Organizational Culture

Organizational Culture - Organizational Culture...

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Organizational Culture Organizational culture is concerned with how employees perceive the characteristics of an organization’s culture, not whether or not they like them. An organization’s culture develops over many years and is rooted in deeply held values to which employees are strongly committed. There are seven primary characteristics that, in aggregate, 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 those outcomes 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 easygoing 7. Stability The degree to which organizational activities emphasize maintaining the status quo in contrast to growth In a strong culture the organization’s core values are both intensely held and widely shared. The more members accept the core values and the greater their commitment to those values, the stronger the culture, resulting in lower employee turnover. A strong culture can substitute formalization because it increases behavioral consistency. What do cultures do?
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Organizational Culture - Organizational Culture...

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