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Chapter 8

Ch. 8. Organizational Culture.docx

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Jennifer Komar

BU288 Lecture 18Ch 8 Social Influence Socialization and CultureThurs Nov 15 2012Organizational CultureCulture provides uniqueness and social identity to organizations through style atmosphere or personalitymost obvious when we contrast what it must be like to work in various firms Organizational culture the shared beliefs values and assumptions that exist in an organizationdetermine the norms that develop and the patterns of behaviour that emerge from these normsoshared doesnt always mean members agree but it means theyve had uniform exposure to matters and have some minimum common understanding of themCulture is a social variable not simply an automatic consequence of technology products or sizeex large firms tend to be bureaucratic But some large organization may support an informal atmosphereSubcultures smaller cultures that develop within larger organizational culture that are based on differences in training occupation or departmental goalseffective organizations will develop an overarching culture that manages such divisionsCharacteristics of culture1Culture represents a way of life for members who often take its influence for granted Often an OC becomes obvious only when contrasted with that of other firms or when it changes2Because culture involves assumptions values and beliefs it tends to be stable Also once a culture is well established it can persist despite turnover among memberssocial continuity3Culture can involve internal or external matters Internally a culture may support risk or secrecy of info Externally culture may support customer first or behaving unethically toward competitors4Culture can strongly impact both organizational performance and member satisfaction1 Strong Culture ConceptStrong culture an organizational culture with intense and pervasive beliefs values and assumptionsstrongly supported by most members even cutting across any subcultures that existProvides great consensus concerning what an organization is aboutWeak cultures are fragmented and have less impact on organizational members as beliefs and values are less strongly ingrained or less widely shared across the organizationAll organizations have a culture but it may be hard to detect details of weak culturesCulture programs can help reintroduce employees to the company cultureThree points about strong cultures1An organization doesnt have to be big to have a strong culture just strongly shared beliefs2Strong cultures dont necessarily result in blind conformity ex support innovationcreativity3Strong cultures are associated with greater success and effectiveness2 Assets of Strong CulturesCoordination right hand knows what the left hand is doing Overarching values and assumptions can facilitate such communication so different parts can learn from each other and coordinate their effortsimportant in decentralized teamoriented organizationsConflict resolution intensity associated with strongly held assumptions and values may lead to friction and among members But sharing core values helps to resolve conflictsex 2 people can have the same beliefs but different ideas of how to achieve them but can find a solution to thisFinancial success the assets translate into financial success as long as liabilities discussed below are avoidedThe culture must support the mission strategy and goals of the organizationodirect relation between culture and healthfinancial performancecorporate culture has a tangible impact on long term success and ability to recruitmanageretain the best peopleoA study found that firms whose managers responded consistently to a culture survey had greater asset and premium growth than those indicating disagreementoAnother study had members of 6 international accounting firms complete a survey ex attention to detail is valued over innovation since theyre all accounting firms However they differ in their value profiles as some emphasized task values while other firms emphasized interpersonal relationship valuesfirms that emphasized work task values had higher employee turnover rate 3 Liabilities of Strong Cultures1
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