Learning Outcomes
Chapter 16
Organizational Culture
1.
Identify the three levels of culture and the roles they play in an organization.
2.
Evaluate the four functions of culture within an organization.
3.
Explain the relationship between organizational culture and performance.
4.
Describe five ways leaders reinforce organizational culture.
5.
Describe the three stages of organizational socialization and the ways
culture is communicated in each step.
6.
Discuss how managers assess their organization’s culture.
7.
Explain actions managers can take to change organizational culture.
8.
Identify the challenges organizations face developing positive, cohesive
cultures.
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1
Learning Outcome
Identify the three levels of culture
and the roles they play in an
organization.
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Organizational (Corporate)
Culture
a pattern of basic assumptions that are
considered valid and that are taught to
new members as the way to perceive,
think, and feel in the organization.
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Levels of Organizational
Culture
Artifacts – symbols of culture in the physical and social
work environment
Espoused Values – what members of an organization say
they value
Enacted Values – reflected in the way individuals actually
behave
Assumptions – deeply held beliefs that guide behavior and
tell members of an organization how to perceive and think
about things
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Organizational Culture
Visible, often not
decipherable
Artifacts
Espoused Values
Enacted Values
Assumptions
Greater level
of awareness
Taken for granted,
Invisible, Preconscious
Reprinted with permission from Edgar H. Schein,
Organizational Culture and Leadership: A Dynamic View.
Copyright © 1985 Jossey-Bass
Inc, a subsidiary of John Wiley & Sons, Inc.
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Types of Artifacts
• Personal Enactment
• Ceremonies and Rites
• Stories
–
–
–
–
–
–
About the boss
About getting fired
About relocating
About promotions
About crisis situations
About status considerations
• Rituals
• Symbols
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Beyond the Book:
Identifying Norms
This exercise asks you to identify campus norms at your university. Every
organization or group has a set of norms that help determine individuals’ behavior.
A norm is an unwritten rule for behavior in a group. When a norm is not followed,
negative feedback is given. It may include negative comments, stares,
harassment, and exclusion.
1. As a group, brainstorm all the norms you can think of in the following areas:
Dress Classroom behavior; Studying; Weekend activities; Living arrangements;
Campus activities; Dating; Relationships with faculty; Eating on campus versus off
campus; Transportation
2. How did you initially get this information?
3. What happens to students who don’t follow these norms?
4. What values can be inferred from these norms?
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2
Learning Outcome
Evaluate the four functions of culture
within an organization.
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Functions of Organizational
Culture
• Culture provides a sense of identity to
members and increases their commitment to
the organization
• Culture is a sense-making device
for organization members
• Culture reinforces the values
of the organization
• Culture serves as a control
mechanism for shaping
behavior
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Beyond the Book:
NetApp’s Culture of Openness
What is the key to success at NetApp? According to top
executives, it’s openness.
Everyone, including the CEO, works in an open cubicle.
Information is shared freely. Every two weeks, employees meet
with the Vice President to share their perspectives.
In addition, NetApp shows employees that they are valuable and
cared for through flexible scheduling, and sponsorship of
volunteer activities.
NetApp’s culture of openness and trust has made it one of
Fortune magazine’s “Best Companies to Work For.”
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3
Learning Outcome
Explain the relationship between
organizational culture and
performance.
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Three Theories on the Relationship Between
Organizational Culture and Performance
Strong Culture Perspective
Fit Perspective
Adaptive Perspective
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Strong Culture
an organizational culture with a
consensus on the values that drive the
company and with an intensity that is
recognizable even to outsiders
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Strong Cultures Facilitate
Performance
BECAUSE
• They are characterized by goal
alignment
• They create a high level of motivation
because of shared values by the
members
• They provide control without the
oppressive effects of bureaucracy
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Fit Perspective
a culture is good only if it fits the
industry or the firm’s strategy
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Fit Perspective
Three particular industry
characteristics affect culture:
1. Competitive environment
2. Customer requirements
3. Societal expectations
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Adaptive Culture
an organizational culture that
encourages confidence and risk taking
among employees, has leadership that
produces change, and focuses on the
changing needs of customers
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Adaptive vs. Nonadaptive Cultures
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4
Learning Outcome
Describe five ways leaders reinforce
organizational culture.
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Most Important Elements
in Managing Culture
• What leaders pay attention to
• How leaders react to crises
• How leaders behave
• How leaders allocate rewards
• How leaders hire and fire individuals
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5
Learning Outcome
Describe the three stages of
organizational socialization and the
way culture is communicated in each
step.
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Organizational Socialization
the process by which newcomers are
transformed from outsiders to
participating, effective members of
the organization
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Organizational Socialization Process
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[Socialization Process]
Anticipatory Socialization – the first
socialization stage, which encompasses all of
the learning that takes place prior to the
newcomer’s first day on the job
Encounter – the second socialization stage in
which newcomers learn the tasks associated
with the job, clarifie their roles, and establish
new relationships at work
Change and Acquisition – the third socialization
stage, in which the newcomer begins to master
the demands of the job
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Outcomes of Socialization
Newcomers who are successfully
socialized should exhibit:
– Good performance
– High job satisfaction
– Intention to stay with organization
– Low levels of distress symptoms
– High level of orgnaizational commitment
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6
Learning Outcome
Discuss how managers assess their
organization’s culture.
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Organizational Culture
Inventory
Focuses on behaviors that help
employees fit into the organization and
meet coworker expectations.
Uses Maslow’s hierarchy of
needs to measure twelve
cultural styles.
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Kilmann-Saxton Culture-Gap
Survey
Focuses on what actually happens in the
organization and the expectations of others
Two underlying dimensions
– technical/human and
time.
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Triangulation
the use of multiple methods to
measure organizational culture
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7
Learning Outcome
Explain actions managers can take to
change organizational culture.
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Cultural Changes
With rapid environmental changes such as
globalization, workforce diversity and
technological innovation, the fundamental
assumptions and basic values that drive
the organization may need to be altered.
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Why is Change Difficult?
• Assumptions are often
unconscious
• Culture is deeply ingrained
and behavioral norms and
rewards are well learned
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Interventions for Changing
Organizational Culture
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8
Learning Outcome
Identify the challenges organizations
face developing positive, cohesive
cultures.
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Challenges to Developing Positive,
Cohesive Culture
•
•
•
•
Merger or Acquisition
Developing a global organizational culture
Developing an ethical organizational culture
Developing a culture of empowerment and
quality
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Beyond the Book:
Six Guidelines to Creating a Global Culture
1. Create a clear and simple mission statement
2. Create systems that ensure an effective flow of
information
3. Broaden managers’ minds to allow them to think
globally
4. Develop global career paths
5. Use cultural differences as a major asset
6. Implement worldwide management education
and team development programs
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1. Artifacts are at the first level of
organizational culture and are the
easiest to see. Which artifacts did you
observe in this sequence?
Charlie Wilson’s
War
2. Values appear at the next level of
organizational culture. You can
infer a culture’s values from the
behavior of organizational members.
Which values appear in this
sequence?
3. Organizational members will
unconsciously behave according to an
organization culture’s assumptions.
You also can infer these from
observed behavior. Which
assumptions appear in this sequence?
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1. What aspects of Camp Bow
Wow’s corporate culture are
visible and conscious? What
aspects are invisible and
unconscious?
Camp Bow Wow
2. Why did Camp Bow Wow have
to change its culture when it
became a national franchise?
3. What impact does Heidi
Ganahl’s story have on
employees at Camp Bow Wow?
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