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    Organizational CultureOrganizational Culture

    In any organization, there are the ropes

    to skip and the ropes to know.-- R. Ritti and

    G. Funkhouser

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    Environment and Corporate CultureEnvironment and Corporate Culture

    GENERAL

    ENVIRONMENT

    OPERATING

    ENVIRONMENT

    INTERNAL

    ENVIRONMENT

    SOCIALECOO!IC

    "OLI#ICAL

    LEGAL

    #EC$OLOG%

    E& E#RA#S

    S'""LIER

    S'(S#I#'#ES

    C'S#O!ER

    CO!"E#I#IO

    "RO)'C#IO

    #EC$OLOG%

    S#R'C#'RE

    I"'#S

    CULTURE

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    Wat i! Organizational Culture"Wat i! Organizational Culture"

    A syste* o+ *eaning shared y the

    organizations *e*ers

    Cultural valuesare o//eti0e e/ie+s,assu*ptions, and +ee/ings aout what things are

    good, nor*a/, rationa/, 0a/ua/e, et.

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    E#ample! o$ Organizational CultureE#ample! o$ Organizational Culture

    Inno0ation and risk taking 12!3

    Outo*e orientation 1(aush 4 Lo*3

    Aggressi0eness 1!iroso+t3Continuous /earning and inno0ation 1okia3

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    Cara%teri!ti%! o$ Organizational CultureCara%teri!ti%! o$ Organizational Culture

    Organizational

    Culture

    Observed

    behavioral

    regularities

    Norms

    Philosophy

    on treatment

    of employees/

    customers

    Rules of

    employee

    behavior

    Organizational

    climate

    Dominant

    values

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    "hysia/ Strutures

    Ritua/s5 Cere*onies

    Stories

    Language

    Arti$a%t! o$

    Organizational

    Culture

    OrganizationalOrganizational

    CultureCulture

    Element! o$ Organizational CultureElement! o$ Organizational Culture

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    Arti$a%t!' Organizational (torie!Arti$a%t!' Organizational (torie!

    Soia/ presriptions o+ desired eha0ior

    )e*onstrate that organizationa/ o6eti0es

    are attaina/e

    !ost e++eti0e stories7)esrie rea/ peop/e

    Assu*ed to e true

    8nown throughout the organizationAre presripti0e

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    Arti$a%t!' Ritual! and Ceremonie!Arti$a%t!' Ritual! and Ceremonie!

    Ritua/s

    progra**ed routines

    e.g., onduting *eetings, e*p/oyee +oru*s, 9-*as parties

    Cere*oniesp/anned ati0ities +or an audiene

    e.g., award ere*onies

    $eroes

    Figure who e9e*p/i+ies harater and deedE.g. +ounders as #o* &atson o+ I(!, (i// Gates o+ !iroso+t

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    Arti$a%t!' Organizational LanguageArti$a%t!' Organizational Language

    &ords used to address peop/e, desrie /ients,et.

    e.g. sir5*aa*, +irst na*e a//ing

    Leaders use phrases and *etaphors as u/tura/sy*o/s

    e.g.. Genera/ E/etris :groery store;

    Language a/so +ound in suu/turese.g.. &hir/poo/s :"ower"oint u/ture;

    S/ogansE.g. okia Conneting "eop/e

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    Organizational (u)%ulture!Organizational (u)%ulture!

    Loated throughout theorganization

    Can support or oppose

    1ounteru/tures3 +ir*sdo*inant u/ture

    #wo +untions o+ounteru/tures7

    pro0ide sur0ei//ane and e0a/uationsoure o+ e*erging 0a/ues E. M. Samelson/Orlando Sentinel

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    Courtesy o+ Oak/ey, In.

    Arti$a%t!' P*!i%al (tru%ture!+(pa%eArti$a%t!' P*!i%al (tru%ture!+(pa%e

    Oak/ey, In.s proteti0e and o*petiti0e

    orporate u/ture is apparent in its ui/ding

    design and workspae. #he ui/ding /ooks

    /ike a 0au/t to protet its herished produt

    designs 1eyewear, +ootwear, appare/ and

    wathes3.

    Courtesy o+ Oak/ey, In.

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    Arti$a%t! , Indu!tr*Arti$a%t! , Indu!tr*

    In$ormation te%nolog* Adverti!ing and Media Call Center!

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    -o. Organizational Culture! /orm-o. Organizational Culture! /orm

    Pilo!op*Pilo!op*

    o$ teo$ te

    Organization0!Organization0!/ounder!'/ounder!'

    &ill -e.lett 1&ill -e.lett 1

    2ave Pa%3ard2ave Pa%3ard

    4on Go3ong.ei4on Go3ong.ei&ill Gate!&ill Gate!

    Pilo!op*Pilo!op*

    o$ teo$ te

    Organization0!Organization0!/ounder!'/ounder!'

    &ill -e.lett 1&ill -e.lett 1

    2ave Pa%3ard2ave Pa%3ard

    4on Go3ong.ei4on Go3ong.ei&ill Gate!&ill Gate!

    OrganizationalOrganizational

    CultureCulture

    OrganizationalOrganizational

    CultureCultureSelectionSelectionSelectionSelection

    TopTop

    ManagementManagement

    TopTop

    ManagementManagement

    SocializationSocializationSocializationSocialization

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    2o Organization! -ave Uni$orm2o Organization! -ave Uni$orm

    Culture!"Culture!"

    CoreCoreValue!Value!

    (u)%ulture!(u)%ulture!2ominant2ominant

    CultureCulture

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    How EmployeesLearn Culture/

    How it is reinforced

    How EmployeesLearn Culture/

    How it is reinforced

    MaterialMaterial

    (*m)ol!(*m)ol!MaterialMaterial

    (*m)ol!(*m)ol!LanguageLanguageLanguageLanguage

    (torie!(torie!(torie!(torie! Ritual!Ritual!Ritual!Ritual!

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    &ene$it! o$ (trong Corporate Culture!&ene$it! o$ (trong Corporate Culture!

    (trongOrganizational

    Culture

    (o%ial(o%ial

    ControlControl

    Aid!Aid!(en!e,Ma3ing(en!e,Ma3ing

    (o%ial(o%ial

    GlueGlue

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    Controlling )eavior

    )e+ining oundaries

    Con0eying identity

    "ro*oting o**it*ent

    &lo%3ing merger!

    Inhiiting di0ersity

    Inhiiting hange

    (/oking a

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    Managing5 Canging5 andManaging5 Canging5 and

    Merging Culture!Merging Culture!

    !anaging through stories, heroes, sy*o/s and

    ere*onies

    Cu/ture o+ten need to e hanged to ensure

    organizationa/ suess

    !erging u/tures through sy*o/i /eaders

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    Adaptive Organizational Culture!Adaptive Organizational Culture!

    E9terna/ +ous -- +ir*s

    suess depends on

    ontinuous hange

    Fous on proesses *orethan goa/s

    Strong sense o+ ownership

    "roati0e --seek outopportunities

    AP/Wide World

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    &i%ultural Audit&i%ultural Audit

    "art o+ :due di/igene; in *erger

    !ini*izes risk o+ u/tura/ o//ision y diagnosing

    o*panies e+ore *erger

    #hree steps in iu/tura/ audit7

    =. Co//et arti+ats

    >. Ana/yze data +or u/tura/ on+/it5o*patii/ity2. Reo**end so/utions

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    Merging Organizational Culture!Merging Organizational Culture!

    Assi*i/ationAssi*i/ation

    )eu/turation)eu/turation

    A

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    (trengtening(trengtening

    OrganizationalOrganizational

    CultureCulture

    FoundersFoundersand /eadersand /eaders

    Cu/tura//yCu/tura//yonsistentonsistentrewardsrewards

    Sta/eSta/ework+orework+ore

    Se/etionSe/etionandand

    soia/izationsoia/ization

    !anaging the!anaging theu/tura/u/tura/networknetwork

    (trengtening Organizational Culture(trengtening Organizational Culture

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    Low EmployeeLow EmployeeTurnoverTurnover

    Low EmployeeLow Employee

    TurnoverTurnoverHighHigh ehavioralehavioral

    ControlControlHighHigh ehavioralehavioral

    ControlControl

    !trong "ersus!trong "ersus#ea$ Cultures#ea$ Cultures!trong "ersus!trong "ersus#ea$ Cultures#ea$ Cultures

    Commitment toCommitment to

    Core "aluesCore "alues

    %widely shared&%widely shared&

    Commitment toCommitment to

    Core "aluesCore "alues

    %widely shared&%widely shared&

    'ntensity of'ntensity of

    Core "aluesCore "alues

    'ntensity of'ntensity of

    Core "aluesCore "alues

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    (tudie! !o. tat %ulture i! %lo!el*(tudie! !o. tat %ulture i! %lo!el*

    related to te e$$e%tivene!! o$related to te e$$e%tivene!! o$

    organization!6organization!6

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    E$$e%tivene!! depend! on 6 6 6E$$e%tivene!! depend! on 6 6 6

    the ore 0a/ues and e/ie+s o+ the *e*ers o+

    the organization.

    the po/iies and praties used y the

    organization.

    the suess in trans/ating the ore 0a/ues and

    e/ie+s into po/iies and praties.

    the *ath etween 0a/ues, e/ie+s, po/iies,praties, and the organizations en0iron*ent.

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    E$$e%tivene!! i! related to 6 6 6E$$e%tivene!! i! related to 6 6 6

    involvement? partiipation.

    %on!i!ten%*? shared e/ie+s and 0a/ues.

    adapta)ilit*? ai/ity to reognize the need +orhange and the wi//ingness to hange

    mi!!ion? shared purpose.

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    Model o$ Organizational Culture T*pe!Model o$ Organizational Culture T*pe!

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    /our Culture T*pe!/our Culture T*pe!

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    (tudie! on Culture T*pe!(tudie! on Culture T*pe!

    )eshpande, Far/ey, and &ester 1=@@23 +ound

    that o*peting 0a/ues o+ the *arket u/ture

    outper+or* those o+ the /an u/ture.

    #hose o+ the adhoray u/ture outper+or*ed

    those o+ the diagona//y opposing hierarhy

    u/ture.

    #he speed o+ response to en0iron*enta/hanges whih deter*ine a higher per+or*ane

    is thus u/tura//y dependent.

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    E7ERCI(E,E7ERCI(E,

    Organizational Culture A!!e!!mentOrganizational Culture A!!e!!ment

    In!trument 8OCAI9In!trument 8OCAI9

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    ClanAdhocracy

    Hierarchy

    ar!et

    1

    2

    3

    4

    5

    5

    4

    3

    2

    1

    A(

    C

    )

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    Ca!e (tud*' Organizational Culture andCa!e (tud*' Organizational Culture and

    Per$orman%ePer$orman%e

    Clan Adhocracy

    Hierarchy ar!et

    1

    2

    34

    5

    5

    4

    3

    2

    1

    Clan Adhocracy

    Hierarchy ar!et

    1

    2

    34

    5

    5

    4

    3

    2

    1

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    Cultural CangeCultural Cange

    Condut a u/tura/ ana/ysis to identi+y u/tura/ e/e*entsneeding hange

    !ake it /ear to e*p/oyees that the organizationssur0i0a/ is /egiti*ate/y threatened i+ hange is not+ortho*ing

    Appoint new /eadership with new 0ision

    Introdue new stories and ritua/s to on0ey new 0ision

    Change the se/etion and soia/ization proess and

    reward syste*s to support new 0a/ues

    Reognizing the

    need +or hange

    )iagnosing and

    p/anning hange

    !anaging the

    transition

    !easuring resu/ts

    !aintaining hange

    Fro* :!anage*ent; y Roins and Cou/ter

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    Motivation andMotivation and

    Organizational Culture T*pe!Organizational Culture T*pe!

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    http://www.clipart.com/en/close-up?o=3077707&memlevel=C&a=c&q=flea&s=1&e=15&show=&c=&cid=&findincat=&g=&cc=4:122:1:0&page=http://www.clipart.com/en/close-up?o=754527&memlevel=C&a=c&q=elephant&s=1&e=15&show=&c=&cid=&findincat=&g=&cc=54:2574:45:0&page=
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    Te Learning Organization'Te Learning Organization'

    Management Approa% in Ne. MilleniumManagement Approa% in Ne. Millenium

    Te learning organization approa%to managementi! te management approa% )a!ed on an

    organization anti%ipating %ange $a!ter tan it!

    %ounterpart! to ave an advantage in te mar3et

    over it! %ompetitor!6

    Environmentin te milleniumIn$ormation and ele%troni% ageIn$ormation and 3no.ledge i! going to )e readil*

    availa)le to u! allIn$ormation !peed troug InternetTe $uture i! going to )e dominated )* our need to

    under!tand !*!tem!6

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    Learning Organization CultureLearning Organization Culture

    $as a u/ture that 0a/ues sharing know/edge to

    adapt to the hanging en0iron*ent and

    ontinuous/y i*pro0eB Fro* :!anage*ent Funda*enta/s; y Lussier

    Clan Adhocracy

    Hierarchy ar!et

    1

    23

    4

    5

    5

    43

    2

    1

    E#ERALI#ERAL

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    Wen Companie! (ee3 to /o!ter CertainWen Companie! (ee3 to /o!ter Certain

    Culture T*pe!Culture T*pe!

    C/an u/ture needs the +i0e /eadership praties

    Adhorary u/ture needs ena/ing others to at and

    enouraging the heart

    $ierarhy u/ture shou/d not use ena/ing others to atand enouraging the heartD

    !arket u/ture shou/d onsider a/ternati0es to /eadership

    praties.

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    Culture andCulture and

    Organization Gro.t (tage!Organization Gro.t (tage!

    INVENT

    REINVENT

    ORGANI:ATIONAL

    C-ANGE(

    ORGANI:ATIONAL

    C-ANGE(

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    Ca!e (tud*' Culture andCa!e (tud*' Culture and

    Organization Gro.t (tage!Organization Gro.t (tage!

    >

    H

    =

    =>

    =

    =@@= =@@> =@@2 =@@ =@@ =@@ =@@J =@@H =@@@ > >= >> >2

    ;ear

    M(u)!

    NTT 2o%om

    o$ 4apan

    Inve!t! in

    (mart

    PL2T

    A%

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    Culture and MotivationCulture and Motivation

    Te need $or a%ievement(nAch)te de!ire to do !ometing

    )etter or more e$$i%ientl* tan it a! ever )een done )e$ore6

    Te need $or po.er(nPower) te de!ire to %ontrol5 in$luen%e5

    or )e re!pon!i)le $or oter!6

    Te need $or a$$iliation(nAff) te de!ire to maintain %lo!e5$riendl*5 per!onal relation!ip6

    =>

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    Wat i! te Organizational Culture inWat i! te Organizational Culture in

    te Pilippine!"te Pilippine!"

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    Pilippine Organizational CulturePilippine Organizational Culture

    Espouses a reorientation in the organization to three

    0a/ues, na*e/y7

    kaugnayan 1identity3,

    karanga/an 1pride3

    katapatan 1o**it*ent3.

    #o aentuate these ore 0a/ues, orporate

    /eaders e*phasize

    paterna/is* 1pagaaha/a and pananagutan3,

    persona/is* or pakikipagkapwa 1treating a person as a +e//ow

    hu*an eing3,

    +a*i/is* 1gi0ing i*portane to the +a*i/y as a soia/ unit3.

    Clan Adhocracy

    Hierarchy ar!et

    12

    34

    5

    54

    32

    1

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    EndEnd