Chapter 14
1
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
Objectives
• Define organizational culture and explain its
function
• Explain how it evolves and is transmitted
• Describe the effects of a strong culture
• Describe how leaders can manage culture
2
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
Organizational
Culture
Pattern of
shared values
and beliefs that
produce certain
norms of
behavior
3
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
Sources of Culture
Values of founder or strong leaders
Learned solutions to problems over time
4
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
Functions of Organizational
Culture
Provides a sense of identity
Generates commitment
Serves as a control mechanism
5
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
Transmitting Culture Via
Socialization
Stories
Symbols
Jargon
Rituals and Ceremonies
Statements of Principles
6
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
Uncovering Levels of Culture
(Surface to Deep Culture)
Artifacts
Visible organizational structures and
processes
Espoused
Values
Strategies, goals, philosophies
Basic
Underlying
Assumptions
Unconscious, taken-for-granted beliefs,
perceptions, thoughts, and feelings
7
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
Strong Cultures
Have more values and beliefs of high
-- intensity = degree of commitment to
the norms (evoking approval/disapproval)
-- consensus = degree of agreement
about the norms
8
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
Strong Cultures
Advantages
Disadvantages
• Clear sense of purpose
• More value-driven
decision making
• Employee commitment
• Pressure for
conformity
• Resistance to change
9
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
HOW LEADERS CREATE
AND MODIFY CULTURE
What they pay attention to, measure, and
control regularly
Their reaction to critical events and crises
Deliberate role modeling, teaching, and
coaching
10
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
...HOW LEADERS CREATE
AND MODIFY CULTURE
Criteria used to allocate scarce
resources
Criteria for allocating rewards and
status
Criteria for recruitment, selection,
promotion, retirement, and termination
11
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
Top Management’s:
*Beliefs
*Values
*Actions
Communication
*Credible
*Consistent
*Salient
“Perceived” Values, Philosophy
*Consistent
*Intensity
*Consensus
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
Rewards
*Money
*Promotion
*Approval
12
©2001 by Prentice Hall, Inc.
Characteristics of Strong
Cultures
• Easily identified dominant values
• Selection process targets people who fit the culture
• Socialization and training teach newcomers “the
ropes”
• Employees who don’t fit are fired
• Rewards for acting in accordance with the culture
• Leaders and managers send clear signals about
desired values and norms
13
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
Organization Stages of Development
Large
Renewal
Continuing
maturity
Size
Decline
Small
1.
2.
3.
Entrepreneurial Collectivity Formalization
Stage
Stage
Stage
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
4.
Elaboration
Stage
14
©2001 by Prentice Hall, Inc.
Five Phases of Growth
15
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
Organizational Practices in the
Five Phases of Growth
Category
Phase 1
Phase 2
Phase 3
Phase 4
Phase 5
Management
Focus
Make and sell
Efficiency
operations
Expansion of
market
Organizational
consolidation
Problem solving
and innovations
Organizational
Structure
Informal
Centralize,
functional
Decentralize,
geographical
Line staff and
product groups
Matrix of teams
Top-Mgt.
Style
Individualistic,
entrepreneurial
Directive
Delegative
Watchdog
Participative
Plans,
investment
centers
Profit sharing,
stock options
Mutual goal
setting
Control System Market results
Management
Reward
Emphasis
Ownership
Standards, Reports and
cost centers profit centers
Salary,
merit
increases
Individual
bonus
Team bonus
16
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
Three Cultures of
Management
Executive
Culture
Operator culture
Engineering culture
17
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
Assumptions of the Operator
Culture
• Enterprise’s success depends on
people’s knowledge, skill, learning
ability, and commitment.
• Required knowledge and skills are
“local” and based on core technology.
18
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
...Assumptions of the Operator
Culture
• Operators need the capacity to learn
and to deal with surprises.
• Work must be done in a collaborative
manner that values communication,
openness, mutual trust, and
commitment.
19
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
Assumptions of the
Engineering Culture
• Engineers are proactively optimistic that
they can and should master nature.
• Engineers are stimulated by puzzles
and problems with pragmatic, perfect,
and “people free” solutions.
20
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
...Assumptions of the
Engineering Culture
• The ideal world is made of elegant
machines and processes working in
perfect precision and harmony without
human intervention.
• Engineers are safety oriented and
overdesign for safety.
• Engineers prefer linear, simple causeand-effect, quantitative thinking.
21
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.
Assumptions of the Executive
Culture
•
•
•
•
Financial focus
Self-image: the Embattled Lone Hero
Hierarchical and individual focus
Task and control focus
22
Organizational Behavior: An Experiential Approach 7/E
Joyce S. Osland, David A. Kolb, and Irwin M. Rubin
©2001 by Prentice Hall, Inc.