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Leading & Managing Holistically >Part 2 >Chapter 03 >Part 2: Organizational Culture

[Solution] Part 2: Organizational Culture

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Author: Sarah Bennett

Culture is a part of the organization's internal environment. It plays a critical role in shaping managers' behavior, and managers themselves can shape culture.

Culture: What It Is and How Managers Create It

Organizational culture is the set of values, beliefs, behaviors, customs, and attitudes that give the organization a unique identity in terms of what it stands for, how it works, and what it values. Culture gives the organization its "feel." Especially in a large organization, different parts of the organization may have different cultures.

Though difficult to observe or measure, culture is vital to the effectiveness of the organization. Organizations with strong cultures tend to be more successful than those with weak cultures.

Organizational culture is formed by many influences over time. These include the following:

  • The founder
  • Symbols
  • Stories
  • Heroes
  • Slogans
  • Ceremonies
  • History of successes
  • Shared experiences

How to Manage Culture

Managers can actively shape culture through various mechanisms including their own behavior, what they pay attention to, how they allocate resources, and how they respond to critical incidents.

Select the best answer to the following question.

Which of the following is true about culture in organizations?

  • When two organizations merge, their cultures usually blend to create a single culture without management action.
  • In a large corporation, units in different countries or performing different functions will likely share the same culture.
  • Successful organizations tend to have a strong culture that is expressed in numerous ways.

View Explanation

A strong culture, developed through consistent expression over time, tends to be a feature of successful organizations.

Different organizations will have different cultures, and this is true for at least a while after the organizations are brought together through a merger; managers need to work to create a consistent culture for the new organization. Also, different units in large organizations tend to develop somewhat different cultures.

Select the correct response(s) to the following question.

Which of the following are ways in which managers influence organizational culture? Check all that apply.

  • Profitability
  • Ceremonies
  • Stories
  • Shared experiences
View Explanation

Managers create and shape an organization's culture in many ways, including the following:

  • The founder's actions (or stories about them)
  • Symbols
  • Stories
  • Heroes
  • Slogans
  • Ceremonies
  • History of successes
  • Shared experiences

Select the phrase that best completes the sentence.

Managers should seek to maintain the organizational culture when the culture .

View Explanation

A culture that is well aligned with the organization's environment will be a source of strength for that organization and should be maintained.

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