Organization Culture
Mason Carpenter, Talya Bauer, Berrin Erdogan, and Jeremy Short
©2013 Flat World Knowledge, Inc. 1

Chapter 8 Organizational Culture
© Jupiterimages Corporation

Describe what organizational culture is and why it is important for an organization

Understand the dimensions that make up a company
’ s culture

Understand the creation and maintenance of organizational culture
 Understand factors that create cultural change
 Develop personal culture management skills
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Understanding Organizational Culture
The P-O-L-C Framework
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What is Organizational Culture?
A system of shared assumptions, values, and beliefs that indicate appropriate and inappropriate behavior within a given organization
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It is related to the second of the three facets comprising the P-O-L-C function of
ORGANIZING
The culture of the organization is closely linked to organizational design
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Why Does Organizational Culture Matter?
An organization’s culture may be one of its strongest assets or its biggest liability
Organizational culture is an effective control mechanism dictating employee behavior
Culture, or shared values within the organization, may be related to increased performance
Organizations which have a rare and hard to imitate culture may enjoy a competitive advantage
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Levels of Organizational Culture
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Basic assumptions lie below awareness.
Assumptions are taken for granted, and reflect beliefs about human nature and reality
At the second level, values exist. Values are shared principles, standards, and goals
Artifacts are on the surface, and are visible, tangible aspects of organizational culture
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• Perhaps the most intriguing aspect of culture as a concept is that it points us to phenomena that are below the surface, that are powerful in their impact but invisible and to a considerable extent unconscious. In that sense, culture is to a group what personality or character is to an
individual. We can see the behavior that results but often we cannot see the forces underneath that cause certain kinds of behavior.
• Yet, just as our personality and character guide and constrain our behavior, so does culture guide and constrain the behavior of members of a group through the shared
norms that are held in that group.
• --Edgar Schein, 2004

http://www.changebydesignllc.com/what-is-culture-and-why-does-i/

– 2005 study conducted by the
Economicist Intelligent Unit

Zi-Kung wanted to do away with the sacrificial sheep at the announcement of the new moon. The Master said, “Chi, you are concerned about the cost of the sheep, but I am afraid of the disappearance of the rite [may cause the disappearance the spirit behind it].” Analects (3:17) rituals

Forces that Influence Cultures
• Religion
• History (National culture)
• The media
• Educational systems
• Family education
• Economic conditions
• Past experiences at various levels (from individual to national)

• Why do companies need culture?
• Give an example of a company culture being a strength as well as a weakness.
• In what ways does culture serve as a controlling mechanism?
• If assumptions are below the surface, why do they matter?
• Share examples of artifacts you have noticed at different organizations.
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Dimensions of the Organizational Culture Profile
(OCP)
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Dimensions of the Organizational Culture Profile
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• iPhone
• iPad Experiment with new ideas
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Flexible
Adaptable
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Source: http://simple.wikipedia.org/wiki/Image:Bill_Gates_in_Poland_cropped.jpg
Bill Gates co-founder of Microsoft
Microsoft has been described as having an aggressive culture
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Outcomeoriented cultures
• A culture that emphasizes achievement, results, and action as important values
Stable Cultures
• Companies that are stable are predictable, rule-oriented, and bureaucratic
People-oriented cultures
• These organizations value fairness, supportiveness, and respecting individual rights
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Team-oriented cultures are collaborative and emphasize cooperation among employees
© Jupiterimages Corporation
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The growth in the number of passengers flying with
Southwest Airlines
1973 until 2012
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© Jupiterimages Corporation
A culture that is characterized in the OCP framework as emphasizing precision and paying attention to details
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STRENGTH OF CULTURE
Source: http://en.wikipedia.org/wiki/Image:Walt_disney_portrait.jpg
Walt Disney created a strong culture which survives today
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Cultures that emerge within different departments, branches, or geographic locations are called subcultures.
Sometimes, a subculture may take the form of a counterculture , shared values and beliefs that are in direct opposition to the values of the broader organizational culture.
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• Think about an organization you are familiar with. On the basis of the the dimensions of OCP, how would you characterize its culture?
• Out of the culture dimensions described, which dimension do you think would lead to higher levels of employee satisfaction and retention? Which one would be related to company performance?
• What are pros and cons of an outcome-oriented culture?
• When bureaucracies were first invented, they were considered quite innovative. Do you think that different cultures are more or less effective at different points in time and in different industries? Why or why not?
• Can you imagine an effective use of subcultures within an organization?
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Creating and Maintaining Organizational Culture
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
The social activism of Ben and Jerry ’ s was instilled in the company because founders strongly believed in these issues

Social activism helped distinguish Ben and Jerry ’ s from larger corporate brands
Source: http://commons.wikimedia.org/wiki/Image:BenJerry-UnitedSquare.jpg
 The values were retained as part of the corporate culture and taught to new members as the right way to do business
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attraction selection attrition onboarding leadership reward systems
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The ASA Framework (Attraction, Selection, Attrition)
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• Also known as forced ranking, forced distribution,
rank and yank, and stack ranking.
• Rank-based employment evaluation promoted by
GE Jack Welch
• Criticisms of rank-and-yank
• Microsoft abandon the system (Why?)
Source: http://en.wikipedia.org/wiki/Vitality_curve
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Orientation
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Use of formal orientation programs
Mentoring by supervisors and coworkers
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What leaders do directly influences the cultures of their organizations
Part of the leader’s influence over culture is through role modeling
Leaders also shape culture by their reactions to the actions of others around them
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Results?
Performance?
Behaviors?
The types of behaviors/statuses that are rewarded or ignored set the tone for the culture
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Seniority?
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Tradition is important at Mary Kay Cosmetics
Pink Cadillacs are given to top performers at large annual events
Source: http://en.wikipedia.org/wiki/Image:MK_Cadillacs.jpg
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Physical Layout is important at Google
Google promotes creativity and a fun atmosphere by enhancing their buildings with a vast array of visual simuli
Source: http://commons.wikimedia.org/wiki/File:Don%27t_be_evil_-_Googleplex _-_IMG_2445.JPG
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National Center for Atmospheric Research (NCAR)
Boulder, Colorado by IM Pei 1967
• Although the arrangement of pieces within the complex appears random, it is actually careful planned. Pei organized the offices and laboratories within two tall towers to make sure researchers could have time alone, yet the maze-like atmosphere of the building encourages
casual meetings [chance encounters] in the halls and common areas, which Walter Roberts, NCAR’s founding director, believed were an important part of scientific research and deliberation.
©2013 Flat World Knowledge, Inc. http://archi-learner.blogspot.com/2014/01/national-center-for-atmospheric.html
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Kindergarten
Classroom

Radical innovations are spawned by the interplay of different ideas and domains that don’t usually belong together, through connectivity and
conversation.
Source: Innovation to the Core

Stimulating innovation via chanced encounters.

Brain trust ( link )
Give advice not command
No PowerPoint, please
Daily Reviews (Dailies)
Overcoming Inhibitions
Showing unfinished work each day liberates people to take risks and try new things because it doesn’t have to be perfect the first time.
Peer Culture

• Google Office Tour ( video )
• Pixar Office and Movie Production ( video )
• http://luke-roxas.com/8-coolest-offices-world/
• http://lukeroxascompany.com/7-offices-world-cool/
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• Do you think it is a good idea for companies to emphasize personorganization fit when hiring new employees? What advantages and disadvantages do you see when hiring people who fit with company values?
• What is the influence of company founders on company culture? Give examples based on your personal knowledge.
• What are the methods companies use to aid with employee onboarding? What is the importance of onboarding for organizations?
• What type of a company do you feel you would fit in? What type of a culture would be a misfit for you? In your past work experience, were there any moments when you felt that you did not fit in? Why?
• What is the role of physical layout as an indicator of company culture?
What type of a physical layout would you expect from a company that is people oriented? Team oriented? Stable?
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• Can new employees change a company ’ s culture?
If so, how?
• Are there any conditions under which change is not possible? If so, what would such conditions be?
• Have you ever observed a change process at an organization you were involved with? If so, what worked well and what didn ’ t?
• What recommendations would you have for someone considering a major change of culture within their own organization?
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The Development of Organizational Cultures
• Organizational cultures are developed due to:
– External adaptation reflects an evolutionary approach to organizational culture and suggests that cultures develop and persist because they help an organization to survive and flourish. Culture could generate sustained competitive advantages.
– Internal integration is an important function for organizations to exist.
Organizational practices are learned through socialization at the workplace.
Work environments reinforce culture on a daily basis by encouraging employees to exercise cultural values.
• Organizational culture is shaped by multiple factors:
– External environment (e..g, National cultures)
– Industry
– Size and nature of the organization’s workforce
– Technologies the organization uses
– The organization’s history and ownership (leaderships)
Source: Shein, Edgar (1992).
Organizational Culture and Leadership: A Dynamic View .
San Francisco, CA: Jossey-Bass. pp. 9.

“How we see ourselves”
Guide for decision making
“The way we do things around here!”
Culture Identity
Reputation
Employee engagement
“How we want others to see us”
Image
1. Identity expresses cultural understanding.
2. Identity mirrors the images of others
3. Reflecting embeds identity in culture
4. (Image is) Expressed identity leaves impressions on others.
Source: The relationship between culture, identity and image
Based on Hatch & Schultz, 2002 http://www.yourbuilding.org/Article/NewsDetail.aspx?p=83&id=1580

Top
Management
 Agrees on shared assumptions of human behavior
 Develops a shared vision of cultural values
Behaviors
 Employees behave in ways that are consistent with shared values and assumptions
Results
 Financial performance
 Market share
 Employee commitment
Culture
 Strong culture emerges
 Traditions are maintained
 Socialization practices for new employees

Methods of Maintaining Organizational Culture
 What managers and teams pay attention to
 Reactions to organizational crises
 Managerial role modeling
 Criteria for rewards
 Criteria for selection and promotion
 Organizational rites, ceremonies, stories
Recruitment of employees who fit the culture
Organizational
Culture
Removal of employees who deviate from the culture

– 《論語‧鄉黨》
The stable being burned down, when
Confucius was at court, on his return he said,
"Has any people been hurt?" He did not ask about the horses.
– The Analects [10:13]
This is when you know what is the real priority from the leadership.

Developing Your Personal Skills: Learning to
Fit In
Do your research
Observe the physical environment
Read between the lines
Listen to your gut
Ask questions
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Reflect on how you are treated
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• What clues does your college or school give about its culture?
• What are four things you could do today to learn more about an organization you are interested in?
• Imagine that your good friend is starting a new job next week. What recommendations would you give your friend to help him or her do a great job onboarding into the organization?
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( Link )
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