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Chapter 16 Organizational Culture Institutionalization: A Forerunner of Culture What Is Organizational Culture? Do Organizations Have Uniform Cultures? Do Organizations Have Uniform Cultures? (cont’d) What Is Organizational Culture? (cont’d) Culture Versus Formalization A strong culture increases behavioral consistency and can act as a substitute for formalization. Organizational Culture Versus National Culture National culture has a greater impact on employees than does their organization’s culture. Nationals selected to work for foreign companies may be atypical of the local/native population. What Do Cultures Do? What Do Cultures Do? How Culture Begins Founders hire and keep only employees who think and feel the same way they do. Founders indoctrinate and socialize these employees to their way of thinking and feeling. The founders’ own behavior acts as a role model that encourages employees to identify with them and thereby internalize their beliefs, values, and assumptions. Keeping Culture Alive Selection Concern with how well the candidates will fit into the organization. Provides information to candidates about the organization. Top Management Senior executives help establish behavioral norms that are adopted by the organization. Socialization The process that helps new employees adapt to the organization’s culture. Stages in the Socialization Process How Employees Learn Culture Creating An Ethical Organizational Culture Characteristics of Organizations that Develop High Ethical Standards High tolerance for risk Low to moderate in aggressiveness Focus on means as well as outcomes Managerial Practices Promoting an Ethical Culture Being a visible role model. Communicating ethical expectations. Providing ethical training. Rewarding ethical acts and punishing unethical ones. Providing protective mechanisms. Creating a Customer-Responsive Culture Key Variables Shaping Customer-Responsive Cultures The types of employees hired by the organization. Low formalizat