PowerPoint 14: Internal Environment: The Organization's Culture

21 terms by alyssapalmquist

Create a new folder

Advertisement Upgrade to remove ads

Environmental Elements

Internal: Marketing, purchasing, personnel, IT, legal, A/R and A/P
External: Customers, payers, suppliers, labor supply, technology and innovation, regulators, competitors

Organizational Culture: The organizational "personality"

Shared values, assumptions, beliefs, and norms that unite members of an organization and shape their views and behaviors
- "The way things are done around here..."—what is valued, rewarded, how you dress
- Helps individuals understand their work group, their role and expected behavior
- Legacy- what the organization is and what it stands for (corporate culture)

Organizational Climate

The atmosphere of the organization; A relatively enduring quality of the internal environment of an organization, which is experienced by its members and influences their behavior (Can be measured in terms of trust, morale, conflict, equity in rewards, leader credibility, resistance to change and scapegoating)

Aspects of culture

1) Fit: supports/interferes with goals
2) Pervasiveness: Distribution among employees
3) Strength: Level of acceptance among employees

Examples of cultural elements

High work ethic
Service-driven
Creative
Enjoyable environment
Technical orientation
Acceptance of diversity

Sources and influences on culture

1) Beliefs, values, and assumptions of the founder(s) of the organization
2) Learning experiences of the group members as their organization evolves
3) New beliefs, values, and assumptions brought in by new members and leaders
4) Rewards, policies
5) Critical incidents
6) Changing environment

Importance of cultural reinforcers

1) Shapes acceptable behavior
2) Depicts desired relationship between the organization and employees, customers, and other stakeholders
3) Culture often governs behavior "when no one is looking"
4) Not directly observable, infer from manifestations

Elements that reinforce culture

Language
Heroes and stories
Rites and Ceremonies
Symbols
Reward systems

Levels of Culture: Artifacts

Visible organizational structures
and processes (Hard to decipher)

Levels of Culture: Espoused Values

Strategies, goals, philosophies
(espoused justifications)

Levels of Culture: Basic Underlying Assumptions

Unconscious, taken-for granted beliefs,
perceptions, thoughts, and feelings
(ultimate source of values and actions)

Elements that reinforce culture: Language

Use of vocabulary; ex) Disney: "cast members, guests, Central Casting, costumes, props, in character/ out of character"—supports show business culture; technical environment differences

Elements that reinforce culture: Heroes and Stories

Narrative based on true event, which may be embellished to emphasize intended value ie. stories of company founders

Elements that reinforce culture: Rite

relatively elaborate, dramatic, planned set of activities intended to convey cultural values

Elements that reinforce culture: Ceremonial

system of rites performed in conjunction with single occasion or event

Elements that reinforce culture: Symbols

Object, act, event, or quality that serves as a vehicle for conveying meaning; Examples: company pin, employee-of-the-month award, reserved parking place

Elements that reinforce culture: Reward Systems

Formal Performance Appraisals/Symbols granted as rewards:
Pay, bonus
Promotions
Informal "atta boys"

Culture as a Barrier to Achieving Organizational Goals

1) Barriers to change, diversity, and mergers and acquisitions
2) Cultural elements might be weak in supporting organizational goals, not align with organizational goals, inhibit change (such as mergers/acquisitions, organizational shifts, new products or services), or discourage diversity

How Leaders Change Culture

1) Create tension or crisis for change
2) Communicate compelling vision of future
3) Motivate others to adopt new vision and required cultural changes - Selection of employees (fit), socialization of employees (orientation), reward systems (compensation, benefits)

Observations to Assess Culture

1) Physical location - Location, ambiance, employee dress, artwork and décor, cleanliness
2) Dominant interpersonal style - Friendly or formal, use first names or last?
3) Identify rules and regulations, rewards, use of language, whether promotion is from outside or within, what the measures of success are, and how employees refer to the company

Importance of understanding organizational culture and climate

1) Job performance
2) Job selection

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions above and try again

Example:

Reload the page to try again!

Reload

Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

NEW! Voice Recording

Create Set