Transparency 16.1
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.
McShane 5th Canadian Edition
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Transparency 16.2
Elements of Organizational Culture
Physical Structures
Artifacts of
Organizational
Culture
Rituals/ Ceremonies
Organizational
Culture
Beliefs
Stories
Language
Values
Assumptions
McShane 5th Canadian Edition
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Transparency 16.3
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.
McShane 5th Canadian Edition
Kitchener-Waterloo Record
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Transparency 16.4
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 5th Canadian Edition
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Transparency 16.5
Artifacts: Stories and Legends
 Social prescriptions of desired (undesired)
behaviour
 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 5th Canadian Edition
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Transparency 16.6
Artifacts: Rituals and Ceremonies
 Rituals
 programmed routines
 (eg., how visitors are greeted)
 Ceremonies
 planned activities for an audience
 (eg., award ceremonies)
McShane 5th Canadian Edition
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Transparency 16.7
Artifacts: Organizational Language
 Words used to address people, describe
customers, etc.
 Leaders use phrases and special vocabulary
as cultural symbols
 eg. Container Store’s “Being Gumby”
 Language also found in subcultures
 eg. Whirlpool’s “PowerPoint culture”
McShane 5th Canadian Edition
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Transparency 16.8
Artifacts: Physical Structures and Symbols
 Building structure -- may shape and reflect
culture
 Mountain Equipment Co-op’s downtown Toronto store
roof holds a 10,000 square foot garden with 4-inch thick
soil
 Office design conveys cultural meaning
 Furniture, office size, wall hangings
McShane 5th Canadian Edition
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Transparency 16.9
Benefits of Strong Corporate Cultures
Social
Control
Strong
Organizational
Culture
Social
Glue
Aids
Sense-Making
McShane 5th Canadian Edition
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Transparency 16.10
Problems with Strong Cultures
 Culture content might be misaligned with the
organization’s environment.
 Strong cultures may focus on mental models
that could be limiting
 Strong cultures suppress dissenting values
from subcultures.
McShane 5th Canadian Edition
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Transparency 16.11
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 5th Canadian Edition
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Transparency 16.12
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 5th Canadian Edition
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Transparency 16.13
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 5th Canadian Edition
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Transparency 16.14
Strengthening Organizational Culture
Founders
and leaders
Selection
and
socialization
Strengthening
Organizational
Culture
Managing the
cultural
network
McShane 5th Canadian Edition
Culturally
consistent
rewards
Stable
workforce
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.