ST.

JOHN PAUL II COLLEGE OF DAVAO

COLLEGE OF BUSINESS ADMINISTRATION

Physically Detached Yet Academically Attached

SCP-TOPICS: MIDTERM PERIOD TOPICS

Week 11
Lesson Title Organizational Development Culture
Learning Outcome(s) Connect culture in relation to organizational development

At SJPIICD, I Matter!

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LEARNING NTENT!
Terms to Ponder

Organizational culture is like the genetic makeup of the organization

from which the organization's image and brand are created. It embodies the
organization's mission, vision, philosophy, values, policies, principles, products,
processes, market history and historical data. (Chancy, 2017)

Essential Content

What is organizational culture?

Organizational culture
is the collection of values,
expectations, and practices
that guide and inform the
actions of all team members.
Think of it as the collection of
traits that make your company
what it is. A great culture
exemplifies positive traits that
lead to improved performance,
while a dysfunctional culture
brings out qualities that can
hinder even the most
successful organizations.
Don’t confuse culture with organizational goals or a mission statement, although
both can help define it. Culture is created through consistent and authentic
behaviors, not press releases or policy documents. You can watch company
culture in action when you see how a CEO responds to a crisis, how a team
adapts to new customer demands, or how a manager corrects an employee who
makes a mistake.

Components of Organizational Culture

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 ST. JOHN PAUL II COLLEGE OF DAVAO

COLLEGE OF BUSINESS ADMINISTRATION

Physically Detached Yet Academically Attached

v Routine ways of communicating

v Norms shared by individuals and teams
v Dominant values held by an organization
v Guiding philosophy for management’s policies and decision making
v Rules of the game for getting along in the organization
v Climate of the organization

Layers of Organizational Culture

Issues Associated with External Adaptation and Survival

v Identifying the organization's primary mission and selecting strategies to

pursue it
v Setting specific targets
v Determining how to pursue the goals, including selecting an organizational
structure and reward system
v Establishing criteria to measure how well individuals, teams, and
departments are accomplishing their goals

Issues Associated with Internal Integration

v Identifying methods of communication and developing a shared meaning

for important concepts
v Establishing criteria for membership in groups and teams
v Determining rules for acquiring, maintaining, and losing power and status
v Developing systems for encouraging desirable behaviors and discouraging
undesirable behaviors

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 ST. JOHN PAUL II COLLEGE OF DAVAO

COLLEGE OF BUSINESS ADMINISTRATION

Physically Detached Yet Academically Attached

How Cultures Emerge

1. Top Management
· Agrees on shared assumptions of human behavior
· Develops a shared vision of cultural values
2. Behaviors
· Employees behave in ways that are consistent with shared values
and assumptions
3. Results
· Financial performance
· Market share
· Employee commitment
4. Culture
· Strong culture emerges
· Traditions are maintained
· Socialization practices for new employees

Methods of Maintaining Organizational Culture

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 ST. JOHN PAUL II COLLEGE OF DAVAO

COLLEGE OF BUSINESS ADMINISTRATION

Physically Detached Yet Academically Attached

Organizational Rites and Ceremonies

Requirements for Successfully Changing Organizational Culture

v Understand the old culture first

v Support employees and teams who have ideas for a better culture and are
willing to act on those ideas
v Find the most effective subculture in the organization and use it as a model
v Help employees and teams do their jobs more effectively
v Use the vision of a new culture as a guide for change
v Recognize that significant cultural change takes time
v Live the new culture

Framework of Types of Cultures

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 ST. JOHN PAUL II COLLEGE OF DAVAO

COLLEGE OF BUSINESS ADMINISTRATION

Physically Detached Yet Academically Attached

Attributes of a Bureaucratic Culture

v Long-term concerns are predictability, efficiency, and stability

v Members value standardized goods and services
v Managers view their roles as being good coordinators, organizers, and
enforcers of written rules and standards
v Tasks, responsibilities, authority, rules, and processes are clearly defined

Attributes of a Clan Culture

v Members understand that contributions to the organization exceed any

contractual agreements
v A clan culture achieves unity with a long and thorough socialization
process
v Members share feelings of pride in membership, as well as feelings of
personal ownership of a business, a product, or an idea
v Peer pressure to adhere to important norms is strong
v Success is assumed to depend substantially on sensitivity to customers
and concern for people
v Teamwork, participation, and consensus decision making are believed to
lead to success

Attributes of an Entrepreneurial Culture

v There is a commitment to experimentation, innovation, and being on the

leading edge
v This culture does not just quickly react to changes in the environment—it
creates change
v Effectiveness depends on providing new and unique products and rapid
growth
v Individual initiative, flexibility, and freedom foster growth and are
encouraged and well rewarded

Attributes of a Market Culture

v Contractual relationship between individual and organization

v Independence and individuality are valued, and members are encouraged
to pursue their own financial goals
v Does not exert much social pressure on an organization’s members, but
when it does, members are expected to conform
v Superiors’ interactions with subordinates largely consist of negotiating
performance–reward agreements and/or evaluating requests for resource
allocations

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 ST. JOHN PAUL II COLLEGE OF DAVAO

COLLEGE OF BUSINESS ADMINISTRATION

Physically Detached Yet Academically Attached

v Has a weak socialization process

v Few economic incentives are tied directly to cooperating with peers
v Often tied to monthly, quarterly, and annual performance goals based on
profits

Organizational Uses of Culture

v Organizational culture has the potential to enhance organizational

performance, individual satisfaction, and a variety of expectations,
attitudes, and behaviors in organizations
v If an organization’s culture is not aligned with the changing expectations
of internal and/or external stakeholders, the organization’s effectiveness
can decline
v Organizational culture and performance are related, although the evidence
regarding the exact nature of this relationship is mixed
v Organizational culture affects employee behavior and performance
v Assessing which attributes of an organization’s culture need to be
preserved and which ones need to be modified is a constant organization
need

Relationship Between Culture and Performance

v Organizational culture can have a significant impact on a firm’s long-term

economic performance
v Organizational culture will probably be an even more important factor in
determining the success or failure of firms during the next decade
v Organizational cultures that inhibit strong long-term financial
performance are not rare; they develop easily, even in firms that are filled
with reasonable and intelligent people
v Although tough to change, organizational cultures can be made more
performance-enhancing if managers understand what sustains a culture

Effects of Organizational Culture on Employee Behavior and

Performance

v Allows employees to understand the firm’s history and current methods of

operation
v Fosters a commitment to corporate philosophy and values
v Serves as a control mechanism for employee behaviors
v Certain cultural types may produce greater effectiveness and productivity

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 ST. JOHN PAUL II COLLEGE OF DAVAO

COLLEGE OF BUSINESS ADMINISTRATION

Physically Detached Yet Academically Attached

Effects of Organizational Culture on Ethical Behavior

v A culture emphasizing ethical norms provides support for ethical behavior

v Top managers play a key role in fostering ethical behavior by exhibiting
correct behavior
v The presence or absence of ethical behavior in managerial actions both
influences and reflects the culture

How Employees Can Change Unethical Behavior

v Secretly or publicly reporting unethical actions to a higher level within the

organization
v Secretly or publicly reporting unethical actions to someone outside the
organization
v Secretly or publicly threatening an offender or responsible manager with
reporting unethical actions
v Quietly or publicly refusing to implement an unethical order or policy

Actions for Creating a Culture that Encourages Ethical Behavior

v Be realistic in setting values and goals regarding employee relationships

v Encourage input from organization members regarding appropriate values
and practices for implementing the culture
v Opt for a “strong” culture that encourages and rewards diversity and
principled dissent
v Provide training on adopting and implementing the organization’s values

Guidelines for Managing Cultural Diversity

Organization members must:

v Understand the nature of diversity and value a variety of opinions and
insights
v Recognize the learning opportunities and challenges presented by the
expression of different perspectives
The organizational culture must:
v Foster expectations for high standards of performance and ethics for
everyone
v Stimulate personal development
v Encourage openness
v Make workers feel valued
The organization must have a well-articulated and widely understood mission

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