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CHAPTER 9: ORGANIZATIONAL CULTURE AND DESIGN ORGANIZATIONAL CULTURE Organizational culture: defined by Edgar Schein as the system of shared beliefs and values that develops within an org and guides the behavior of its members. o EX: when someone says “the way we do things here” is an org culture. WHAT STRONG CULTURES DO The internal culture has the potential to shape attitudes, reinforce common beliefs, direct behavior, establish performance expectations, and create the motivation to fulfill them. The best orgs have strong cultures that are clear, well defined and widely shared as they discourage dysfunctional work behaviors and encourage positive ones. These cultures commit members to do things for and with one another that are in the best interests of the org. They show respect for members and expect adaptability and continuous improvement in all areas of operations. Strong and positive cultures are: o Performance oriented o Emphasize teamwork o Allow for risk taking o Encourage innovation o Make the well-being of people at top management priority ELEMENTS OF ORGANIZATIONAL CULTURE Observable culture: is what one sees and hears when walking around an organization as a visitor, a customer, or an employee. It is apparent in the way people dress at work, how they arrange their offices, how they speak to and behave toward one another, the nature of their conversations, and how they talk about and treat their customers. Elements of observable culture: o Stories – oral histories and tales, told and retold among members, about dramatic sagas and incidents in the life of organization. o Heroes – the people singled out for special attention and whose accomplishments are recognized with praise and admiration among members; they include founders and role models. o Rites and rituals – the ceremonies and meetings, planned and spontaneous, that celebrates important occasions and performance accomplishments. o Symbols – the special use of language and other nonverbal expressions to communicate important themes of organizational life. Core culture: the foundation for what one observes in the daily life of an organization rests with a second and deeper level of culture. Core values: underlying beliefs that influence the behavior of organization members. Values are essential to strong culture orgs and are often widely publicized in formal statements of corporate mission and purpose. DIRECTIONS IN ORGANIZATIONAL CULTURES Progressive leadership and worker empowerment are important themes as organizations seek to gain competitive advantages and build cultures to meet the challenges of the new workplace. LEADERSHIP AND ORGANIZATIONAL CULTURE
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Leadership in organizations involves a responsibility for building and maintaining a strong and positive culture. How well this culture operates to support performance will depend in part on the strength
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