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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.

Stories
Stories

Rituals
Rituals

How
How Employees
Employees
Learn
Learn Culture/
Culture/
How
How it
it is
is reinforced
reinforced
Material
Material
Symbols
Symbols

Language
Language
Prentice Hall, 2001

Chapter 17

Organizational Culture
Functions

Liabilities

Controlling behavior

Blocking mergers

Defining boundaries

Inhibiting diversity

Conveying identity

Inhibiting change

Promoting commitment

Blocking acquisitions

Prentice Hall, 2001

Chapter 17

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

How Organizational
Cultures Form
Top
Management

Philosophy
of the
Organizations
Founders:
Ben & Jerry,
Herb Kelleher,
Bill Gates

Organizational
Culture

Selection

Socialization
Prentice Hall, 2001

Chapter 17

Do Organizations Have Uniform


Cultures
Dominant
Culture

Subcultures
Core
Values

Prentice Hall, 2001

Chapter 17

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