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Unformatted text preview: Organizational Culture 1 Organizational Culture
Organizational Organizational culture is the shared social
knowledge within an organization regarding the
rules, norms, and values that shape the attitudes and
behaviors of its employees.
behaviors Culture is social knowledge among members of the
Culture tells employees what the rules, norms, and values
are within the organization.
Organizational culture shapes and reinforces
employee attitudes and behaviors by
creating a system
of control over employees.
2 Culture Strength
Culture Culture strength exists when employees definitively agree
about the way things are supposed to happen within the
organization (high consensus) and when their subsequent
behaviors are consistent with those expectations (high
Subcultures unite a smaller subset of the organization’s
employees. Created because there is a strong leader in one area of the company
that engenders different norms and values
Created because different divisions in a company act
independently and create their own cultures.
independently Counter cultures exist when a subcultures’ value don’t match
those of the organization.
3 Culture Strength and Subcultures
Culture 4 Pros & Cons of Strong Culture
Pros 5 Maintaining Organizational Culture
Maintaining Attraction-Selection-Attrition (ASA) framework
holds that potential employees will be
to organizations whose cultures match their own
personality. Some potential job applicants won’t apply due to a
lack of fit.
Organizations will select candidates based on whether their
personalities fit the culture, further weeding out potential “misfits.”
Those people who still don’t fit will either be unhappy or
ineffective when working in the organization.
ineffective http://www.youtube.com/watch?v=0_ZOSYfYcb4&feature=channel 6 Maintaining Organizational Culture
Maintaining Socialization is the primary process by which
employees learn the social knowledge that enables
them to understand and adapt to the organization’s
culture. Anticipatory stage happens prior to an employee
spending even one second on the job.
spending Realistic job preview Encounter stage begins the day an employee
work. starts Reality shock is a mismatch of information that occurs when an
employee finds that aspects of working at a
company are not
what the employee expected it to be.
7 Maintaining Organizational Culture
Maintaining Socialization, continued Understanding and adaptation is the final stage of
socialization, during which newcomers come to learn the
content areas of socialization and
norms and expected behaviors of the organization.
norms The more quickly and effectively an employee is
socialized, the sooner that employee
productive worker within the
productive 8 Maintaining Organizational Culture
Maintaining Johnson & Johnson’s credo 9 Changing Organizational Culture
Changing Changes in leadership New leaders bring their own ideas and
and leaders are expected to be a driving force for
change. Mergers and Acquisitions Two companies with distinct cultures are merged
to form a new culture.
to 10 Change in GM’s culture
Change President Obama’s Plan http://www.youtube.com/watch?v=ppvgegzxVQs&feat Was this plan successful? http://www.pbs.org/newshour/bb/business/july-dec10/g 11 How important is the right culture?
How Enron Enron’s corporate culture http://www.youtube.com/watch?v=E3duIlclhoE The outcomes http://www.youtube.com/watch?v=Uxd9AeXft64&feature=re 12 ...
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- Fall '08