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CHAPTER 8 WHAT IS AN ORGANIZATIONAL CULTURE? Organizational culture : sometimes called corporate culture; is a system of shared beliefs and values that develops within an organization and guides the behavior of its members 4 Types of Organizational Culture: 1. Clan Culture : has an internal focus and values flexibility rather than stability and control - An employee-focused culture valuing flexibility, not stability 2. Adhocracy Culture : has an external focus and values flexibility - a risk-taking culture valuing flexibility 3. Market Culture : has a strong external focus and values stability and control - a competitive culture valuing profits over employee satisfaction 4. Hierarchy Culture : has an internal focus and values stability and control over flexibility - 3 Levels of Organizational Culture Level 1 – Observable Artifacts : physical manifestations such as manner of dress, awards, myths, and stories about the company, rituals and ceremonies, and decorations Level 2 – Espoused Values : are the explicitly stated values and norms preferred by an organization Enacted values : which represent the values and norms actually exhibited in the organization Level 3 – Basic Assumptions : which are not observable, represent the core values of an organization’s culture How Employees Learn Culture 1. Symbols : is an object, act, quality, or event that conveys meaning to others 2. Stories : is a narrative based on true events, which is repeated – and sometime embellished upon – to emphasize a particular value 3. Heroes : is a person whose accomplishments embody the values of the organization 4. : are the activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organization’s life 4 Functions of Organizational Culture 1. It gives members an organizational identity 2. It facilitates collective commitment 3. It promotes social-system stability 4. It shapes behavior by helping employees make sense of their surroundings
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Culture can be strong enough to take the place of structure; that is, the expectations of the culture replace formal rules and regulations DEVELOPING HIGH-PERFORMANCE CULTURES Cultures for Enhancing Economic Performance
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This note was uploaded on 05/19/2010 for the course MGMT 320 taught by Professor Marka.engelbrecht during the Spring '10 term at University of Louisiana at Lafayette.

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