The Corporate Cult

1
The Corporate Cult

• March 29, 2005

2
From Theory to Practice How Do Organizations Use
Social Influence Tactics?

• Employee Socialization How do organizations
  create the perfect worker?
• 6 Tactics to Remember
• Collective vs. Individual
• Formal vs. Informal
• Sequential vs. Random
• Fixed vs. Variable
• Serial vs. Disjunctive
• Investiture vs. Divestiture

3
Socializing Obedience

• Different tactics result in different behaviors.
• Innovative Response Employees actively
  change/shape their role.
• Custodial Response Employees do what they are
  told.
• Custodial Response (1) Sequential, (2) Variable,
  (3) Serial, (4) Divestiture.
• Video Clip Full Metal Jacket

4
Analyzing the Video

• Theory of socialization would predict a custodial
  response under the following conditions
• Recruit follows a definite set of stages
  (sequential)
• With no timetable for moving from one stage to
  the next (variable).
• Recruit has a role model to demonstrate correct
  behavior (serial)
• Old self is stripped away and new self is
  re-defined according to the organizations values
  (divestiture).
• Does the movie get it right?

5
Recruits are Trained So, Now What?

• Social influence used to maintain correct
  behavior.
• Strong Organizational Culture Norms and values
  are strongly held and widely shared.
• (OReilly Chatman, 1996)
• Example Nordstrom is cult like in their
  devotion to customer service. (1) Everyone knows
  it is important (2) and the value is enforced.
• Example Video clip about Southwest Airlines.

6
Southwestern Airlines

• What is valued at Southwest Airlines?
• How are these values conveyed to employees?
• Does Southwest sound like a great place to work?

7
Management by Conformity

• Management scholars have emphasized the
  importance of conformity and have advocated the
  use of techniques that elicit maximal conformity
  in organizations (OReilly Chatman, 1996).
• How have theories we have learned been applied to
  management?
• Example Chapter from Built to Last.
• Book spent 5 years on the Business Week
  bestseller list.
• Had 70 printings translated into 16 languages.
• Spawned many imitations that analyze
  organizations from the perspective of cult
  tactics.

8
How is a Cult like Culture Achieved?

• Participation Commitment escalated by making
  people go through a series of steps in order to
  become a full-fledged member.
• Sequential socialization.
• Public commitment to a particular belief makes
  views more extreme (Group Polarization).
• Example Repeating the Wal-Mart Creed out loud
  at a rally, doing the Wal-Mart Wiggle.

9
Flow of Information

• Information Control what people see and hear.
• Uncertainty leads to conformity (Sherif, Asch).
  Rigorous socialization upon entry when conformity
  is most likely.
• Make injunctive norms salient (Cialdini).
  Complete consistency in communicating what people
  ought to believe makes norms more powerful.

10
Flow of Information (continued)

• Information should come only from inside the
  group
• Limit interactions with outsiders by immersing
  the employee in company activities (e.g. After
  hours socializing, weekend retreats). Link to
  group polarization.
• Reject dissent like a virus. Disagreement creates
  mixed messages, therefore, those who do not fit
  should be weeded out immediately (Moscovici,
  Nemeth).

11
Rewards

• Reward people for behaving correctly.
• Make people feel that they are part of an elite
  group. People at Nordstrom feel special because
  not everyone can survive at that store.
• Use public recognition Nordstrom names a
  customer service All Star that goes above and
  beyond the call of duty.

12
Strong Cultures (and/of) Innovation

• Collins Porras (1994) argue that the most
  innovative firms are also the most cult like.
• OReilly Chatman (1996) argue that adaptation
  and flexibility can be built into the norms and
  values of an organization.
• Example Cult-like culture of creativity.
• If creativity is valued than the best way to
  elicit creativity is by using the same social
  control mechanisms used to elicit any desired
  behavior.
• Example Norms at innovative firms like Intel
  encourage employees to challenge the status quo.

13
Compliance or Conversion?

• Would Moscovici argue that people in strong
  culture firms are complying or are they truly
  converted?
• How do you separate the cynics from the true
  believers?
• OReilly Chatman (1996) argue that control
  comes from a feeling of being watched. Then what
  happens when people feel that no one is looking?

14
Is Wal-Mart Really a Cult?

• People have argued that strong culture firms
  share a lot in common with cults.
• Did they carry the comparison too far, or there
  real similarities?
• Are there certain factors that distinguish a
  strong corporate culture from a cult?
• If companies can really exert so much
  psychological control, are there ethical issues
  that should be considered?

15
Thursday The Counter-argument

• Most management scholars have emphasized the
  importance of conformity, and the rejection of
  dissent.
• Other scholars have highlighted the importance of
  dissent and conflict.
• On Thursday, we will compare the two perspectives
  and attempt to reach a middle ground.