What is Organizational Culture

1
What is Organizational Culture?

• A system of meaning shared by the organizations
  members
• Cultural values are collective beliefs,
  assumptions, and feelings about what things are
  good, normal, rational, valuable, etc.

2
Cultures Overall Function

• Culture is the social glue that helps hold an
  organization together by providing appropriate
  standards for what employees should say or do.

3
Stories
Rituals
How Employees Learn Culture/ How it is
reinforced
Material Symbols
Language
4
Organizational Culture
Functions
Liabilities

• Controlling behavior
• Defining boundaries
• Conveying identity
• Promoting commitment

• Blocking mergers
• Inhibiting diversity
• Inhibiting change
• Blocking acquisitions

5
What Is Organizational Culture?

• Innovation and risk taking (3M)
• Outcome orientation (Bausch Lomb)
• People orientation (SWA)
• Aggressiveness (Microsoft)
• Family-friendly (SAS Institute)

6
How OrganizationalCultures Form
Top Management
Philosophy of the Organizations Founders Ben
Jerry, Herb Kelleher, Bill Gates
Organizational Culture
Selection
Socialization
7
Do Organizations Have Uniform Cultures
Subcultures
Dominant Culture
Core Values