10 - OBIIFinal...

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OB II Final  Chapter 10: Organizational Culture and Ethical Values Organizational Culture - What Is Culture? o Social Capital (goodwill): quality of interactions and whether they share a  common perspective High degree of social capital are based on trust, mutual understanding  o Culture: set of values, norms, guiding beliefs and understandings that is shared  by members of an organization and is taught to new members Unwritten feeling of the organization that everyone participates in Usually goes unnoticed unless an implementation of new  strategies/programs go against basic norms and values o Two levels of organizational culture: 1. Visible artifacts and observable behaviours (dress, act, symbols, stories,  ceremonies) 2. Underlying values, assumptions, beliefs, thought processes o Attributes of culture evolves from a patterned set of activities carried through  social interactions (patterns can be used to interpret culture) - Emergence and Purpose of Culture o Provides sense of identity and generates a commitment to beliefs and values that  are larger than themselves o Begins with a founder or early leader who articulates and implements particular  ideas and values as a vision, philosophy or business strategy o When ideas lead to success they become institutionalized and the culture reflects  the vision and strategy of the founder
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OB II Final  Chapter 10: Organizational Culture and Ethical Values o Two critical functions of culture: 1. Integrate members so that they know how to relate to one another Internal integration: members develop a collective identity and  know how to work together effectively o Day to day working relationships and determines how to  communication what is acceptable and how power and  status is located 2. Help organization adapt to the external environment External adaptation: how to meet goals and deal with outsiders o Helps guide daily activities to workers to meet certain goals o Guides employee decision making in the absence of written rules or policies;  helps build social capital by forgoing positive or negative relationships (internal  and external) - Interpreting Culture o Rites and Ceremonies Elaborate, planned activities that make up a special event and are  conducted for the benefit of an audience Special occasions reinforce values, creates a bond for sharing important  understandings and anoint/celebrate heroes who symbolize important  beliefs Four Types of Rites
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OB II Final  Chapter 10: Organizational Culture and Ethical Values 1. Passage (transition of employees into new roles) o Induction/training 2. Enhancement (stronger identities and increases status)
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10 - OBIIFinal...

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