Effective Managers

Understand Organizational
Behavior
National and Organizational Culture
MANAGEMENT AND ORGANIZATIONAL BEHAVIOR
BM6013
Lecturer: Sharon @ Toh Pei Sung, Ph.d
 Learning Objectives
1. Give examples of how national culture and values influence
workplace behavior.
2. Describe the key components and layers of organizational culture.
3. Explain the various methods that managers use to influence culture
change.
4. Identify ways in which socialization sustains organizational culture.
5. Compare the characteristics of effective socialization.
 Introduction
• Culture is learned and shared, it defines the boundaries of different
groups.
• A national culture is the sum total of the beliefs, rituals, rules, customs,
artifacts, and institutions that characterize the population of a nation.
• Culture is acquired and learned over time through various socialization
processes.
• Individuals acquire culture primarily through their interactions with
family members, peers, educational institutions, and the broader
society.
• This learning includes language, values, beliefs, norms, and behaviors
that are specific to a particular culture.
 Introduction
• Culture is shared among members of a particular group or
community.
• This sharing of culture creates a sense of identity and belonging
among individuals within that group.
• People within a cultural group have common understandings,
practices, and symbols that bind them together and differentiate
them from other cultural groups.
 Introduction
• Culture sets the boundaries between different communities, nations,
or ethnicities.
• These boundaries can be both physical and symbolic.
• For example, language, religious practices, and traditions can be
powerful markers that distinguish one cultural group from another.
• These boundaries are essential for maintaining the uniqueness and
identity of each group.
 Introduction
• Managers must understand national and organizational cultures as both
affect how transactions are conducted.
• Adaptation to new environments involves…
• Learning new values.
• Processing information in new ways.
• Working within established norms, customs, and rituals.
 Introduction
• National culture refers to the shared values, beliefs, customs, and
behaviors of a specific country or region.
• Communication styles, attitudes toward hierarchy, work ethic, and
approaches to time management.
• Understanding social etiquette, gift-giving customs, and appropriate
forms of address.
• Managers who operate in a global or diverse environment must
understand the national cultures of the parties they are interacting
with because these cultural factors can significantly impact how
transactions are conducted.
 Introduction
• Organizational culture, on the other hand, refers to the unique set of
values, norms, and behaviors that characterize a specific organization.
• Each company has its own culture, which can influence how
transactions are conducted internally and externally.
• Learning to new values: open to understanding and appreciating the
values and beliefs of different cultures.
• Processing information in new ways: Different cultures may have
distinct communication styles and decision-making processes.
 Culture and Societal Value Systems
• Organizations operate efficiently only when shared values exist
among the employees.
• Values are the guidelines and believes that a person uses when
confronted with a situation in which a choice must be made.
• Society’s values impact organizational values because of the
interactive nature of work, leisure, family, and community.
Hofstede’s Cultural Dimensions
 Hofstede’s Cultural Dimensions
• Power distance: the level of acceptance by a society of the unequal
distribution of power in organizations.
• Uncertainty avoidance: people in a society feel threatened by
uncertain situations.
• Individualism: Relationship with family and organizations.
• Masculinity/Feminine: "masculine" traits such as assertiveness,
competitiveness, and material success, as opposed to "feminine"
traits such as cooperation, nurturing, and quality of life.
 Hofstede’s Cultural Dimensions
• Long Term Orientation: persistence, savings and order in
relationships.
• Indulgence/Restraint: to enjoying life and having fun (indulgence)
versus controlling and regulating these desires through strict social
norms (restraint).
 Organizational Culture Defined
• Culture can be sensed or felt, but not seen.
• Consists of attitudes, emotions, perceptions.
• Influences behavior, attitudes, and effectiveness.

• There is no single definition of culture.

• Involves assumptions, adaptations, perceptions, and learning.
• Includes symbols, language, ideologies, rituals, and myths.
• Creates pattern of beliefs, values, expectations.
Schein’s Three-Layer Organizational Model

Level 1: Visible Artifacts

Office layout, dress code,
written documents.

Level 2: Values
“We need to become a green
company.”

Level 3: Unconscious
Assumptions
“But we have to be profitable.”
 Visible Artifacts
• The most visible aspect of organizational culture.
• It includes tangible elements such as dress codes, office layout,
symbols, slogans, rituals, and ceremonies.
• Artifacts represent the aspects of culture that are easy to observe,
and they often provide clues about the underlying values and
assumptions of an organization.
• For example, if an organization has a relaxed dress code, uses casual
language, and celebrates employee birthdays with monthly parties,
these artifacts may suggest a culture that values informality and
employee engagement.
 Values
• Less visible but still accessible through communication and
observation.
• It the stated ideals, principles, and philosophies that guide the
organization's actions and decision-making.
• These are often expressed in the organization's mission statement,
vision statement, and value statements.
• For example, an organization may espouse values of integrity,
transparency, and customer-centricity in its official documents.
 Unconscious Assumptions
• This is the deepest and most challenging layer to access and
understand.
• They are deeply embedded beliefs about what is considered right,
normal, and natural within the organization.
• These assumptions influence how employees perceive reality, interact
with each other, and make decisions.
• For example, if an organization's basic assumption is that "employees
must always put the company's interests first," it may result in a
culture of high competitiveness and long working hours, even if such
behaviors are not explicitly articulated in the espoused values.
 Organizational Culture and Its Effects
• Organizational culture involves shared expectations, values, and attitudes,
so it exerts influence on…
• Individuals.
• Groups.
• Organizational processes.
• Influence can be positive or negative, weak or strong.
• Culture provides and encourages stability.
• The more employees share and accept the core values, the stronger the
culture and the more influential it is on behavior
 Creating Organizational Culture
• Can culture be created and imposed?
• It is difficult to simply create core value.
• Imposed values are often met with resistance.
• Disparity between reality and a stated set of values creates confusion, irritation,
skepticism.
• Cultures take time to evolve.
 Types of Culture
• Customer-Service Culture
• Ethical Culture
• Diversity Culture
 The Evolution of a Positive Culture
Methods Intervening Conditions Outcome
- Elaborate on history
Develop a sense
- Communicate about and by H of History
“heroes” and others

- Leadership and role making

Create a sense of
- Communicating norms and O Oneness
values Cohesive
organizational
- Reward systems culture
Promote a sense
- Recruiting and staffing M of Membership
- Training and development

- Member contact
Increase Exchange
- Participative decision making E among members
- Intergroup coordination
 The Evolution of a Positive Culture
• Benefits of a positive culture.
• Increased teamwork.
• Information sharing.
• Better employee morale.
Nordstrom’s Organization Culture
Zappos’ Ten Core Values
 Sustaining the Culture
• Socialization . . .
• The process by which organizations bring new employees into the
culture.
• A transmittal of values, assumptions, and attitudes.
• The goal is achieving person-organization fit.
Sustaining the Culture
Effective Socialization Practices
THANK YOU