Organisational culture

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Organisational culture
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Chapter learning objectives

1. Describe the elements of organisational culture.
2. Discuss the importance of organisational
   subcultures.
3. List four categories of artefacts through which
   corporate culture is communicated.
4. Identify three functions of organisational
   culture.
5. Discuss the conditions under which cultural
   strength improves corporate performance.
6. Discuss the effect of organisational culture on
   business ethics.
7. Compare and contrast four strategies for merging
   organisational cultures.
8. Identify five strategies to strengthen an
   organisations culture.

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Melso Minerals corporate culture

• Melso Minerals in Matamata, New Zealand, has an
  egalitarian, team-oriented corporate culture .
  This culture is apparent through numerous
  artefacts, such as the no-holds barred retreats
  and the Melso polo shirts that everyone wears.

Courtesy of Melso Minerals (Matamata) Ltd
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Organisational 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 organisation.

Courtesy of Melso Minerals (Matamata) Ltd
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Elements of organisational culture

• Physical structures
• Rituals/ceremonies
• Stories
• Language
• Beliefs
• Values
• Assumptions

Artefacts of organisational culture
Organisational culture
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Meaning of cultural content

• Cultural content refers to the relative ordering
  of beliefs, values and assumptions
• Example Brown Brown values aggressiveness
  SAS Institute values work-life balance
• An organisation emphasises only a handful of the
  hundreds of cultural values

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Organisational subcultures

• Located throughout the organisation
• Can support or oppose (countercultures) firms
  dominant culture
• Two functions of countercultures
• provide surveillance and evaluation
• source of emerging values

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Cultural stories at Four Seasons

• The legendary customer service at Four Seasons
  Hotels and Resorts is reflected in its corporate
  culture. Legends and stories help to support this
  customer service culture.

Courtesy of Four Seasons Hotels and Resorts
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Artefacts organisational stories

• Social prescriptions of desired behaviour
• Demonstrate that organisational objectives are
  attainable
• Most effective stories
• describe real people
• are assumed to be true
• are known throughout the organisation
• are prescriptive

Courtesy of Four Seasons Hotels Resorts
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Artefacts rituals and ceremonies

• Rituals
• programmed routines
• eg conducting meetings
• Ceremonies
• planned activities for an audience
• eg award ceremonies

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Artefacts organisational language

• Words used to address people, describe clients,
  etc
• Leaders use phrases and metaphors as cultural
  symbols
• eg General Electrics grocery store
• Language also found in subcultures
• eg Whirlpools PowerPoint culture

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Artefacts physical structures/space

• Oakley, 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 Oakley, Inc.
Courtesy of Oakley, Inc.
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Benefits of strong corporate cultures
Socialcontrol
Strong organisational culture
Socialglue
Aidssense-making
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Problems with strong cultures

• Culture content might be incompatible with the
  organisations environment
• Strong cultures focus attention on one mental
  model
• Strong cultures suppress dissenting values from
  subcultures

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Adaptive organisational cultures

• External focus ? firms success depends on
  continuous change
• Focus on processes more than goals
• Strong sense of ownership
• Proactive ? seek out opportunities

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Bicultural audit

• Part of due diligence in merger
• Minimises risk of cultural collision by
  diagnosing companies before merger
• Three steps in bicultural audit
• 1. collect artefacts
• 2. analyse data for cultural conflict/compatibilit
  y
• 3. recommend solutions

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Merging organisational cultures
Assimilation
Acquired company embraces acquiring firms culture
Deculturation
Acquiring firm imposes its culture on unwilling
acquired firm
Integration
Both cultures combined into a new composite
culture
Separation
Merging companies remain separate with their own
culture
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Strengthening organisational culture
Foundersand leaders
Strengthening organisational culture
Culturally consistent rewards
Selection and socialisation
Stable workforce
Managing the cultural network
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Overview of the next chapter

• Lewins force field analysis model
• Reasons why people resist organisational change
• Strategies to minimise resistance to change
• The organisation development process
• Appreciative inquiry as a change strategy
• Ethical issues in organisation development

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Organisational culture