ORGANIZATIONAL CULTURE: HAS NO SPECIFIC DEFINITION/MEANING.

ORGANIZATIONAL CULTURE:
- Is a topic studied from a variety of perspectives ranging from disciplines like anthropology and
sociology, to the applied disciplines of organizational behavior and management, etc.)

Some definitions:
- A set of common understanding around which action is organized, finding expression in language
whose nuances are peculiar to the group (Becker and Geer 1960).

- A set of understanding or meanings shared by a group of people that are largely tacit among members
and are clearly relevant and distinctive to the particular group which are also passed on to new
members (Louis 1980).

- A system of knowledge, standards for perceiving, believing, evaluating, and acting… that serves to
relate human communities to their environmental settings (Allaire and Firsirotu 1984).

- The deeper level of basic assumptions and beliefs that are: learned responses to the group’s problems
of survival in its external environment and its problems of internal integration; are shared by members
of an organization; that operate unconsciously; and that define in a basic “taken- for- granted” fashion
organization’s view of itself and its environment (Schein 1988).

- Any social system arising from network of shared ideologies, norms, and values; and forms- the
practices whereby the meanings are expressed, affirmed, and communicated to members (Trice and
Beyer 1984).

ORGANIZATIONAL CULTURE: a system of shared assumptions, values, and beliefs, which governs how
people behave in organization.

 TWO MAJOR CAMPS IN ORGANIZATIONAL CULTURE:

o FIRST CAMP: - Views culture as implicit in social life.
o SECONDCAMP: - Represents the view that culture is an explicit social product arising
from social interaction either as an intentional or unintentional consequence of
behavior.
 Culture consisting of Three levels
o Behavior and Artifacts – first level is the observable level of culture and consists of
behavior patterns and outward manifestations of culture.
o Values – next level of culture underlie and to a large extent determine behavior, but
they are not directly observable as behaviors are.
o Assumptions and beliefs – underlying assumptions grow out of values until they become
taken for granted and drop out of awareness forming the deepest level of culture.

Cultural Unit – an aspect that complicates the study of culture which “owns” the culture.

Organization Cultures created and maintained by the organization’s leadership particularly the leaders
at the executive level.
Organizational Values – express preferences for certain behaviors or certain outcomes.

Organizational Norms – express behaviors accepted by others, culturally acceptable ways of pursuing
goals.

Values > Norms > Permanence

Importance of Organizational Culture to Leaders

 Reconceptualize the role their organization plays
 Reconceptualize the goals of their organization; and
 Reconceptualize how people in their organizations will work together to achieve goals

Change – most perplexing challenge facing leaders within the organization

The useful technique for overcoming challenges fall within the domains of evaluating and transforming
organizational cultures.

ORGANIZATIONAL SUBCULTURES: Numerous studies of organizational culture have

highlighted that the formation and maintenance of culture requires interpersonal interaction within
subgroup.

Meryl Louis (Louis, Posner, and Powell 1983)

 On her research, it demonstrated the benefits of subgroup interaction to newcomers "learning
the ropes"** of the jobs.
 Three most important socialization aids:
1. Interaction with peers
2. Interaction with their supervisor
3. Interaction with senior co-workers

Interaction with peers on the job was viewed as most important in helping newcomers becoming
effective employees.

Interaction - important for the acculturation of newcomers.

John VanMaanan and Steven Barley (1984)

 On their research they provided some insight to the question:
"What is the content of interpersonal interaction in work settings?"
 The content of the interaction is behavioral and cognitive in nature.
 During initial interactions with newcomers, the established occupational community transmits
to new members those shared occupational practices (including norms and roles), values,
vocabularies and identities.
Sonja Sackmann

 Sonja Sackmann's research on subcultures in a medium sized conglomerate in the United States
reinforced Vanmaan and Barley findings.
 Subcultures were found to form on the basis of functional domains:
o biased knowledge of events in the organization,
o biased explanations of cause and effect relationships; and
o patterns of behavior.
 Conglomerate's production division consisted of three subcultures:
o electronics production
o shop floor production; and
o product inspection.

Counterculture or Counter-culture
 any group of people whose beliefs, values, styles, and attitudes differ from that of the prevailing
culture.
 a term used to describe a group whose values and norms of behavior run counter to those of
the social mainstream of the day, the cultural equivalent of political opposition.
 It rejects or challenges mainstream culture or particular elements of it.

Means of Counterculture

 Protesting against a particular situation or issue

 Rebelling against the accepted or acceptable way of doing things
 Struggling for liberation when you are oppressed or marginalized
 Finding new ways to represent yourself when you are misrepresented or simply not represented
 Creating your own culture when you are dissatisfied with the culture that is made for you
o Examples: • Gothic • Punk • Emo

THE SYMBIOSIS BETWEEN THE ORGANIZATION'S OVERALL CULTURE AND ITS SUBCULTURES

 The leader's cultural messages should address ambiguities that are beyond the scope of any
organizational subculture to explain to employees.
 Leaders should recognize that their cultural messages should specifically address cultural
ambiguities associated with subculture practices within the organization, and limit their
attempts to eliminate distinctions that are important to subculture's identities.

Culture and the New Employee-Communicating the Culture

Cultural forms

 studies human beings and the development and dynamics of their cultures.
  function as the linking mechanisms by which networks of understanding develop among
employees.

Cultural forms not only aid sensemaking through the meanings they convey; they also aid the
sensemaking process through the emotional reassurances they provide that help people persist in their
coping efforts. Forms provide a concrete anchoring point, even if the meaning that carry are vague and
only imperfectly transmitted…Also many cultural forms involve the expression of emotion and, by this
venting of emotions, help people to cope with stress. (Beyer & Trice, 1988)

Cultural forms that have longevity by their nature such as rites and ceremonies reaffirm the
organization’s core ideologies, values, and norms.

How can Leaders Detect the Desirable and Undesirable Characteristics of Organizational
Culture?
1. Analyze the organization’s existing culture, and evaluate it against the cultural attributes
needed to achieve strategic objectives.
a. First possess a clear understanding of the strategic objectives for their organization and
identify the actions needed to reach those objectives.

Federal Agencies – special government organizations set up for a specific purpose such as the
management of resources, financial oversight of industries, or national security issues.

Cultural Transformation – comes as a result of constant gentle pressure that is internally-motivated

rather than externally originated.

2. The next step is to conduct an analysis of the organization’s existing ideologies, values, and
norms.
a. Are existing explanation of cause and effect relationships, and acceptable beliefs and
behaviors applicable to the organization’s achievement of strategic objectives?
b. Are organizational members facing ambiguities about the external environment and
internal work processes that can only be clarified by organizational leadership?

Formulating Strategies for Transforming Cultures in Organizations

 Strategic Leadership – refers to a manager’s potential to express a strategic vision for the
organization, or a part of the organization, and to motivate and persuade others to acquire that
vision.
 Strategic leadership needs to be transformed if it is to serve the organization.

Specific Steps outlined by Schein leaders can employ to change culture:

1. What Leaders pay attention to, measure and control
 Strategic Clarity- It is ability to clearly define, quickly adapt, effectively communicate
and proper implement the company’s business strategies.
 Goal Alignment- It is the process by which you keep your workforce working towards
your company’s overarching goals.
 Expectations Clarity- It requires that after a strategy is set, managers must state clearly
the new rules of the game and what is expected from the employees.
  Consistent Accountability- It is the responsibility of employees to complete the tasks
they are assigned, to perform the duties required by their job, and to be present for
their proper shifts in order to fulfill or further the goals of the organization.
2. Where do you think people will focus their effort once it becomes accepted that a slick
presentation is what the leaders are looking for?

Common Cultural Assumptions: when we assume that a person has particular values and
attitudes based on their cultural background.

o Age - it is assumed that growing up is often a difficult time.

o Gender - that growing up as a girl has its own issues.
o Lifestyle/family - that it is the norm to have two parents.
o Ethnicity - that being Italian puts particular pressures/expectations on a person.
3. Leader reactions to critical incidents and organizational crises.
 Smile
 Here are three reasons why smiling makes sense:
 Don’t Panic the troops
 Communicate Calm Confidence
 Maintain your Perspective
 Calmly Get the Facts
 Here are two key things to keep in mind:
 Now is not the time to try to fix blame.
 Do ask open ended questions that reveal facts. Ask questions like:
o What makes you think so?
o How did you become aware of this?
o What do you think the impact will be?
 Make Sure It’s Really a Problem
 Act Promptly, but not Hastily
4. Deliberate role modeling, teaching, and coaching.
 Demonstrate confidence and leadership.
 Communicate and interact with everyone.
 Show respect and concern for others.
 Be knowledgeable and well rounded.
 Have humility and willingness to admit mistakes.
5. Criteria for allocation of rewards and status.
Reward Allocation Rules
 Equity- Employees engage in social exchange, where they contribute something in
expectation of rewards and they compare the ratio between their inputs (contribution)
and outcomes (rewards) with the ratio of referent others.
 Equality- refers to the principle that all organizational members receive the same
regardless of their contribution
 Need- Need rule mandates that organizational members receive allocations depending
on their personal need
 Seniority- refers to a more generous allocation to more senior and older individuals
 6. Criteria for recruitment, selection, promotion and retirement
3 Most Important Criteria When Hiring
 Capabilities - The ability and qualifications to do the job you are hiring that person to do.
Being nice or helping a friend of a friend will do you no good in this department.
 Value- Bringing someone aboard at a fair salary is crucial. Pay people what their jobs are
worth.
 Cultural Fit- A disruptive employee can cause tremendous damage both to morale inside
the organization and to customer relationships. The culture you establish will dictate
who will fit in and thrive.

Criteria for Promotion

 Experience in the job or tenure.

 High performance level in [two] recent review cycles.
 Skillset that matches the minimum requirements of the new role.
 Personal motivation and willingness for a change in responsibilities.

Criteria of Promotions that should be tolerated

 Managers’ subjective opinions unsupported by performance evaluations or metrics.

 Discrimination.
 Fraternization.
 Favoritism.
 Nepotism.

How to do systematic culture changes considering socialization process the new employee go
through?
•ORGANIZATIONAL DESIGN & STRUCTURE- modifying organization's basic structure may be a way of
changing the existing norms, and hence the culture.

•ORGANIZATIONAL SYSTEM & PROCEDURES- routines or procedures can become so embedded that
they become part of the culture, and changing the culture necessitates changing those routines.

•DESIGN OF PHYSICAL SPACE, FACADES, & BUILDINGS- the impact of the design of buildings on culture
can be easily illustrated by considering the executive perks in an organization.

•STORIES ABOUT IMPORTANT EVENTS & PEOPLE- this is a way of perpetuating culture in an
organization.

•FORMAL STATEMENTS OF ORGANIZATIONAL PHILOSOPHY, CREEDS, & CHARTS- this is the way leaders
most often try to imfluence their organizations, and encompasses the vision or mission statement and
statements of the organization's (or the leader's) values and philosophy.