Chapter 16

Organizational Culture
Nelson & Quick

Organizational (Corporate) Culture

Organizational (Corporate) culture A pattern of basic assumptions that
are considered valid and that are
taught to new members as the way
to perceive, think, and feel
in the organization

Artifacts - Symbols of
culture in the physical
and social work environment

Organizational
Culture Levels
Visible, often not
decipherable

Values
Espoused: what members of
an organization say they value
Enacted: reflected in the way
individuals actually behave

Assumptions - Deeply held

beliefs that guide behavior and tell
members of an organization how
to perceive and think about things

Greater level
of awareness

Taken for granted

Invisible
Preconscious
Reprinted with permission from Edgar H. Schein, Organizational
Culture and Leadership: A Dynamic View. Copyright 1985 Jossey-Bass
Inc,, Publishers, 350 Sansome Street, San Francisco, CA 94104 (800) 956-7739.

Artifacts - Symbols of
culture in the physical
and social work environment

Personal enactment
Ceremonies and rites (rites of passage, enhancement,
renewal, integration, conflict reduction, degradation)
Stories (about the boss, getting fired, company handling of
relocating employees, whether lower-level employees can
rise to the top, how the company deals with crises, how
status considerations work when rules are broken)
Ritual
Symbols

Values
Espoused: what members of
an organization say they value
Enacted: reflected in the way
individuals actually behave

Testable in the
physical
environment

Testable only by
social consensus

Relationship to environment
Nature of reality, time, and space
Nature of human nature
Nature of human activity
Nature of human relationships

Assumptions - Deeply held

beliefs that guide behavior and tell
members of an organization how
to perceive and think about things

Functions of Organizational Culture

Culture provides a sense of identity to
members and increases their commitment to
the organization
Culture is a sense-making device
for organization members
Culture reinforces the values
in the organization
Culture serves as a control mechanism for
shaping behavior

Theories about the

relationship between
organizational culture
and performance

Strong Culture
Perspective

Fit
Perspective

Adaptive
Perspective

An organizational culture
with a consensus on the
values that drive the company
and with an intensity that is
recognizable even to outsiders

Strong Culture
Perspective

Reasons Strong cultures facilitate

performance
They are characterized by goal alignment
They create a high level of motivation because
of shared values by the members
They provide control without the oppressive
effects of bureaucracy

Argument that a culture is

good only if it fits the
industrys or the
firms strategy.

Fit
Perspective

Three characteristics of the organization

may affect culture
Competitive environment
Customer requirements
Societal expectations

An organizational culture
that encourages confidence
Adaptive
and risk taking among employees,
Perspective
has leadership that produces change,
and focuses on the changing needs of customers
Adaptive

Nonadaptive

Core Values

Most managers care

about customers,
stockholders, and
employees

Most managers care

about themselves,
their work group, or
an associated product

Common
Behavior

Managers pay close

attention to all
their constituencies,
esp. customers

Managers tend to
behave somewhat
insularly, politically,
and bureaucratically

Reprinted with the permission of The Free Press, a Division of Simon & Schuster, Inc. from Corporate Culture and Performance by
John P. Kotter and James L Heskett. Copyright 1992 by Kotter Associates, Inc. and James L. Heskett.

Five Most Important Elements

in Managing Culture

What leaders pay attention to

How leaders react to crises
How leaders behave
How leaders allocate rewards
How leaders hire and fire
individuals

Organizational Socialization
Organizational Socialization - the
process by which newcomers are
transformed from outsiders to
participating, effective members of
the organization

1. Anticipatory
Socialization

2. Encounter

3. Change and
Acquisition

Stages of
Socialization

Realism

Congruence

Job demands
Task
Role
Interpersonal
Mastery

1. Anticipatory
Socialization

Realism

2. Encounter

3. Change and
Acquisition
Outcomes of Socialization

Stages of
Socialization
From An Ethical Weather Repart: Assessing the Organizaitons Ethical Climate by John B. Cullen, et
al. In Organizational Dynamics, Autumn 1989. Copyright 1989 American Management Asociation
International. Reprinted by permission of American Management Association International, New York, N.Y.
All rights reserved. Http://www.amanet. Org.

Congruence

Job demands
Task
Role
Interpersonal
Mastery

Performance
Satisfaction
Mutual influence
Low levels of distress
Intent to remain

1. Anticipatory Socialization
the first socialization stage--encompasses all
of the learning that takes place prior to the
newcomers first day on the job

2. Encounter
the second socialization stage-- the
newcomer learns the tasks associated with
the job, clarifies roles, and establishes new
relationships at work

3. Change & Acquisition

the third socialization stage--the
newcomer begins to master the
demands of the job

Socialization as
Cultural Communication
Core values are transmitted to new
Organization members through
the role models they interact with
the training they receive
the behavior they observe being rewarded
and punished

Assessing Organizational Culture

Organizational Culture Inventory focuses on
behaviors that help employees fit into the
organization & meet coworker expectations
Kilman-Saxton Culture-Gap Survey focuses
on the expectations of others in the
organization
Triangulation is the use of multiple methods
to measure organizational culture

Situations That May Require

Cultural Changes
Merger or acquisition
Employment of people from different
countries

Reasons That Change Is Difficult

Assumptions are often unconscious
Culture is deeply ingrained and behavioral
norms and rewards are well learned

Culture

Hiring and
socializing
members who
fit in with the
new culture

Cultural
communication

Interventions for
Changing
Organizational
Culture

Removing
members who
reject the
new culture

Changing
behavior

Examining
justifications
for changed
behavior

Reprinted with permission from Vijay Sathe How to Decipher & Change
Corporate Culture, Copyright 1985 Jossey-Bass Inc, Publishers, 350 Sansome
Street, San Francisco, CA 94104 (800) 956-7739.

Cultural Modifications in the

Current Business Environment
Support for a global
view of business

Reinforcement of
ethical behavior

Empowerment of
employees to excel
in product and
service quality

Support for a global

view of business
Create a clear and simple mission
statement
Create systems that ensure effective
information flow
Create matrix minds among managers
Develop global career paths
Use cultural differences as major assets
Implement worldwide management education
and team development programs

Reinforcement of
ethical behavior
Clear communication of the
boundaries of ethical conduct
Selection of employees who support the
ethical culture
Reward of ethical behavior
Conspicuous punishment of members who
engage in unethical behavior

Empowerment of employees
to excel in product and
service quality
Empowerment unleashes
employees creativity
Empowerment requires eliminating traditional
hierarchical notions of power
Involve employees in decision making
Remove obstacles to their performance
Communicate the value of product and service
quality