WEEK 3, LECTURE 2
PRINCIPLES OF MANAGEMENT
By Alina
LEARNING OBJECTIVES
➢Introduce the concept of organizational
culture
➢Its significance and its impact on
business operations.
➢Understanding organizational culture
through example.
Organizational Culture
• Set of values, beliefs, attitudes, systems, and rules that
outline and influence employee behavior within an
organization.
• The culture reflects how employees, customers,
vendors, and stakeholders experience the organization
and its brand.
Elements of Organizational
Culture
• Values: The core principles and beliefs that guide the
organization, often reflected in mission and vision
statements.
• Norms: Unwritten rules and expectations governing
behavior, such as dress code or work hours.
• Symbols: Physical or conceptual representations of the
culture, like logos, slogans, or even office layouts.
• Rituals: Regular activities that reinforce cultural values,
like weekly meetings or team-building events.
• Language: Specific terms, or phrases used within the
organization, reflecting its unique culture.
• Heroes: Individuals whose behavior embodies the
organization's values and are celebrated as role models.
• Stories: Narratives that illustrate the organization's history,
successes, and values.
Importance of
Organizational Culture
• It plays an important part in an organization.
• Improve recruitment efforts – 77% of workers consider a
company’s culture before applying
• Improve employee retention – culture is one of the main
reasons that 65% of employees stay in their job
• Improve brand identity – 38% of employees report
wanting to change their job due to poor company culture
• Improve engagement – companies with a positive culture
have up to 72% higher employee engagement rate.
Types of
Organization
Culture
• Clan Culture: emphasizes
collaboration across teams .
• Adhocracy Culture: allows
individuals to share ideas and
encourages the company to take risks.
• Market Culture: focuses on financial
success and how each employee
contributes to revenue.
• Hierarchy Culture: emphasizes
career paths and provides clear
managerial processes.
Impact on Business
Performance
• Employee Engagement: A positive culture can boost employee morale and
engagement, leading to higher productivity and job satisfaction.
• Innovation: Cultures that encourage risk-taking and open communication are
more likely to foster innovation and creativity.
• Customer Satisfaction: A culture that values customer service will lead to better
customer experiences and loyalty.
• Attraction and Retention of Talent: A strong culture can attract top talent and
retain employees who align with the culture, reducing turnover.
• Adaptability: A flexible culture can help organizations adapt to change and
external challenges more effectively.
• Ethical Behavior: Culture can influence the ethical behavior of employees,
reducing the risk of ethical and legal issues.
• Business Strategy: Culture can align with strategic objectives, affecting an
organization's ability to execute its plans.
Measuring and Managing Organizational Culture
Surveys and Assessments: Use surveys and assessments to measure current culture and gather employee feedback.
Leadership Role: Leadership plays a crucial role in shaping and modeling culture. Leaders must set the example and champion cultural
values.
Cultural Change Programs: Develop programs to reinforce or change cultural elements as needed.
Communication: Effective communication is key to ensuring that employees understand and embrace the culture.
Rewards and Recognition: Link rewards and recognition to the cultural values you want to promote.
Training and Development: Provide training and development opportunities to align employees with the desired culture.
Continuous Evaluation: Regularly assess culture and make adjustments as the organization evolves.
NETFLIX
• Netflix has an admirable work
culture.
• The entertainment company is
popular for its culture that
emphasizes people over process.
• At Netflix, all employees can
participate actively in important
decision-making processes.
• There are no inhibiting rules, and
staff members can communicate
freely and directly.
• Netflix chooses employees based
on integrity, teamwork, passion,
humility, innovation, and
selflessness.
GOOGLE
• Corporate culture, and heard about
how much they value employees’
happiness.
• Google is the example of great
workplaces, giving employees sleep
pods, free food, promoting casual
attire, amazing gyms and even
allowing pets at the workplace.
• They encourage employees to always
be open with each other.
• They also focus on peer coaching,
encouraging employees to learn from
each other and help each other.
