Chapter 12
Diagnosing and Modifying
Organizational Culture
Management: A Skills Approach, 2/e
by Phillip L. Hunsaker
Copyright © 2005 Prentice-Hall
12-1
Learning Objectives
• Identify an Organization’s Culture
• Assess How a Person Fits into a
Specific Culture
• Instill Cultural Values and Norms in
Subordinates
• Make Appropriate Changes to an
Organization’s Culture
12-2
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Organizational Culture
• The key characteristics that the
organization values and that
distinguish it from other
organizations.
12-3
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Enculturation
• All successful managers and
employees must learn what to
do and what not to do in their
organizations.
12-4
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Why is Culture Important?
• Even firms doing well on traditional
business criteria can stumble in
blending their corporate personalities.
12-5
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Dimensions of Culture
1.
2.
3.
4.
5.
6.
7.
Innovation and Risk Taking
Attention to Detail
Outcome Orientation
People Orientation
Team Orientation
Aggressiveness
Nonstability
12-6
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Innovation and Risk Taking
• The degree that
employees are
encouraged to be
innovative and take
risks
12-7
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Attention to Detail
• The degree that
employees are
expected to exhibit
precision, analysis,
and attention to
detail
12-8
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Outcome Orientation
• The degree that
management
focuses on results
rather than process
used to produce
those results
12-9
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People Orientation
• The degree that
management
decisions take into
account how people
in the organization
will be affected
12-10
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Team Orientation
• The degree that
work is organized
around teams rather
than individuals
12-11
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Aggressiveness
• The degree that
people are
aggressive and
competitive rather
than easygoing
12-12
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Non-stability
• The degree that
organizational
activities emphasize
growth as opposed
to maintaining the
status quo
12-13
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The Essence of Nordstrom’s
Organizational Culture
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.
12-14
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Reasons to Strive for a Strong Culture
• They are associated with high
organizational performance.
• Increased employee commitment and
loyalty
• Yield a sustainable competitive
advantage
12-15
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Where Does
Culture Come From?
• Founders hire and keep employees who
think and feel the way they do.
• Founders indoctrinate and socialize
these employees to their way of
thinking.
• Founders act as role models.
12-16
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How is Culture Transmitted to
Employees?
•
•
•
•
Stories
Rituals
Material Symbols
Language
12-17
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The Role of Subcultures
• Most organizations have a
dominant culture and
numerous sets of
subcultures.
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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
12-19
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Four Types of Organizational Culture
Type
Description
Academy
Employees stay within a narrow specialty and are
promoted after they master a new job thoroughly.
Club
Employees are trained as generalists and
promoted on the basis of seniority.
Baseball team
Employees are rewarded for what they produce.
Risk-taking and innovation are highly valued.
Fortress
Preoccupied with survival, these cultures reward
employees who can reverse the organization’s
sagging fortunes.
12-20
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Sustaining a Culture
• Selection Practices
• Top Management’s Behavior
• Socialization
12-21
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Conditions for Changing Culture
• A Dramatic Crisis
• Turnover in Leadership
• Young and Small
Organization
• Weak Culture
12-22
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Changing the Culture
• Actions to Change Culture
•
•
•
•
Do a Cultural Analysis
Create Sense of Urgency
Appoint a Visionary Change Agent
Create Supporting Conditioning
Components
12-23
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