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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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What Is Organizational Culture? (contd)
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What Is Organizational Culture? (contd)
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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Creating a Customer-Responsive Culture
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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Creating a Customer-Responsive Culture
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
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