What is Organizational Culture?
• A system of meaning shared by the
organization’s members
• Cultural values are collective beliefs,
assumptions, and feelings about what things
are good, normal, rational, valuable, etc.
Culture’s Overall Function
Culture is the social glue that helps hold an
organization together by providing
appropriate standards for what employees
should say or do.
Stories
Rituals
How Employees
Learn Culture/
How it is “reinforced”
Material
Symbols
Language
Prentice Hall, 2001
Chapter 17
3
Organizational Culture
Functions
Liabilities
Controlling behavior
Blocking mergers
 Defining boundaries
 Inhibiting diversity
 Conveying identity
 Inhibiting change
 Promoting commitment
 Blocking acquisitions
Prentice Hall, 2001
Chapter 17
4
What Is Organizational Culture?
• Innovation and risk taking (3M)
• Outcome orientation (Bausch & Lomb)
• People orientation (SWA)
• Aggressiveness (Microsoft)
• Family-friendly (SAS Institute)
Prentice Hall, 2001
Chapter 17
5
How Organizational
Cultures Form
Top
Management
Philosophy
of the
Organization’s
Founders:
Ben & Jerry,
Herb Kelleher,
Bill Gates
Organizational
Culture
Selection
Socialization
Prentice Hall, 2001
Chapter 17
6
Do Organizations Have Uniform
Cultures
Dominant
Culture
Subcultures
Core
Values
Prentice Hall, 2001
Chapter 17
7
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