About Download organizational culture
Presentation on theme: "Chapter 7 Organizational Culture"— Presentation transcript: 1 Chapter 7 Organizational CultureManaging Organizations in a Global Economy: An Intercultural Perspective First Edition John Saee Copyright by South-Western, a division of Thomson Learning. All rights reserved. 2 What is corporate culture?Corporate culture is an ideology shared by members in an organization (Ouchi 1981; Pascale & Athos 1981; Deal & Kennedy 1982). 3 The sense making and control mechanism that guides and shapes the attitudes and behavior of employees (Robbins, Millet, Cacioppe 1998). 4 Functions of organizational cultureOrganizational culture defines boundary. Organizational culture conveys a sense of identity for its members. Organizational culture facilitates commitment by its members. Organizational culture provides standard code of conduct. 5 Relationship between the culture and the success of an organization.Management is fast realizing that organizational culture is the driving force behind its successful operations. 6 Peters and Waterman (1984): “Without exception, the dominance and coherence of culture proved to be an essential quality of the excellent companies” (p. 75). 7 Organizational Culture and NationalCultureCultural preferences will influence the models people give to the organizations. Are organizational cultures as influential as national cultures? National values are always likely to overrule contrasting organizational values. 8 Hofstede’s research has shown that national culture values have significant impact on employees’ organizational performance, and the cultural values employees bring with them to the organization are not easily changed by the organization. 9 Dimensions of organizational culture.Cultural comparisons were made between different subsidiaries of the same MNC (Hofstede 1980). It was found that different cultures existed in each subsidiary. 10 How far can a company go to implement an organizational culture across different national cultures?An organization should seek to evolve a culture, which complements the national one but still manages to maintain its own corporate identity and individuality. 11 Organizational Cultures in MNCsTo determine the organizational culture requires examination of three aspects (Trompenaars 1993): The general relationship between employees and their organization. The vertical or hierarchical system of authority defining superiors and subordinates. 12 Views of employees about organization’s destiny, purpose, goals, and their place in it. 13 Trompenaars
Key features of the Download organizational culture that are enabled through these drivers include:
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Questions around the applicability of American management theory abroad and studied those cultural differences that interface with and influence organizational cultural characteristics. Deal and Kennedy 1982 studied culture as the manner in which things “get done” in an organization, offering a model of culture based on four organizational prototypes. Subsequently, Schein 1985, a foundational volume, discusses an organization’s culture as the basic assumptions and beliefs that are shared consistently across members of an organization and define taken-for-granted views of the organization and its environment. Importantly, Schein stressed the role of the leader as the creator and maintainer of culture within organizations. Schein 1990 offered a more concise, peer-reviewed version of the arguments put forth in Schein 1985. Organizational culture scholars have long recognized divergences between functionalist and interpretive approaches to research in this area. Smircich 1983 offered an introduction to modes of analysis of culture; Smircich positioned the development of the concept of organizational culture at the intersection of functionalist work in anthropology and research in organization theory and predicted the emergence of a range of scholarly perspectives. Martin 1992 offered one such perspective as she examined organizational culture from an interpretive paradigm; Martin highlighted three prototypes of cultures that may exist in organizations, thereby contrasting the functionalist approach of Schein 1985. Schultz and Hatch 1996 also shed light on paradigmatic disagreement in the study of culture in organizations as they proposed a multiparadigm approach to research to promote interplay between the functionalist and interpretive paradigms. The above conceptualizations of and approaches to understanding culture continue to underpin and influence contemporary research on culture as well as practical attempts to manage culture in organizations.Deal, Terrence E., and Alan A. Kennedy. Corporate Cultures. Reading, MA: Addison-Wesley, 1982. Describes organizational culture using four prototypes: work-hard, play-hard culture; tough-guy macho culture; process culture; and bet-the-company culture.Hofstede, Geert. Culture’s Consequences. 2d ed. Beverly Hills, CA: SAGE, 2001. An international perspective on organizations that questions the universality of American management theory and suggests four dimensions of culture that vary based on nationality and that affect organizational culture and employees. First edition published in 1980.Martin, Joanne. Cultures in Organizations. Oxford: Oxford University Press, 1992. An introduction to organizational culture from the interpretive paradigm that uses three case studies of the same organization to illustrate the plurality of understandings and experiences of culture. Suggests that organizational culture may be integrated, fragmented, or differentiated.Pettigrew, Andrew M. “On Studying Organizational Cultures.” Administrative Science Quarterly 24.4 (1979): 570–581. DOI: 10.2307/2392363Widely agreed to be the field’s first publication regarding organizational culture. Characterizes culture as publicly and widely accepted meaning systems, and positions the creation of culture as the birth of an organization.Schein, Edgar H. Organizational Culture and Leadership. San Francisco: Jossey-Bass,
