Organizational Culture
1
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.
2
The Basic Functions of
Organizational Culture
Organizational
Culture
Provides a
sense of
identity for
members
Enhances
commitment
to the
organization’s
mission
Clarifies and
reinforces
standards of
behaviour
3
Voluntary Survival Rate
(percentage voluntarily remaining
employed in the organization)
Voluntary Survival: Its Connection to
Organizational Culture
100
Organizational cultures
emphasizing the value of
interpersonal relationships
75
50
More people voluntarily
completed six years of work
in organizations whose
cultures emphasized the value
of interpersonal relationships
than those emphasizing
the value of hard work
Organizational cultures
emphasizing the value
of hard work
25
Year 1 Year 2
Year 3
Year 4
Year 5 Year 6
Time Since First Hired
Organizational cultures
emphasizing the value of
interpersonal relationships
Organizational cultures
emphasizing the value
of hard work
4
An example
WELCOME TO NORDSTROM
We’re glad to have you with our Company.
Our number one goal is to provide
outstanding customer service.
Set both your personal and professional goals high.
We have great confidence in your ability to achieve them.
Nordstrom Rules
Rule #1: Use your good judgment in all situations.
There will be no additional rules.
Please feel free to ask your department manager, store manager, or
divisional general manager any questions at any time.
5
Elements of Organizational Culture
Artifacts of
Organizational
Culture
Physical Structures
Rituals/ Ceremonies
Stories
Language
Organizational
Culture
Beliefs
Values
Assumptions
6
Meaning of Cultural Content
• Cultural content refers to the
relative ordering of beliefs,
values, and assumptions.
• Example: RIM values
intensity whereas Q-Media
values thrift.
• An organization emphasizes
only a handful of the
hundreds of cultural values.
Kitchener-Waterloo Record
7
Organizational Culture as Shared Meanings
Yes
Regular
interaction?
Organizational
Culture
Shared
interpretation
of organizational
events?
No
8
Organizational Subcultures
• Located throughout the
organization
• Can support or oppose
(countercultures) firm’s
dominant culture
• Two functions of
countercultures:
Most Organizations
Have a Dominant
Culture and
Numerous Sets of
Subcultures.
– provide surveillance and
evaluation
– source of emerging values
9
Values of the Dominant Organizational
Culture and Subcultures
Sales group
Subculture values:
Honest representation
of products
Open to
new ideas
Values of the
Dominant
Organizational
Culture
Engineering Group
Subculture values:
Thorough product
testing
Customer
service
Accounting group
High
quality
Subculture values:
Accurate reporting
of financial data
10
Avocational subcultures
• The employee at the
next work station
may really be from
Mars
11
Artifacts: Organizational Stories
• Social prescriptions of desired behaviour
• Demonstrate that organizational objectives
are attainable
• Most effective stories:
–
–
–
–
Describe real people
Assumed to be true
Known throughout the organization
Are prescriptive
12
Artifacts: Rituals and Ceremonies
• Rituals
– programmed routines
– (e.g., conducting meetings)
• Ceremonies
– planned activities for an audience
– (e.g., award ceremonies)
13
Artifacts: Organizational 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”
14
Artifacts: Physical Structures/Space
Oakely, 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 Oakely, Inc.
Courtesy of Oakely, Inc.
15
Benefits of Strong Corporate Cultures
Social
Control
Strong
Organizational
Culture
Social
Glue
Aids
Sense-Making
16
Problems with Strong Cultures
• Culture content might be incompatible
with the organization’s environment.
• Strong cultures focus attention on one
mental model.
• Strong cultures suppress dissenting
values from subcultures.
17
Mergers and Collaboration
• Firms Well Matched on
Traditional Business Can
Stumble in Blending Their
Corporate “Personalities.”
18
Bicultural Audit
• Part of “due diligence” in merger
• Minimizes risk of cultural collision by
diagnosing companies before merger
• Three steps in bicultural audit:
1. Collect artifacts
2. Analyze data for cultural conflict/compatibility
3. Recommend solutions
19
Merging Organizational Cultures
Assimilation
Acquired company embraces
acquiring firm’s culture
Acquiring firm imposes its culture on
Deculturation unwilling acquired firm
Integration
Both cultures combined into a new
composite culture
Separation
Merging companies remain
separate with their own culture
20
What does this mean for you?
21
Strengthening Organizational Culture
Founders
and leaders
Selection
and
socialization
Strengthening
Organizational
Culture
Managing the
cultural
network
Culturally
consistent
rewards
Stable
workforce
22
How to Read an Organization’s
Culture
• Observe the Physical Surroundings.
• Ask to Sit in on a Team Meeting.
• Listen to the Language.
• Note to Whom You’re Introduced and How
They Act.
• Ask Different People the Same Questions
and Compare Their Answers.
• Get the Views of Outsiders.
23
Assessing the
Individual-to-organization Fit
24