C H A P T E R
S I X T E E N
Organizational
Culture
Organizational Culture Defined
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.
Slide 17.2
Components of Organizational Culture
• Routine behaviors.
• Norms shared by teams.
• Dominant values.
• Guiding philosophy for policies toward
employees and customers.
• The rules of the game for getting along in
the organization.
• The climate of the organization.
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Culture
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Elements of Organizational
Culture
Artifacts of
Organizational
Culture
Organizational
Culture
Physical Structures
Rituals/ Ceremonies
Stories
Language
Beliefs
Values
Assumptions
Organizational Subcultures
• Located throughout the organization
• Support or oppose (countercultures) firm’s
dominant culture
• Two functions of countercultures:
– provide surveillance and evaluation
– source of emerging values
Artifacts of Organizational Culture
• Organizational stories
– social prescriptions and role models
• Rituals and ceremonies
– programmed routines and planned activities
• Organizational language
– Defining words, metaphors
• Physical structures and space
– Building structure, office design
Oakely’s Culture in Building
Design
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.
Problems with Strong Cultures
• Strong cultures may be a problem
when:
– Culture content is incompatible with the
organization’s environment.
– Strong cultures focus attention on one
mental model.
– Strong cultures suppress dissenting values
from subcultures.
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 identifying cultural differences
between merging companies
2. Analyze audit data -- determine where cultural conflict
and compatibility exist
3. Identify ways to bridge the two organizations’ cultures
Merging Organizational Cultures
• Assimilation Strategy
• Deculturation Strategy
• Integration Strategy
• Separation Strategy
Strengthening Organizational
Culture
Founders
and leaders
Selection
and
socialization
Strengthening
Organizational
Culture
Managing the
cultural
network
Culturally
consistent
rewards
Stable
workforce
Slide 17.8
Requirements for Successfully Changing
Organizational Culture
• Understand the old culture first.
• Support employees and teams who have ideas for a better
culture and are willing to act on those ideas.
• Find the most effective subculture in the organization and
use it as a model.
• Help employees and teams do their jobs more effectively.
• Use the vision of a new culture as a guide for change.
• Recognize that significant cultural change takes time.
• Live the new culture.
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Culture
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