Kelli J.

Schutte
William Jewell College
Robbins & Judge
Organizational Behavior
14th Edition

Organizational Culture
16-0
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
Chapter Learning Objectives
After studying this chapter, you should be able to:
Define organizational culture and describe its common
characteristics.
Compare the functional and dysfunctional effects of organizational
culture on people and the organization.
Identify the factors that create and sustain an organizations
culture.
Show how culture is transmitted to employees.
Demonstrate how an ethical culture can be created.
Describe a positive organizational culture.
Identify characteristics of a spiritual culture.
Show how national culture may affect the way organizational
culture is transported to a different country.
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Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
Organizational Culture
Organizational Culture
A common perception held by the organizations members; a
system of shared meaning
Seven primary characteristics
1. Innovation and risk taking
2. Attention to detail
3. Outcome orientation
4. People orientation
5. Team orientation
6. Aggressiveness
7. Stability
E X H I B I T 17-1
16-2
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Do Organizations Have Uniform Cultures?
Culture is a descriptive term: it may act as a substitute
for formalization
Dominant Culture
Expresses the core values that are shared by a majority of the
organizations members
Subcultures
Minicultures within an organization, typically defined by
department designations and geographical separation
Core Values
The primary or dominant values that are accepted throughout
the organization
Strong Culture
A culture in which the core values are intensely held and
widely shared

16-3
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What Do Cultures Do?
Cultures Functions
1. Defines the boundary between one organization
and others
2. Conveys a sense of identity for its members
3. Facilitates the generation of commitment to
something larger than self-interest
4. Enhances the stability of the social system
5. Serves as a sense-making and control
mechanism for fitting employees in the
organization

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Culture as a Liability
Institutionalization
A company can become institutionalized where it is valued
for itself and not for the goods and services it provides
Barrier to change
Occurs when cultures values are not aligned with the values
necessary for rapid change
Barrier to diversity
Strong cultures put considerable pressure on employees to
conform, which may lead to institutionalized bias
Barrier to acquisitions and mergers
Incompatible cultures can destroy an otherwise successful
merger
16-5
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
How Culture Begins
Stems from the actions of the founders:
Founders hire and keep only employees who think and feel
the same way they do.
Founders indoctrinate and socialize these employees to their
way of thinking and feeling.
The founders own behavior acts as a role model that
encourages employees to identify with them and thereby
internalize their beliefs, values, and assumptions.

16-6
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
Stages in the Socialization Process
Prearrival
The period of learning prior to a new employee joining the
organization
Encounter
When the new employee sees what the organization is really like
and confronts the possibility that expectations and reality may
diverge
Metamorphosis
When the new employee changes and adjusts to the work, work
group, and organization

E X H I B I T 16-2
16-7
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Socialization Program Options
Choose the appropriate alternatives:
Formal versus Informal
Individual versus Collective
Fixed versus Variable
Serial versus Random
Investiture versus Divestiture
Socialization outcomes:
Higher productivity
Greater commitment
Lower turnover
E X H I B I T 16-3
16-8
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
Source: Based on J. Van Maanen, People Processing: Strategies of Organizational Socialization, Organizational Dynamics, Summer 1978, pp. 19
36; and E. H. Schein, Organizational Culture, American Psychologist, February 1990, p. 116.
Summary: How Organizational Cultures Form
Organizational cultures are derived from the founder
They are sustained through managerial action
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
16-9
E X H I B I T 16-4
How Employees Learn Culture
Stories
Anchor the present into the past and provide explanations
and legitimacy for current practices
Rituals
Repetitive sequences of activities that express and reinforce
the key values of the organization
Material Symbols
Acceptable attire, office size, opulence of the office
furnishings, and executive perks that convey to employees
who is important in the organization
Language
Jargon and special ways of expressing ones self to indicate
membership in the organization
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
16-10
Creating an Ethical Organizational Culture
Characteristics of Organizations that Develop High
Ethical Standards
High tolerance for risk
Low to moderate in aggressiveness
Focus on means as well as outcomes
Managerial Practices Promoting an Ethical Culture
Being a visible role model
Communicating ethical expectations
Providing ethical training
Rewarding ethical acts and punishing unethical ones
Providing protective mechanisms
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
16-11
Creating a Positive Organizational Culture
Positive Organizational Culture
A culture that:
Builds on employee strengths
Focus is on discovering, sharing, and building on the
strengths of individual employees
Rewards more than it punishes
Articulating praise and catching employees doing
something right
Emphasizes individual vitality and growth
Helping employees learn and grow in their jobs and
careers
Limits of Positive Culture:
May not work for all organizations or everyone within them
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
16-12
Spirituality and Organizational Culture
Workplace Spirituality
The recognition that people have
an inner life that nourishes and is
nourished by meaningful work
that takes place in the context of
the community

NOT about organized religious
practices

People seek to find meaning and
purpose in their work.
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
16-13
Why Spirituality Now?
As a counterbalance to the pressures and stress of a turbulent
pace of life and the lack of community many people feel and
their increased need for involvement and connection.
Job demands have made the workplace dominant in many
peoples lives, yet they continue to question the meaning of
work.
The desire to integrate personal life values with ones
professional life.
An increasing number of people are finding that the pursuit
of more material acquisitions leaves them unfulfilled.

Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
16-14
E X H I B I T 16-5
Characteristics of a Spiritual Organization
Concerned with helping people develop and reach their
full potential
Directly addresses problems created by work/life
conflicts
Four characteristics of spiritual organizations:
1. Strong sense of purpose
2. Trust and respect
3. Humanistic work practices
4. Toleration of employee expression

Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
16-15
Criticisms of Spirituality
What is the scientific foundation?
It is still pending: needs more research
Are spiritual organizations legitimate do they have
the right to impose values on employees?
Spirituality is not about God or any religious values
It is an attempt to help employees find meaning and value in
their work
Are spirituality and profits compatible?
Initial evidence suggests that they are
Spirituality may result in greater productivity and
dramatically lower turnover
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
16-16
Global Implications
Organization cultures, while strong, cant ignore local
culture
Managers should be more culturally sensitive by:
Adjusting speech to cultural norms
Listening more
Avoiding discussions of controversial topics
All global firms (not just U.S. firms) need to be more
culturally sensitive
16-17
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
Culture as an Intervening Variable
Employees form an overall subjective perception of the
organization based on these objective factors:







The opinions formed affect employee performance and
satisfaction.
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
16-18
E X H I B I T 16-6
Summary and Managerial Implications
Strong cultures are difficult for managers to change
In the short run, strong cultures should be considered fixed
Selecting new hires that fit well in the organizational
culture is critical for motivation, job satisfaction,
commitment, and turnover
Socialization into the corporate culture is important
As a manager, your actions as a role model help create
the cultural values of ethics, spirituality, and a positive
culture
16-19
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall
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without the prior written permission of the publisher. Printed in the
United States of America.

Copyright 2011 Pearson Education,
Inc. Publishing as Prentice Hall
16-20
Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall