CHAPTER 8
Organizational Culture
PhD. Phan Quốc Tấn
Departure
• Depending on the “perspective”, we have different
concepts of culture. In other words, there are as many
perspectives as there are concepts of culture.
• We study the following two perspectives:
• The perspective of people from the outside.
• The perspective of people from the inside.
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Departure
“Cultural subjects”
can be:
Culture from the Culture from the • Group,
inside perspective • Organization,
outside perspective
• Ethnicity,
“Culture” is the basic “Culture” is the behavioral • Religion,
characteristics (identity, norms (or value system) that • Country,
personality, unique all people in that “cultural • Cuisine, Art,
features) that distinguish subject” must follow or be • Personal,
this “cultural subject” from governed by. • Gender,
another “cultural subject”.
• Profession,
• Industry/Field,
• Locality/Region,
• Family
• …
Defining Organizational Culture
Organizational culture is:
• a system of shared meaning held by
members that distinguishes the
organization from other organizations.
• a system of meanings, values, core beliefs,
perceptions and ways of thinking that are
shared by all members of an organization
and that widely influences the way
members act.
Organizational culture reflects the
organization's unique identity.
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Culture’s Functions
1. Defines the boundary between one organization Characteristics:
and others. 1. Innovation and risk
taking
2. Conveys a sense of identity for its members.
2. Attention to detail
3. Facilitates the generation of commitment to
something larger than self-interest. 3. Outcome orientation
4. Enhances the stability of the social system. 4. People orientation
5. Serves as a sense-making and control 5. Team orientation
mechanism for fitting employees in the 6. Aggressiveness
organization. 7. Stability
The structure of Organizational culture
The tangible
First Level processes and
Surface Layer structures of the
enterprise
Second Level
Accepted Values
Intermediate Level
Third Level General
Deep Level Concepts
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Văn hóa mạnh và văn hóa yếu
In a strong culture, the organization’s
core values are both intensely held and
widely shared
Strong cultures will:
Have great influence on the behavior of
members
Increase cohesiveness
Result in lower employee turnover
National culture influences Organizational culture
The deep layer of Organizational culture is
influenced by national culture, reflecting the
characteristics of national culture.
National culture affects the philosophy of the
organization.
National culture affects the formation of
organizational values and norms.
National culture affects the rules and
principles of the organization.
National culture affects the atmosphere of the
organization.
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National culture influences Organizational culture
National culture influences organizational culture in many aspects, such as:
Power concentration: Views on personal responsibility:
Power concentration (Latin bloc, slow Personal responsibility (UK, US)
and developing Asian countries) Collective responsibility (Low and
developing Asia)
Power decentralization (Germany, UK,
Northern Europe) Gender equality view:
Male preference (China, Japan, Korea)
Stability perspective: Gender equality (Northern Europe)
High stability (Japan, Eastern Europe)
Low stability (UK, Northern Europe)
The role and benefits of organizational culture
The most valuable asset of an
organization is not “people” but “team”.
Every organization has people, but not
every organization has a team.
Organizational culture is one of the
important factors that make up the “team”
of an organization.
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The role and benefits of organizational culture
• Culture is an important and
indispensable tool in management and
administration, regardless of whether it
is managing a country, a society, or an
organization.
• People often use “law” and “social
culture” as two important tools to
manage a country. And similarly, people
can use “regulations” and “corporate
culture” to manage a company.
The role and benefits of organizational culture
How are organizational culture management and
organizational culture management different?
How do these two management methods support and
combine with each other?
Use regulations to create culture;
Use culture to enforce regulations
Organizational culture management everyone must
follow (whether they want to or not) mandatory.
Organizational culture management everyone believes
and follows voluntary.
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The role and benefits of organizational culture
Once the organization has a strong culture that is consistent with the long-term goals and
strategies that the organization has set out, it will:
Create employee pride in the organization, so that everyone always lives, strives and fights for the
common goals of the organization voluntarily.
Helps leaders more easily manage the company.
Helps employees feel more comfortable and proactive in orienting their thinking and working.
Creating
and
maintaining
organizational
culture
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How Culture Begins
1. Founders hire and keep only
employees who think and feel the
same way they do.
2. Founders indoctrinate and
socialize these employees to
their way of thinking and feeling.
3. The founders’ own behavior acts
as a role model that encourages
employees to identify with them
and thereby internalize their
beliefs, values, and assumptions.
Stages in the Socialization Process
Prearrival Stage
The period of learning in the socialization process that occurs before a new employee joins the
organization.
Encounter Stage
The stage in the socialization process in which a new employee sees what the organization is
really like and confronts the possibility that expectations and reality may diverge.
Metamorphosis Stage
The stage in the socialization
process in which a new
employee changes and
adjusts to the work, work
group, and organization.
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How Organizational Cultures Have an Impact on
Employee Performance and Satisfaction
© 2007 Prentice Hall Inc. All rights reserved.
How Organizational Cultures Form
• Selection
• Concern with how well the candidates will fit into the organization.
• Provides information to candidates about the organization.
• Top Management
• Senior executives help establish behavioral norms that are adopted by the organization.
• Socialization
• The process that helps new employees adapt to the organization’s culture.
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How Organizational Cultures Form
Who Creates or Changes Organizational
Culture?
How Organizational Cultures Form (cont’d)
So how will organizational leaders shape organizational culture?
In a way that is consistent with the organization's vision, mission,
long-term goals, and strategies.
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Mission
Vision
Goals & Objectives
Strategies
Structure
Culture
Behaviour
Performance
Basic methods for shaping or changing Org. culture
Shaping organizational culture means shaping
a “standard of behavior” for the organization.
Changing organizational culture means building
a “new standard of behavior” and the
company’s employees will live and work
according to this new standard of behavior.
So, how do employees change their
behavior (change the way they think
and act) to fit the organization’s new
“behavioral norms” (new organizational
culture)?
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Three basic methods for regulating human behavior
Imposition Advice Orientation of thinking
Basic methods for shaping or changing Org. culture
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Basic methods for shaping or changing Org. culture
Levels of cultural
Know awareness
Understand
Cultural
Feel awareness
Enlighten
Basic methods for shaping or changing Org. culture
To change Mindsets and Perceptions:
Training
Exchange
Sharing
Collective activities
Meetings
Propaganda
…
Anytime, Anywhere
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Basic methods for shaping or changing Org. culture
“Sow a thought, reap an action; sow an action, reap a
habit; sow a habit, reap a character; sow a character, reap a
destiny” Samuel Smile
“We are what we repeatedly do. Exellence, then, is not an act, but a habit”
Aristotle
Creating An Ethical Organizational Culture
• Characteristics of Organizations that Develop High Ethical Standards
• High tolerance for risk
• Low to moderate in aggressiveness
• Focus on means as well as outcomes
• Managerial Practices Promoting an Ethical Culture
• Being a visible role model
• Communicating ethical expectations
• Providing ethical training
• Rewarding ethical acts and punishing unethical ones
• Providing protective mechanisms
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Creating a Customer-Responsive Culture
Key Variables Shaping Customer-Responsive
Cultures
1. The types of employees hired by the organization.
2. Low formalization: the freedom to meet customer service
requirements.
3. Empowering employees with decision-making discretion to
please the customer.
4. Good listening skills to understand customer messages.
5. Role clarity that allows service employees to act as
“boundary spanners.”
6. Employees who engage in organizational citizenship
behaviors.
Thank you
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