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Chapter 16: Organizational Culture - Coggle Diagram
Chapter 16: Organizational Culture
16.1 Describe the common characteristics of organizational culture.
Organizational culture
These shared beliefs, values, and assumptions determine the norms that develop and the patterns of behavour that emerge from these norms. CULTURE -> NORMS -> BEHAVIOUR
Organizational culture consists of the shared beliefs, values, and assumptions that exist in an organization.
Culture provides uniqueness and social identity to organizations.
Informally, culture can be thought of as an organization’s style, atmosphere, or personality.
Characteristics of Organizational Culture
It represents a true “way of life” for organizational members who often take its influence for granted.
It tends to be fairly stable over time and once established it can persist despite turnover among organizational members, providing social continuity.
The content of a culture can involve matters that are internal to the organization or external.
Culture can have a strong impact on both organizational performance and member satisfaction.
16.2 Show how culture is transmitted to employees.
Diagnosing a Culture
:
One way to grasp a culture is to examine the symbols, rituals, and stories that characterize the organization’s way of life.
For insiders, symbols, rituals, and stories are mechanisms that teach, communicate, and reinforce the company’s culture.
Symbols
:
Symbols are strong indicators of corporate culture.
Some executives are particularly skilled at using symbols consciously to reinforce cultural values.
Rituals:
Rites, rituals, and ceremonies can convey the essence of a culture and can include:
Recognition awards and events
Monthly parties
Beach parties
Employee nights
Award ceremonies
Stories
:
Organizations often communicate their culture through the use of stories.
The folklore of organizations – stories about past organizational events – is a common aspect of culture.
Stories communicate “how things work” and reflect the uniqueness of organizational cultures.
A few common themes underlie many organizational stories.
Issues of equality, security, and control underlie these stories.
Stories often have a “good” version and a “bad” version.
The retelling of a story is indicative of an organization’s core values.
16.3 Identify the factors that create and sustain an organization’s culture.
The Founder’s Role
Many cultures, especially strong cultures, reflect the values of an organization’s founder.
Top management strongly shapes an organization’s culture.
The culture usually emulates what top management “pays attention to.”
Socialization
The precise nature of the socialization process is a key to the culture that emerges in an organization.
Socialization is one of the primary means by which individuals can learn a culture’s beliefs, values, and assumptions.
Organizations with strong cultures go to great pains to expose employees to a careful, step-by-step socialization process.
16.4 Compare the functional and dysfunctional effects of organizational culture on people and the organization.
Functional
Coordination
:
The overarching values and assumptions of strong cultures can facilitate communication and coordination.
Different parts of the organization can learn from each other and can coordinate their efforts.
Conflict Resolution
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Sharing core values is a powerful mechanism that helps to resolve conflicts.
The core value will often suggest an appropriate dispute resolution mechanism.
Financial Success
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Strong cultures contribute to financial success and organizational effectiveness when the culture supports the mission, strategy, and goals of the organization.
WestJet Airlines: One of the most profitable airlines in North America and consistently ranked as having one of the most admired corporate cultures in Canada.
Disfunctional
Culture Clash
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Strong cultures can mix badly when a merger or acquisition pushes two of them together under the same corporate banner.
Pathology
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Some strong cultures can threaten organizational effectiveness simply because the cultures are, in some sense, pathological.
Cultures based on beliefs, values, and assumptions that support infighting, secrecy, and paranoia.
Resistance to Change
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A strong culture can prove very resistant to change and can damage a firm’s ability to innovate.
16.5 Describe the similarities and differences in creating an ethical culture, a positive culture, and a spiritual culture.
16.6 Show how national culture can affect the way organizational culture is interpreted in another country.