Professional Documents
Culture Documents
Organisational Culture
Organisational Culture
and Change
Sixth Edition
Gareth R. Jones
Chapter 7
Creating and
Managing
Organizational
1
Culture
WHAT IS ORGANIZATIONAL
CULTURE?
Organizational culture: the set of shared
values and norms that controls organizational
members’ interactions with each other and with
people outside the organization
Can be a source of competitive advantage
Can be used to increase organizational
effectiveness
Can be used to control decisions making and
activities/behaviors
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WHAT ARE ORGANIZATIONAL
VALUES?
Values: general criteria, standards, or guiding
principles that people use to determine which
types of behaviors, events, situations, and
outcomes are desirable or undesirable
Terminal value: a desired end state or outcome that
people seek to achieve
Instrumental value: a desired mode of behavior
Norms: standards or styles of behavior that are
considered acceptable or typical for a group of
people
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FIGURE 7.1: TERMINAL AND
INSTRUMENTAL VALUES IN AN
ORGANIZATION’S CULTURE
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ORGANIZATIONAL CULTURE
Based on enduring values embodied in
organizational norms, rules, standard
operating procedures, and goals
People draw on these cultural values to
guide their actions and decisions when
faced with uncertainty and ambiguity
Important influence on members’ behavior
and response to situations
A country’s culture can affect the values
and norms of a company or a company’s 5
culture
HOW IS AN ORGANIZATION’S
CULTURE TRANSMITTED TO ITS
MEMBERS?
Socialization and Socialization
Tactics
Socialization: the process by which members
learn and internalize the values and norms of an
organization’s culture
Stories, Ceremonies, and
Organizational Language
Organization rites
Rites of passage: mark an individual’s entry to, promotion in,
and departure from the organization
Rites of integration: shared announcements of
organizational success, office parties, and cookouts
Rites of enhancement: public recognition and reward for
employee contributions 6
FIGURE 7.2: WHERE AN
ORGANIZATION’S CULTURE COMES
FROM
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WHERE DOES ORGANIZATIONAL
CULTURE COME FROM? (CONT.)
Characteristics of people within the
organization
Through a process of hiring people that match existing
culture and attrition, people become more and more
similar over time
Organizational ethics
The moral values, beliefs, and rules that establish the
appropriate way for organizational stakeholders to
deal with one another and with the environment
Derived from the personality and beliefs of the founder and
top management
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WHERE DOES ORGANIZATIONAL
CULTURE COME FROM? (CONT.)
Property rights
The rights that an organization gives to
members to receive and use organizational
resources
The distribution of property rights to different
stakeholders determines:
How effective an organization is
The culture that emerges in the organization
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WHERE DOES ORGANIZATIONAL
CULTURE COME FROM? (CONT.)
Organizational structure
Mechanistic vs. Organic
Mechanistic – predictability and stability are desired
goals
Organic – innovation and flexibility are desired end
states
Centralized vs. Decentralized
Decentralized – encourages and rewards creativity and
innovation
Centralized – reinforces obedience and accountability
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CAN ORGANIZATIONAL CULTURE
BE MANAGED?
Changing a culture can be very difficult
Hard to understand how the previous four factors
interact
Major alterations are sometimes needed
Some ways culture can be changed:
Redesign structure
Revise property rights used to motivate people
Change the people – especially top management
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