C H A P T E R: S I X T E E N
Organizational
Culture
16
McGraw-Hill Ryerson
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Cirque du Soleil’s Corporate Culture
Through its strong
culture of risk-taking and
creativity, Montrealbased Cirque du Soleil
has become a leader in
big top entertainment.
CP/Paul Chaisson
McShane/ Canadian OB 6e
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Organizational 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
organization.
CP/Paul Chaisson
McShane/ Canadian OB 6e
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Elements of Organizational Culture
Qui c k Ti m e™ and a
TI FF (Unc omp res s ed) dec omp res s or
are n eeded to s ee t hi s pi c t ure .
McShane/ Canadian OB 6e
Qui c k Ti m e™ and a
TI FF (Unc omp res s ed) dec omp res s or
are n eeded to s ee t hi s pi c t ure .
4
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Meaning of Cultural Content
Cultural content refers to the relative ordering
of beliefs, values, and assumptions.
Example: Toronto Star’s “Atkinson
Principles”: Canadian independence, social
justice, and civic duties
An organization emphasizes only a handful of
values out of dozens or hundreds of values
that exist.
McShane/ Canadian OB 6e
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Organizational Subcultures
Located throughout the organization
Can enhance or oppose (countercultures)
firm’s dominant culture
Two functions of countercultures:
 provide surveillance and critique, ethics
 source of emerging values
McShane/ Canadian OB 6e
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Mayo Clinic Deciphers its Culture
Courtesy of the Mayo Clinic
To decipher its culture and identify ways to reinforce
it at the two newer sites, the Mayo Clinic retained an
anthropologist who shadowed employees, joined
physicians on patient visits, and posed as a patient to
observe what happens in waiting rooms.
McShane/ Canadian OB 6e
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Artifacts: Stories and Legends
Social prescriptions of desired (undesired)
behavior
Provides a realistic human side to
expectations
Most effective stories and legends:




Describe real people
Assumed to be true
Known throughout the organization
Are prescriptive
McShane/ Canadian OB 6e
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Artifacts: Rituals and Ceremonies
Rituals
 programmed routines
 (e.g., how visitors are greeted)
Ceremonies
 planned activities for an audience
 (e.g., award ceremonies)
McShane/ Canadian OB 6e
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Artifacts: Organizational Language
Words used to address people, describe
customers, etc.
Leaders use phrases and special vocabulary
as cultural symbols
 e.g., Container Store’s “Being Gumby”
Language also found in subcultures
 e.g., Whirlpool’s “PowerPoint culture”
McShane/ Canadian OB 6e
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Artifacts: Physical Structures/Symbols
Building structure -- may shape and reflect
culture

Mountain Equipment Co-op’s retail outlets reflect and
maintain an enviro-friendly culture
Office design conveys cultural meaning

Furniture, office size, wall hangings
McShane/ Canadian OB 6e
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Benefits of Strong Corporate Cultures
Social
Control
Strong
Organizational
Culture
Social
Glue
Improves
Sense-Making
McShane/ Canadian OB 6e
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Problems with Strong Cultures
1. Culture content might be misaligned with
the organization’s environment.
2. Strong cultures may focus on mental
models that could be limiting
3. Strong cultures suppress dissenting values
from subcultures.
McShane/ Canadian OB 6e
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Adaptive Organizational Cultures
 External focus: Firm’s success depends on
continuous change
 Focus on processes more than goals
 Strong sense of ownership
 Proactive: Seek out opportunities
McShane/ Canadian OB 6e
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Org Culture and Ethics
Executives view org culture is one of three
main influences on business ethics
Organizational culture also an ethical
problem when it is very strong --corporate
cults
McShane/ Canadian OB 6e
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Bicultural Audit
Part of “due diligence” in merger
Minimizes risk of cultural collision by
diagnosing companies before merger
Three steps in bicultural audit:
1. Examine artifacts
2. Analyze data for cultural conflict/compatibility
3. Identify strategies and action plans to bridge
cultures
McShane/ Canadian OB 6e
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Merging Organizational Cultures
Assimilation
Deculturation
Acquired company embraces
acquiring firm’s cultural values
Acquiring firm imposes its culture on
unwilling acquired firm
Integration
Cultures combined into a new
composite culture
Separation
Merging companies remain
separate with their own culture
McShane/ Canadian OB 6e
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Strengthening Organizational Culture
Founders
and leaders
Selection
and
socialization
Strengthening
Organizational
Culture
Managing
the cultural
network
McShane/ Canadian OB 6e
Culturally
consistent
rewards
Stable
workforce
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Organizational Socialization Defined
The process by which individuals learn the
values, expected behaviours, and social
knowledge necessary to assume their
roles in the organization
McShane/ Canadian OB 6e
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Socialization: Learning & Adjustment
Learning Process
 Newcomers make sense of the organization’s
physical, social, and strategic/cultural dynamics
Adjustment Process
 Newcomers need to adapt to their new work
environment
• New work roles
• New team norms
• New corporate cultural values
McShane/ Canadian OB 6e
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Stages of Socialization
Pre-Employment
Stage
Encounter
Stage
Role
Management
• Outsider
• Newcomer
• Insider
• Gathering
information
• Testing
expectations
• Changing roles
and behaviour
• Forming
psychological
contract
McShane/ Canadian OB 6e
• Resolving
conflicts
21
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Pre-employment Socialization Conflicts
Individual
Attracts
Organization
Organization
Attracts
Individual
Conflict C
Conflict D
Individual
Selects
Organization
McShane/ Canadian OB 6e
Organization
Selects
Individual
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Realistic Job Previews
A balance of positive and negative
information about the job and work context
Benefits of RJPs
 Less turnover, higher job performance
 Less reality shock
 Vaccination effect
 Builds loyalty
McShane/ Canadian OB 6e
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
C H A P T E R: S I X T E E N
Organizational
Culture
16
McGraw-Hill Ryerson
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.