Chapter 10 (Week 10) Flashcards
Organizational Culture
A system of shared meaning held by members that distinguishes the organization from other organizations
Primary characteristics of Organizational Culture
- Innovation and risk taking
- Attention to detail
- Outcome orientation
- People orientation
- Team orientation
- Aggressiveness
- Stability
Dominant Culture vs Subculture
Dominant:
A system of shared meaning that expresses the core values (primary or dominant values) shared by a majority of the organization’s members
Subculture:
Mini-cultures within an organization, typically defined by department designations and geographical separation
Strong vs Weak Culture
Strong - culture in which the core values are intensely held and widely shared
Weak - when opinions about organization’s mission and values vary widely
Function of Culture
Defines the rules within an organization:
- boundary-defining role because creates distinction between organizations
- conveys sense of identity to members of organization
- helps create commitment to something larger than individual’s self-interst
- enhances stability; social glue holing organization together by providing standards for what employees say and do
- serves as control mechanism that guides and shapes attitudes and behaviour of employees and helps them make sense of organization
Ethical Work Climate
shared concept of right and wrong behaviour in the workplace that reflects the true values of the organization and shapes the ethical decision making of its members
Five prevalent categories:
- Instrumental (assumes employees and organizations are motivated by self-interest)
- Caring (expectation that management decisions will positively affect the greatest number of stakeholders possible)
- Independence (relies on personal moral ideas of employees to dictate their workplace behaviour)
- Law and Code (require managers and employees to use an external standardized moral compass like a professional code of conduct for norms)
- Rules (operate by internal standardized expectations from something like an organizational policy manual)
*Organizations often progress through different categories as they move through business life cycle
Sustainability
Organization practices that can be sustained over a long period of time because the tools or structures that support them are not damaged by the processes
Innovation
Innovative companies are often characterized by their open, unconventional, vision-driven, accelerating cultures
Culture Creation
Three ways to create culture
- hire and keep employees who think and feel the way the founder or leader does
- indoctrinate and socialize employees to leaders’ way of thinking and feeling
- leaders’ own behaviour encourages employees to identify with them and internalize those beliefs, values, and assumptions
Maintaining Culture
- Selection (identify and hire individuals who have the knowledge, skills, and abilities to perform successfully and whose values are consistent with most of the organization)
- Top Management (through their words and behaviour, they establish norms that filter through the organization about level of risk-taking that is desirable, how much freedom managers give employees, appropriate dress, what actions result in pay raises, promotions, etc.)
- Socialization (process that adapts new employees to an organization’s culture - prearrival, encounter and metamorphosis)
How Employees Learn Culture
Stories, rituals, material symbols and language