logo, advertisements, etc.  Signifies differences between executives and employees, or can favour egalitarianism Language  A way to identify members of a culture or subculture  Organizations develop their own jargon and acronyms Creating and Sustaining an Organization's Culture How Organizational Cultures Form How a Culture Begins  Founders' vision has a major impact, they are not constrained by previous customs  Occurs in three ways: o Founders hire and keep employees who think and feel like them o Indoctrinate and socialize these employees to their way of thinking o Founders' act as role models Keeping a Culture Alive Three forces that play a part in sustaining culture
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