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Organizational Culture

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The key takeaways are the definition and characteristics of organizational culture.

Some characteristics of organizational culture discussed are innovation and risk taking, attention to detail, outcome orientation, people orientation, team orientation, aggressiveness, stability, openness, communication and supervision.

Some functions of organizational culture discussed are boundary defining role, sense of identity, commitment, social system stability, and sense making/control.

Presentation by: Rhiju lamsal

MBAe-4th trime, Sec-A


DEFINATION
 Culture is based on shared attitudes, beliefs, customs, and
written and unwritten rules that have been developed over
time and are considered valid.

 Organizational culture is a set of shared assumptions that


guide what happens in organizations by defining appropriate
behavior for various situations (Ravasi & Schultz, 2006).

 Includes an organization’s expectations, experiences,


philosophy, as well as the values that guide member behavior,
and is expressed in member self-image, inner workings,
interactions with the outside world, and future expectations.
CHARACTERISTICS
 Innovation and risk taking: The degree to which employees
are encouraged to be innovative and take risks.
 Attention to detail: The degree to which employees are
expected to exhibit precision, analysis, and attention to detail.
 Outcome orientation: The degree to which management
focuses on results or outcomes rather than on technique and
process.
 People orientation: The degree to which management decisions
take into consideration the effect of outcomes on people within
the organization.
CONTINUE
 Team orientation: The degree to which work activities are
organized around teams rather than individuals.
 Aggressiveness: The degree to which people are aggressive and
competitive rather than easygoing.
 Stability: The degree to which organizational activities
emphasize maintaining the status quo in contrast to growth.
 Openness, Communication, and Supervision: It can be
described as the amount and type of interchange permitted. The
communication flow can be downward, upward, across the
organization, and in other directions as spelled out by the
culture.
FUNCTIONS
 It has a boundary defining role. It creates a distinction between
one organization and others.
 It conveys sense of identity for organization members.
 It facilitates the generation of commitment to something larger
than individual self interest.
 It enhances social system stability and it is glue that helps hold
the operation together by providing appropriate standards for
what employees should say and do.
 It serves as a sense making and control mechanism that guides
and shapes the attitude and behavior of employees.
METHODS USED TO EMBED CULTURE:
 Communicate it: We shouldn't expect culture to automatically unfold
without a lot of effort on your part and that of your management team.
Use a variety of media to get your message across, and speak of it at
every chance you get. Weave your cultural message into every formal
and informal conversation you have. Talk about how it will affect the
future of your organization. When culture change fails, it’s often
because it hasn’t been communicated enough.

 Demonstrate it in every way possible: If your culture is about taking


decisive action, take it. If it has an element of fun, have fun. If it’s
about being respectful, then you’d darn well better show respect. If
you want a culture that provides high-touch customer service, then
show what that means. There is a lot to be said about communicating
what’s expected, but a lot more will be learned and embedded by your
employees when you demonstrate the culture you expect to have.

 Hire for it. When you bring new employees, managers, and leaders
into your organization, make sure that your team has the tools to
determine if those who are being considered for positions are a good fit
with the culture. They should be able to screen candidates and
interview for the cultural characteristics that you want to entrench.
CONTINUE
 Hold others accountable for it: Pay attention to how your staff
is also working to communicate and demonstrate the cultural
characteristics you expect in your organization. Coach them
around those, have ongoing dialog about what you expect, and if
it isn’t demonstrated, take action.

 Reward for it: Find ways to reward others who best


demonstrate the culture you want. Make an example of them,
and do it publicly when it makes sense to do so. Having visible
examples of how the culture is demonstrated will provide
examples for others to follow.

 Commemorate it: Surely, there are ways to mark and make


apparent the results of embedding the culture. Find them, and
enjoy the fruits of your labor throughout the organization
through celebration, communication or rejoicing. You’ve
achieved no small feat, and finding a way to celebrate will help
to further embed your culture.
HOFSTEDE'S SIX DIMENSIONS OF CULTURE

 Power Distance Index (high versus low).

 Individualism Versus Collectivism.

 Masculinity Versus Femininity.

 Uncertainty Avoidance Index (high versus low).

 Long- Versus Short-Term Orientation.


POWER DISTANCE

 A high PDI score indicates that a society accepts


an unequal, hierarchical distribution of power,
and that people understand "their place" in the
system.
 A low PDI score means that power is shared and
is widely dispersed, and that society members do
not accept situations where power is distributed
unequally.
 In context of OB class, we are involved in class
interaction, every students are considered equal
and has low PDI.
INDIVIDUALISM

 A high IDV score indicates weak interpersonal connection


among those who are not part of a core "family." Here, people
take less responsibility for others' actions and outcomes.

 A collectivist fully integrates herself into the organization and


demonstrates loyalty to the extended corporate "family." In turn,
she expects others in the organization to support her.

 I have experienced a low IDV as in ob class I can see people


work for intrinsic rewards as well as they maintain harmony
among group members overrides other moral issues.
MASCULINITY
 In masculine societies, the roles of men and women
overlap less, and men are expected to behave assertively.
Demonstrating your success, and being strong and fast, are
seen as positive characteristics.
 In feminine societies, however, there is a great deal of
overlap between male and female roles, and modesty is
perceived as a virtue. Greater importance is placed on good
relationships with your direct supervisors, or working with
people who cooperate well with one another.
 By comparison our class is a very feminine place as
relationship are oriented/consensual and more
focus is on quality of life than egos.
UNCERTAINTY AVOIDANCE
 This dimension describes how well people can cope with
anxiety.

 People in low UAI-scoring countries are more relaxed,


open or inclusive.

 In class I find high score for Uncertainty Avoidance,


people attempt to make life as predictable and controllable
as possible. If they find that they can't control their own
lives, they may be tempted to stop trying.
LONG TERM ORIENTATION
 It measures long-term values, such as
perseverance and thrift, against shortterm values
such as respect for tradition, fulfillment of social
obligations and avoiding personal embarrassment.
 Employees with a high measure of long-term
orientation respond well to a hierarchy based
organizational structure where leaders are highly
respected.
 We respect our faculty.

 Thrift and education are seen as positive values.


CONTRIBUTION OF OBL INSTRUCTOR
 Our instructor is concentrating on the execution of
the students, their conduct, values and learning
state of mind.
 To get around from high level of instability the
instructor is arranged with every one of
the answers and is constantly prepared for any
inquiries from the students. So, instructor is
viewed as master in his field.

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