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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.
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?