1. 1 - 19
OrganizationalOrganizational
CultureCulture
CHAPTERCHAPTER
1111
November 2011
-Supervised by: Dr. Nayal Rashed
-Presented by: Eyad Al-Samman
I.D.#: 201010047

2. 2 - 19
1.1. What is Organizational Culture?What is Organizational Culture?
2.2. What do cultures do?What do cultures do?
3.3. How to create and sustain cultures?How to create and sustain cultures?
4.4. How do employees of a certainHow do employees of a certain
organization learn culture?organization learn culture?
5.5. What are the ways for matching peopleWhat are the ways for matching people
with cultures?with cultures?
6.6. What are the key dimensions of differencesWhat are the key dimensions of differences
in cultural values?in cultural values?
Main issues to be covered in thisMain issues to be covered in this
chapter:chapter:
Ch. 11 :: Organizational Culture

3. 3 - 19
1.1. What is Organizational Culture?What is Organizational Culture?
• Organizational CultureOrganizational Culture is a systemis a system
of shared meanings held byof shared meanings held by
members. This organizationalmembers. This organizational
culture distinguishes theculture distinguishes the
organization from otherorganization from other
organizations.organizations.
Ch. 11 :: Organizational Culture
• Organizational CultureOrganizational Culture is a set ofis a set of
shared values that organizationshared values that organization
members have regarding themembers have regarding the
functioning and existence of theirfunctioning and existence of their
organization.organization.
Another simple definition:Another simple definition:

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1.1. What is Organizational Culture?What is Organizational Culture?
• Characteristics that capture the essence of anCharacteristics that capture the essence of an
Organization’s Culture are:Organization’s Culture are:
Ch. 11 :: Organizational Culture
Defines how much importance a companyDefines how much importance a company
allocates to precision and detail in the workplace.allocates to precision and detail in the workplace.
11..AttentionAttention
to detailto detail
11..AttentionAttention
to detailto detail
Paying more attention to results rather thanPaying more attention to results rather than
processes.processes.22..OutcomeOutcome
orientationorientation
22..OutcomeOutcome
orientationorientation
Defines how much should be the managementDefines how much should be the management
focus on its people; as “associates” or as “Workfocus on its people; as “associates” or as “Work
machines.”machines.”
33..PeoplePeople
orientationorientation
33..PeoplePeople
orientationorientation
Every organization formulates the level ofEvery organization formulates the level of
aggressiveness with which their employees work.aggressiveness with which their employees work.
For example, Microsoft is known for itsFor example, Microsoft is known for its
aggression and market dominating strategies.aggression and market dominating strategies.
44..AggressivenessAggressiveness 44..AggressivenessAggressiveness

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1.1. What is Organizational Culture?What is Organizational Culture?
• Characteristics that capture the essence of anCharacteristics that capture the essence of an
Organization’s Culture are:Organization’s Culture are:
Ch. 11 :: Organizational Culture
(Continued)(Continued)
This characteristic defines how much roomThis characteristic defines how much room
business allows for innovation. Places where youbusiness allows for innovation. Places where you
take a risk, the chances of returns are higher.take a risk, the chances of returns are higher.
Same goes for innovation.Same goes for innovation.
5. Innovation5. Innovation
and Risk takingand Risk taking
5. Innovation5. Innovation
and Risk takingand Risk taking
Synergistic teams help giving better results asSynergistic teams help giving better results as
compared to individual efforts.compared to individual efforts.
6. Team6. Team
orientationorientation
6. Team6. Team
orientationorientation
Some organizations are focused on makingSome organizations are focused on making
themselves and their operations stable ratherthemselves and their operations stable rather
than looking at unselective or unsystematicthan looking at unselective or unsystematic
growth.growth.
7. Stability7. Stability7. Stability7. Stability

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1.1. What is Organizational Culture?What is Organizational Culture?
• Benefits of Strong cultureBenefits of Strong culture
-- Initially,Initially, strong culturestrong culture was conceived as a consistent set of beliefs, values,was conceived as a consistent set of beliefs, values,
assumptions, and practices embraced by members of the organization.assumptions, and practices embraced by members of the organization.
Ch. 11 :: Organizational Culture
-- SomeSome noted thatnoted that strong culturestrong culture
is more important foris more important for
organizations than others. Fororganizations than others. For
example,example, volunteer organizationsvolunteer organizations
need to stress on culture moreneed to stress on culture more
thanthan business organizationsbusiness organizations..
- S- Strong culturetrong culture has core valueshas core values
which are intensely held andwhich are intensely held and
widely shared. It increaseswidely shared. It increases
behavioural consistency.behavioural consistency.
SamenessSameness
Com
m
itm
ent
Com
m
itm
entIdentity
Identity
SolidaritySolidarity
MotivationMotivation
Strong
and
pervasive
culture
Strong
and
pervasive
culture

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1.1. What is Organizational Culture?What is Organizational Culture?
• Disadvantages of Strong cultureDisadvantages of Strong culture
-- The internalized controls associated with aThe internalized controls associated with a strongstrong
cultureculture result in individuals placing unconstrainedresult in individuals placing unconstrained
demands with themselves and acting as a barrier todemands with themselves and acting as a barrier to
adaptation and change.adaptation and change.
Ch. 11 :: Organizational Culture
-- AA strong culturestrong culture contribute to a displacement of goalscontribute to a displacement of goals
or sub-goals formation. This means that behaviouralor sub-goals formation. This means that behavioural
ways of doing things become important and overshadowways of doing things become important and overshadow
the original purpose of organization.the original purpose of organization.

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1.1. What is Organizational Culture?What is Organizational Culture?
• Culture vs. FormalizationCulture vs. Formalization
-- FormalizationFormalization is the extent to which rules and procedures are followed inis the extent to which rules and procedures are followed in
an organization.an organization.
Ch. 11 :: Organizational Culture
CultureCulture Formalization of
behaviour
Formalization of
behaviour
leads to
-- Behavioural consistencyBehavioural consistency results in the predictability of how employeesresults in the predictability of how employees
perform jobs.perform jobs.
Strong
Culture
Strong
Culture
Behavioural
consistency
Behavioural
consistencyincreases
-- OpponentsOpponents say thatsay that Behavioural consistencyBehavioural consistency leads to inflexibility whereleads to inflexibility where
employees may resist changes.employees may resist changes.

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1.1. What is Organizational Culture?What is Organizational Culture?
• Organizational Culture vs. National CultureOrganizational Culture vs. National Culture
Ch. 11 :: Organizational Culture
-Has aHas a GREAT IMPACTGREAT IMPACT
on employees.on employees.
- Different in nature of- Different in nature of
organizational cultureorganizational culture..
- Originates from- Originates from
consistency in values.consistency in values.
National
Culture
National
Culture
-Has aHas a LESS IMPACTLESS IMPACT onon
employees.employees.
- Different in nature of- Different in nature of
national culturenational culture..
- Originates from- Originates from
consistency inconsistency in
practices.practices.
Organizational
Culture
Organizational
Culture

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1.1. What is Organizational Culture?What is Organizational Culture?
• Culture and its effect on OrganizationCulture and its effect on Organization
Ch. 11 :: Organizational Culture
- It is a working knowledge of theIt is a working knowledge of the
cultural variables affectingcultural variables affecting
management decisions.management decisions.
- It is a critical skill for managing- It is a critical skill for managing
people in other countries.people in other countries.
Cultural
Savvy
Cultural
Savvy
- It is a sense of awarenessIt is a sense of awareness
and honest caring aboutand honest caring about
another individual’s culture.another individual’s culture.
- It requires to understand and- It requires to understand and
empathize the perspective ofempathize the perspective of
those living in other and verythose living in other and very
different societies.different societies.
Cultural
Sensitivity
)Cultural Empathy(
Cultural
Sensitivity
)Cultural Empathy(
One of many faces of culturesOne of many faces of cultures
in the Worldin the World

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2.2. What do Cultures Do?What do Cultures Do?
• Functions of culture within an organization:Functions of culture within an organization:
Ch. 11 :: Organizational Culture
Culture creates distinctions between oneCulture creates distinctions between one
organization and others.organization and others.
CultureCulture has a boundary-has a boundary-
defining role.defining role.
CultureCulture has a boundary-has a boundary-
defining role.defining role. 1
This sense of identity is conveyed to theThis sense of identity is conveyed to the
organization members.organization members.
CultureCulture conveys a senseconveys a sense
of identity.of identity.
CultureCulture conveys a senseconveys a sense
of identity.of identity. 2
Commitment is for something larger thanCommitment is for something larger than
one’s individual self-interest.one’s individual self-interest.
CultureCulture facilitates thefacilitates the
generation ofgeneration of
commitment.commitment.
CultureCulture facilitates thefacilitates the
generation ofgeneration of
commitment.commitment.
3
Culture is the social glue that providesCulture is the social glue that provides
appropriate standards for what employeesappropriate standards for what employees
should say and do.should say and do.
CultureCulture enhances socialenhances social
system stability.system stability.
CultureCulture enhances socialenhances social
system stability.system stability. 4
This mechanism guides and shapesThis mechanism guides and shapes
attitudes and behaviours of employees.attitudes and behaviours of employees.
CultureCulture serves as aserves as a
sense-making andsense-making and
control mechanism.control mechanism.
CultureCulture serves as aserves as a
sense-making andsense-making and
control mechanism.control mechanism.
5

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2.2. What do Cultures Do?What do Cultures Do?
• Culture as a liability:Culture as a liability:
Ch. 11 :: Organizational Culture
-Culture is a liabilityCulture is a liability when shared values are not in agreementwhen shared values are not in agreement
with those that will foster the organization’s effectiveness in awith those that will foster the organization’s effectiveness in a
dynamic surrounding environment.dynamic surrounding environment.
-Organisation’s deep-rooted cultureOrganisation’s deep-rooted culture
may no longer be appropriate.may no longer be appropriate.
EnvironmentEnvironment isis
dynamic and isdynamic and is
undergoing rapidundergoing rapid
change,change,
EnvironmentEnvironment isis
dynamic and isdynamic and is
undergoing rapidundergoing rapid
change,change,
-Consistency of behaviour is an assetConsistency of behaviour is an asset
to an organisation.to an organisation.
- Consistency of behaviour may,- Consistency of behaviour may,
however, burden the organisationhowever, burden the organisation
and make it difficult to respond toand make it difficult to respond to
changes in the environment.changes in the environment.
EnvironmentEnvironment isis
stable,stable,
EnvironmentEnvironment isis
stable,stable,

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2.2. What do Cultures Do?What do Cultures Do?
• Cultural Variables:Cultural Variables:
Ch. 11 :: Organizational Culture
-Individual cultural variablesIndividual cultural variables can be classified in eightcan be classified in eight
categories that form the subsystems in any society.categories that form the subsystems in any society.
A kinship system is adoptedA kinship system is adopted
by a given society to guideby a given society to guide
family relationship.family relationship.
A kinship system is adoptedA kinship system is adopted
by a given society to guideby a given society to guide
family relationship.family relationship.
KinshipKinshipKinshipKinship1
The formal or informalThe formal or informal
education affects expectationseducation affects expectations
of people in workplace,of people in workplace,
training programs andtraining programs and
leadership styles.leadership styles.
The formal or informalThe formal or informal
education affects expectationseducation affects expectations
of people in workplace,of people in workplace,
training programs andtraining programs and
leadership styles.leadership styles.
EducationEducationEducationEducation2
A nation’s economic systemA nation’s economic system
powerfully influencespowerfully influences
organizational processes suchorganizational processes such
as distribution, incentiveas distribution, incentive
systems and repatriation ofsystems and repatriation of
capital.capital.
A nation’s economic systemA nation’s economic system
powerfully influencespowerfully influences
organizational processes suchorganizational processes such
as distribution, incentiveas distribution, incentive
systems and repatriation ofsystems and repatriation of
capital.capital.
EconomyEconomyEconomyEconomy3
System of government in aSystem of government in a
society imposes varyingsociety imposes varying
constraints on theconstraints on the
organisation and its freedomorganisation and its freedom
to do business.to do business.
System of government in aSystem of government in a
society imposes varyingsociety imposes varying
constraints on theconstraints on the
organisation and its freedomorganisation and its freedom
to do business.to do business.
PoliticsPoliticsPoliticsPolitics4

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2.2. What do Cultures Do?What do Cultures Do?
• Cultural Variables:Cultural Variables:
Ch. 11 :: Organizational Culture
-Individual cultural variablesIndividual cultural variables can be classified in eightcan be classified in eight
categories that form the subsystems in any society.categories that form the subsystems in any society.
Spiritual beliefs of a societySpiritual beliefs of a society
are powerful that they goare powerful that they go
beyond other cultural aspects.beyond other cultural aspects.
Spiritual beliefs of a societySpiritual beliefs of a society
are powerful that they goare powerful that they go
beyond other cultural aspects.beyond other cultural aspects.
ReligionReligionReligionReligion5
Many types of socialMany types of social
associations arise in culturesassociations arise in cultures
out of formal and informalout of formal and informal
groups.groups.
Many types of socialMany types of social
associations arise in culturesassociations arise in cultures
out of formal and informalout of formal and informal
groups.groups.
AssociationAssociationAssociationAssociation6
System of healthcare affectsSystem of healthcare affects
employee productivity andemployee productivity and
attitudes toward physicalattitudes toward physical
fitness.fitness.
System of healthcare affectsSystem of healthcare affects
employee productivity andemployee productivity and
attitudes toward physicalattitudes toward physical
fitness.fitness.
HealthHealthHealthHealth7
Recreation is the manner inRecreation is the manner in
which people use their leisurewhich people use their leisure
time and attitudes towardtime and attitudes toward
leisure.leisure.
Recreation is the manner inRecreation is the manner in
which people use their leisurewhich people use their leisure
time and attitudes towardtime and attitudes toward
leisure.leisure.
RecreationRecreationRecreationRecreation8
(Continued)(Continued)

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3.3. Creating and SustainingCreating and Sustaining
Cultures?Cultures?• How does a culture begin?How does a culture begin?
Ch. 11 :: Organizational Culture
Founders only hire and keep employees whoFounders only hire and keep employees who
think and feel the way they do.think and feel the way they do.
FirstFirst WayWayFirstFirst WayWay
-Ultimate source of an organisation’s cultureUltimate source of an organisation’s culture can be traced to its founderscan be traced to its founders
who have a major impact on the organisation’s early culture.who have a major impact on the organisation’s early culture.
- Culture creation process occurs in three ways:- Culture creation process occurs in three ways:
Founders instruct and socialize theseFounders instruct and socialize these
employees to their way of thinking andemployees to their way of thinking and
feeling.feeling.
SecondSecond WayWaySecondSecond WayWay
Founders’ own behaviour acts as a roleFounders’ own behaviour acts as a role
model which encourages employees to adoptmodel which encourages employees to adopt
their beliefs, values and assumptions.their beliefs, values and assumptions.
ThirdThird WayWayThirdThird WayWay

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3.3. Creating and SustainingCreating and Sustaining
Cultures?Cultures?• Keeping a Culture Alive:Keeping a Culture Alive:
Ch. 11 :: Organizational Culture
-Practices within the organisation-Practices within the organisation whichwhich
maintain the culture include:maintain the culture include:
The selection process.The selection process.The selection process.The selection process.1
Performance evaluation criteria.Performance evaluation criteria.Performance evaluation criteria.Performance evaluation criteria.2
Training and career developmentTraining and career development
activities.activities.
Training and career developmentTraining and career development
activities.activities.
3
Promotion procedures ensuring thatPromotion procedures ensuring that
employees integrate with the culture.employees integrate with the culture.
Promotion procedures ensuring thatPromotion procedures ensuring that
employees integrate with the culture.employees integrate with the culture.
4
Rewarding employees who supportRewarding employees who support
culture.culture.
Rewarding employees who supportRewarding employees who support
culture.culture.
5
Punishing employees who challengingPunishing employees who challenging
culture.culture.
Punishing employees who challengingPunishing employees who challenging
culture.culture.
6

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3.3. Creating and SustainingCreating and Sustaining
Cultures?Cultures?• Keeping a Culture Alive.Keeping a Culture Alive.
Ch. 11 :: Organizational Culture
- Forces that sustain a culture:- Forces that sustain a culture:
Actions of top managementActions of top managementActions of top managementActions of top management1
Selection practicesSelection practicesSelection practicesSelection practices2
Socialization methodsSocialization methodsSocialization methodsSocialization methods3
(Continued)(Continued)

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3.3. Creating and SustainingCreating and Sustaining
Cultures?Cultures?• Hofstede’s Value Dimensions:Hofstede’s Value Dimensions:
Ch. 11 :: Organizational Culture
-HofstedeHofstede proposed a framework for understanding how values underlieproposed a framework for understanding how values underlie
organizational behaviour.organizational behaviour.
--HofstedeHofstede proposes four value dimensions as follows:proposes four value dimensions as follows:
The degree to which a society expects thereThe degree to which a society expects there
to be differences in the levels of power.to be differences in the levels of power.
Power distancePower distancePower distancePower distance1
Extent to which people in a society feelExtent to which people in a society feel
threatened by ambiguous situations.threatened by ambiguous situations.
UncertaintyUncertainty
avoidanceavoidance
UncertaintyUncertainty
avoidanceavoidance2
Two concepts are unrelated. Individualism is theTwo concepts are unrelated. Individualism is the
tendency of people to look after themselves andtendency of people to look after themselves and
family only and neglect society.family only and neglect society.
Individualism vs.Individualism vs.
CollectivismCollectivism
Individualism vs.Individualism vs.
CollectivismCollectivism3
Masculine values include materialism and lack ofMasculine values include materialism and lack of
concern for others. Feminine values includeconcern for others. Feminine values include
concerns for others and quality of life.concerns for others and quality of life.
Masculinity vs.Masculinity vs.
FemininityFemininity
Masculinity vs.Masculinity vs.
FemininityFemininity4

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Thank You forThank You for
Your Attention …Your Attention …
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