I.

ORGANIZATIONAL CULTURE

What is Organizational Culture?

 Organizational Culture is the behavior of humans within an organization and
the meaning that people attach to those behaviors. Culture includes the
organization's vision, values, norms, systems, symbols, language,
assumptions, beliefs, and habits.
 It is also the pattern of such collective behaviors and assumptions that are
taught to new organizational members as a way of perceiving, and even
thinking and feeling.

Organizational Culture According to Ravasi Schultz (2006)

 Organizational Culture is a set of shared mental assumptions that guide
interpretation and action in organizations by defining appropriate behavior for
various situations

Organizational Culture According to Edgar Schein

 Organizational Culture is a pattern of shared basic assumptions that was learned by
a group as it solved its problems of external adaptation and internal integration that
has worked well enough to be considered valid and, therefore, to be taught to new
members as the correct way you perceive, think, and feel in relation to those
problems.

What is Culture?

 It is the unique dominant pattern of shared beliefs, assumptions, values, and norms
that shape the socialization, symbols, language and practices of a group of people.
 The attitudes and approaches that typify the way staff carry out their tasks.
 Culture is developed and transmitted by people, consciously and unconsciously, to
subsequent generations.

 Shared assumptions are the thoughts and feelings that members of a culture
take for granted and believe to be true.
 Values are the basic beliefs people hold that specify general preferences and
behaviours, and define what is right and wrong.
 Norms are rules that govern behaviours of groups of people.
 Symbols is any visible object, act, or event that conveys meaning to others.
Examples: Artifacts, Dress, Office layout, Slogans, Ceremonies
 Language is a shared system of vocal sounds, written signs, and/or gestures
used to convey meaning among members of a culture.
 Practices are observable cultural customs such as taboos (culturally forbidden
behaviours) and ceremonies
 Socialization is the process by which people lean values, norms, behaviours
and social skills. It is the means by which new members are brought into a
culture.
What must be for culture to exist?

 It must be shared by the vast majority of members of a group or society;

 It must be passed on from generation to generation; and
 It must shape behaviour and perceptions.

II. FOUR (4) TYPES OF CULTURE

According to Jeffrey Sonnenfeld, the following four types of cultures:

1. Academy Culture
 Employees are highly skilled and tend to stay in the organization, while
working their way up the ranks. The organization provides a stable
environment in which employees can development and exercise their skills.
 Examples are universities, hospitals, large corporations.
2. Baseball Team Culture
 Employees are "free agents"/free lancers who have highly prized skills. They are
in high demand and can rather easily get jobs elsewhere. This type of culture
exists in fast- paced, high-risk organizations, such as investment banking,
advertising, etc.
3. Club Culture
 The most important requirement for employees in this culture is to fit into the
group. Usually employees start at the bottom and stay with the organization.
The organization promotes from within and highly values seniority. Examples
are the military, some law firms, etc.
4. Fortress Culture
 Employees don't know if they'll be laid off or not. These organizations often
undergo massive reorganization. There are many opportunities for those with
timely, specialized skills. Examples are savings and loans, large car
companies, etc.
According to Charles Handy (1976) and Roger Harrison (1972)

1. Power culture
 concentrates power among a small group or a central figure and its control
is radiating from its center like a web. Power cultures need only a few rules
and little beaurucracy but swift in decisions can ensue.
2. Role culture
 authorities are delegated as such within a highly defined structure. These
organizations form hierarchical bureaucracies, where power derives from the
personal position and rarely from an expert power. Control is made by
procedures (which are highly valued), strict roles descriptions and authority
definitions. These organizations have consistent systems and are very
predictable. This culture is often represented by a "Roman Building" having
pillars. These pillars represent the functional departments.
3. Task culture
 teams are formed to solve particular problems. Power is derived from the
team with the expertise to execute against a task. This culture uses a small
team approach, where people are highly skilled and specialized in their own
area of expertise. Additionally, these cultures often feature the multiple
reporting lines seen in matrix structure.

4. Person culture
 formed where all individuals believe themselves superior to the organization.
It can become difficult for such organizations to continue to operate, since
the concept of an organization suggests that a group of like-minded
individuals pursue organizational goals. However some professional
partnerships operate well as person cultures, because each partner brings a
particular expertise and clientele to the firm.
III. ORGANIATIONAL CULTURE ASSESSMENT INSTRUMENT

[It was developed by Kim Cameron and Robert Quinn (1999) based on their
research on organizational effectiveness and success.

It is based on the Competing Values Framework.

Competing values produce polarities like flexibility vs. stability and internal
vs. external focus - these two polarities were found to be most important in
defining organizational success.
The polarities construct a quadrant with four types of culture.
Based on the Competing Values Framework, they developed the
Organizational Culture Assessment Instrument that distinguishes four
culture types.]

1. Hierarchy Culture
 In this type of culture the behaviour of employees is governed by formal rules
and standard operating procedures. Such a culture perpetuates stability.
Organizations with bureaucratic culture tend to produce standardized goods
and services. A structured and formalized workplace where leaders act like
coordinators.
Examples: Government ministries Fast food establishments
2. Clan Culture
 In a clan culture the behaviour of individuals are shaped by tradition, loyalty,
personal commitment, extensive socialization and self-management. A clan
culture achieve unity through socialization. Long-term employees serve as
mentors Members are aware of the organization’s history and have an
understanding of the expected manner of conduct and organizational style.
Members share feelings of pride in membership. Peer pressure to adhere to
important norms is strong.
3. Market Culture
 In a market culture, the values and norms reflect the significance of
achieving measurable and demanding goals mainly concerning those that
are financial and market based. Companies with a market culture tend to
focus on: Sales growth Profitability Market share In a market culture the
relationship between individuals and the organization is contractual
(previously agreed). Individuals are responsible for their performance;
whereas the organization promises specific rewards for levels of
performance. Managers are not judge on their effectiveness as role models
or mentors; but on monthly, quarterly, and annual performance goals based
on profit.

4. Adhocracy Culture
 Organizations existing in the context of an entrepreneurial culture are
characterized by high levels of risk taking and creativity. There is a
commitment to experimentation, innovation, and being on the leading edge.
IV. THE ORGANIZATIONAL CULTURE INVENTORY: CULTURE CLUSTER

Robert A. Cooke defines culture as the behaviors that members believe are required to fit
in and meet expectations within their organization. The Organizational Culture Inventory
measures twelve behavioral norms that are grouped into three general types of cultures:

1. Constructive culture cluster

 in which members are encouraged to interact with people and approach
tasks in ways that help them meet their higher-order satisfaction needs.
2. Passive/defensive culture cluster
 in which members believe they must interact with people in ways that will
not threaten their own security.
3. Aggressive/defensive culture cluster
 in which members are expected to approach tasks in forceful ways to
protect their status and security.
[The Aggressive/Defensive styles emerge in groups when members
approach the problem in ways intended to help maintain their
status/position and fulfill their needs for security. Such groups tend to
overemphasize the task side of things and pay little attention to the needs
and concerns of group members.

Members of Aggressive/Defensive groups place their own interests and

needs above those of the group. They tend to view the group process as
a vehicle for fulfilling their needs to win, exercise control, and/or do things
perfectly. This tendency, coupled with their lack of concern for other
members, can seriously detract from the effectiveness of
Aggressive/Defensive groups.]
V. THE FOUR CONSTRUCTIVE CULTURE CLUSTER

1. Achievement
 completing a task successfully, typically by effort, courage, or skill
(pursue a standard of excellence) (explore alternatives before acting) -
Based on the need to attain high- quality results on challenging projects,
the belief that outcomes are linked to one's effort rather than chance and
the tendency to personally set challenging yet realistic goals. People high
in this style think ahead and plan, explore alternatives before acting and
learn from their mistakes.

2. Self-Actualization
 realization or fulfillment of one's talents and potentialities - considered as
a drive or need present in everyone (think in unique and independent
ways) (do even simple tasks well) - Based on needs for personal growth,
self-fulfillment and the realisation of one's potential. People with this style
demonstrate a strong desire to learn and experience things, creative yet
realistic thinking and a balanced concern for people and tasks.

3. Humanistic-Encouraging
 encouraging: help others to grow and develop (resolve conflicts
constructively) - Reflects an interest in the growth and development of
people, a high positive regard for them and sensitivity to their needs.
People high in this style devote energy to coaching and counselling
others, are thoughtful and considerate and provide people with support
and encouragement.

4. Affiliative
 treat people as more valuable than things (cooperate with others) -
Reflects an interest in developing and sustaining pleasant relationships.
People high in this style share their thoughts and feelings, are friendly
and cooperative and make others feel a part of things.

VI. THE FOUR PASSIVE/DEFENSIVE CULTURAL NORMS

1. Approval - going along with others

 2. Conventional - always following policies and practices

3. Dependent - pleasing those in positions of authority

4. Avoidance cultural norms - waiting for others to act first

VII. THE FOUR AGGRESSIVE/DEFENSIVE CULTURAL NORMS

1. Oppositional
 This cultural norm is based on the idea that a need for security that takes the
form of being very critical and cynical at times. People who use this style are
more likely to question others work; however, asking those tough question
often leads to a better product. Nonetheless, those who use this style may be
overly-critical toward others, using irrelevant or trivial flaws to put others
down.
2. Power
 This cultural norm is based on the idea that there is a need for prestige and
influence. Those who use this style often equate their own self-worth with
controlling others. Those who use this style have a tendency to dictate others
opposing to guiding others’ actions.
3. Competitive
 This cultural norm is based on the idea of a need to protect one’s status.
Those who use this style protect their own status by comparing themselves
to other individuals and outperforming them. Those who use this style are
seekers of appraisal and recognition from others.
4. Perfectionistic
 This cultural norm is based on the need to attain flawless results. Those who
often use this style equate their self-worth with the attainment of extremely
high standards. Those who often use this style are always focused on details
and place excessive demands on themselves and others.
VIII. UNDERSTANDING THE CULTURE OF YOUR ORGANIZATION

Different people in the same organization can have different perceptions of the culture of
the organization. This is especially true regarding the different perceptions between the top
and bottom levels of the organization.

IX. HERE ARE SOME BASIC GUIDELINES TO HELP A LEADER ASSESS THE
CULTURE OF THEIR ORGANIZATION.

1. Understand some of the major types of cultures. There are a number of research efforts
that have produced lists of different types of culture. You can start by reviewing the very
short list in the previous subsection, Major Types of Cultures.
2. Describe the culture of your organization. Consider what you see and hear, not what
you feel and think.
3. Note that there may not be close alignment between what the organization says it
values (for example, creativity, innovation, team-building) as compared to what you’re
actually seeing (for example, conformity, individualism). This disparity is rather common in
organizations. You might explain this disparity to other leaders in the organization. An ideal
time to address this disparity is when developing a values statement during the strategic
planning process.

X. CHANGING CULTURE OF AN ORGANIZATION

There are four primary ways to influence the culture of an organization:

1. Emphasize what’s important. This includes widely communicating goals of the

organization, posting the mission statement on the wall, talking about
accomplishments and repeating what you want to see in the workplace.
2. Reward employees whose behaviors reflect what’s important.
3. Discourage behaviors that don’t reflect what’s important. There is no need to
punish or cause prolonged discomfort. Rather, you want to dissuade the employee
from continuing unwanted behaviors by giving them constructive feedback, verbal
warnings, written warnings, or firing them.
4. Model the behaviors that you want to see in the workplace. This is perhaps the
most powerful way to influence behaviors in the workplace. For example, if you
want to see more teamwork among your employees, then involve yourself in teams
more often.

XI. RELATIONSHIP BETWEEN CULTURE AND ORGANIZATIONAL PERFORMANCE

 Organizational culture has the potential to enhance organizational performance,

individual satisfaction, the sense of certainty about how problems are to be
handled.
 Culture serves as a control mechanism to channel behaviour towards desired
behaviours and to prevent undesired behaviours.
XII. BUILDING A STRONG ORGANIZATIONAL CULTURE

1. A common behavioural style must be shared by managers and employees.

2. Have the same basic approaches to solving problems, meeting goals, and dealing
with stakeholders.
3. Have share common norms that guide rule governing rewards and punishment.
4. A strong organizational culture assists in the creation of a stable organization, the
consequence of which lead to the achievement of the company’s strategic goals.