Organizational Culture and Change Management
Institutionalization: A Forerunner of Culture
• Viewing organizations as cultures—where there is a system of shared meaning among members—is a relatively recent phenomenon
Definition: Institutionalization is a condition that occurs when an organization takes on a life of its own, apart from any of its members, acquires immortality
• When an organization becomes institutionalized, it is valued for itself, not merely what it produces:
➢ It acquires immortality.
➢ It redefines itself.
• Institutionalization produces common understandings about what is appropriate and, fundamentally, meaningful behavior.
• Acceptable modes of behavior become largely self-evident to its members. This is essentially the same thing that organizational culture does.
What Is Organizational Culture?
1. Organizational culture—“a system of shared meaning held by members that distinguishes the organization from other organizations.”
2. This system of shared meaning is a set of key characteristics that the organization values. The research suggests seven primary characteristics:
• Innovation and risk taking
• Attention to detail
• Outcome orientation
• People orientation
• Team orientation
3. Each exists on a continuum from low to high. Appraising the organization on these gives a composite picture of the organization’s culture. This is the basis for:
• Shared understanding that members have.
• How things are done.
• The way members are supposed to behave.
Set of key Characteristics of Organization Culture
1. Innovation and Risk Taking: The degree to which employees are encouraged to be innovative and take risks. 2. Attention to Detail: The degree to which employees are expected exhibit precision, analysis and attention to detail. 3. Outcome Orientation: The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve those outcomes. 4. People Orientation: The degree to which management decisions take into consideration the effect of outcomes on people within the organization. 5. Team Orientation: The degree to which work activities are organized around teams rather than individuals. 6. Aggressiveness: The degree to which people are aggressive and competitive rather easy going 7. Stability: The degree to which organizational activities emphasize maintaining the status quo in contrast to growth.
Culture Is a Descriptive Term
1. Organizational culture is concerned with how employees perceive its characteristics, not if they like them. Research on organizational culture has sought to measure how employees see their organization.
2. Job satisfaction seeks to measure affective responses to the work environment, such as how employees feel about the organization’s expectations, reward practices, etc.
3. Organizational culture is descriptive, while job satisfaction is evaluative.
B. Do Organizations Have Uniform Cultures?
1. Individuals with different backgrounds or at different levels in the organization will tend to describe the organization’s culture in similar terms.
2. There can be subcultures. Most large organizations have a dominant culture and numerous sets of subcultures.
3. A dominant culture expresses the core values that are shared by a majority:
• An organization’s culture is its dominant culture. • This macro view of culture that gives an organization its distinct personality.
4. Subcultures tend to develop in large organizations to reflect common problems, situations, or...