HBO_WEEK12

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HUMAN BEHAVIOR IN ORGANIZATION

WEEK 12 ORGANIZATIONAL CULTURE AND CLIMATE

1. DEFINITION AND ELEMENTS OF ORGANIZATIONAL CULTURE


Organizational Culture refers to the shared values, beliefs, behaviors, and norms within
an organization that influence how employees interact, make decisions, and approach their
work. It's often described as "the way things are done around here."
Elements of Organizational Culture:
 Values: These are the core principles or standards that guide behavior and
decision-making.
o Example: Ayala Corporation values social responsibility, investing in
community projects like education and sustainability.
 Beliefs: These are the assumptions or perceptions employees hold about the world,
the organization, and their role within it. For instance, believing that "employees are our
greatest asset" influences how they are treated.
o Example: Jollibee believes in treating employees like family, fostering loyalty
and engagement.
 Norms: The unwritten rules that dictate appropriate behavior. These norms shape
interactions and can be either explicit (e.g., formal policies) or implicit (e.g., expectations
around punctuality or communication style).
o Example: SM Supermalls has a norm of excellent customer service, with
employees going above and beyond for customers.
 Symbols: Visual elements like logos, office designs, or uniforms that communicate
and reinforce the culture. These can also include language or jargon unique to the
organization.
o Example: San Miguel Corporation’s logo symbolizes strength and quality,
linking the company’s heritage to its brand.
 Rituals and Ceremonies: Regular activities that reinforce the culture, such as
employee recognition events, team-building activities, or annual meetings.
o Example: BDO’s Annual Awards recognizes top employees, boosting morale
and commitment.
 Stories and Myths: Narratives that employees tell about the organization's history or
key events, which shape its identity and values.
o Example: The story of Jollibee’s rise inspires employees to believe in
perseverance and success.

2. THE ROLE OF CULTURE IN ORGANIZATIONAL EFFECTIVENESS

Culture plays a significant role in shaping an organization’s success and overall


effectiveness. The right culture can lead to improved performance, employee satisfaction, and
innovation. Here’s how:
 Alignment with Strategy: A strong, coherent culture that aligns with the
organization’s mission and values will help employees understand how their work
supports the broader goals. For instance, a customer-focused culture in a retail
company helps employees prioritize customer needs.
 Employee Motivation and Engagement: A positive culture can foster high levels
of employee morale, commitment, and productivity. When employees feel they are
part of a supportive, inclusive, and empowering environment, they are more likely
to be engaged and perform at a high level.
 Adaptability to Change: A culture that promotes flexibility, openness, and
continuous learning can help an organization navigate changes and respond to
challenges effectively. This is particularly important in dynamic industries where
innovation and adaptability are key.
 Decision-Making and Communication: A well-defined culture ensures
consistency in decision-making. Employees at all levels tend to make choices that
align with the organization's core values and principles, promoting a sense of unity
and direction.
 Attracting Talent: Organizations with strong cultures tend to attract like-minded
individuals who resonate with the organization’s values and goals. This can lead to
higher-quality hires and lower turnover rates.

Examples:
1. SM Investments: Their customer-centric culture aligns with their strategy to lead in
retail. Employees prioritize customer satisfaction, contributing to their success.
2. Philippine Airlines (PAL): PAL transformed its culture to focus on innovation,
allowing it to compete better in the airline industry.

3. DIAGNOSING AND CHANGING ORGANIZATIONAL CULTURE

Diagnosing Organizational Culture: To assess the current culture of an organization,


several tools and methods can be used:
 Surveys and Questionnaires: Gathering feedback from employees regarding
their perception of the organization's values, communication styles, and work
environment.
 Interviews and Focus Groups: These can provide in-depth insights into the
attitudes and behaviors of employees.
 Observational Methods: Managers and consultants can observe daily
behaviors, interactions, and rituals to understand the cultural environment.
 Cultural Audits: A comprehensive evaluation that looks at the alignment of
cultural elements with the organization’s strategies, mission, and external
environment.
Example: Globe Telecom shifted to a more innovative culture to adapt to digital trends,
focusing on employee training and open communication, which helped them grow in a
competitive market.

Changing Organizational Culture: Changing an organization’s culture is a complex


and long-term process that requires clear steps:
 Leadership Commitment: Change must start from the top. Leaders need to
model the desired cultural behaviors and communicate the need for change.
 Clear Vision: Define the desired culture and articulate a clear vision for how
this change will benefit the organization and its employees.
 Employee Involvement: Engage employees at all levels in the change process.
This could include gathering input, addressing concerns, and ensuring buy-in.
 Training and Development: Offer training to reinforce new behaviors and
mindsets, including leadership training, workshops, and skill-building activities.
 Symbolic Actions: Change often involves changing the symbols, rituals, and
practices that reflect the culture. This might include revamping the office
environment, changing reward systems, or altering how meetings are conducted.

4. SUBCULTURES AND ORGANIZATIONAL CLIMATE

Subcultures: Subcultures are smaller cultural groups within the larger organization,
typically formed around departments, teams, or geographical locations. They share some
common values and practices but may also have unique attributes that distinguish them from
the wider organization.
 Characteristics: Subcultures can emerge based on:
 Job functions (e.g., marketing vs. operations)
 Geographical locations (e.g., corporate headquarters vs. branch offices)
 Professional identities (e.g., engineers, creative staff, etc.)
Impact: Subcultures can have both positive and negative effects. A strong subculture can
enhance team identity and performance, but if it clashes with the main culture, it can lead to
division and inefficiency.
Organizational Climate: Organizational climate refers to the shared perceptions of
organizational policies, practices, and procedures that employees experience. It’s more
immediate and visible than culture and is often seen as the "mood" or "atmosphere" of the
organization.
 Dimensions of Organizational Climate:
 Supportive vs. Unsupportive: How much support employees receive from
managers, peers, and the organization.
 Innovative vs. Conventional: The degree to which creativity and new ideas
are encouraged.
 Control vs. Flexibility: Whether the environment is structured and controlled
or more relaxed and flexible.
 Climate’s Impact on Performance: A positive organizational climate leads to
higher employee satisfaction, better job performance, and lower turnover. An
unsupportive or toxic climate can have the opposite effect, leading to disengagement and
low morale.
Examples:
1. Ayala Corporation: Different subsidiaries like Ayala Land and Globe Telecom
have their own subcultures but share Ayala’s core values.
2. BPOs in the Philippines: Companies like Teleperformance create a supportive
climate with benefits like flexible hours, leading to high employee satisfaction and low
turnover.

Conclusion
Organizational culture and climate are central to an organization’s identity and its overall
performance. A well-defined culture aligns employees with the organization’s values, mission,
and goals, while a positive organizational climate creates an environment conducive to
engagement, innovation, and success. Diagnosing and changing culture requires clear
leadership, a vision for change, and involvement from all levels of the organization.
Additionally, understanding subcultures and climate allows leaders to address the specific
needs and dynamics of different parts of the organization.
Individual Activity: Understanding Organizational Culture and Climate
Objective:
To analyze and reflect on the importance of organizational culture and climate in real-life
organizational contexts, specifically focusing on companies in the Philippines. This activity will deepen
your understanding of how culture impacts employee behavior, motivation, and organizational
effectiveness.

Instructions:
1. Choose a Philippine Company
Select a company in the Philippines that you are familiar with (e.g., Jollibee, Ayala Corporation, SM
Supermalls, Globe Telecom, or any other company you prefer)
2. Research the Company’s Organizational Culture
Find out about the company’s values, beliefs, norms, and how its culture is reflected in daily operations.
Use the internet, company websites, and personal observations (if applicable) to gather information.
3. Answer the Following Questions:
Part 1: Defining the Organizational Culture of the Company
1. What are the core values of the company you selected? Example: Does the company prioritize
customer service, innovation, sustainability, or employee well-being?
2. How are these values demonstrated in the company’s behavior and decision-making?Example:
Do employees act in ways that reflect these values? Are there any company-wide programs or policies
that reinforce these values?
3. What symbols, rituals, or stories reinforce the company's culture?Example: Does the company
have a logo, uniform, office design, or special events that symbolize its culture? What stories or myths
about the company are shared among employees?

Part 2: The Role of Culture in Organizational Effectiveness


1. How does the company’s culture contribute to its success and effectiveness?Example: How does
the company’s culture align with its strategy to achieve its goals? Does the culture help the company
attract talent and retain employees?
2. Does the company’s culture support employee motivation and engagement?Example: How does
the company’s culture influence employee morale, productivity, and job satisfaction?
3. How does the company’s culture help it adapt to changes or challenges in its industry?Example:
Does the company’s culture encourage innovation, learning, and flexibility?

Part 3: Diagnosing and Changing Organizational Culture


1. If you were tasked with diagnosing the culture of the company, what methods would you use?
Example: Would you use surveys, focus groups, or observational techniques to understand the
company’s culture?
2. What changes (if any) would you suggest for improving the company’s culture? Example:
Would you suggest more focus on inclusivity, better communication, or a shift toward a more
innovative mindset?

Part 4: Organizational Climate and Subcultures


1. What is the organizational climate of the company? Example: Is the company’s climate
supportive and flexible, or is it more formal and structured? Does the climate encourage innovation or
follow traditional methods?
2. Does the company have any noticeable subcultures within it? Example: Are there differences in
culture between departments, such as marketing, operations, or customer service? Do these subcultures
align with or conflict with the broader organizational culture?

Part 5: Personal Reflection


1. How does the organizational culture and climate of the company you selected affect your
perception of the company as a place to work or do business with? Example: Would you want to
work for this company based on its culture and climate? Why or why not?
2. What can other organizations learn from the company’s culture and climate? Example: How
can other companies in the Philippines or globally adopt practices from this company to enhance their
own organizational culture and climate?

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