Chapter 16. Organizational Culture - ORGANIZATIONAL CULTURE What is it o o System of shared meaning held by members that distinguishes one organization

Chapter 16. Organizational Culture - ORGANIZATIONAL CULTURE...

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ORGANIZATIONAL CULTURE What is it? o System of shared meaning held by members that distinguishes one organization from others o 7 primary characteristics: Innovation and risk taking – degree to which employees are encouraged to be innovative and take risks Attention to detail – degree to which employees are expected to exhibit precision, analysis and attention to detail Outcome orientation – degree to which management focuses on results than processes People orientation – degree to which management consider the effect of outcomes on people within an organization Team orientation – degree to which work activities are organized around teams Aggressiveness – degree to which people are aggressive & competitive than easygoing Stability – degree to which organizational activities emphasize maintaining the status quo rather than growth Culture (i) Organizational culture is how employees perceive the characteristics of an organization’s culture so it is a descriptive term (ii) Job satisfaction measures how employees feel about the organization’s expectation, reward practices so it is evaluative not descriptive Do organizations have a uniform culture? Dominant culture: expresses core values shared by majority of the org members Subcultures: develop in large org to reflect common problems, situations, experiences faced in the same department or location Numerous subcultures = organizational culture less powerful Strong vs. Weak Cultures (i) Strong culture – core values are intensely held and widely shared. The more the members who accept the core values and the greater their commitment, the stronger the culture and the greater the influence on member behavior Strong culture reduces employee turnover, builds cohesiveness, loyalty and commitment Culture vs. Formalization The stronger an organization’s culture, the less management need to develop formal rules and regulations to guide employee behavior What do cultures do? Culture’s functions
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1. Creates distinctions between organizations 2. Conveys sense of identity for organization members 3. Facilitates the generation of commitment to something larger that individual self-interest 4. Enhances stability of the social system 5.
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