CHAPTER 5

Organizational Culture
 ORGANIZATIONAL CULTURE

Organizational culture is the core values, norms, and principles.

It is the foundation for an organization’s management system.

 VALUES
Values are ideals that guide or qualify your personal conduct, interaction with others,
and involvement in your career. Like morals, they help you to distinguish what is right
from what is wrong and inform you on how you can conduct your life in a meaningful
way.

Values can be classified into four categories:

- Personal Values
- Cultural Values
- Social Values
- Work Values
Personal Values

Personal values are principles that define you as an individual. Personal

values, such as honesty, reliability, and trust, determine how you will face the
world and relate with people.

Cultural Values
Cultural values, like the practice of your faith and customs, are principles that
sustain connections with your cultural roots. They help you feel connected to
a larger community of people with similar backgrounds.
Social Values

Social values are principles that indicate how you relate meaningfully to others
in social situations, including those involving family, friends, and co-workers.

Work Values

Work values are principles that guide your behavior in professional contexts.
They define how you work and how you relate to your co-workers, bosses,
and clients. They also reveal your potential for advancement.
Norms

Norms are unwritten rules which define expectations of behavior

which means frequently occurring behavior

Principles

Principles are rules and regulations, code and ethics and management
style.
 ORGANIZATIONAL CULTURE
 Organizational Culture
 It has been defined as "the specific collection of values and norms
that are shared by people and groups in an organization and that
control the way they interact with each other and with stakeholders
outside the organization."

 Seven primary characteristics

1. Innovation and risk taking: (the degree Employee are

encourage)

2. Attention to detail: (Analysis, Interest details)

3. Outcome orientation: (management focus on results rather than

on the process)
4. People orientation: (the Management decisions take into
consideration of outcomes on people)
5. Team orientation : (work activities are focused around team)
6. Aggressiveness: (people are aggressive and competitive rather than
easygoing)
7. Stability: (organizational activities emphasis maintaining the status
quo)
HOW CULTURE BEGINS

 From the actions of the Founders:

 Founders hire and keep only employees who think and feel the same
way they do.
 Founders indoctrinate and socialize these employees to their way of
thinking and feeling.
 The founders’ own behavior acts as a role model that encourages
employees to identify with them and thereby internalize their beliefs,
values, and assumptions.
HOW EMPLOYEES LEARN CULTURE
 Stories
 Anchor the present into the past and provide explanations and
legitimacy for current practices

 Rituals
 Repetitive sequences of activities that express and reinforce the key
values of the organization (e.g, conducting meetings, workshops etc)

 Material Symbols
 Acceptable attire, office size, opulence (Luxury) of the office
furnishings, and executive perks that convey to employees who is
important in the organization

 Language
 Jargon and special ways of expressing one’s self to
indicate membership in the organization
 Formal statement of organizations
Mission statement, Vision, code of conduct, HR Policies, Rules and
Regulations

 Slogan
Come and fly with us (PIA), Ideas and leadership for tomorrow (IBA)