Chapter 3 – Org Culture and Environment
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Symbolic versus omnipotent view of
management
Definition of organizational culture
Seven dimensions of organizational culture
Strong versus weak cultures
Source of culture
How employees learn culture
General and specific environments
Environmental uncertainty matrix
Organizational stakeholders
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The Manager: Omnipotent or
Symbolic?
 Omnipotent
View of
Management
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Managers are directly responsible for
an organization’s success or failure.
The quality of the organization is
determined by the quality of its
managers.
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The Manager: Omnipotent or
Symbolic?
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Symbolic View of Management
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Organization’s success or failure due largely to
forces outside managers’ control
Managers’ ability to affect organization is
constrained by:
 The economy, customers, governmental
policies, competitors, industry conditions,
technology, and the actions of
previous managers
Managers merely symbolize control
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The Organization’s Culture
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A system of shared meanings and
common beliefs held by organizational
members that determines, in a large
degree, how they act towards each other.
“The way we do things around here.”
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Values, symbols, rituals, myths, and practices
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Levels of Organizational Culture
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Observable
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Unobservable
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Architecture
Material symbols
Dress
Behavior
Rules
Stories, myths, legends
Language
Favorite topics of conversation
Rituals, ceremonies
Beliefs
Norms
Values
Assumptions
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HP’s Organizational Culture
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Observable
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Unobservable
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College campus
No doors/Open door policy
First-name basis
Flexible hours
Company socials
MBWA
Profit sharing
Job security
No theft
Trust and respect for individuals
Achievement and contribution
Uncompromising integrity
Teamwork
Flexibility and innovation
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Dimensions of Organizational Culture
Exhibit 3.2
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Strong vs. Weak Culture
Strong - Key values are deeply and widely held
Strong influence on employees
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Benefit of Strong Culture
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Higher employee commitment
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Higher organizational performance
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Easier recruitment and socialization of
new members
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Factors Influencing Strength of Culture
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Size
Age
Rate of employee turnover
Strength of original culture
Clarity of cultural values and beliefs
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Sources of Organizational Culture
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The organization’s founder
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Past practices of the organization
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Vision and mission
The way things have been done
The behavior of top management
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Continuation of Organizational Culture
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Recruitment of like-minded
employees who “fit”
Socialization of new employees to
help them adapt to the culture
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How Employees Learn Culture
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Stories
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Rituals
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Repetitive sequences of activities that express and
reinforce the values of the organization
Material Symbols
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Narratives of significant events or actions of people
that convey the spirit of the organization
Physical assets distinguishing the organization
Language
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Acronyms and jargon of terms, phrases, and word
meanings specific to an organization
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Simple Rule for Getting Ahead
Find out what the organization rewards and do
those things!
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Examples of How Culture Influences
Management Practice
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Fitting in…
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Look busy even if you’re not.
Work late, even if the office closes at 5:00
Don’t question the boss’s decisions
Managing…
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Don’t “re-engineer” in a democracy
Don’t take risks in a conservative
organization
Don’t “go it alone” if teamwork counts
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The External
Environment
Exhibit 3.8
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Defining the External Environment
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External Environment
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The forces and institutions outside the
organization that potentially can affect the
organization’s performance.
Components of the External Environment
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Specific environment: external forces that
have a direct and immediate impact on the
organization.
General environment: broad economic,
socio-cultural, political/legal, demographic,
technological, and global conditions that may
affect the organization.
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ENVIRONMENTAL
FORCE
HewlettPackard
Los Angeles
County
California State
University
Economy
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Technology
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Customer demands
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Geo-political situation
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Competition
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Globalization
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Demographics
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Public accountability
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Rules and regulations
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The Board
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The Media
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Housing costs
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How the Environment Affects
Managers
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Environmental Uncertainty
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The extent to which managers have
knowledge of and are able to predict
change their organization’s external
environment is affected by:
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Complexity of the environment: the
number of components in an
organization’s external environment.
Degree of change in environmental
components: how dynamic or stable the
external environment is.
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Complexity and Dynamism (Speed of Change and Unpredictability) at the Three Giants
HP
FORCE
LAC
CSU
Economy
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Technology
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Customer demands
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Geo-political situation
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Competition
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Globalization
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Demographics
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Public accountability
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Rules and regulations
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The Board
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The Media
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Housing costs
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Environmental Uncertainty Matrix
Exhibit 3.10
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Unstable
HP
HP
LAC
Simple
Complex
CSU
LAC
Org Past
Org Present
CSU
Stable
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