C H A P T E R
16
Organisational
culture
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
Chapter learning objectives
1.
Describe the elements of organisational culture.
2.
Discuss the importance of organisational subcultures.
3.
List four categories of artefacts through which corporate
culture is communicated.
4.
Identify three functions of organisational culture.
5.
Discuss the conditions under which cultural strength
improves corporate performance.
6.
Discuss the effect of organisational culture on business
ethics.
7.
Compare and contrast four strategies for merging
organisational cultures.
8.
Identify five strategies to strengthen an organisation’s
culture.
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
2
Melso Minerals’ corporate culture
Melso Minerals in
Matamata, New Zealand,
has an egalitarian, teamoriented corporate culture .
This culture is apparent
through numerous
artefacts, such as the noholds barred retreats and
the Melso polo shirts that
Courtesy of Melso Minerals (Matamata) Ltd
everyone wears.
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
3
Organisational culture defined
The basic pattern of shared
assumptions, values and
beliefs considered to be the
correct way of thinking
about and acting on
problems and opportunities
facing the organisation.
Courtesy of Melso Minerals (Matamata) Ltd
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
4
Elements of organisational culture
Physical structures
Artefacts of
organisational
culture
Organisational
culture
Rituals/ceremonies
Stories
Language
Beliefs
Values
Assumptions
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
5
Meaning of cultural content
 Cultural content refers to the relative ordering of
beliefs, values and assumptions
 Example: Brown & Brown values aggressiveness;
SAS Institute values work-life balance
 An organisation emphasises only a handful of the
hundreds of cultural values
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
6
Organisational subcultures
 Located throughout the organisation
 Can support or oppose (countercultures) firm’s
dominant culture
 Two functions of countercultures:
 provide surveillance and evaluation
 source of emerging values
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
7
Cultural stories at Four Seasons
The legendary customer
service at Four Seasons
Hotels and Resorts is
reflected in its corporate
culture. Legends and stories
help to support this
customer service culture.
Courtesy of Four Seasons Hotels and Resorts
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
8
Artefacts: organisational stories
 Social prescriptions of
desired behaviour
 Demonstrate that
organisational objectives are
attainable
 Most effective stories
 describe real people
 are assumed to be true
 are known throughout the
organisation
 are prescriptive
Courtesy of Four Seasons Hotels & Resorts
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Artefacts: rituals and ceremonies
 Rituals
 programmed routines
 eg conducting meetings
 Ceremonies
 planned activities for an audience
 eg award ceremonies
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
10
Artefacts: organisational language
 Words used to address people, describe clients, etc
 Leaders use phrases and metaphors as cultural
symbols
 eg General Electric’s ‘grocery store’
 Language also found in subcultures
 eg Whirlpool’s ‘PowerPoint culture’
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
11
Artefacts: physical structures/space
Oakley, Inc.’s protective and competitive
corporate culture is apparent in its
building design and workspace. The
building looks like a vault to protect its
cherished product designs (eyewear,
footwear, apparel and watches).
Courtesy of Oakley, Inc.
Courtesy of Oakley, Inc.
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
12
Benefits of strong corporate cultures
Social
control
Strong
organisational
culture
Social
glue
Aids
sense-making
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
13
Problems with strong cultures
 Culture content might be incompatible with the
organisation’s environment
 Strong cultures focus attention on one mental
model
 Strong cultures suppress dissenting values from
subcultures
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
14
Adaptive organisational cultures
 External focus  firm’s success depends on
continuous change
 Focus on processes more than goals
 Strong sense of ownership
 Proactive  seek out opportunities
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
15
Bicultural audit
 Part of ‘due diligence’ in merger
 Minimises risk of cultural collision by diagnosing
companies before merger
 Three steps in bicultural audit
1. collect artefacts
2. analyse data for cultural conflict/compatibility
3. recommend solutions
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
16
Merging organisational cultures
Assimilation
Deculturation
Acquired company embraces
acquiring firm’s culture
Acquiring firm imposes its culture on
unwilling acquired firm
Integration
Both cultures combined into a new
composite culture
Separation
Merging companies remain
separate with their own culture
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
17
Strengthening organisational culture
Founders
and leaders
Selection
and
socialisation
Strengthening
organisational
culture
Managing the
cultural
network
Culturally
consistent
rewards
Stable
workforce
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
18
Overview of the next chapter
 Lewin’s force field analysis model
 Reasons why people resist organisational change
 Strategies to minimise resistance to change
 The organisation development process
 Appreciative inquiry as a change strategy
 Ethical issues in organisation development
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
19
C H A P T E R
16
Organisational
culture
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione