Learning Objectives

Differentiate between values and norms, understand the way culture is shared by an organization's members, and why organizations have different types of culture

Describe how individuals learn culture both formally (that is, the way an organization intends them to learn it) and informally (that is, by seeing what goes on in the organization)

Identify the four building blocks or foundations of an organization's culture that account for cultural differences among organizations

Understand how an organization's culture, like its structure, can be designed or managed

Discuss an important outcome of an organization's culture: its stance on corporate social responsibility

What is Organizational Culture?

Organizational Culture: The set of shared values and norms that controls organizational members' interactions with each other and with people outside the organization

Source of competitive advantage
Increase organizational effectiveness

Values: General criteria, standards, or guiding principles people use to determine which types of behaviors, events, situations, and outcomes are desirable or undesirable

Terminal Value: A desired end state or outcome that people seek to achieve during his or her lifetime

Instrumental Value: A desired mode of behavior or mean of achieving terminal values