Chapter 6: Organizational Culture

P r e p a r e d b y : C h e r y Ly n D . A l b a r i c o , R N & M a r i a R o x a n n e T. B a r r o g o , R N
 1. Meaning of Organizational Culture

2. Nature of Organizational Culture

3. Assumptions of Organizational Culture

4. Organizational Value System

Organizational 5. Promoting Ethical Value in Organization

culture
6. Globalization

7. Bureaucracy and post-bureaucracy

ORGANIZATIONAL
CULTURE
I. ORGANIZATIONAL CULTURE

Culture:
Culture as a complex whole which includes knowledge, beliefs, law, art, morals, customs
and other capabilities and habits acquired by man as a member of society.
It is a man’s social heritage which has been transmitted from to do, what not to do and how
to do things
 

Organizational Culture:

An organization’s culture defines the proper way to

behave within the organization. This culture consists
of shared beliefs and values established by leaders
and then communicated and reinforced through
various methods, ultimately shaping employee
perceptions, behaviors and understanding.

 
 • Culture unites (brings together) employees by providing a sense
of identity with the organization.

• An informal control mechanism.

Roles of Organizational • Facilitation of open communication.
Culture • Culture enables organizations to differentiate themselves from
one another.

• A shared understanding.

• Enhanced mutual trust and

cooperation.

• Assisting employees in making sense

of their behaviors by providing
justification for behaviors.
Types of Charles Handy, a leading authority on
organizational culture, defined four
Organizational Culture
different kinds of culture:

* Power culture
* Role culture
* Task culture
* Person culture
• 1.Power Culture In an
organization with a power
culture, power is held by just
a few individuals whose
influence spreads throughout
the organization. There are
few rules and regulations in a
power culture.
• 2.Role Culture Organizations
with a role culture are based
on rules. They are highly
controlled, with everyone in
the organization knowing
what their roles and
responsibilities are.
3. Task Culture Task culture forms
when teams in an organization
are formed to address specific
problems or progress projects.
-The task is important, so power
within the team will often shift
depending on the mix of the
team members and the status of
the problem or project.

4.Person Culture In an
organization with personal
cultures, individuals very much
see themselves as unique and
superior to the organization.
II. Nature of Organizational Culture
A Concise description of the
organization’s reasons for existing
and the work that it does.
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.
 
II. Nature of Organizational Culture
• Financial Stability (Level 1)

• Harmonious Relationships (Level 2)

• High Performance (Level 3)

• Continuous Renewal and Learning (Level 4)

• Building Internal Community (Level 5)

• Making A Difference: Strategic Partnerships

and Alliances (Level 6)

• Service To Humanity and The Planet (Level

7)

• Full-Spectrum Performance (All Levels)

III. Assumptions of Organizational Culture
Underlying assumptions are the source of
values in a culture and what causes actions
within the organization. Organizational
assumptions are usually “known,” but are not
discussed, nor are they written or easily found.
They are comprised of unconscious thoughts,
beliefs, perceptions, and feelings .

*Unconscious, taken for granted beliefs,

perception thoughts and feelings
 Dimensions in
Organizational Culture
Dimensions represent what
problems were common to all
societies. Appropriate to examine
differences in basic underlying
assumptions
Behind each of dimension there are
some basic assumptions
 INDIVIDUALISM
Refers to the identity of
Self as based either solely
on the individual or on the
Individual as part of a
group or collective.
 POWER DISTANCE
Refers to the social
stratification within a society
such that Higher status
individuals/ or groups are
accorded more power and
authority by those of lower
status
 UNCERTAINTY
AVOIDANCE
IS AS SOCIETY’S fear of
unknown or ambiguous
situations
 MUSCULINITY
Refers to a society’s
preference for competition
and outcomes(masculine
values)as opposed to
cooperation and
process(feminine values)
Here are some of the most common assumptions that foster
complacency and hold teams back:

• This is the way it has always been

done.
• Don’t fix it if it isn’t broken.
• Management doesn’t get it.
• They’ll never go for that.
• That will never work here.
• Changes never stick, so why bother?
• Gossip is normal, it is a part of every
team.
• If I speak up or ask a question, they’ll
think I’m stupid.
• Nobody ever listens, so why speak up.
• We don’t have time for that.
• If someone has an issue, they’ll speak
up.
• I can’t make any mistakes.
• It’s every man for himself around here
 1.Corporate Stewardship
Values
Organizational
value system 2.Market Values

Organizational values are a set of core 3.Financial Values

beliefs held by an organization. They
act as guiding principles that provide
an organization with purpose and
direction and set the tone for its 4. Team Values
interactions with its customers,
employees and other stakeholders.

5. Artistic Values
 Organizational value system

1. Corporate Stewardship Values 2. Market Values

• Shows a commitment to the responsible use of • Market values help businesses satisfy their
resources. These values aim to make the world a customer’s wants and needs. These values concern
better place by making decisions that show respect the way they sell and promote their products and
for the planet and its people. Examples of corporate services. Examples of market values may include:
stewardship values may include:
• Customer experience
• Respect
• Inclusivity and representation
• Sustainability
• Quality
• Integrity
• Honesty
• Ethics
• Good citizenship • Acountability
 Organizational value system

3. Financial Values 4. Team Values

Financial values concern the way businesses manage their
money. These values help companies please stakeholders
by boosting profits and making sure they stay
economically viable. Examples are:
• Financial stability
Team values concern the way employees work or
interact. Often people outside the business are
unaware of these values, but they play a key part in
defining business’s corporate culture. Some examples
are:

• Results- oriented • Learning

• Constant improvement • Passion

• Organization • Fun
• Corporate giving • Balance
• Collaboration
 Organizational value system

5. Artistic Values

Artistic values are beliefs surrounding original

thinking. Upholding these beliefs helps
businesses differentiate themselves from and
move forward uniquely. Examples are:
• Creativity
• Innovation
• Boldness
• Expression
• Curiosity
Benefits of formalizing
organizational values:

Sets you apart from your competitors.

Guides employee decision-making.

Attracts like-minded talent and Attracts
customers.

Improves employee engagement.

Informs strategic direction.

- Promoting ethical behavior in an
Organization
- Globalization
- Bureaucracy and post bureaucracy
Promoting ethical behavior in an Organization
DEFINITION OF ETHICAL BEHAVIOUR

a field of social science that seeks to understand how people

actually behave when confronted with ethical dilemmas. It
refers to behavior that is judged according to generally
accepted norms of behavior.

What Are Ethical Values in an

organization?
Ethical values are a set of moral guiding
principles that determine how a company
conducts business. These principles seek to
serve and protect others above the
organization’s self-interest. Beyond fulfilling
legal obligations, ethical values in business
show strong moral character from leaders and
employees.
 8 Ethical Values to Guide in an Organization

Integrity Leadership

Teamwork Loyalty
 1. Create a code
How to create a more
ethical workplace? 2. Engage with employees

3. Reinforce the benefits of the

code

4. Be a good role model

5. Train your employees

 6. Promote your ethical
behavior
How to create a more
ethical workplace? 7. Reward ethical behavior

9. Report unethical behavior

8. Learn from your mistakes

9. Report unethical behavior

10. Move with the times


“A leader is one who knows
the way, goes the way, and
shows the way.”
A leader has a great responsibility within the
workplace. This responsibility includes
looking after the best interest of the
organization, their team, and most
importantly, themselves.
For a leader to successfully cultivate such an
environment they must be confident in their
own ethical values and ensure that they are
aligned with those of the organization.
Values are only the foundations of
building a team that one can depend
on to behave ethically.
A strong leader is one that actively
encourages ethical behavior in their
employees by creating a safe space for
their team, and by leading by example.
A safe environment is created by
communicating ethical expectations
within the company, providing ethics
training to employees, and by setting
Globalization
Globalization
- the speedup of movements and exchanges (of
human beings, goods, and services, capital,
technologies or cultural practices) all over
the planet. One of the effects of
globalization is that it promotes and
increases interactions between different
regions and populations around the globe.
Globalization by WHO
- defined as ” the increased
interconnectedness and interdependence of
peoples and countries.
- It is generally understood to include two
inter-related elements:
- the opening of international borders to
increasingly fast flows of goods, services, finance,
people and ideas;
- and the changes in institutions and policies at
national and international levels that facilitate or
 EXAMPLES OF GLOBALIZATION

1. ECONOMIC GLOBALIZATION 2. FINANCIAL GLOBALIZATION

 EXAMPLES OF GLOBALIZATION

3. CULTURAL GLOBALIZATION 4. POLITICAL GLOBALIZATION

 EXAMPLES OF GLOBALIZATION

5. SOCIOLOGICAL GLOBALIZATION 6. TECHNOLOGICAL GLOBALIZATION

 EXAMPLES OF GLOBALIZATION

7. GEOGRAPHIC GLOBALIZATION 8. ECOLOGICAL GLOBALIZATION

The Benefits of Globalization

1. The Engine of Globalization – An Economic Example

The most visible impacts of globalization are definitely the ones affecting the
economic world. Globalization has led to a sharp increase in trade and
economic exchanges, but also to a multiplication of financial exchanges.

This acceleration of economic exchanges has led to strong global economic

growth. It fostered as well a rapid global industrial development that allowed
the rapid development of many of the technologies and commodities we have
available nowadays.
The Benefits of Globalization

2. Globalization Benefits – A Financial Example

The idea was to simplify finance regulations, eliminate

mediators and break down the barriers between the world’s
financial centers. And the goal was to make it easier to exchange
capital between the world’s financial players. This financial
globalization has contributed to the rise of a global financial
market in which contracts and capital exchanges have multiplied.
The Benefits of Globalization

3. Globalization – A Cultural Example

Together with economic and financial globalization, there has obviously
also been cultural globalization. Indeed, the multiplication of economic
and financial exchanges has been followed by an increase in human
exchanges such as migration, expatriation or traveling. These human
exchanges have contributed to the development of cultural exchanges.
This means that different customs and habits shared among local
communities have been shared among communities that (used to) have
different procedures and even different beliefs.
The Negative Effects of Globalization

1. The Negative Effects of Globalization on

Cultural Loss
2. The Economic Negative Effects of
Globalization
3. The Negative Effects of Globalization on
the Environment
 No generation has had the
opportunity, as we now have, to build a
global economy that leaves no-one
behind. It is a wonderful opportunity,
but also a profound responsibility.

 former U.S President Bill Clinton

BUREAUCRACY AND POST BUREACRACY
Origins Of Bureaucratic Theory
(MAX WEBER)

According to bureaucratic theory,

organizations have well-defined rules and
processes and focus on efficiency.
They are characterized by task
specialization, well-trained employees, a
hierarchical structure, managerial
dedication and impersonality.
“Bureaucratic theory explains how a
system of authority based on impersonal
rules guides organizational and individual
decision making and behavior”
(Meisenbach and Jensen, 2017).
Origins Of Bureaucratic Theory
(MAX WEBER)

Weber (1921) believed that bureaucracies were the most effective

(and ultimately inevitable) organizational response to a society with an
increasing need for:

Professionalization: secure and efficient legal, financial etc.

transactions.
Rationalization: organization based on reason and objectivity
rather than emotions or arbitrariness.
Therefore, bureaucracy is not a type of government. It is a
management structure run by professionals following prescribed rules
The 6 Principles Of Max Weber’s Bureaucracy
Every individual has a specialized job. Task
specialization helps organizations to divide tasks
into small, manageable chucks.  Each task is
Division of labor overseen by a specialist with the required skills
(specialization) and knowledge.
Employees are chosen based on their technical
expertise and competencies acquired through
Formal selection education, training, and on-the-job experience.
In Weber’s view bureaucracy should be defined by
impersonality. Decisions ought to be made based
on objective criteria, instead of favoritism and
Impersonality personal relationships (Udy, 1959).
 There is a clear line of authority—based on merit—
from the top of the organization to the bottom.
Hierarchical authority Hierarchy ensures that each individual reports to a
relationship higher authority.
Clearly written, well-established rules provide a
clear framework for individual behavior and
decision-making. This ensures all organization
members are aware of their superiors’
Formal rules and expectations and do not cross the boundaries of
regulations their role.
Management needs to be fully committed to their
role and the organization. They should encourage
employees to establish long-term careers in the
organization through the provision of job security
Career orientation and performance-driven incentives.
 Examples of bureaucracy
1. Big transnational corporations (think Samsung, Shell, McDonalds)
2. hierarchical administrative structure of contemporary governments
3. Health institutions, such as hospitals
4. Police department
5. The military
6. Educational institutions
7. Banks, insurance companies, investment companies
8. Inter- and non-governmental organizations, like the United Nations,
the World Bank
Strengths Of Criticism Of
Bureaucratic Theory Bureaucratic Theory

1. Rationality 1. One way communication

2. Impersonality 2. Loss of agency

3. Efficiency through 3. Slowness

accountability 4. Inflexible and opaque
rules
4. Labor division
5. Internal empire-building
Post- bureaucracy
Post- bureaucratic culture refers to informal inter-personal
relationships by reducing chain of command and formal
relationships by means of paying attention to the
subordinate’s decisions and preferences thereby keeping
spirit of innovation and entrepreneurship.
The main features of organizations with post-bureaucratic culture
are (Ateş, 2008:92):

a. It emphasizes a management style moving from bottom to top and provides

convincing and trusting by minimizing official communication method that
depends on chain of command.

b. Managers and workers should be dependent on flexible and general rules in

order them to use more initiatives and adapt better to changing
environmental conditions.

c. A post-bureaucratic organization is an organization in which every member

takes a responsibility for the success of the whole organization. So, for the
solution of a problem or with the aim of making an improvement in a field,
team-work and organizational networks that break hierarchical structure are
done.
The main features of organizations with post-bureaucratic culture
are (Ateş, 2008:92):

d. Staff evaluation that bureaucratic culture does according to

seniority or official offices has turned into objective performance
standards on which the whole staff agree and they contribute to its
preparation process in post-bureaucratic culture.
e. Proliferation of adopting the applications of total quality
management, fortification of staff, transfer of authority, coaching
and autonomous working groups is also among main futures of
postbureaucratic management.