Organizational Culture and Change Management
Institutionalization: A Forerunner of Culture
• Viewing organizations as cultures—where there is a system of shared meaning among members—is a relatively recent phenomenon
Definition: Institutionalization is a condition that occurs when an organization takes on a life of its own, apart from any of its members, acquires immortality
• When an organization becomes institutionalized, it is valued for itself, not merely what it produces:
➢ It acquires immortality. ➢ It redefines itself.
• Institutionalization produces common understandings about what is appropriate and, fundamentally, meaningful behavior.
• Acceptable modes of behavior become largely self-evident to its members. This is essentially the same thing that organizational culture does.
What Is Organizational Culture?
1. Organizational culture—“a system of shared meaning held by members that distinguishes the organization from other organizations.”
2. This system of shared meaning is a set of key characteristics that the organization values. The research suggests seven primary characteristics:
• Innovation and risk taking • Attention to detail • Outcome orientation • People orientation • Team orientation • Aggressiveness • Stability
3. Each exists on a continuum from low to high. Appraising the organization on these gives a composite picture of the organization’s culture. This is the basis for:
• Shared understanding that members have. • How things are done. • The way members are supposed to behave.
Set of key Characteristics of Organization Culture
1. Innovation and Risk Taking: The degree to which