CHAPTER FIFTEEN

ORGANIZATIONAL
CULTURE

UGC/TRIEA/UNOM/DOMS/PTS OB/L15/S1
 DEFINITION

Organizational culture is a system

of shared beliefs and attitudes that
develop within an organization and
guides the behaviour of its
members.

UGC/TRIEA/UNOM/DOMS/PTS OB/L15/S2
 PRIMARY CHARACTERISTICS
OF ORGANIZATIONAL
1.
CULTURE
Innovation and risk taking
2. Attention to detail
3. Outcome orientation
4. People orientation
5. Team orientation
6. Aggressiveness
7. Stability

UGC/TRIEA/UNOM/DOMS/PTS OB/L15/S3
 FUNCTIONS OF CULTURE

1. It creates distinction between one

organization and another.
2. It conveys a sense of identity to organization
members.
3. It generates commitment to something
larger than an individuals self interest.
4. It is a social glue that helps hold the
organization together.
5. It is a sense making and control mechanism
that guides and shapes the attitudes and
behaviour of people.

UGC/TRIEA/UNOM/DOMS/PTS OB/L15/S4
 DYSFUNCTIONAL ASPECTS
OF CULTURE

1. Barrier to change
2. Barrier to diversity
3. Barrier to acquisitions and
mergers.

UGC/TRIEA/UNOM/DOMS/PTS OB/L15/S5
 ORGANIZATIONAL CULTURE:
THE ROLE OF FOUNDER
1. Founders hire and keep
employees who think and feel as
they do.
2. They indoctrinate and socialize
these employees to think and feel
as they do.
3. Founder’s own behaviour acts as
role model.
UGC/TRIEA/UNOM/DOMS/PTS OB/L15/S6
LEVELS OF ORGANIZATIONAL
CULTURE
1. Observable artifacts of culture
a. Organizational hero's
b. Ceremonies and rites
c. stories
2. Shared values
3. Common assumptions

UGC/TRIEA/UNOM/DOMS/PTS OB/L15/S7
 FRAME WORK OF TYPES OF
CORPORATE CULTURE
Culture Functioning Orientation

Bureaucratic Internal Stable

Clan Internal Formal
Entrepreneurial External Formal
Market ExternalStable

UGC/TRIEA/UNOM/DOMS/PTS OB/L15/S8
 CORPORATE CULTURE
EXPLAINED
 Bureaucratic- values formality, rules,
stable operating procedure
 Clan -tradition, loyalty, team work,
extensive socialization, pride in
membership, peer pressure, an
obligation beyond simple exchange
of salary.

UGC/TRIEA/UNOM/DOMS/PTS OB/L15/S9
CORPORATE CULTURE
EXPLAINED (Contd.)
 Entrepreneurial- high levels of risk
taking, dynamism, creativity.
Produce-new, unique products.

 Market- achievement of measurable and

demanding goals-financial and market
based. Hard driving competitiveness and
profit orientation.
Organization does not promise security,
and individuals does not promise loyalty.

UGC/TRIEA/UNOM/DOMS/PTS OB/L15/S
10
 MATCHING PEOPLE WITH
CULTURES
Goffee & Jones typology

Culture Solidarity Sociability

Networked Low High

Mercenary High Low
Fragmented Low Low
Communal High High

UGC/TRIEA/UNOM/DOMS/PTS OB/L15/S
11
 GOFFEE & JONES TYPOLOGY
EXPLAINED
 Networked : organizations view members as
family.
People like each other. Focus on friendship.
Tolerance of poor performance.
 Mercenary: organizations fiercely go
focussed.
Can lead to inhuman treatment of poor
performers.

UGC/TRIEA/UNOM/DOMS/PTS OB/L15/S
12
 GOFFEE & JONES TYPOLOGY
EXPLAINED (Contd.)
 Fragmented:organization made up of individuals.
Commitment to individual members.
People judged on their productivity. Critiquing of
others.
 Communal:values both friendship and performance.
Feeling of belonging, also focus on goal
achievement.
Charismatic leaders-creates disciples than
followers.

UGC/TRIEA/UNOM/DOMS/PTS OB/L15/S
13
 ORGANIZATIONAL CULTURE
Vs. ORGANIZATIONAL
CLIMATE
Organizational culture is concerned
with the nature of beliefs and
expectations about organizational
life, while climate is an indicator
whether those beliefs and
expectations are being fulfilled.

UGC/TRIEA/UNOM/DOMS/PTS OB/L15/S
14
 ORGANIZATIONAL CLIMATE

 Overt factors: hierarchy, financial

resources, skill and
ability of personnel,
technological state.
 Covert factors: attitudes, feelings,
values,
supportiveness,
satisfaction.
UGC/TRIEA/UNOM/DOMS/PTS OB/L15/S
15
 CONCLUSION

The strength of the primary culture

characteristics leads to
performance and satisfaction of
the employees.

UGC/TRIEA/UNOM/DOMS/PTS OB/L15/S
16