File Name: what is organizational culture and why should we care .zip
- Importance of Organization Culture
- 8.5 Creating and Maintaining Organizational Culture
- Organizational culture
A common platform where individuals work in unison to earn profits as well as a livelihood for themselves is called an organization.
Where do cultures come from? Understanding this question is important in understanding how they can be changed. These values and ways of doing business are taught to new members as the way to do business Schein, Figure 8.
Importance of Organization Culture
Where do cultures come from? Understanding this question is important in understanding how they can be changed. These values and ways of doing business are taught to new members as the way to do business Schein, Figure 8. In , the two high school friends opened up their first ice-cream shop in a renovated gas station in Burlington, Vermont. Their strong social convictions led them to buy only from the local farmers and devote a certain percentage of their profits to charities. Even though Unilever acquired the company in , the social activism component remains unchanged and Unilever has expressed its commitment to maintaining it Kiger, ; Rubis, et.
Founder values become part of the corporate culture to the degree to which they help the company be successful. However, these values probably would not be surviving 3 decades later if they had not helped the company in its initial stages. Thus, by providing a competitive advantage, these values were retained as part of the corporate culture and were taught to new members as the right way to do business.
Waycool27 — BenJerry-UnitedSquare — public domain. While founders undoubtedly exert a powerful influence over corporate cultures, the industry characteristics also play a role. Companies within the same industry can sometimes have widely differing cultures. At the same time, the industry characteristics and demands act as a force to create similarities among organizational cultures.
For example, despite some differences, many companies in the insurance and banking industries are stable and rule-oriented, many companies in the high-tech industry have innovative cultures, and those in nonprofit industry may be people-oriented. If the industry is one with a large number of regulatory requirements—for example, banking, health care, and high-reliability such as nuclear power plant industries—then we might expect the presence of a large number of rules and regulations, a bureaucratic company structure, and a stable culture.
The industry influence over culture is also important to know because this shows that it may not be possible to imitate the culture of a company in a different industry, even though it may seem admirable to outsiders.
As a company matures, its cultural values are refined and strengthened. It is possible to think of organizational culture as an organism that protects itself from external forces.
Organizational culture determines what types of people are hired by an organization and what types of people are left out. Moreover, once new employees are hired, the company assimilates new employees and teaches them the way things are done in the organization. We call these processes attraction-selection-attrition and onboarding processes.
Organizational culture is maintained through a process known as attraction-selection-attrition ASA. First, employees are attracted to organizations where they will fit in. Someone who has a competitive nature may feel comfortable in and may prefer to work in a company where interpersonal competition is the norm. Others may prefer to work in a team-oriented workplace. Research shows that employees with different personality traits find different cultures attractive.
Of course, this process is imperfect, and value similarity is only one reason a candidate might be attracted to a company. There may be other, more powerful attractions such as good benefits. At this point in the process, the second component of the ASA framework prevents them from getting in: selection. Just as candidates are looking for places where they will fit in, companies are also looking for people who will fit into their current corporate culture.
Many companies are hiring people for fit with their culture, as opposed to fit with a certain job. For example, Southwest Airlines prides itself for hiring employees based on personality and attitude rather than specific job-related skills, which they learn after they are hired. Companies use different techniques to weed out candidates who do not fit with corporate values.
For example, Google relies on multiple interviews with future peers. By introducing the candidate to several future coworkers and learning what these coworkers think of the candidate, it becomes easier to assess the level of fit.
Even after a company selects people for person-organization fit, there may be new employees who do not fit in. In any event, the organization is eventually going to eliminate candidates eventually who do not fit in through attrition. Attrition refers to the natural process where the candidates who do not fit in will leave the company. Research indicates that person-organization misfit is one of the important reasons for employee turnover Kristof-Brown, et.
Because of the ASA process, the company attracts, selects, and retains people who share its core values, whereas those people who are different in core values will be excluded from the organization either during the hiring process or later on through naturally occurring turnover. Thus, organizational culture will act as a self-defending organism where intrusive elements are kept out. Supporting the existence of such self-protective mechanisms, research shows that organizations demonstrate a certain level of homogeneity regarding personalities and values of organizational members Giberson, et.
Onboarding refers to the process through which new employees learn the attitudes, knowledge, skills, and behaviors required to function effectively within an organization.
This understanding and confidence in turn translate into more effective new employees who perform better and have higher job satisfaction, stronger organizational commitment, and longer tenure within the company Bauer, et. Organizations engage in different activities to facilitate onboarding, such as implementing orientation programs or matching new employees with mentors. For example, feedback seeking helps new employees.
Especially on a first job, a new employee can make mistakes or gaffes and may find it hard to understand and interpret the ambiguous reactions of coworkers. By actively seeking feedback, new employees may find out sooner rather than later any behaviors that need to be changed and gain a better understanding of whether their behavior fits with the company culture and expectations. Relationship building or networking a facet of the organizing function is another important behavior new employees may demonstrate.
Particularly when a company does not have a systematic approach to onboarding, it becomes more important for new employees to facilitate their own onboarding by actively building relationships. A formal orientation program indoctrinates new employees to the company culture, as well as introducing them to their new jobs and colleagues.
An orientation program has a role in making new employees feel welcome in addition to imparting information that may help them be successful in their new jobs. Many large organizations have formal orientation programs consisting of lectures, videotapes, and written material, while some may follow more informal approaches.
According to one estimate, most orientations last anywhere from one to five days, and some companies are currently switching to a computer-based orientation. Research shows that formal orientation programs are helpful in teaching employees about the goals and history of the company, as well as communicating the power structure.
However, these benefits may not be realized to the same extent in computer-based orientations. One of the most important ways in which organizations can help new employees adjust to a company and a new job is through organizational insiders —namely, supervisors, coworkers, and mentors.
Leaders have a key influence over onboarding and the information and support they provide determine how quickly employees learn about the company politics and culture, while coworker influence determines the degree to which employees adjust to their teams. Mentors can be crucial to helping new employees adjust by teaching them the ropes of their jobs and how the company really operates.
A mentor is a trusted person who provides an employee with advice and support regarding career-related matters. Mentoring can occur naturally between two interested individuals or organizations can facilitate this process by having formal mentoring programs.
Research indicates that the existence of these programs does not guarantee their success, and there are certain program characteristics that may make these programs more effective. Moreover, when mentors receive training beforehand, the outcomes of the program tend to be more positive Allen, et. Thus, organizations may need to design these programs carefully to increase their chance of success. For example, when leaders motivate employees through inspiration, corporate culture tends to be more supportive and people-oriented.
When leaders motivate by making rewards contingent on performance, the corporate culture tended to be more performance-oriented and competitive Sarros, et. In these and many other ways, what leaders do directly influences the cultures of their organizations. This is a key point for managers to consider as they carry out their leading P-O-L-C function.
In an organization in which high-level managers make the effort to involve others in decision making and seek opinions of others, a team-oriented culture is more likely to evolve. By acting as role models, leaders send signals to the organization about the norms and values that are expected to guide the actions of its members.
Leaders also shape culture by their reactions to the actions of others around them. For example, do they praise a job well done or do they praise a favored employee regardless of what was accomplished? How do they react when someone admits to making an honest mistake? What are their priorities? In meetings, what types of questions do they ask? Do they want to know what caused accidents so that they can be prevented, or do they seem more concerned about how much money was lost because of an accident?
Do they seem outraged when an employee is disrespectful to a coworker, or does their reaction depend on whether they like the harasser? Finally, the company culture is shaped by the type of reward systems used in the organization and the kinds of behaviors and outcomes it chooses to reward and punish.
One relevant element of the reward system is whether the organization rewards behaviors or results. Some companies have reward systems that emphasize intangible elements of performance as well as more easily observable metrics. However, in companies in which goal achievement is the sole criterion for reward, there is a focus on measuring only the results without much regard to the process.
In these companies, we might observe outcome-oriented and competitive cultures. Whether the organization rewards performance or seniority would also make a difference in culture. When promotions are based on seniority, it would be difficult to establish a culture of outcome orientation. Finally, the types of behaviors that are rewarded or ignored set the tone for the culture.
A reward system is one tool managers can wield when undertaking the controlling function. We emphasized earlier that culture influences the way members of the organization think, behave, and interact with one another. In this section, we discuss five ways in which culture shows itself to observers and employees.
Mission Statement A mission statement is a statement of purpose, describing who the company is and what it does. It serves an important function for organizations as part of the first facet of the planning P-O-L-C function. An effective mission statement is well known by employees, is transmitted to all employees starting from their first day at work, and influences employee behavior.
Some mission statements reflect who the company wants to be as opposed to who they actually are. A mission statement that is taken seriously and widely communicated may provide insights into the corporate culture. For example, no incentives are given to physicians based on the number of patients they see.
Tradition is important at Mary Kay Cosmetics. Pink Cadillacs are given to top performers at large annual events. Rituals refer to repetitive activities within an organization that have symbolic meaning Anand, They create camaraderie and a sense of belonging among employees.
8.5 Creating and Maintaining Organizational Culture
As we learn more about how to make a company more successful through effective management of Human Resource, we are learning of the value of people, as a whole, and how they contribute to the success or failure of an organization. Nurses play a pivotal role in the health care profession and make up the majority of healthcare workers in a hospital setting. Which of the specific environmental and organizational HR challenges will be most important in healthcare in the next 20 years? You may use your own experience or information from other healthcare executives in your answer? The role of the Human Resource Manager is evolving with the change in competitive market environment and. At the beginning of doing my research I was not sure what Organizational culture was. In fact, I thought it some kind of innocuous entity with no real meaning at all, but I now know that it is so much more than that.
Members may download one copy of our sample forms and templates for your personal use within your organization. Neither members nor non-members may reproduce such samples in any other way e. The key to a successful organization is to have a culture based on a strongly held and widely shared set of beliefs that are supported by strategy and structure. When an organization has a strong culture, three things happen: Employees know how top management wants them to respond to any situation, employees believe that the expected response is the proper one, and employees know that they will be rewarded for demonstrating the organization's values. Employers have a vital role in perpetuating a strong culture, starting with recruiting and selecting applicants who will share the organization's beliefs and thrive in that culture, developing orientation, training and performance management programs that outline and reinforce the organization's core values and ensuring that appropriate rewards and recognition go to employees who truly embody the values. An organization's culture defines the proper way to behave within the organization.
Argues that organizations should be thought of as cultures rather than machines, and that managing is as much a social as a technical process. Suggests that effective leadership, and the successful design of appropriate organization development programmes, are dependent on executive understanding and sensitivity to organizational culture. These examples demonstrate the importance and the power of cultural approaches to understanding organizations in general and the leadership function in particular. Demonstrates a new set of tools for mobilizing commitment and enforcing control that can have important performance implications, and which will be of value to the practising manager.
Workplace culture is the character and personality of your organisation. It's made up of your organisation's leadership, values, traditions and beliefs, and the behaviours and attitudes of the people in it. Having a positive workplace culture is vital to delivering high quality care and support. This toolkit explains what workplace culture is and how you can develop a positive one in your organisation.
Companies with a strong work culture appeal to job candidates looking for a permanent position and the opportunity for growth. Organizational culture promotes a positive, structured work environment that helps companies achieve success.
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