December 13, 2023

Assignment # 8: Organizational Culture

 Organizational culture is the 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.

Culture is a key advantage when it comes to attracting talent and outperforming the
competition. 77 percent of workers consider a company’s culture before applying, and almost
half of employees would leave their current job for a lower-paying opportunity at an
organization with a better culture. The culture of an organization is also one of the top indicators
of employee satisfaction and one of the main reasons that almost two-thirds (65%) of employees
stay in their job.

Dimensions of Organizational Culture:

 Innovation and Risk-Taking: The extent to which employees are motivated to become
innovative, willing to experiment and take risks.
 Attention to detail: The standard to which organizations workers are expected to work on
precision, analysis and pay attention to details.
 Outcome Orientation: The degree to which the company’s management is oriented towards the
outcomes instead of the strategies and processes employed to achieve them.
 People Orientation: The extent to which the impact of the decisions made and the
consequences of these decisions on people of the organization are considered by the
management, through greater participation. Hence, it is all about the degree of value and
respect for people working in the organization.
 Team Orientation: The extent to which relevance is given to effective teamwork in comparison
to the individual efforts and contributions to the organization, by way of collaborative problem-
solving.
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 Aggressiveness: It is all about the employee’s approach to work, i.e. the extent to which
employees show competitiveness towards work, instead of having a casual approach.
 Stability: It determines how open an organization is, with respect to change. Moreover, it is also
associated with the company’s status quo, i.e. to what extent the company gives preference to
maintaining the statement of affairs.

Levels of Organizational Culture:

Organizational Culture has a very

strong impact on the people in the
organization governing the way they
interact, dress, behave and perform
their tasks. It can be a source of an
organization’s competitive advantage.

1. Assumptions: It indicates the basic beliefs concerning human tendency and reality, but it cannot
be read and understood.
2. Beliefs and Values: It refers to the common principles, standards, and goals of the organization,
reflecting the greater level of awareness.
3. Artefacts: It determines visible or say tangible features of the organizational culture but are
usually taken for granted.

Qualities of a great organizational culture

Every organization’s culture is different, and it’s important to retain what makes your company
unique. However, the cultures of high-performing organizations consistently reflect certain
qualities that you should seek to cultivate:

1. Alignment comes when the company’s objectives and its employees’ motivations are all pulling
in the same direction. Exceptional organizations work to build continuous alignment to their
vision, purpose, and goals.
2. Appreciation can take many forms: a public kudos, a note of thanks, or a promotion. A culture
of appreciation is one in which all team members frequently provide recognition and thanks for
the contributions of others.
3. Trust is vital to an organization. With a culture of trust, team members can express themselves
and rely on others to have their back when they try something new.
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4. Performance is key, as great companies create a culture that means business. In these
companies, talented employees motivate each other to excel, and, as shown above, greater
profitability and productivity are the results.

5. Resilience is a key quality in highly dynamic environments where change is continuous. A

resilient culture will teach leaders to watch for and respond to change with ease.
6. Teamwork encompasses collaboration, communication, and respect between team members.
When everyone on the team supports each other, employees will get more done and feel
happier while doing it.
7. Integrity, like trust, is vital to all teams when they rely on each other to make decisions,
interpret results, and form partnerships. Honesty and transparency are critical components of
this aspect of culture.
8. Innovation leads organizations to get the most out of available technologies, resources, and
markets. A culture of innovation means that you apply creative thinking to all aspects of your
business, even your own cultural initiatives.
9. Psychological safety provides the support employees need to take risks and provide honest
feedback. Remember that psychological safety starts at the team level, not the individual level,
so managers need to take the lead in creating a safe environment where everyone feels
comfortable contributing. Now that you know what a great culture looks like, let’s tackle how to
build one in your organization.
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Organizational culture of companies:

1. Facebook

The mission at Facebook is “Bringing the world closer together”. Employees at Facebook are
passionate about connecting people via the platform and it also plays out in how they
interact at the office.

Workplace culture:
1. Socializing is valued not only on the platform but also in the workplace
2. Everyone’s very mission-driven
3. People are “Type A” - means that people are very goal-oriented and focus towards
getting ahead.
4. Being open to ambiguity, changes, and pivots - Being open to ambiguity means that you
are capable of doing work without detailed instruction.
5. Facebook has a “flat” organizational structure - where there are fewer managers and
supervisors in relation to lower-level employees, and where employees have more
freedom and authority to do their jobs. The benefits of a flat structure is that employees
have more power in decision making and there is greater opportunity for cross-
functional communication.
6. Speed. Facebook can easily respond to trends and changes in users’ preferences. This
ability is partly based on employees’ speed in responding to problems in the social
media business. Such speed is a significant feature of Facebook’s organizational culture.
The company believes that it is essential that its human resources rapidly react to new
needs in the multinational market for digital services.

2. Starbucks

OUR MISSION
WITH EVERY CUP,
WITH EVERY CONVERSATION,
WITH EVERY COMMUNITY–
WE NURTURE THE LIMITLESS POSSIBILITIES OF HUMAN CONNECTION

Workplace culture:
1. Committed to upholding a culture where inclusion, diversity, equity and accessibility are
valued and respected. We call our employees partners because we are all partners in
shared success." In doing so, Starbucks ensures that its employees are incentivized to
provide outstanding customer service and focus on making the company thrive.
2. Provide a great work environment and treat each other with respect and dignity.
3. Embrace diversity as an essential component in the way we do business.
4. Foster a relationship-driven, employees-first approach, which encourages staff to form
close bonds with each other. Called “partners” rather than employees, even part-time
staff (in the U.S.) receive stock options and health insurance
5. Apply the highest standards of excellence to the purchasing, roasting, and fresh delivery
of our coffee.
6. Develop enthusiastically satisfied customers all of the time.
7. Contribute positively to our communities and our environment.
8. Recognize that profitability is essential to our future success.

3. Walmart
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Our company’s mission is to save people money so they can live better. By running an
everyday low cost company, we deliver everyday low prices on great merchandise — and
help customers around the world provide for their families.

Workplace culture:
1. Hierarchical functional organizational structure
2. Service to customers
3. Respect for the individual
4. Strive for excellence
5. Action with integrity
6. Culture of belonging is the outcome of effective diversity, equity and inclusion efforts
Belonging Experience: Creating spaces where all associates feel valued and heard.
7. Inclusive Communities: Helping people and communities we serve feel included.
8. Governance and Measurement: Tracking and sharing our progress toward belonging for
all

`Other side of the coin:

Walmart

The company is frequently criticized for its failure to address employees’ concerns regarding low
wages. Such criticisms point to the difference between the belief of respect for individuals in the
organization’s culture, and the actual treatment of the employees. Thus, a suitable
recommendation for Walmart is to implement more effective measures for fulfilling the respect
for the individual component of the organizational culture.

Starbucks

The true secret to Starbucks success is not found in its coffee beans or its recipe for making
coffee! It is found its management of the culture of Starbucks, its leadership practices, and its
management of the entire enterprise. That is a secret “recipe” that can be copied and mastered
by any company that truly wants to become a culture champion like Starbucks.

Facebook

Facebook’s organizational culture is the difficulty in strictly implementing new mandates that
impose limits on employees’ activities. This is so because the company’s workers are
accustomed to a corporate culture where they are empowered to flexibly do their jobs. Such
empowerment supports continuous improvement. Facebook can address this disadvantage
through management initiatives that improve strategic implementation and internal
communication effectiveness.

Conclusion:

Organizational culture has a significant impact on how your company approaches work and
business, its brand, and whether it achieves its organizational objectives. With the knowledge of
different types of organizational culture, you understand which type your organization aspires to
have and what you need to change to get there.
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Company culture is no longer defined by superficial items. Above all, many people are now more
concerned with a company’s values, caring and competent leaders, and a clear path to
advancement – which many of our organizational culture examples do very well!