MAN 337 Chapter Notes - Chapter 15: Organizational Culture, Dominant Culture

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4 Jan 2017
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Chapter 15: Organizational Culture
Organizational culture: a system of shared meaning held by members that distinguishes the
organization from other organizations
o Seven primary characteristics
Innovation and risk taking
Attention to detail/precision
Outcome orientation
People orientation
Team orientation
Aggressiveness
Stability
Dominant culture: epresses the ore values that are shared  a ajorit of the orgaizatio’s
members
o Macro view of the culture that gives it a distinct personality
o Subcultures: reflects common problems, situations or experiences that face members
Likely defined by department designations and geographical separation
Core values + personal values of the members
Strong culture:
o Orgaizatio’s ore values are itesel held ad widely shared
o Most members accept the core values and commit to it
o Has a great ifluee o eer’s ehavior
o Can be a substitute for formalization
Culture’s futios:
o Defines boundaries of organization
o Helps build commitment
o Enhances social system stability
o Conveys a sense of identity for members
o Controls organization members & shapes how they perceive reality
o Facilitates or hinders adaptation to environment
Culture as a liability:
o Barriers to change:
Hard to respond to changes in the environment if culture is consistent; shared
values may not match with what will further the organization
o Barriers to diversity:
Pressure to conform and hire those who will fit in
Diversity likely to diminish in strong cultures
o Barriers to acquisitions and mergers:
Cultural compatibility can be a problem
Creating/sustaining culture:
o Founders are the ultimate source of culture
o Culture creation:
Hire and keep employees that think the way they do
Indoctrinate and socialize employees to their way of thinking
Founders act as a role model
o Sustaining culture:
Selection process: hire people who have the skills and knowledge to do the jobs
within the organization successfully
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