Organizational Behavior 15th Global Edition

Organizational
Behavior
Chapter 16 15th Global Edition

Robbins and Judge
Organizational Culture
Copyright © 2013 Pearson Education 16-1

Define organizational culture and
LO 1 describe its common characteristics
 Organizational culture refers to a system of

shared meaning held by members that
distinguishes the organization from other
organizations.
16-2
Copyright © 2013 Pearson Education
 Research identifies seven primary characteristics

that capture the essence of an organization’s
culture:
 Innovation and risk taking.
 Attention to detail.
 Outcome orientation.
 People orientation.
 Team orientation.
 Aggressiveness.
 Stability.
16-3
 Organizational culture is concerned with employees’

perception culture.
 Research asks questions
 Does it encourage teamwork?
 Does it reward innovation?
 Does it stifle initiative?
 It differs from job satisfaction

 Job satisfaction is evaluative.
 Organizational culture is descriptive.
16-4
 High formalization creates predictability, orderliness,

and consistency.
 Formalization and culture are two different roads to a
common destination.
 The stronger an organization’s culture, the less
management needs to develop formal rules and
regulations.
 Employees internalize guides when they accept the
organization’s culture.
16-5
Compare the functional and
LO 2 dysfunctional effects of organizational
culture on people and the organization
Culture’s Functions
 Boundary-defining role
 Conveys a sense of identity for members
 Facilitates the generation of commitment
 Enhances the stability of the social system
 Serves as a sense-making and control mechanism
 Guides and shapes attitudes and behavior of
employees
16-6
Compare the functional and
LO 2 dysfunctional effects of organizational
culture on people and the organization
 Institutionalization
 Barriers to Change
 Barriers to Diversity
 Barriers to Acquisitions and Mergers
16-7
Identify the factors that create
LO 3 and sustain an organization’s culture
 How a Culture Begins

 Ultimate source of an organization’s culture is its
founders.
 Founders have vision of what the organization should
be.
 Unconstrained by previous ideologies or customs.
 New organizations are typically small; facilitates the
founders’ imparting of their vision on all organizational
members.
16-8
 Culture creation occurs in three ways:

 Founders hire employees who feel the way
they do.
 Employees are indoctrinated and socialized into
the founders’ way of thinking.
 Founders’ behaviors act as role models.
16-9
 Sustain Through Selection

 The explicit goal of the selection process is to
identify and hire individuals with the knowledge,
skills, and abilities to perform successfully.
 Top Management
 The actions of top management also have a
major impact on the organization’s culture.
16-10
16-11
Show how culture is
LO 4 transmitted to employees
 Culture is transmitted to employees through

 Stories,
 Rituals,
 Material symbols, and
 Language.
16-12
Demonstrate how an
LO 5 ethical culture can be created
 Characteristics shaping high ethical standards:

 High in risk tolerance
 Low to moderate in aggressiveness
 Focuses on means as well as outcomes
 Managers are
 Supported for taking risks and innovating,
 Discouraged from unbridled competition, and
 Guided to not just what is achieved but also how.
16-13
Demonstrate how an
 If the culture is strong and supports high ethical

standards, it should have a very powerful and
positive influence on employee behavior.
 The negative consequences of a systematic culture
of unethical behavior can be severe and include
customer boycotts, fines, lawsuits, and government
regulation of an organization’s practices.
16-14
Demonstrate how an
 How can management create a more ethical

culture?
 Be a visible role model.
 Communicate ethical expectations.
 Provide ethical training.
 Reward ethical acts and punish unethical ones.
 Provide protective mechanisms.
16-15
Describe a positive
LO 6 organizational culture
 There is a trend today for organizations to attempt

to create a positive organizational culture.
 A positive organizational cultureemphasizes
building on employee strengths, rewards more than
it punishes, and emphasizes individual vitality
growth.
16-16
Show how national culture may
LO 8 affect the way organizational
culture is transported to a different country
 Organizational cultures often reflect national culture.
 One of the primary things U.S. managers can do is to

be culturally sensitive.
 The management of ethical behavior is one area where
national culture can rub up against corporate culture.
 U.S. employees are not the only ones who need to be
culturally sensitive.
16-17
Summary and Implications for Managers
16-18

Organizational Behavior 15th Global Edition

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Organizational

Chapter 16 15th Global Edition

Copyright © 2013 Pearson Education 16-1

 Organizational culture refers to a system of

 Research identifies seven primary characteristics

 Organizational culture is concerned with employees’

 It differs from job satisfaction

 High formalization creates predictability, orderliness,

 Barriers to Acquisitions and Mergers

 How a Culture Begins

 Culture creation occurs in three ways:

 Sustain Through Selection

 Culture is transmitted to employees through

 Characteristics shaping high ethical standards:

 If the culture is strong and supports high ethical

 How can management create a more ethical

 There is a trend today for organizations to attempt

 One of the primary things U.S. managers can do is to

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