Organizational

Organizational Culture
Culture
 Organizational
Organizational Culture
Culture

 Organizational Culture
– Is the shared values and beliefs in an organization.
– Is the internal “climate” of the organization that
employees, managers, customers, and others experience.
– Positively affects service and quality, productivity, and
financial results when aligned with HR values and
organizational goals.
– Is affected by differences in cultural dimensions from
country to country and even within countries.

1–2
 Hofstede’s
Hofstede’s Dimensions
Dimensions of
of Culture
Culture
Individualism/
Inequality
Group
of Power
Orientation

Culture

Long-term/
Masculinity/
Short-term
Femininity
Orientation

Uncertainty
Avoidance

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Power
Power Distance
Distance
 Power distance index shows very high scores for Latin and
Asian countries, African areas and the Arab world.
 On the other hand Anglo and Germanic countries have a
lower power distance (only 11 for Austria and 18 for
Denmark).
 For example, the US has a 40 on the cultural scale of
Hofstede's analysis. Compared to Guatemala where the
power distance is very high (95) and Israel where it is very
low (13), the US is in the middle.
 In Europe, power distance tends to be lower in northern
countries and higher in southern and eastern parts: for
example, 68 in Poland and 57 for Spain vs. 31 for Sweden and
35 for the UK.
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Individualism
Individualism
 In the individualism index, there is a clear gap between
developed and Western countries on one hand, and less
developed and eastern countries on the other.
 North America and Europe can be considered as individualistic
with relatively high scores: for example, 80 for Canada and
Hungary.
 In contrast, Asia, Africa and Latin America have strongly
collectivist values: Colombia scores only 13 points on the IDV
scale and Indonesia 14.
 The greatest contrast can be drawn comparing two extreme
countries on this dimension: 6 points for Guatemala vs. 91 points
for the United States.
 Japan and the Arab world have middle values on this dimension .

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Masculinity
Masculinity
 Masculinity is extremely low in Nordic countries: Norway
scores 8 and Sweden only 5.

 In contrast, Masculinity is very high in Japan (95), and in

European countries like Hungary, Austria and Switzerland
influenced by German culture.

 In the Anglo world, masculinity scores are relatively high

with 66 for the United Kingdom for example.

 Latin countries present contrasting scores: for example

Venezuela has a 73 point score whereas Chile's is only 28.

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Uncertainty
Uncertainty Avoidance
Avoidance
 Uncertainty avoidance scores are the highest in Latin
American countries, Southern and Eastern Europe countries
including German speaking countries, and Japan.

 They are lower for Anglo, Nordic, and Chinese culture

countries.

 However few countries have very low UAI.

 For example, Germany has a high UAI (65) and Belgium even
more (94) compared to Sweden (29) or Denmark (23) despite
their geographic proximity.

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Long
Long term
term Orientation
Orientation
 High long term orientation scores are typically found in East
Asia, with China having 118, Hong Kong 96 and Japan 88.

 They are moderate in Eastern and Western Europe, and low

in the Anglo countries, the Muslim world, Africa and in Latin
America.

 However there are less data about this dimension.

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Indulgence
Indulgence Vs
Vs Restraint
Restraint

 There are even less data about the sixth dimension.

Indulgence scores are highest in Latin America, parts of
Africa, the Anglo world and Nordic Europe;

 Restraint is mostly found in East Asia, Eastern Europe

and the Muslim world.

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Organizational
Organizational Culture
Culture
 Organizational Culture
– A common perception held by the organization’s
members; a system of shared meaning
– Seven primary characteristics
1. Innovation and risk taking
2. Attention to detail
3. Outcome orientation
4. People orientation
5. Team orientation
6. Aggressiveness
7. Stability

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Do
Do Organizations
Organizations Have
Have Uniform
Uniform Cultures?
Cultures?
 Culture is a descriptive term: it may act as a substitute
for formalization
 Dominant Culture
– Expresses the core values that are shared by a majority of the
organization’s members
 Subcultures
– Minicultures within an organization, typically defined by
department designations and geographical separation
 Core Values
– The primary or dominant values that are accepted throughout
the organization
 Strong Culture
– A culture in which the core values are intensely held and
widely shared
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What
What Do
Do Cultures
Cultures Do?
Do?
 Culture’s Functions
1. Defines the boundary between one organization
and others
2. Conveys a sense of identity for its members
3. Facilitates the generation of commitment to
something larger than self-interest
4. Enhances the stability of the social system
5. Serves as a sense-making and control
mechanism for fitting employees in the
organization

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Culture
Culture as
as aa Liability
Liability
 Barrier to change
– Occurs when culture’s values are not aligned with the values
necessary for rapid change
 Barrier to diversity
– Strong cultures put considerable pressure on employees to
conform,
 Barrier to acquisitions and mergers
– Incompatible cultures can destroy an otherwise successful
merger

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How
How Culture
Culture Begins
Begins
 Stems from the actions of the founders:
– Founders hire and keep only employees who think and feel
the same way they do.
– Founders indoctrinate and socialize these employees to their
way of thinking and feeling.
– The founders’ own behavior acts as a role model that
encourages employees to identify with them and thereby
internalize their beliefs, values, and assumptions.

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Keeping
Keeping Culture
Culture Alive
Alive
 Selection
– Concerned 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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Stages
Stages in
in the
the Socialization
Socialization Process
Process
 Prearrival
– The period of learning prior to a new employee joining the
organization
 Encounter
– When the new employee sees what the organization is really like
and confronts the possibility that expectations and reality may
diverge
 Metamorphosis
– When the new employee changes and adjusts to the work, work
group, and organization

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Summary:
Summary: How
How Organizational
Organizational Cultures
Cultures Form
Form
 Organizational cultures are derived from the founder
 They are sustained through managerial action

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How
How Employees
Employees Learn
Learn Culture
Culture
 Stories
– Anchor the present into the past and provide explanations
and legitimacy for current practices
 Rituals
– Repetitive sequences of activities that express and reinforce
the key values of the organization
 Material Symbols
– Acceptable attire, office size, opulence of the office
furnishings, and executive perks that convey to employees
who is important in the organization
 Language
– Jargon and special ways of expressing one’s self to indicate
membership in the organization
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Creating
Creating an
an Ethical
Ethical Organizational
Organizational Culture
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
Creating aa Positive
Positive Organizational
Organizational Culture
Culture
 Positive Organizational Culture
– A culture that:
• Builds on employee strengths
– Focus is on discovering, sharing, and building on the
strengths of individual employees
• Rewards more than it punishes
– Articulating praise and “catching employees doing
something right”
• Emphasizes individual vitality and growth
– Helping employees learn and grow in their jobs and
careers
 Limits of Positive Culture:
– May not work for all organizations or everyone within them

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Spirituality
Spirituality and
and Organizational
Organizational Culture
Culture
 Workplace Spirituality
– The recognition that people have
an inner life that nourishes and is
nourished by meaningful work
that takes place in the context of
the community

– NOT about organized religious

practices

 People seek to find meaning and

purpose in their work.

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Why
Why Spirituality
Spirituality Now?
Now?
– As a counterbalance to the pressures and stress of a turbulent
pace of life and the lack of community many people feel and
their increased need for involvement and connection.
– Formalized religion hasn’t worked for many people.
– Job demands have made the workplace dominant in many
people’s lives, yet they continue to question the meaning of
work.
– The desire to integrate personal life values with one’s
professional life.
– An increasing number of people are finding that the pursuit
of more material acquisitions leaves them unfulfilled.

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Characteristics
Characteristics of
of aa Spiritual
Spiritual Organization
Organization
 Concerned with helping people develop and reach their
full potential
 Directly addresses problems created by work/life
conflicts
 Four characteristics of spiritual organizations:
1. Strong sense of purpose
2. Trust and respect
3. Humanistic work practices
4. Toleration of employee expression

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Criticisms
Criticisms of
of Spirituality
Spirituality
 What is the scientific foundation?
– It is still pending: needs more research
 Are spiritual organizations legitimate: do they have the
right to impose values on employees?
– Spirituality is not about God or any religious values
– It is an attempt to help employees find meaning and value in
their work
 Are spirituality and profits compatible?
– Initial evidence suggests that they are
– Spirituality may result in greater productivity and
dramatically lower turnover

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 Global
Global Implications
Implications
 Organization cultures, while strong, can’t ignore local
culture
 Managers should be more culturally sensitive by:
– Speaking slowly and in a low tone
– Listening more
– Avoiding discussions of religion or politics
 All global firms need to be more culturally sensitive

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Culture
Culture as
as an
an Intervening
Intervening Variable
Variable
 Employees form an overall subjective perception of the
organization based on these objective factors:

 The opinions formed affect employee performance and

satisfaction.

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Summary
Summary and
and Managerial
Managerial Implications
Implications
 Strong cultures are difficult for managers to change
– In the short run, strong cultures should be considered fixed

 Selecting new hires that fit well in the organizational

culture is critical for motivation, job satisfaction,
commitment, and turnover

 Socialization into the corporate culture is important

 As a manager, your actions as a role model help create

the cultural values of ethics, spirituality, and a positive
culture
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