MEANING OF ORGANIZATION CULTURE
A system of shared meaning held by members that distinguishes the organization from other organization.
There seems to be agreement organization culture refers to a system of shared meaning held by members that distinguishes the organization from other organization. This system of shared meaning is, on closer examination, a set of key characteristics that the organization values. The search suggests that there are seven characteristics that, aggregate, capture the essence of an organization’s culture.
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CHARACTERISTICS OF ORGANIZATION CULTURE:
The characteristics of organizatioanal culture are as follow:
- Innovation and risk taking: The degree to which employees are encourage to be innovative and take risk.
- Attention to detail: The degree to which the employees are expected exhibit precision, analysis, and attention detail.
- Out come orientation: The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve those outcomes
- People orientation: the degree to which management decisions take into consideration the effect of out- comes on people within the organization.
- Team orientation: The degree to which work activities are organized around team 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.
Each of these characteristics exists on a continuum from low to high appraising the organization on these seven characteristics that gives a composite picture the organization’s culture.
TYPES OF ORGANIZATION CULTURE
Organization culture represents a common perception held by the organization’s members. We should expect, therefore, that individuals with different backgrounds or at different levels in the organization will tend to describe the organization’s culture in similar terms.
- Dominant culture: Expresses the core values that are shared by a majority of the organization members. A dominant culture expresses the core values that are shared by a majority of the organization members. When we talk about an organization’s culture, we are referring to its dominant culture.
- Subcultures: Mini cultures within an organization, typically defined by department designations and geographical separation. Subculture tends to develop in large organization to reflect common problems, situations, or experience that member’s face. These subcultures are likely to be defined by department designations and geographical separation.
- Strong versus weak culture: It has become increasingly become popular to differentiate between strong and weak cultures. The argument here is that strong cultures have a greater impact on employee behavior and are more directly related to reduce turnover. The organization’s core values are both intensely held and widely shared. The more members who accept the core values and the greater their commitment to those values is, the stronger the culture is.
- Organizational culture versus national culture: National differences that is, national cultures must be taken into account if accurate predictions are to be made about organizational behavior in different countries. The research indicates that national culture has a greater impact on employees than does their organization’s culture.
FUNCTIONS OF ORGANIZATION CULTURES
We have explicitly argued that a strong culture should be associated with reduced turnover. The functions that cultures perform and assess whether culture can be a liability for an organization. Culture performs a number of functions within an organization.
First, it has a boundary defining role, that is, it creates distinctions between one organization to another organization.
Second, it conveys a sense of identity for organization members.
Third, culture facilitates the generation of commitment to something larger that one’s individual self interest.
Fourth, it enhance the stability of the social system. Culture is the social glue that helps hold the organization together by providing appropriate standards for what employees should say and do.
Finally, culture serves as a sense making and control mechanism that is of particular interest to us.
HOW EMPLOYEES LEARN CULTURE
Culture is transmitted to employees in a number of forms, the most potent being stories, rituals, material symbols, and language.
- Stories: During the days when Henry ford II was chairman of the Ford Motor Co. one would have been hard pressed to find a manager who had not heard the story about Mr. ford reminding his executives, when they got too arrogant, that “it’s my name that’s on the building.” The message was clear: Henry Ford II ran the company.
- Rituals: Rituals are repetitive sequences of activities that express and reinforce the key values of the organization – what goals are most important, which people are important, and which people are expendable. repetitive sequences of activities that express and reinforce the key values of the organization, which goals are most important, which people are important, and which are expendable.
- Material symbols: The headquarters of Alcoa doesn’t look like your typical head office operation. There are few individual offices, even for senior executives. It is essentially made up of cubicles, common areas, and meeting rooms. This informal corporate headquarters conveys to employees that Alcoa values openness, equality, creativity, and flexibility. Some corporations provide their top executives with chauffeur driven limousines and, when they travel by air, unlimited use of the corporate jet. Others may not get to ride in limousines or private jets but they might still get a car and air transportation paid for by the company.
- Language: Many organizations and units within organizations use language as a way to identify members of a culture or subculture. By learning this language, members attest to their acceptance of the culture and, in so doing, help to preserve it. Organizations, over time, often develop unique terms to describe equipment, offices, key personnel, suppliers, customers, or products that relate to its business.
CREATING AN ETHICAL ORGANIZATIONAL CULTURE
The content and strength of a culture influences an organization’s ethical climate and the ethical behavior of its members. A strong organizational culture will exert more influence on employees than a weak one. If the culture is strong and supports high ethical standards, it should have a very powerful and positive influence on employee behavior. What can management do to create a more ethical culture? We suggest a combination of the following practices:
- Be a visible model: Employees will look to top management behavior as a benchmark for defining appropriate behavior. When senior management is seen as taking the ethical high road, it provides a positive message for all employees.
- Communicate ethical expectations: Ethical ambiguities can be minimized by creating and disseminating an organizational code of ethics. It should state the organization’s primary values and the ethical rules that employees are expected to follow.
- Provide ethical training: Set up seminars, workshops, and similar ethical training programs. Use these training sessions to reinforce the organization’s standards of conduct; to clarify what practices are not permissible; and to address possible ethical dilemmas.
- Visibly reward ethical acts and punish unethical ones: Performance appraisals of managers should include a point by point evaluation of how his or her decisions measure up against the organization’s code of ethics.
- Provide protective mechanisms: The organization needs to provide formal mechanisms so that employees can discuss ethical dilemmas and report unethical behavior without fear of reprimand. This might include creation of ethical counselors, ombudsmen, or ethical officers.
CREATING A CUSTOMER RESPONSIVE CULTURE
We can suggest a number of actions that management can take if it wants to make its culture more customer responsive. These actions are designed to create employees with the competence, ability, and willingness to solve customer problems as they arise.
- Selection: The place to start in building a customer responsive culture is hiring service orientation. Studies show that friendliness, enthusiasm, and attentiveness in service employees positively affect customers’ perceptions of services quality.
- Training and socialization: Organizations that are trying to become more customer responsive don’t always have the option of hiring all new employees more customer focused. In such cases, the emphasis will be on training rather than hiring. This describes the dilemma that senior executives at companies such as General Motors, Shell and J.P.
- Empowerment: Consistent with low formalization is empowering employees with the discretion to make day to day decisions about job related activities.
- Leadership: Leaders convey the organization’s culture through both what they say and what they do. Effective leaders in customer responsive cultures deliver by conveying a customer focused vision and demonstrating by their continual behavior that they are committed to customers.
- Performance evaluation: There is an impressive amount of evidence demonstrating that behavior based performance evaluations are consistent with improved customer service. Behavior based evaluations appraise employees on the basis of how they behave or act on criteria such as effort, commitment, team work, friendliness, and the ability to solve customer problems rather than on the measurable outcomes they achieve.
- Reward systems: Finally, if management wants employees to give good service, it has to reward good service. It needs to provide ongoing recognition to employees who have demonstrated extraordinary effort to please customers and who have been singled out by customers for going the extra mile. And it needs to make pay and promotions contingent on outstanding customer service.









