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What is Organizational Culture?

A system of meaning shared by the


organizations members
Cultural values are collective beliefs,
assumptions, and feelings about what things
are good, normal, rational, valuable, etc.

Cultures Overall Function


Culture is the social glue that helps hold an
organization together by providing
appropriate standards for what employees
should say or do.
Prentice Hall, 2001 Chapter 17 3
How Employees
Learn Culture/
How it is reinforced
Material
Symbols
Language
Stories Rituals
Prentice Hall, 2001 Chapter 17 4
Organizational Culture
Controlling behavior
Defining boundaries
Conveying identity
Promoting commitment

Blocking mergers
Inhibiting diversity
Inhibiting change
Blocking acquisitions
Functions Liabilities
Prentice Hall, 2001 Chapter 17 5
What Is Organizational Culture?
Innovation and risk taking (3M)
Outcome orientation (Bausch & Lomb)
People orientation (SWA)
Aggressiveness (Microsoft)
Family-friendly (SAS Institute)
Prentice Hall, 2001 Chapter 17 6
How Organizational
Cultures Form
Philosophy
of the
Organizations
Founders:

Ben & Jerry,
Herb Kelleher,
Bill Gates

Organizational
Culture
Selection
Top
Management

Socialization
Prentice Hall, 2001 Chapter 17 7
Do Organizations Have Uniform
Cultures
Core
Values
Subcultures
Dominant
Culture

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