Ch 3 - Culture

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2003 Prentice Hall Inc. All rights reserved. 181

Institutionalization: A Forerunner of Culture

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What Is Organizational Culture?

Characteristics:

1. Innovation and risktaking

2. Attention to detail

3. Outcome orientation

4. People orientation

5. Team orientation

6. Aggressiveness

7. Stability

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What Is Organizational Culture? (contd)

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Culture Versus Formalization A strong culture increases behavioral consistency and

can act as a substitute for formalization.

Organizational Culture Versus National Culture

National culture has a greater impact on employeesthan does their organizations culture.

Nationals selected to work for foreign companies maybe atypical of the local/native population.

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What Do Cultures Do?

Cultures Functions:

1. Defines the boundary between one

organization and others.2. Conveys a sense of identity for its members.

3. Facilitates the generation of commitment to

something larger than self-interest.

4. Enhances the stability of the social system.

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What Do Cultures Do?

Culture as a Liability:

1. Barrier to change

2. Barrier to diversity

3. Barrier to acquisitions andmergers

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Keeping Culture Alive

Selection Concerned with how well the candidates will fit into theorganization.

Provides information to candidates about theorganization.

Top Management

Senior executives help establish behavioral norms thatare adopted by the organization.

Socialization

The process that helps new employees adapt to theorganizations culture.

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Stages in the Socialization Process

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A Socialization Model

E X H I B I T 18-2

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Entry Socialization Options

Formal versus Informal

Individual versus Collective

Fixed versus Variable

Serial versus Random

Investiture versus Divestiture

E X H I B I T 18-3

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How Organization Cultures Form

E X H I B I T 18-4

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How Employees Learn Culture

Stories

Rituals

Material Symbols

Language

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Creating An Ethical Organizational Culture

Characteristics of Organizations that DevelopHigh Ethical Standards

High tolerance for risk

Low to moderate in aggressiveness

Focus on means as well as outcomes

Managerial Practices Promoting an EthicalCulture

Being a visible role model.

Communicating ethical expectations.

Providing ethical training.

Visibly rewarding ethical acts and punishing unethicalones.

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Creating a Customer-Responsive Culture

Key Variables Shaping Customer-ResponsiveCultures

1. The types of employees hired by the organization.

2. Low formalization: the freedom to meet customerservice requirements.

3. Empowering employees with decision-makingdiscretion to please the customer.

4. Good listening skills to understand customermessages.

5. Role clarity that allows service employees to act asboundary spanners.

6. Employees who engage in organizational citizenshipbehaviors.

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Managerial Actions:

Select new employees with personality andattitudes consistent with high serviceorientation.

Train and socialize current employees to bemore customer focused.

Change organizational structure to give

employees more control.

Empower employees to make decision abouttheir jobs.

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Managerial Actions (contd) :

Lead by conveying a customer-focused vision

and demonstrating commitment to customers.

Conduct performance appraisals based oncustomer-focused employee behaviors.

Provide ongoing recognition for employees who

make special efforts to please customers.

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Spirituality and Organizational Culture

Characteristics:

Strong sense ofpurpose

Focus on individualdevelopment

Trust and openness

Employee

empowerment Toleration of employee

expression

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How Organizational Cultures Have an Impact

on Performance and Satisfaction

E X H I B I T 18-7

Ch 3 - Culture

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