Unit 2: Organization Culture & Values

2.1. Values – Definition & Concept

 Values in Organizational Behaviour is defined as the collective conceptions of what is considered good,
desirable, and proper or bad, undesirable, and improper in a culture. Some common business values are
fairness, innovations and community involvement.
 From ethical point of view, Values can be defined as those things that are valued by someone. In other
words, values are what is considered 'important' by an individual or an organization. Examples
include courage, honesty, freedom, innovation etc.

Importance of Values in an Organization

Our values represent our personal guiding principles or life goals, guiding our behaviour in all aspects of
life, including our home life, our work like, and our social life. The importance of values lies in their
purpose, which is, in short, to guide our beliefs, attitudes, and behaviours.

Where do Values Come From?

An important thing to note is that values cannot exist in isolation from society. Essentially, every value we
think of can be referred to as a ‘goodness’ that exists in our minds, which in turn, exists as a sociometer
construct that guides both collective and individual action.
Values can be formed biologically, determined by our human needs, wants, and desires, and following our
birth, they are formed from particular social groups, whose core values are determined by its purpose. Some
examples include:
 Tribes 
Possible Core Values: Courage, loyalty, and honesty. 
Purpose: Survival and staying together. 
 Sports Teams 
Possible Core Values: Discipline, mental toughness, and competitiveness. 
Purpose: To train and win.
 School Class 
Possible Core Values: Popularity, emotional intelligence, and sociability. 
Purpose: Develop social skills. 
 College Class 
Possible Core Values: Wit, knowledgeability, and rationality. 
Purpose: To debate and share knowledge. 
 Company 
Possible Core Values: Innovation, perseverance, and assertiveness. 
Purpose: To be successful and earn a profit.

Importance of Values in the Workplace

1. Values help you to gain self-respect

 Sticking to your values and choosing not to compromise them for demands is a guaranteed way to regain
self-respect. For example, if you value punctuality, communicate this to your co-workers. If you feel you
are being underappreciated or neglected by your superiors, speak up.  
 If you do not respect yourself by staying true to what you believe is morally sound, and what falls in line
with your values, there is no reason for anyone else to respect you either. Communicating your values not
only improves your relationships and happiness with others but builds self-respect.
Unit 2: Organization Culture & Values

2. Values help you be clear about your wants

 Personal values don’t only serve an important function in your life, but also are useful in the workplace,
informing your job searches or career decision making.
 In order to identify your personal work values, you should aim to sort values from most important to least
important. These could include recognition, achievement, independence, support, working conditions,
justice, and so on. By having a clear sense of which values are important to your work efforts, you will be
able to identify the companies or organizations that have methods and goals most conducive to your
personal values.  
 The crux of this is in understanding which specific values are of utmost importance to us, in order to
avoid compromising them in any way in our work life. If you don’t have a clear understanding of what
your values are, you will have a lot of difficulties figuring out what it is you are looking for to be satisfied
and happy at work.
3. Values help you in decision-making 
 The modern job market can make anyone feel like they have all the choices in the world, but with that
opportunity overload, there comes the feeling that we have ‘forgotten’ how to make a good decision.
There will always be alternatives, always different opportunities and paths you can take. Having a clear
sense of what your values are can help you to navigate those options, eventually drawing out the ideal
choice. 
 For example, if you have reached your maximum position for growth and advancement in the company
you work for, what steps do you take? Are you meant to stay and compromise your desire for more
stimulation for job security, or do you value stimulation more than security, and start looking for a new
job where you can further develop?
 Realizing and identifying our values are of utmost importance because when we understand them, we are
able not only to communicate them when changes need to be made, but we can also follow them when we
decide to change paths if they are not being met.
4. Values help you enjoy your life
 Values are the ethical goal statements that are responsible for our behaviour, and while some may change
over time, our core values remain unchanged from the moment they are conceived. Your personal values
are directly connected to your conscience. When something spurs you to behave against your values, your
conscience raises an objection and persists until it cannot be ignored without sacrificing your happiness. 
 Hanging on to a job or a position because of its potential you can see in it, sacrificing your own
contentedness and value satisfaction in your work is not a healthy choice to make. There will always be a
positive correlation between our values and job satisfaction. Seeking out a common denominator between
your value system and your employer will allow you to reach fulfilment in your experience at work.  
5. Values keep you motivated, focused, and engaged
 When you’re working for a company with whom you disagree with over their product, process, or
mission, your productivity suffers. Living in accordance with values keeps us motivated and happy in all
areas of our lives, including the workplace. Working towards a goal we don’t strongly believe in can
leave us lagging in our efforts, losing motivation much faster than if we were to truly want to strive for
the goal in question.
Understanding that others can have different values from your own is the crux of better understanding others
altogether. Values can help us to predict each other’s choices, avoiding misunderstandings, frustration, and
distrust. Understanding that other people prioritize a different set of values that guide their behaviour will
help you to better understand that while their choices may differ from yours, they are right for them.  Our
values inform us through, words, and actions. They help us to grow and develop, creating the future we want
to experience, both for ourselves and for others.
Unit 2: Organization Culture & Values

2.2. Social Values – Definition & Concept

 Social values are a set of principles that are morally acceptable by society. These principles are created by
the dynamics of the community, institutions in the society, traditions, and cultural beliefs of the people in
the society.
 In other words,
Social values are a set of moral principles defined by society dynamics, institutions, traditions and
cultural beliefs. These values are implicit guidelines that provide orientation to individuals and
corporations to conduct themselves properly within a social system.

Concept of Social Values

 Values are progressively formed in the lives of people and in corporate culture.
 They shape society’s behaviour to guarantee adequate coexistence between participants. These values
provide the boundaries between what is right and what is wrong, what is permissible, prohibited, illegal,
desirable, legitimate or punishable and, the only way they can positively function is by a collective
agreement, either explicit or implicit, that clarifies rules in a way that everybody knows and understands
the boundaries.

About Social Values in Business/at Workplace

 In business/at workplace, social values are essential to maintain healthy relationships between co-workers
and between the company and the society.
 A company that conducts itself by contradicting well-established social values will encounter severe
conflicts that will isolate the business from its consumers and it will surely lead to disappearance, since
businesses must act towards developing benefits for society.
 Governments and laws are normally established to preserve social values through enforcement
procedures. The judiciary system and government institutions are therefore created to maintain society’s
proper functioning.

Examples:

Example 1:
 BioGenics Co. is a company that develops farming technologies to increase the speed of agricultural
processes through genetic manipulations. The company has created different methods to increase crops
resistance, size, colour and glow among other factors that have a positive effect in the agricultural
industry.
 Nevertheless, there has been a lot of rumours about the company’s unethical practices and the society as a
whole seems to be concerned about the negative effects these biotechnologies will have in human health.
The government established a commission to investigate these violations and after reviewing most of the
cases they found that the company was implementing illegal procedures to develop some of their
technologies. These findings led to the company’s dismantling and further disappearance since it
contradicted essential social values.

Example 2:
A finance company offers clients the ability to buy shares and retirement annuities with them. The company
makes use of different methods to increase the values that they provide to their clients. A rumour started that
this company deals in unethical practices, and the society is concerned about the possible illegal activities
that the company sells. The government established a commission to investigate there violations. After
reviewing the cases, the government found that the company implements criminal procedures when
investigating their customer’s money. These findings led to the company’s dismantling and further
disappearance since it contradicted essential social value.
Unit 2: Organization Culture & Values

Example 3:
 A wine farm operates a guest house on the farm, people enjoy the fact that they can stay on the farm and
do not have to drive home after having a few glasses of wine.
 After a virus outbreak, the farm had two international couples staying in the guest house that couldn’t fly
home. The guest house didn’t charge the additional guest money. It assisted the guest in getting the
correct documents to fly back to their home countries.
 The guest house decided that it can support the government even further during this virus outbreak. They
offered to provide food to people in need, they have the facilities. They could use government assistance
in delivering food to the needy.
 This guest house and wine farm are living upto its social values, they are going above and beyond to
support and sustain the society that they work in. A company like this will be treated with respect, and
customers will recommend this company because the company has social values.

Parson’s View on Values

 According to Talcott Parsons, value consensus forms the fundamental principle in society.
 When all members are committed to same values, it provides a basis for unity and cooperation and this
helps in building common goals.
 Parsons said that the main work of sociology is to analyse the “institutionalization of patterns of value
orientation in the social system”.

Importance of Social Values

1. Economic Progress: Social Values increases the economic progress of a society.

e.g. If the truth and honesty are practised by everybody, it will promote fair dealings in all walks of life such
as business, education, political and social services etc.
2. Social Development: Social values also help in developing social values.
e.g. Many industrialists and charitable institutions have shown generosity and started school, colleges,
hospitals, cultural centres, for the benefit of common people.
3. Social Relations:
Social values like cooperation, tolerance, respect for seniors etc. tend to improve social relations. As the
relations become strong, the society will become strong. As the society becomes strong, the nation will
also become strong.
Unit 2: Organization Culture & Values

2.3. Cultural Values – Definition & Concept

 Cultural values are a series of principles and values passed on generation after generation by our
ancestors. The values hold supreme position among them. These values give a shape to the culture and
the society. List of cultural values include customs, rituals conventions, styles and fashions which are
remain in the core culture.
 In other words, cultural values is the core principles or ideals that an entire community or society is based
around. The community revolves around these concepts and forms a harmonious, interconnected
relationship around these shared values. The concepts embodied in a culture's values include a society's
traditions, rituals, and beliefs.
 Some cultural values may be shared by more than one cultural group. Many geographical areas may
borrow similar cultural values based on their similar experiences. In the same way that cultural values can
be similar amongst different cultures, cultural values can also contradict each other. This will be covered
more thoroughly in the next section with the use of a specific example.

Importance for Cultural Values in our Everyday Life:

 Cultural values play an important role to construct a society with people that follow similar values.
 It is important because it expresses itself in the practices of religion, lifestyle, language, clothing, and
food.
 The values of a culture give people understanding about behaving in a certain manner depending on the
situations.
 The values give people an understating of a culture which influences people’s character.
 People’s personality changes as the influence under culture develops different perception. Hence, it is
important for overall personality development.
 People adjust themselves to the society by becoming familiar with the beliefs and applying the beliefs in
their daily life thereby creating harmony amongst each other.
 Becoming familiar with the culture allows people to become part of the community and practicing the
values according to the culture.
 People gets to know the important aspect of culture and how culture is really essential in people lives to
help people live in a cultural society.
 Every single individual is somehow affected by culture which shows the importance on culture in
people’s life.
 Culture provides people with knowledge of views about life and guides people to adjust to a group they
work with or a group they belong to.
Difference between Cultural and Social Values:
Basis of Cultural Values Social Values
Difference
Origination Cultural values come from a group i.e. a
Social values come from a group i.e. a
group of people united by (more or less)
society of people united by (more or less)
beliefs, values, customs, or habits called
practical considerations, like political
culture. structures, common territory, or functional
interrelations.
Conceptual The concept of ‘culture’ comes from The concept of ‘society’ comes from
Background anthropology, which started off by sociology, which formed to study the
studying tribal groups and the unique structural and functional relationships of
features of those communities.  people in modern, Western regions.
Characteristic These are the ideals for the people. They are the real goals of the people.
Nature of They change slowly. They change comparatively faster after the
Unit 2: Organization Culture & Values

Change change in cultural values.

Example The teachings of Holy Prophet are When we follow those teachings is a social
cultural values. value.
2.4. Organizational Culture – Definition & Concept

Definitions:
In other words (definitions),
 According to Alan Adler, “Organizational culture is civilization in the workplace.”
 According to Alec Haverstick, “In large part, Organizational culture is a product of compensation.”
 According to Robbie Katanga, “Organizational Culture is how organizations do things.”

Concept:
 Organizational culture is quite complex. Every company has its unique personality, just like people do.
The unique personality of an organization is referred to as its culture. In groups of people who work
together, organizational culture is an invisible but powerful force that influences the behaviour of the
members of that group.
 Organizational culture is a system of shared assumptions, values, and beliefs, which govern how people
behave in organizations.
 It is based on shared attitudes, beliefs, customs, and written and unwritten rules that have been developed
over time and are considered valid.
 These shared values strongly influence the people in the organization and dictate how they dress, act, and
perform their jobs.
 Every organization develops and maintains a unique culture, which provides guidelines and boundaries
for the behaviour of the members of the organization.
Organizational Culture include –
 The ways the organization conducts its business, treats its employees, customers, and the wider
community,
 The extent to which freedom is allowed in decision making, developing new ideas, and personal
expression,
 How power and information flow through its hierarchy, and
 How committed employees are towards collective objectives.

Characteristics of Organizational Culture

As individuals come into contact with organizations, they come into contact with dress norms, stories people
tell about what goes on, the organization’s formal rules and procedures, its formal codes of behaviour,
rituals, tasks, pay systems, jargon, and jokes only understood by insiders and so on.
Organizational culture is composed of seven characteristics that range in priority from high to low. Every
organization has a distinct value for each of these characteristics.
1. Innovation (Risk Orientation):
Companies with culture which gives high value to innovation, motivate their employees to take higher
risks and find new ways through their performance.
Whereas, the companies which does not value innovation much, expect their employees to work exactly
in the same manner. In which they have been trained. There is no scope of performance improvement in
such organizations.
2. Attention to Detail (Precision Orientation):
A culture that places a high value on attention to detail expects its employees to perform their work with
precision, and a culture that places a low value on this characteristic does not.
3. Emphasis on Outcome (Achievement Orientation):
Unit 2: Organization Culture & Values

Companies that focus on results but not on how the results are achieved emphasize this value of
organizational culture. A company that instructs its sales force to do whatever it takes to get sales orders
has a culture that places a high value on the emphasis on outcome characteristics.
4. Emphasis on People (Fairness Orientation):
Companies that place a high value on this characteristic of organizational culture place great importance
on how their decisions will affect the people in their organizations. For these companies, it is important
to treat their employees with respect and dignity.’
5. Teamwork (Collaboration Orientation):
Companies that organize work activities around teams instead of individuals place a high value on this
characteristic of the organizational culture. People who work for these types of companies tend to have a
positive relationship with their co-workers and managers.
6. Aggressiveness (Competitive Orientation):
This characteristic of organizational culture says whether group members are expected easy going when
dealing with companies they compete with within the marketplace. Companies with an aggressive
culture place a high value on competitiveness and outperform the competition at all costs.
7. Stability (Rule Orientation)
A company whose culture places a high value on stability is rule-oriented, predictable, and bureaucratic
in nature. These types of companies typically provide consistent and predictable levels of output and
operate best in non-changing market conditions.

Roles of Organizational Culture

 Culture unites (brings together) employees by providing a sense of identity with the organization.
 It facilitates open communication.
 A shared understanding.
 Culture sets organization norms, rules, and standards. Thereby, culture enables employees to function in
an organization, by teaching them how to behave.
 Enhanced mutual trust and cooperation.
 Assisting employees in making sense of their behaviours by providing justification for behaviours.

Types of Organization Culture

 Normative Culture
 Pragmatic Culture
 Academy Culture
 Baseball Team Culture
 Club Culture
 Fortress Culture
 Tough Guy Culture
 Bet your Company Culture
 Process Culture
 Power Culture
 Role Culture
 Task Culture
 Person Culture

Steps of Managing Organizational Culture

1. Evaluate your current culture and performance.

2. Clarify your initial vision.
3. Clarify values and expected behaviour’s.
Unit 2: Organization Culture & Values

4. Clarify strategic priorities.

5. Engage your team in defining SMART goals.
6. Clarify and track key measures,
7. Maintain a management system for priorities and goals.
8. Manage communication habits and routines.
9. Build motivation throughout the process.

How to Keep the Culture Alive in your Organization?

Selection
 The first such practice is the careful selection of candidates.
 Standardized procedures should be used to hire the right people for the right jobs. Trained personnel
interview the candidates and attempt to screen out those whose personal styles and values do not fit with
the organization’s culture.
 By identifying the candidates who can culturally match the organizational culture, selection helps sustain
culture to a large extent.
 Additionally, the selection process provides the applicants’ information about the organizational culture.
 If the applicants perceive a conflict between their values and the organization’s values, they can
themselves decide not to join the organization.
Top Management
 The actions of top management also have a major impact on the organization’s culture.
 Through what they say, how do they behave, senior executives, establish norms that filter through the
organization as to whether risk-taking is desirable, how much freedom managers should give to their
subordinates, what is the appropriate dress code, what actions will pay off in terms of pay raise,
promotions, and other rewards and the like.
Socialization
 The organization may have done a very good job in recruiting and selecting the employees, but
sometimes the employees are still not indoctrinated in the organization’s culture.
 Since these persons are not familiar with the organization’s culture, they are most likely to disturb the
existing beliefs and customs of the organization.
 Therefore, the organization needs to help new employees adapt to its culture. This adaptation process is
called ‘Socialization.’

Qualities of a Great Organizational Culture

Every organization’s culture is different, and it’s important to retain what makes your company unique.
However, the cultures of high-performing organizations consistently reflect certain qualities that you should
seek to cultivate:
1. Alignment comes when the company’s objectives and its employees’ motivations are all pulling in the
same direction. Exceptional organizations work to build continuous alignment to their vision, purpose,
and goals.
2. Appreciation can take many forms: a public kudos, a note of thanks, or a promotion. A culture of
appreciation is one in which all team members frequently provide recognition and thanks for the
contributions of others.
3. Trust is vital to an organization. With a culture of trust, team members can express themselves and rely
on others to have their back when they try something new.
4. Performance is key, as great companies create a culture that means business. In these companies,
talented employees motivate each other to excel, and, as shown above, greater profitability and
productivity are the results.
5. Resilience is a key quality in highly dynamic environments where change is continuous. A resilient
culture will teach leaders to watch for and respond to change with ease.
Unit 2: Organization Culture & Values

6. Teamwork encompasses collaboration, communication, and respect between team members.

When everyone on the team supports each other, employees will get more work done and feel happier
while doing it.
7. Integrity, like trust, is vital to all teams when they rely on each other to make decisions, interpret results,
and form partnerships. Honesty and transparency are critical components of this aspect of culture.
8. Innovation leads organizations to get the most out of available technologies, resources, and markets. A
culture of innovation means that you apply creative thinking to all aspects of your business, even your
own cultural initiatives.
9. Psychological safety provides the support employees need to take risks and provide honest feedback.
Remember that psychological safety starts at the team level, not the individual level, so managers need to
take the lead in creating a safe environment where everyone feels comfortable contributing. Now that you
know what a great culture looks like, let’s tackle how to build one in your organization.