Chapter 16
Organizational
Culture
Objectives
Define organizational culture and explain
its function
Explain how organizational culture evolves
and is transmitted
Contrast the characteristics of strong and
weak cultures
Explain the relationship between strong
cultures and high performance
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
16 -1
…Objectives
Describe the importance of organizational
justice
Explain the impact of organizational
culture in mergers
Describe how leaders can manage culture
Identify the four stages in the
organizational life cycle
Organizational Behavior: An Experiential Approach 8/E
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16 -2
Organizational Culture Defined
Pattern of shared values
and beliefs that produce
certain norms of
behavior
Organizational Behavior: An Experiential Approach 8/E
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Uncovering Levels of
Culture
Artifacts
Espoused
Values
Visible organizational
structures and processes
Strategies, goals, philosophies
Unconscious, taken-forBasic
Underlying granted beliefs, perceptions,
Assumptions thoughts, and feelings
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Types f Cultures
Dominant culture – manifests the values
shared by a majority of the organization's
members
Subculture – shares the dominant
culture’s core values as well as other
values that characterize their own
department, geographical unit, etc.
Counterculture – its values are in
opposition to those of the dominant culture
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
16 -5
Functions of Organizational
Culture
Provide a sense of identity
Generate commitment
Helps make sense of occurrences
Control mechanism
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Sources of Culture
Beliefs, values and assumptions of
founders, leaders
Learning experiences of group members
as their organization evolves
New beliefs, values, and assumptions
brought in by new members and leaders
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
16 -7
Strong Cultures - Defined
Strong cultures have core values and
beliefs that are intensely held, more
widely shared and more ordered than
weak cultures
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
16 -8
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
cultural values
Leaders and managers send clear signals
about desired values and norms
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
16 -9
Strong Cultures
Advantages
 High performance under
certain conditions
 Clear sense of purpose
 More value-driven
decision making
 Employee commitment
 Loyalty
 Pride
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
Disadvantages
 Pressure for
conformity
 Resistance to
change
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Strong Cultures and
Performance
Strong Culture
Focus on Key Constituencies
Leadership at all Levels
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
High
Performance
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The Importance of Fit
People
Strategy
Culture
Organization’s
task
Organizational Behavior: An Experiential Approach 8/E
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Environment
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Transmitting Culture Via
Socialization
Stories
Symbols
Jargon
Rituals and Ceremonies
Statements of Principles
Organizational Behavior: An Experiential Approach 8/E
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16 -13
Socialization - Defined
Socialization is the systematic process by
which organizations bring new members into
their cultures
Organizational Behavior: An Experiential Approach 8/E
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Seven Steps of Socialization
Careful selection
of candidates
Humility-inducing
In-the-trenches
experiences
training
Careful attention
to rewards & control
systems
Consistent role
models
Reinforcing
folklore
Organizational Behavior: An Experiential Approach 8/E
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Careful adherence
to core values
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Organizational Justice
Distributive Justice - Fair distribution of
resources (pay, rewards, promotions and
dispute resolutions)
Procedural Justice - Fair decisionmaking procedures regarding resource
distribution
Interactional Justice - Fair treatment
from others
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Outcomes of
Organizational Justice
Higher performance
Compliance
Trust






Cooperation with coworkers
Organizational citizenship behavior
Less turnover
Less absenteeism
Less employee silence
Less counterproductive behaviors
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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…Outcomes of
Organizational Justice
Increased
 Performance
 Compliance
 Trust in managers
 Cooperation with
coworkers
 Organizational
citizenship behavior
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
Decreased
 Less turnover
 Less absenteeism
 Less employee
silence
 Less
counterproductive
behaviors
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Mergers and Culture
50% failure rate on mergers and
acquisitions
To ensure a successful merger
 Analyze cultural compatibility of both
organizations beforehand
 Develop shared values rather than
imposing the values of one firm on the
other
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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How Leaders Create and Modify
Culture – Primary Mechanisms
What they regularly pay attention to,
measure, and control
Their reaction to critical incidents and
crises
Criteria used to allocate scarce resources
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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…How Leaders Create and
Modify Culture
Deliberate role modeling, teaching, and
coaching
Criteria for allocating rewards and status
Criteria for recruitment, selection,
promotion and termination
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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How Leaders Create and Modify
Culture - Secondary Mechanisms
1.
2.
3.
4.
Organizational design
Systems and procedures
Rites and rituals
Design of physical space, facades,
buildings
5. Stories about important events and
people
6. Formal statements of organizational
philosophy, creeds, and charters
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Organization Stages of
Development
Large
Renewal
Continuing
maturity
Size
Decline
Small
1.
2.
3.
Entrepreneurial Collectivity Formalizatio
Stage
Stage
n Stage
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
4.
Elaboration
Stage
16 -23
How Can You Renew a Mature
Organization?
Instill a customer perspective and focusing
on customer demands
Increase their capacity for change
Alter both hardware and software within
the organization
Create empowered employees who act as
leaders at all organizational levels
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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