OB - Chap 8 - Organizational Culture - Student

TRƯỜNG ĐẠI HỌC BÁCH KHOA HÀ NỘI
VIỆN KINH TẾ VÀ QUẢN LÝ
Organization behavior
PhD. Nguyen Thanh Huong

School of Economics and Management
HANOITRƯỜNG
UNIVERSITY
ĐẠI OF
HỌCSCIENCE AND TECHNOLOGY
BÁCH KHOA HÀ NỘI
VIỆN
SCHOOL KINH TẾ VÀ
OF ECONOMICS ANDQUẢN LÝ
MANAGEMENT
CHAPTER 8:
Organizational Culture
Thanh Huong Nguyen, PhD

Department of Management Science and Law
CONTENT
● Concept of organizational culture
● Layers of organizational culture
● Functions of organizational culture
● The influence of organizational culture on behavior
● Creating a positive organizational culture
● How employees learn culture
3
What Is Organizational Culture?
Organizational Culture
A common perception Characteristics:
Characteristics:
held by the organization’s 1.1. Innovation
Innovationandandrisk
risk
members; a system of taking
taking
shared meaning. 2.2. Attention
Attentiontotodetail
detail
3.3. Outcome
Outcomeorientation
orientation
4.4. People
Peopleorientation
orientation
5.5. Team
Teamorientation
orientation
6.6. Aggressiveness
Aggressiveness
7.7. Stability
Stability
© 2005 Prentice 16–4

 3 layers of organizational culture (Edgar Schein)
- Artifacts: include any tangible, evident or verbally
identifiable elements in an organization. Think
things like branding and logos, office design,
dress code, policies and tools. Things that you
can see.
- Espoused values: This is how people would
describe the organization, in current or
aspirational terms. These include missions, goals,
value statements, and social contracts.
- Underlying assumptions: These are unconscious,
unspoken, hard to articulate elements of the
organization, particularly from within.
Do Organizations Have Uniform Cultures?
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.

Do Organizations Have Uniform
Cultures? (cont’d)
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.

What Is Organizational Culture? (cont’d)
● Culture Versus Formalization
● A strong culture increases behavioral consistency
and can act as a substitute for formalization.
● Organizational Culture Versus National Culture
● National culture has a greater impact on employees
than does their organization’s culture.
● Nationals selected to work for foreign companies
may be atypical of the local/native population.
What Do Cultures Do?
Culture’s
Culture’sFunctions:
Functions:
1.1. Defines
Definesthe
theboundary
boundarybetween
betweenone oneorganization
organizationand
and
others.
others.
2.2. Conveys
Conveysaasense
senseofofidentity
identityfor
forits
itsmembers.
members.
3.3. Facilitates
Facilitatesthe
thegeneration
generationofofcommitment
commitmenttotosomething
something
larger
largerthan
thanself-interest.
self-interest.
4.4. Enhances
Enhancesthe thestability
stabilityofofthe
thesocial
socialsystem.
system.
5.5. Serves
Servesas asaasense-making
sense-makingandandcontrol
controlmechanism
mechanism for
for
fitting
fittingemployees
employeesininthe
theorganization.
organization.

The Influence of Organizational Culture on Behavior
 Strong and Weak Cultures
 It refers to the degree to which an organization's culture significantly impacts employee
behavior and reduces turnover rates.
 A strong culture profoundly affects employee behavior, leading to reduced turnover rates.
 Conversely, weak cultures have values that minimally impact employees, resulting in short-
lived engagement
Positive impact of strong culture:
- Reduce employee turnover
- Fosters consistency in employee
behavior
- Enhances organizational commitment
Negative impact of strong culture:
Culture as a Liability:
• Barrier to change.
• Barrier to diversity
• Barrier to acquisitions and mergers
What Do Cultures Do?
Culture
Cultureas
asaaLiability:
Liability:
1.1. Barrier
Barriertotochange.
change.
2.2. Barrier
Barriertotodiversity
diversity
3.3. Barrier
Barriertotoacquisitions
acquisitionsand
andmergers
mergers
© 2005 Prentice
Creating a Positive Organizational Culture
- Building on employee strengths

- Rewarding more than punishing
- Emphasizing vitality and growth
How Employees Learn Culture
- Stories
- Rituals
- Material symbols
- Language

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TRƯỜNG ĐẠI HỌC BÁCH KHOA HÀ NỘI

VIỆN KINH TẾ VÀ QUẢN LÝ

PhD. Nguyen Thanh Huong

Thanh Huong Nguyen, PhD

© 2005 Prentice 16–4

© 2005 Prentice 16–6

© 2005 Prentice 16–7

© 2005 Prentice 16–9

- Building on employee strengths

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