Unit 19

Organizational
Culture
Source: Organizational Behavior by Stephen Robbins and Timothy Judge Ed 15, Ch
16
Organizational Culture:
1. Meaning and dimensions,
2. Role of founders’ values and vision in
creating and sustaining culture,
3. Types of organizational cultures,
4. Impact of culture on image and
performance of the organization,
5. Managing Cultural Diversity
Meaning and dimensions
 Organizational culture refers to a system of shared meaning held by
members that distinguishes the organization from other
organizations.
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.
Role of founders’ values and vision
in creating and sustaining culture
An organization’s culture doesn’t pop
out of thin air, and once established it
rarely fades away.
What influences the creation of a
culture? What reinforces and sustains
it once it’s in place?
 Theactions of top management also have a
major impact on the organization’s culture.
 Through words and behavior, senior
executives establish norms that filter
through the organization about, for instance,
whether risk taking is desirable, how much
freedom managers give employees, what is
appropriate dress, and what actions earn
pay raises, promotions, and
other rewards.
 The original culture derives from
 the founder’s philosophy and strongly influences
hiring criteria as the firm grows.
 Top managers’ actions set the general climate,
including what is acceptable behavior and what is
not.
 The way employees are socialized will depend
both on the degree of success achieved in matching
new employees’ values to those of the organization
in the selection process, and on top management’s
preference for socialization methods.
 Culture is transmitted to employees in a number
of forms, the most potent
being stories, rituals, material symbols, and
language.
Types of organizational cultures

1. Ethical Organizational

Culture
2. Positive Organizational
Culture
1. Ethical Organizational Culture

 The organizational culture most likely to shape high ethical standards

among
its members is high in risk tolerance, low to moderate in
aggressiveness, and
focused on means as well as outcomes.
 This type of culture takes a long-term perspective and balances the
rights of multiple stakeholders, including employees, stockholders,
and the community.
 Managers are supported for taking risks and innovating, discouraged
from engaging in unbridled competition, and guided to heed not just
to what goals are achieved but also how.
How to create Ethical Organizational Culture
 By the following principles:
 ● Be a visible role model. Employees will look to the actions of top management as a benchmark
for appropriate behavior. Send a positive
message.

● Communicate ethical expectations. Minimize ethical ambiguities by sharing an organizational
code of ethics that states the organization’s primary values and ethical rules employees must follow.

● Provide ethical training. Set up seminars, workshops, and training programs to reinforce the
organization’s standards of conduct, clarify what practices are permissible, and address potential
ethical dilemmas.

● Visibly reward ethical acts and punish unethical ones. Appraise managers on how their
decisions measure up against the organization’s code of ethics. Review the means as well as the
ends. Visibly reward those who act
ethically and conspicuously punish those who don’t.

● Provide protective mechanisms. Provide formal mechanisms so employees can discuss ethical
dilemmas and report unethical behavior without fear of reprimand. These might include ethical
counselors, ombudsmen,
 2. Positive Organizational Culture
 A positive organizational culture emphasizes building on employee
strengths, rewards more than it punishes, and emphasizes individual vitality and
growth.

 Building on Employee Strengths Although a positive organizational culture

does not ignore problems, it does emphasize showing workers how they can
capitalize on their strengths
 Rewarding More Than Punishing Although most organizations are sufficiently
focused on extrinsic rewards such as pay and promotions, they often forget
about the power of smaller (and cheaper) rewards such as praise.
 Emphasizing Vitality and Growth No organization will get the best from employees
who see themselves as mere cogs in the machine. A positive culture
recognizes the difference between a job and a career. It supports not only what
the employee contributes to organizational effectiveness but also how the organization
can make the employee more effective—personally and professionally
Impact of culture on image and
performance of the organization
 Diagram in the previous slide depicts organizational
culture as an intervening variable.
 Employees form an overall subjective perception of
the organization based on factors such as
 degree of risk tolerance,
 team emphasis, and
 support of people.

 This overall perception becomes, in effect, the

organization’s culture or personality and affects
employee performance and satisfaction, with
stronger cultures having greater impact.
Managing Cultural Diversity
https://husys.com/blogs/managing-cultural-diversity-in-global-teams /

 You can seamlessly manage cultural

diversity in global teams by
1. establishing clear communication
channels,
2. practicing empathy, and
3. fostering a culture of inclusivity.
1. Establish Clear Communication Channels
and Encourage Open Dialogue

 Set regular virtual meetings where everyone can see each

other to help build connections
 Create shared documentation where information is centralized
 Ensure the language used is clear and avoids idioms that may
not translate across cultures
 Encourage team members to ask clarifying questions without
judgment
 Actively listen and try to understand different perspectives
and viewpoints
 Set norms for giving constructive feedback respectfully
2. Practice Empathy

 Educate yourself on teammates' cultures and norms

 Avoid assumptions based on cultural stereotypes.
 Adapt your behavior and language to make others
comfortable
 Actively listen without judging the person.
 Consider situations from teammates’ cultural point of
view
3. Foster a Culture of Inclusivity,
Diversity, and Respect

 Integrate cultural context and viewpoints in team

discussions and decisions
 Call out and eliminate bias, discriminatory language, or
behavior.
 Solicit input from introverts and those less likely to speak
up.
 Recognize and appreciate multiculturalism as an asset and
competitive advantage.