Organizational Culture

1
Organizational Culture

• Pattern of basic assumptions
• Beliefs, values, expectations, relationships and
  artifacts
• This is the way we do things around here

2
Characterizing Organizational Culture

• Strength - Depth - Breadth
• Dimensions - Means vs. Ends orientation -
  Dynamic vs. Stable - Internal vs. External
  orientation

3
Culture Types

• Bureaucratic
• Clan
• Entrepreneurial
• Market

4
Relationship Between the Individual and the
Organization

• Clan Culture
• Fraternal relationship
• Mutual long-term commitment
• Rests on mutual interests
• Sense of tradition, history, company, style
• Hierarchy structures relationship

• Market Culture
• Contractual relationship
• Mutual short-term commitment
• Rests on self-interest, utilitarianism
• Terms of exchange structure relationship

5
Relationship Among Organizational Members

• Clan Culture
• Pride in membership
• Sense of interdependence, identification with
  peers
• Extensive collegial network
• Pressure to conform
• Stress collective rather than individual
  initiative, ownership

• Market Culture
• Independence from peers
• Limited interaction
• Little pressure from peers to conform
• Stresses individual initiative, ownership

6
The Process of Acculturation

• Clan Culture
• Long, thorough socialization
• Superiors are mentors, role models, agents of
  socialization
• Rich normative structure governs wide range of
  behaviors

• Market Culture
• Little socialization
• Superiors are distant are negotiators, resource
  allocators
• Lean normative structure governing few
  behaviors

7
Control Systems

• Three critical issues
• How the controls will operate
• What the controls will impact
• When the controls will have impact

8
How Controls Will Operate

• Market output and productivity are used to
  control behavior
• Bureaucratic rules, policies, authority, and
  other formal control mechanisms are used to
  standardize behavior and assess results
• Clan social mechanisms such as culture, shared
  values, beliefs, and traditions are used to
  control behavior

9
What Controls Will Impact

• Behavior Controls - focus on actions and
  processes ex. Training, surveillance
• Outcome Controls - focus on the outcomes/results
  obtained ex. Productivity goals, performance
  reports

10
When Controls Will Have Impact

• Feedforward- prevents anticipated problems ex.
  Rules, procedures, culture, rewards
• Concurrent- occurs while an activity is in
  progress ex. Direct supervision, coworkers,
  videotape
• Feedback- imposed after an event has occurred
  ex. Audits, reports, performance appraisals

11
Take Home Points

• Understand cultural terms and the content,
  characteristics and manifestations of culture
• Understand how culture controls behavior
• Understand culture in practice terms of
  2contrasting archetypes(a) clan culture(b)
  market culture