Chapter 16
Organizational Culture
Nelson & Quick
Organizational (Corporate) Culture
Organizational (Corporate) culture A pattern of basic assumptions that
are considered valid and that are
taught to new members as the way
to perceive, think, and feel
in the organization
Artifacts - Symbols of
culture in the physical
and social work environment
Organizational
Culture Levels
Visible, often not
decipherable
Values
Espoused: what members of
an organization say they value
Enacted: reflected in the way
individuals actually behave
Assumptions - Deeply held
beliefs that guide behavior and tell
members of an organization how
to perceive and think about things
Greater level
of awareness
Taken for granted
Invisible
Preconscious
Reprinted with permission from Edgar H. Schein, Organizational
Culture and Leadership: A Dynamic View. Copyright © 1985 Jossey-Bass
Inc,, Publishers, 350 Sansome Street, San Francisco, CA 94104 (800) 956-7739.
Artifacts - Symbols of
culture in the physical
and social work environment
• Personal enactment
• Ceremonies and rites (rites of passage, enhancement,
renewal, integration, conflict reduction, degradation)
• Stories (about the boss, getting fired, company handling of
relocating employees, whether lower-level employees can
rise to the top, how the company deals with crises, how
status considerations work when rules are broken)
• Ritual
• Symbols
Values
Espoused: what members of
an organization say they value
Enacted: reflected in the way
individuals actually behave
• Testable in the
physical
environment
• Testable only by
social consensus
•
•
•
•
•
Relationship to environment
Nature of reality, time, and space
Nature of human nature
Nature of human activity
Nature of human relationships
Assumptions - Deeply held
beliefs that guide behavior and tell
members of an organization how
to perceive and think about things
Functions of Organizational Culture
• Culture provides a sense of identity to
members and increases their commitment to
the organization
• Culture is a sense-making device
for organization members
• Culture reinforces the values
in the organization
• Culture serves as a control mechanism for
shaping behavior
Theories about the
relationship between
organizational culture
and performance
Strong Culture
Perspective
Fit
Perspective
Adaptive
Perspective
An organizational culture
with a consensus on the
values that drive the company
and with an intensity that is
recognizable even to outsiders
Strong Culture
Perspective
Reasons Strong cultures facilitate
performance
• They are characterized by goal alignment
• They create a high level of motivation because
of shared values by the members
• They provide control without the oppressive
effects of bureaucracy
Argument that a culture is
good only if it fits the
industry’s or the
firm’s strategy.
Fit
Perspective
Three characteristics of the organization
may affect culture
• Competitive environment
• Customer requirements
• Societal expectations
An organizational culture
that encourages confidence
Adaptive
and risk taking among employees,
Perspective
has leadership that produces change,
and focuses on the changing needs of customers
Adaptive
Nonadaptive
Core Values
Most managers care
about customers,
stockholders, and
employees
Most managers care
about themselves,
their work group, or
an associated product
Common
Behavior
Managers pay close
attention to all
their constituencies,
esp. customers
Managers tend to
behave somewhat
insularly, politically,
and bureaucratically
Reprinted with the permission of The Free Press, a Division of Simon & Schuster, Inc. from Corporate Culture and Performance by
John P. Kotter and James L Heskett. Copyright © 1992 by Kotter Associates, Inc. and James L. Heskett.
Five Most Important Elements
in Managing Culture
•
•
•
•
•
What leaders pay attention to
How leaders react to crises
How leaders behave
How leaders allocate rewards
How leaders hire and fire
individuals
Organizational Socialization
Organizational Socialization - the
process by which newcomers are
transformed from outsiders to
participating, effective members of
the organization
1. Anticipatory
Socialization
2. Encounter
3. Change and
Acquisition
Stages of
Socialization
Realism
Congruence
Job demands
•Task
•Role
•Interpersonal
Mastery
1. Anticipatory
Socialization
Realism
2. Encounter
3. Change and
Acquisition
Outcomes of Socialization
Stages of
Socialization
From “An Ethical Weather Repart: Assessing the Organizaiton’s Ethical Climate” by John B. Cullen, et
al. In Organizational Dynamics, Autumn 1989. Copyright © 1989 American Management Asociation
International. Reprinted by permission of American Management Association International, New York, N.Y.
All rights reserved. Http://www.amanet. Org.
Congruence
Job demands
•Task
•Role
•Interpersonal
Mastery
Performance
Satisfaction
Mutual influence
Low levels of distress
Intent to remain
1. Anticipatory Socialization
the first socialization stage--encompasses all
of the learning that takes place prior to the
newcomer’s first day on the job
2. Encounter
the second socialization stage-- the
newcomer learns the tasks associated with
the job, clarifies roles, and establishes new
relationships at work
3. Change & Acquisition
the third socialization stage--the
newcomer begins to master the
demands of the job
Socialization as
Cultural Communication
Core values are transmitted to new
Organization members through
– the role models they interact with
– the training they receive
– the behavior they observe being rewarded
and punished
Assessing Organizational Culture
• Organizational Culture Inventory focuses on
behaviors that help employees fit into the
organization & meet coworker expectations
• Kilman-Saxton Culture-Gap Survey focuses
on the expectations of others in the
organization
• Triangulation is the use of multiple methods
to measure organizational culture
Situations That May Require
Cultural Changes
• Merger or acquisition
• Employment of people from different
countries
Reasons That Change Is Difficult
• Assumptions are often unconscious
• Culture is deeply ingrained and behavioral
norms and rewards are well learned
Culture
Hiring and
socializing
members who
fit in with the
new culture
4
3
Cultural
communication
Interventions for
Changing
Organizational
Culture
Removing
members who
reject the
new culture
Changing
behavior
5
1
Examining
justifications
for changed
behavior
2
Reprinted with permission from Vijay Sathe “How to Decipher & Change
Corporate Culture,” Copyright © 1985 Jossey-Bass Inc, Publishers, 350 Sansome
Street, San Francisco, CA 94104 (800) 956-7739.
Cultural Modifications in the
Current Business Environment
Support for a global
view of business
Reinforcement of
ethical behavior
Empowerment of
employees to excel
in product and
service quality
Support for a global
view of business
• Create a clear and simple mission
statement
• Create systems that ensure effective
information flow
• Create “matrix minds” among managers
• Develop global career paths
• Use cultural differences as major assets
• Implement worldwide management education
and team development programs
Reinforcement of
ethical behavior
• Clear communication of the
boundaries of ethical conduct
• Selection of employees who support the
ethical culture
• Reward of ethical behavior
• Conspicuous punishment of members who
engage in unethical behavior
Empowerment of employees
to excel in product and
service quality
• Empowerment unleashes
employees’ creativity
• Empowerment requires eliminating traditional
hierarchical notions of power
– Involve employees in decision making
– Remove obstacles to their performance
– Communicate the value of product and service
quality