What are the three components of organizational culture quizlet?

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Advantages: First, culture has a boundary-defining role: it creates distinctions between one organization and others. Second, it conveys a sense of identity for organization members. Third, culture facilitates commitment to something larger than indi- vidual self-interest. Fourth, it enhances the stability of the social system. Culture is the social glue that helps hold the organization together by providing standards for what employees should say and do. Finally, it is a sense-making and control mechanism that guides and shapes employees' attitudes and behavior. This last function is of particular interest to us. Culture defines the rules of the game.

Organizational climate refers to the shared perceptions organizational members have about their organization and work environment.This aspect of culture is like team spirit at the organizational level.

Liabilities:
- When an organization undergoes institutionalization and becomes institutionalized—that is, it is valued for itself and not for the goods or services it produces—it takes on a life of its own, apart from its founders or members.
- Barriers to Change: Culture is a liability when the shared values don't agree with those that further the organization's effectiveness.
- Barriers to Diversity: Hiring new employees who differ from the majority in race, age, gender, disability, or other characteristics creates a paradox: management wants to demonstrate support for the differences these employees bring to the workplace, but newcomers who wish to fit in must accept the organization's core cultural values.
- Barriers to Acquisitions and Mergers: Historically, when management looked at acquisition or merger decisions, the key factors were financial advantage and product synergy. In recent years, cultural compatibility has become the primary concern. All things being equal, whether the acquisition actually works seems to have more to do with how well the two organizations' cultures match up.

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