05_2orgculture

8/13/2019 05_2OrgCulture

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Org Culture

Organizational culture is the set of shared, taken-for-granted implicit assumptions that a group holds andthat determines how it perceives, thinks about, and reacts to its various environments.

Org culture is passed on to new employees through the process of socialization. Org culture influences our behavior at work. Org culture operates at different levels.

Org culture is shaped by 4 key components1. Founders values.2. Industry & business env.3. National culture.4. Senior leaders vision and behavior

In turn, org culture influences the org characteristics Type of org structure adopted by a company. Practices, policies and procedures implemented in pursuit of org goals.

These org characteristics then affect a variety of group and social process, which ultimately affectsemployees attitudes and behavior and hence org outcomes.

Three fundamental layers of org culture are observable artifacts, espoused values & basic assumptions.

Artifacts consist of the physical manifestation of an organizations culture. Organizational examplesinclude acronyms, manner of dress, awards, myths and stories told about the organization, published lists of values, observable rituals and ceremonies, special parking spaces, decorations, and so on. This level alsoincludes visible behaviors exhibited by people and groups. (standup meetings of Google)

Espoused values represent the explicitly stated values and norms that are preferred by an organization.


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They are generally established by the founder of a new or small company and by the top managementteam in a larger organization.

Basic assumptions constitute organizational values that have become so taken for granted over time thatthey become assumptions that guide organizational behavior.

Org culture fulfills 4 functions as shown below.

Give members an org identity Facilitate collective commitment

Promote social system stability Shape behavior by helping members make sense of their surroundings

Below exhibit summarizes how an org culture is established and sustained.

The founders of an org traditionally have a major impact on that orgs early culture. They have a vision of what the org should be. They are unconstrained by previous customs or ideologies. The small size thattypically characterizes new org further facilitates the founders imposition of their vision on all orgmembers. Culture creation occurs in 3 ways.


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First founders hire and keep only employees who think and feel the same way they do. Second, they indoctrinate and socialize these employees to their way of thinking & feeling. Finally, founders own behavior act as a role model.

Examples - NRN of Infosys, Richard Branson of Virgin Group etc.

Once a culture is in place, there are practices within the org that act as to maintain it by giving employeesa set of similar experiences. Most of the human resource practices are designed to reinforce the orgsculture. The selection process, performance evaluation, training & dev activities, promotion procedures etcensure that those hired fit in with the culture, reward those who support it and penalize those whochallenge it. Three forces - selection process, the actions of top management and socialization methods -

play an important role in sustaining a culture.

SelectionProper selection process helps to identify and hire individuals who fill into the org very well by havingvalues essentially consistent with those of the org. In addition, the selection process provides information toapplicants about the org.

Top ManagementThe actions of top management also have a major impact on the orgs culture. Through what they say andhow they behave, senior executives establish norms that filter down through the org. Azim Premji of Wipro.

Socialization New employees are not familiar with the organizational culture and are potentially likely to disturb theexisting culture. The process through which the employees are proselytized about the customs and

traditions of the organization is known as socialization. It is the process of adaptation by which newemployees are to understand the basic values and norms for becoming accepted members of theorganization.

Socialization is a process made up of 3 stages. Pre-arrival - All the learning occurring before a new member joins. Pre-arrival stage explicitly

recognizes that each individual arrives with a set of values, attitudes and expectations. Encounter - The new employee sees what the organization is really like and confronts the

possibility that expectations and reality may diverge. Metamorphosis - The relatively long-lasting changes take place. The new employee masters the

skills required for the job, successfully performs the new roles, and makes the adjustments to thework groups values and norms.


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Culture is transmitted to employees in a number of forms. Stories Depicting the past events of the organization. Some organizations actually try to manage

this element of culture learning. Rituals Repetitive sequential activities reinforcing the values of the organization - what goals are

most important, which people are important and which people are expendable. Material Symbols Conveying social equality, desired organizational behavior, etc. by the top

management. The layout of corporate headquarters, the types of automobiles top executives are

given and presence or absence of a corporate jet are a few examples of material symbols. Language Acceptance and preservation of culture.

Implication For Managers

05_2orgculture

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