How Organizational Cultures Form

MBA Cairo University

1. A Definition of Organizational Culture 2. What Organizational Culture Does

3. Dimensions of Organizational Culture 4. The factors that create organizational culture 5. Stages in the Socialization Process

6. How Organizational Cultures Form 7. How Employees Learn Culture 8. The managerial tools that manager use to create organizational culture

1. A Definition of Organizational Culture Organizational culture is civilization in the workplace

Culture compound contains knowledge creed Art ethics law habits values Traditions derived by an individual from the community All this acquires and accumulates and is committed by an individual's behaviors within the community

A Definition of Organizational Culture Organizational culture refers to a system of shared meaning held by members that distinguishes the organization from other organizations

How Organizational Cultures Form

MBA Cairo University

What Organizational Culture Does Provides an external identity Creates a sense of commitment Acts as source of high reliability Defines an interpretive scheme Acts as a social control mechanism

Dimensions of Organizational Culture The organization’s relationship to its environment

The nature of human activity

The nature of reality and truth

The nature of time

The nature of human nature

The nature of human relationships

Homogeneity versus Diversity

How Organizational Cultures Form

MBA Cairo University

The factors that create organizational culture

Organizational socialization

Organizational commitment

Job satisfaction

Stages in the Socialization Process

Prearrival – The period of learning prior to a new employee joining the

organization

Encounter – When the new employee sees what the organization is really like and

confronts the possibility that expectations and reality may diverge

Metamorphosis – When the new employee changes and adjusts to the work, work

group, and organization

How Organizational Cultures Form

MBA Cairo University

The socialization process involves a few steps. The employee will learn about the organization through literature, interviews, and other people in the prearrival stage. Once the employee starts interacting with other employees, they enter the encounter stage where they see what the organization is really like. In this stage often their expectations are measured against the reality and sometimes they do not align. The third stage is called metamorphosis, when the new employee adjusts to the organization and their work.

When the socialization process matches an organization’s culture, they have positive outcomes including higher productivity, greater commitment, and lower turnover.

Socialization outcomes:

– Higher productivity

– Greater commitment – Lower turnover

How Organizational Cultures Form

MBA Cairo University

How Organizational Cultures Form

Organizational cultures begin with the founder of the organization, continue through the hiring of people who see things similarly, and are enforced through top management and socialization.

Organizational cultures are derived from the founder

They are sustained through managerial action

How Organizational Cultures Form

MBA Cairo University

How Employees Learn Culture

Stories

. They can gain an understanding of culture by hearing stories that present the past and provide explanations for current practices

Rituals

repetitive sequences of activities, can reinforce the key values of the organization and provide insight into the culture.

Material Symbols

Material symbols such as dress codes, formal or informal, office size or style, and perks for key employees can denote who is important in an organization.

Language

Language is another way to learn about organizational culture as employees will express themselves in certain ways to indicate membership in the organization.

How Organizational Cultures Form

MBA Cairo University

The managerial tools that manager use to create organizational culture

On the short run

leadership The ability to influencea group toward the achievement of a vision or set of goals Organizations need both strong leadership and strong management for optimal effectiveness.

While a good leader may tell the organization where to go, it still takes good managers to ensure they get there in one piece.

motivation The processes that account for an individual’s intensity, direction, and

persistence of effort toward attaining a goal.

Communication The transfer and understanding of meaning. Formal channels

Communication channels established by an organization to transmit messages related to the professional activities of members. Informal channels Communication channels that are created spontaneously and that emerge as Responses to individual choices.

How Organizational Cultures Form

MBA Cairo University

On the long run Training The most obvious effect of training programs is direct improvement in The skills necessary to successfully complete the job. .

● a second benefit of training is that it increases an employee’s self

efficacy—

That is, a person’s expectation that he or she can successfully

Execute the behaviors required to produce an outcome Employees with high self-efficacy have strong expectations about their Abilities to perform in new

situations. They’re confident and expect to Be successful.

Performance evaluation

● a major goal of performance evaluation is to assess an individual’s

Performance accurately as a basis for allocating rewards. If evaluation Is inaccurate or emphasizes the wrong criteria, employees will be Over- or under rewarded