LO 14-1 Describe the basic characteristics of organizational culture.

Organizational culture is a pattern of shared norms, rules, values, and beliefs that guide the attitudes and behaviors of its employees. Observable culture refers to the components that can be seen in an organization such as dress, structures, behaviors, and artifacts. Unobservable culture consists of the components that lie beneath the surface, such as company values and assumptions.

LO 14-2 Discuss the various artifacts of organizational culture.

Symbols are objects that provide meaning about a culture. Ritu­als are formalized actions and planned routines. Ceremonies are events that reinforce the relationship between employees and the organization. Organizational language consists of certain words or metaphors, and expressions the staff use regularly.

LO 14-3 Identify the functions of organizational culture.

External adaptation is a shared understanding of the goals, tasks, and methods that need to be achieved, together with ways of managing success and failure. Every company, regardless of how big or small, needs a degree of internal integration, which creates a shared identity with agreed-upon methods of working together.

LO 14-4 Compare various types of organizational cultures.

Organizations with a positive organizational culture focus on building on employee strengths, increasing morale, and providing rewards for good work. Employees in a communal culture tend to think alike, are happy to share knowledge, and have a clear focus on the direction of the task. Organizations with a fragmented culture have employees who tend to keep to themselves, avoid socializing, and work as individuals rather than part of a team. As the name suggests, mercenary cultures exist in organizations where making money is the top priority. Employees are measured by their levels of performance and productivity and expected to have a high commitment towards achieving organizational goals. In networked cultures there is a high degree of trust between employees and a willingness to communicate and share informa­tion. In an ethical culture managers need to be role models them­selves, communicate ethical standards, and train employees to behave in an ethical manner. Organizations with a spiritual culture focus on the opportunities for employees to grow in the workplace by carrying out meaningful tasks that contribute to the good of society as a whole.

LO 14-5 Contrast differing approaches for shaping organizational culture.

Managers working in organizations with a certain culture tend to select candidates whose personalities and attitudes best match that culture and values. This match is called person–organization fit. New hires are integrated into the company’s corporate cul­ture through a process of socialization, which is a way an orga­nization communicates its values to employees.