Organizational Culture

1
Organizational Culture
2
Organizational 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 organization.

3
The Basic Functions of Organizational Culture
Organizational Culture
Provides a sense of identity for members
Clarifies and reinforces standards of behaviour
Enhances commitment to the organizations mission
4
Voluntary Survival Its Connection to
Organizational Culture
More people voluntarily completed six years of
work in organizations whose cultures emphasized
the value of interpersonal relationships than
those emphasizing the value of hard work
Organizational cultures emphasizing the value of
interpersonal relationships
100
75
Voluntary Survival Rate (percentage voluntarily
remaining employed in the organization)
Organizational cultures emphasizing the value of
hard work
50
25
Year 1 Year 2 Year 3 Year 4 Year
5 Year 6
Time Since First Hired
Organizational cultures emphasizing the value of
interpersonal relationships
Organizational cultures emphasizing the value of
hard work
5
An example
WELCOME TO NORDSTROM Were 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.
6
Elements of Organizational Culture

• Physical Structures
• Rituals/ Ceremonies
• Stories
• Language
• Beliefs
• Values
• Assumptions

Artifacts of Organizational Culture
Organizational Culture
7
Meaning of Cultural Content

• Cultural content refers to the relative ordering
  of beliefs, values, and assumptions.
• Example RIM values intensity whereas Q-Media
  values thrift.
• An organization emphasizes only a handful of the
  hundreds of cultural values.

Kitchener-Waterloo Record
8
Organizational Culture as Shared Meanings
Yes
Organizational Culture
Shared interpretation of organizational events?
Regular interaction?
No
9
Organizational Subcultures

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

Most Organizations Have a Dominant Culture and
Numerous Sets of Subcultures.
10
Values of the Dominant Organizational Culture and
Subcultures
Values of the Dominant Organizational Culture
Open to new ideas
Customer service
High quality
11
Avocational subcultures

• The employee at the next work station may really
  be from Mars

12
Artifacts Organizational Stories

• Social prescriptions of desired behaviour
• Demonstrate that organizational objectives are
  attainable
• Most effective stories
• Describe real people
• Assumed to be true
• Known throughout the organization
• Are prescriptive

13
Artifacts Rituals and Ceremonies

• Rituals
• programmed routines
• (e.g., conducting meetings)
• Ceremonies
• planned activities for an audience
• (e.g., award ceremonies)

14
Artifacts Organizational 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

15
Artifacts Physical Structures/Space

• 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.
16
Benefits of Strong Corporate Cultures
SocialControl
Strong Organizational Culture
SocialGlue
AidsSense-Making
17
Problems with Strong Cultures

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

18
Mergers and Collaboration

• Firms Well Matched on Traditional Business Can
  Stumble in Blending Their Corporate
  Personalities.

19
Bicultural Audit

• Part of due diligence in merger
• Minimizes risk of cultural collision by
  diagnosing companies before merger
• Three steps in bicultural audit
• 1. Collect artifacts
• 2. Analyze data for cultural conflict/compatibilit
  y
• 3. Recommend solutions

20
Merging Organizational 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
21
What does this mean for you?
22
Strengthening Organizational Culture
Foundersand leaders
Strengthening Organizational Culture
Culturally consistent rewards
Selection and socialization
Stable workforce
Managing the cultural network
23
How to Read an Organizations Culture

• Observe the Physical Surroundings.
• Ask to Sit in on a Team Meeting.
• Listen to the Language.
• Note to Whom Youre Introduced and How They Act.
• Ask Different People the Same Questions and
  Compare Their Answers.
• Get the Views of Outsiders.

24
Assessing theIndividual-to-organization Fit