Unit - 8 Organizational Culture
Unit - 8 Organizational Culture
Organizational Culture
Course Code: 2HS401
Organizational Culture
Meaning,
Strong culture vs. weak culture,
Creating & sustaining culture,
Socialization
What is organizational culture?
A system of shared meaning held by members that distinguishes the organization from other organizations.
Organizational culture is the set of shared values, beliefs, and attitudes that influence how employees
behave and interact with each other.
Culture affects how people experience an organization—that is, what it's like for a customer to
buy from a company or a supplier to work with it.
Seven primary characteristics seem to capture the essence of an organization’s culture:
1. Innovation and risk taking. The degree to which employees are encouraged to be innovative and
take risks.
2. Attention to detail. The degree to which employees are expected to exhibit precision, analysis, and
attention to detail.
3. Outcome orientation. The degree to which management focuses on results or outcomes rather than
on the techniques and processes used to achieve them.
4. People orientation. The degree to which management decisions take into consideration the effect of
outcomes on people within the organization.
5. Team orientation. The degree to which work activities are organized around teams rather than
individuals.
6. Aggressiveness. The degree to which people are aggressive and competitive rather than easy-going.
7. Stability. The degree to which organizational activities emphasize maintaining the status quo in
contrast to growth.
Summary:
If most employees (responding to management surveys) have the same opinions about the
organization’s mission and values, the culture is strong; if opinions vary widely, the culture is
weak.
The more members who accept the core values and the greater their commitment, the stronger the
culture and the greater its influence on member behaviour.
A strong culture should reduce employee turnover because it demonstrates high agreement about what the
organization represents. Such unanimity of purpose builds cohesiveness, loyalty, and organizational
commitment. These qualities, in turn, lessen employees’ propensity to leave.
Organizations which follows strong Organizational Culture
No matter how good a job the organization does in recruiting and selection, new employees
need help adapting to the prevailing culture. That help is socialization.
After they start work, they continue to learn about the organization through an ongoing social networking
application that links new workers with more established members of the firm and helps ensure that culture is
transmitted over time.48 Clear Channel Communications, Facebook, Google, and other companies are
adopting fresh onboarding (new hire) procedures, including assigning “peer coaches,” holding socializing
events, personalizing orientation programs, and giving out immediate work assignments. “When we can
stress the personal identity of people, and let them bring more of themselves at work, they are more satisfied
with their job and have better results,” researcher Francesca Gino of Harvard said.
2. Encounter Stage: The stage in the socialization
process in which a new employee sees what the
organization is really like and confronts the
possibility that expectations and reality may diverge.