BUS272 TB

350 Part 4 Sharing the Organizational Vision
EXHIBIT 10-2 Layers of Culture
Artifacts of
Organizational Culture
Language
Material Symbols
Stories
Rituals
Organizational Culture
Beliefs
Values
Assumptions
values: integrity, promoting people’s dignity and value, respect for the environment,
community support, and striving for excellence. 12 Assumptions are the taken-forgranted
notions of how something should be. When basic assumptions are held by the
entire group, members will have difficulty conceiving of another way of doing things.
For instance, in Canada, some students hold a basic assumption that universities should
not consider costs when setting tuition, and should keep tuition low for greater access
by students. Beliefs, values, and assumptions, if we can uncover them, help us understand
why organizations do the things that we observe.
2
Identify the functional
effects of organizational
culture on people and
the organization.
Culture’s Functions
Culture performs a number of functions within an organization:
• It has a boundary-defining role because it creates distinction between one
organization and others.
• It conveys a sense of identity to organization members.
• It helps create commitment to something larger than an individual’s selfinterest.
• It enhances stability; it is the social glue that helps hold the organization
together by providing standards for what employees should say and do.
• It serves as a control mechanism that guides and shapes the attitudes and
behaviour of employees, and helps them make sense of the organization.
assumptions The taken-for-granted
notions of how something should be.
This last function is of particular interest to us. 13 Culture
defines the rules of the game.
Today’s trend toward decentralized organizations
makes culture more important than ever, but ironically
it also makes establishing a strong culture more difficult.
When formal authority and control systems are reduced,
culture’s shared meaning can point everyone in the same
direction. However, employees organized in teams may
show greater allegiance to their team and its values than
to the organization as a whole. In virtual organizations,
What does
organizational
culture do?