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How Organizational Cultures Form
Top Management Philosophy of the Organization’s Founders
Selection
Organizational Culture
Socialization
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Strength
Performance
High
Low Satisfaction
Perceived as
Organizational Culture
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Sociability
Communal
Fragmented
Low
Mercenary
Low
Cohesiveness
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High
12
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Institutional Theory
Power Roles
Task
Person
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•Strings are functions and specialties
•Usually spawns other organizations
•Must concentrate on a few activities to work well
•More…
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•Custtomer always right – product really important
•When resources dwindle, stage ripe for politics •Ad agencies, consultants, defense contractors
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Role Culture
•Strength in pillars (functions or specialties)
•Work and interaction in pillars controlled by:
•Procedures for roles (job descriptions)
•Procedures for communication
•Procedures for disputes
•Coordinated at top by narrow band of senior management
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Controlling behavior
Blocking mergers
Blocking acquisitions
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How A Culture Begins
Hiring and Retention
Indoctrination & Socialization
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Task Culture
•Job/project oriented
•Bring together appropriate resources (right people at right level) •Influence based more on expert power than position or personal power
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What Is Organizational Culture?
A system of shared meaning held by members that distinguishes the organization from other organizations.
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Behavior and Role Modeling
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Baidu Nhomakorabea
Selection
Sustaining a Culture
Top Management
Socialization
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Organizational Culture
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What Is Institutionalization?
Permanence
Value
Immortality
Behavior
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Do Organizations Have Uniform Cultures?
Dominant Culture Core Values
Subcultures
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Power Culture
•Central power source •Traditionally small, entrepreneurial organizations •Power rings are centers for activity and influence
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Stories
Rituals
How Employees Learn Culture
Language
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Material Symbols
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Four-Culture Typology
High
Networked
What Is Organizational Culture?
• Innovation and risk taking • Attention to detail
• Outcome orientation
• People orientation • Team orientation • Aggressiveness • Stability
•Groups/project teams – mutual objective of
accomplishing task •More…
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Task Culture
•Adaptable culture
•TMT mainly responsible for resource allocation to projects teams (not day to day/hands on) •Good for short product life cycle, flexible, changing environments
Role Culture
•Strength in pillars (functions or specialties)
•Work and interaction in pillars controlled by: •Procedures for roles (job descriptions) •Procedures for communication •Procedures for disputes •Coordinated at top by narrow band of senior management
individual for existence
•More…
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Person Culture
•Influence is shared
•Power base is expert (if needed) •People do what they are good at •If organization achieves its own identity it becomes a task culture at best – more often Role or
Power
•Architects, lawyers, doctors, professors
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How Organizational Structure Impacts Performance and Satisfaction
Person Culture
•Self oriented
•People work for themselves and only band together for their own betterment •Psychological contract – organization is subordinate to individual and depends on the
Objective Factors • Innovation/risk taking • Attention to detail • Outcome orientation • People orientation • Team orientation • Aggressiveness • Stability
Power Culture
•Based upon trust, empathy and personal conversation •May be abrasive and competitive and result in turnover •Few policies, procedures •Control exercised by selection of key people •Proud, strong, flexible •Lots of faith placed in individuals, little in committees •Trade unions, property, trading and finance companies
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Organizational Culture
Functions
Defining boundaries
Conveying identity
Liabilities
Impeding change
Inhibiting diversity
Promoting commitment
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Intensity of Core Values
Commitment to Core Values
Strong Versus Weak Cultures
High Behavioral Control
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Low Employee Turnover