Organizational Behavior 15th Global Edition

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Organizational

Behavior

Chapter 16 15th Global Edition


Robbins and Judge

Organizational Culture

Copyright © 2013 Pearson Education 16-1


Define organizational culture and
LO 1 describe its common characteristics

 Organizational culture refers to a system of


shared meaning held by members that
distinguishes the organization from other
organizations.

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Define organizational culture and
LO 1 describe its common characteristics

 Research identifies seven primary characteristics


that capture the essence of an organization’s
culture:
 Innovation and risk taking.
 Attention to detail.
 Outcome orientation.
 People orientation.
 Team orientation.
 Aggressiveness.
 Stability.

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Define organizational culture and
LO 1 describe its common characteristics

 Organizational culture is concerned with employees’


perception culture.
 Research asks questions
 Does it encourage teamwork?
 Does it reward innovation?
 Does it stifle initiative?

 It differs from job satisfaction


 Job satisfaction is evaluative.
 Organizational culture is descriptive.

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Define organizational culture and
LO 1 describe its common characteristics

 High formalization creates predictability, orderliness,


and consistency.
 Formalization and culture are two different roads to a
common destination.
 The stronger an organization’s culture, the less
management needs to develop formal rules and
regulations.
 Employees internalize guides when they accept the
organization’s culture.

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Compare the functional and
LO 2 dysfunctional effects of organizational
culture on people and the organization

Culture’s Functions
 Boundary-defining role
 Conveys a sense of identity for members
 Facilitates the generation of commitment
 Enhances the stability of the social system
 Serves as a sense-making and control mechanism
 Guides and shapes attitudes and behavior of
employees

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Compare the functional and
LO 2 dysfunctional effects of organizational
culture on people and the organization

 Institutionalization

 Barriers to Change

 Barriers to Diversity

 Barriers to Acquisitions and Mergers

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Identify the factors that create
LO 3 and sustain an organization’s culture

 How a Culture Begins


 Ultimate source of an organization’s culture is its
founders.
 Founders have vision of what the organization should
be.
 Unconstrained by previous ideologies or customs.
 New organizations are typically small; facilitates the
founders’ imparting of their vision on all organizational
members.

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Identify the factors that create
LO 3 and sustain an organization’s culture

 Culture creation occurs in three ways:


 Founders hire employees who feel the way
they do.
 Employees are indoctrinated and socialized into
the founders’ way of thinking.
 Founders’ behaviors act as role models.

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Copyright © 2013 Pearson Education
Identify the factors that create
LO 3 and sustain an organization’s culture

 Sustain Through Selection


 The explicit goal of the selection process is to
identify and hire individuals with the knowledge,
skills, and abilities to perform successfully.
 Top Management
 The actions of top management also have a
major impact on the organization’s culture.

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Identify the factors that create
LO 3 and sustain an organization’s culture

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Show how culture is
LO 4 transmitted to employees

 Culture is transmitted to employees through


 Stories,
 Rituals,
 Material symbols, and
 Language.

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Demonstrate how an
LO 5 ethical culture can be created

 Characteristics shaping high ethical standards:


 High in risk tolerance
 Low to moderate in aggressiveness
 Focuses on means as well as outcomes
 Managers are
 Supported for taking risks and innovating,
 Discouraged from unbridled competition, and
 Guided to not just what is achieved but also how.

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Demonstrate how an
LO 5 ethical culture can be created

 If the culture is strong and supports high ethical


standards, it should have a very powerful and
positive influence on employee behavior.
 The negative consequences of a systematic culture
of unethical behavior can be severe and include
customer boycotts, fines, lawsuits, and government
regulation of an organization’s practices.

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Demonstrate how an
LO 5 ethical culture can be created

 How can management create a more ethical


culture?
 Be a visible role model.
 Communicate ethical expectations.
 Provide ethical training.
 Reward ethical acts and punish unethical ones.
 Provide protective mechanisms.

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Describe a positive
LO 6 organizational culture

 There is a trend today for organizations to attempt


to create a positive organizational culture.
 A positive organizational cultureemphasizes
building on employee strengths, rewards more than
it punishes, and emphasizes individual vitality
growth.

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Show how national culture may
LO 8 affect the way organizational
culture is transported to a different country
 Organizational cultures often reflect national culture.

 One of the primary things U.S. managers can do is to


be culturally sensitive.
 The management of ethical behavior is one area where
national culture can rub up against corporate culture.
 U.S. employees are not the only ones who need to be
culturally sensitive.

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Summary and Implications for Managers

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