MGMT 363 - Chapter 16 - Organizational Culture

Organizational Culture

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Organizational culture
-the shared knowledge within an organization regarding the rules, norms, and values that shape the attitudes and behaviors of its employees
-3 major components: observable artifacts, espoused values, and underlying assumptions
Observable artifacts
-the manifestations of an organization's culture that employees can easily see or talk about
-supplies the signals that employees interpret to gauge how they should act during the workday
-the primary means of transmitting an organization's culture into its workforce
-includes 6 types: symbols, physical structures, language, stories, rituals, and ceremonies
Espoused values
-the beliefs, philosophies, and norms that a company explicitly states
-published documents such as a company's vision or mission statement, verbal statements made to employees by executives and managers, etc.
Basic underlying assumptions
-the taken-for-granted beliefs and philosophies that are so ingrained that employees simply act on them without questioning
2 dimensions of organizational culture:
1) solidarity- the degree to which group members think and act alike
2) sociability- how friendly employees are to one another
Fragmented cultures
-low sociability, low solidarity
-employees are distant and disconnected
Mercenary cultures
-low sociability, high solidarity
-employees think alike but aren't friendly to each other
Networked cultures
-high sociability, low solidarity
-all employees are friendly to one another but everyone thinks differently and does their own thing
-often seen in highly creative organizations
-companies move toward this networked culture as they grow
Communal culture
-high sociability, high solidarity
-employees are friendly to each other and all think alike
Customer service culture
-company's culture is focused on service quality
-this culture can lead to even more customer-oriented behaviors by employees and a larger bottom-line profit as a result
Safety culture
-a culture in which safe behaviors at work are viewed as expected and valued
-this culture reduces accidents and treatment errors (medically) in the workplace
Diversity culture
A culture that emphasizes diversity
Creativity culture
-culture that emphasizes creativity in the workplace
-affect both the quantity and quality of creative ideas within an organization
Culture strength
-exists when employees definitively agree about the way things are supposed to happen within the organization (high consensus) and when their subsequent behaviors are consistent with those expectations (high intensity)
Subcultures
-cultures that unite a smaller subset of the organization's employees
-may be created because there is a strong leader that engenders different norms and values or because different divisions in a company act independently and create their own cultures.
-more likely to exist in large organizations
-can be very useful to organizations when different areas of a company demand different things