OB (Organisational Culture-Lecture 1)

Organizational Behavior
MGT 126
Organizational Culture lecture 1

What is Organizational culture?
 Organizational culture is generally understood as the values and
behaviors that contribute to the unique social and psychological
environment of an organization. It is a “system of shared
meaning held by members, distinguishing the organization from
other organizations” (Robbins, Judge, Odendaal & Rood, 2009, p.
400; Robbins, Timothy, & Judge, 2015, p. 497).
 Organizational culture includes an organization’s expectations,
experiences, philosophy, and values that hold it together, and is
expressed in its self-image, inner workings, interaction with the
outside world, and future expectations.
 It is based on shared attitudes, beliefs, customs, and written and
unwritten rules that have been developed over time and are
considered valid.
 Organization’s culture “sums up the dominant values, visions,
perspectives, standard and modes of behavior that typify any
organization” (Cole, 2005, p. 235). Culture allows people to see
and understand particular events, actions, objects or situation in
different ways.
 How can it be recognized?
1. The way the organization conducts its business, treats its
employees, customers, and the wider community.
2. The extent to which freedom is allowed in decision making,
developing new ideas, and personal expression.
3. How power and information flow through its hierarchy
4. How committed employees are towards collective objectives.
Is it important?
 Organizational culture affects the organization’s productivity and
performance, and provides guidelines on customer care and
service, product quality and safety, attendance and punctuality,
and concern for the environment.
 There is no correct/right culture in general. The correct/right
depends on the direction and strategy of a particular
organization as it confronts its own issues and the challenges of a
particular time.
 Simply stated, organizational culture is “the way things are done
around here” (Deal & Kennedy, 2000)
Levels of culture
 According Schein (1996), there are three different levels of
culture:
 Artefacts: These are the explicit, often written aspects of
culture. They are at the surface, aspects like dressing.
 Espoused values: These are conscious strategies, goals and
philosophies.
 Basic assumptions and values: These exist largely at unconscious
level. They provide understanding to why things happen the way
they do, what works and what is acceptable to a particular
organization. These subconsciously guide behavior and outlook.
The basic assumptions form around deeper dimensions of human
existence such as the nature of humans, human relationships and
activity, reality and truth (Cole, 2005).
Characteristics of Organizational culture
 There are seven primary characteristics that capture the essence
of an organization’s culture. These characteristics gives a picture
of the organization’s culture:
1. Innovation and risk-taking: the degree to which employees are
encouraged to be innovative and take risks.
2. Attention to detail: The degree to which employees are
expected to exhibit precision, analysis, and attention to details.
3. Outcome orientation: The degree to which management
focuses on results or outcomes rather than techniques and
processes used to achieve them.
4. People orientation: The degree to which management decisions
take into consideration the effect of outcomes on people within
the organizations.
Characteristics of Organizational culture
5) Team orientation: The degree to which work activities are
organized around teams rather than individuals.
6) Aggressiveness: The degree to which people are aggressive and
competitive rather than easygoing.
7) Stability: The degree to which organized activities emphasize
maintaining the status quo in contrast to growth.
Types of Organizational culture
 Handy (1993) identify four main types of culture to be found in
organizations:
1. Power culture/Hierarchy: Control/power emanate from the
center; very political; resource power and personal power
predominate. This type of culture serves the leader.
2. Role Culture/Adhocracy: Bureaucratic nature; roles are more
important than the people who fill them; position power
predominate; focus on innovation and risk taking. It serves the
structure.
3. Task Culture/Market: This culture is results oriented, with focus
on competition, achievement and ‘getting the job done’;
individuals’ expertise and contribution are highly valued; expert
power predominates, but also recognizes the importance of both
personal and power.
Types of Organizational culture
4. Person culture/Clan: Clan oriented cultures are family-like with
a focus on mentoring, nurturing, and ‘doing things together’.
This type of culture serves the individual.
Flexibility and freedom to act
External focus and differentiation

Internal focus and integration
Person culture/Clan Role Culture/Adhocracy
Power culture/Hierarchy Task culture/Market
Stability and Control

Culture in Organizations
Do organizations have uniform culture?
 Organizations have a dominant and numerous sets of subcultures.
 Dominant culture: composes of core values shared by a majority
of the organization’s members. This is what is discussed as an
organizations culture and gives its distinct identity.
 Subcultures on the other hand develop in large organizations to
reflect common problems, situations, or experiences particular
members face. For example, they can be defined by department
designation and geographical separation.
 Subcultures include the core values of dominant culture plus
additional values unique to specific members.
Purpose of culture in an organization
What is the purpose of Culture in an organization?
 There are three main functions of culture in an organization:
1. Boundary-defining role, creates differentiation between organizations.
2. Gives organization members a sense of identity.
3. Facilitates commitment to something larger than individual self-
interest.
4. Enhances social system stability. Culture defines appropriate standards
for what employees should say and do.
5. Provides a control mechanism that guides and shapes the attitudes and
behaviours of employees.
 In summary, culture in an organization influences employees’
behaviour. It enhances commitment and increases the consistency of
employee behaviour (Robbins, et. Al., 2009 & Robbins & Judge, 2015).
References and Further reading
1. Understanding and managing organisational behaviour. Los Alamitos:
Delta Publishing company. Chapter 10: Culture, Creativity, and
Innovation. p. 130 - 136
2. MGT 126 Module reader, p. 28 – 36 (Unpacking organisational culture).

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Organizational Behavior

Organizational Culture lecture 1

External focus and differentiation

Person culture/Clan Role Culture/Adhocracy

Power culture/Hierarchy Task culture/Market

Stability and Control

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