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Organizational Culture

Chapter 13

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Learning Objectives
Define organizational culture and
know why it is important
Distinguish among organizational,
national, and global culture and
understand the relationships among
them
Evaluate the culture-free approach
to understanding organizational
culture
IBUS 681, Dr. Yang

Learning Objectives (cont.)


Identify levels of organizational
culture
Know what organizational culture
does
Discuss the cultural dimensions
and typology approaches to
understanding organizational
culture
IBUShow
681, Dr. Yangorganizational
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Understand

Organizational Culture
A pattern of basic assumptions invented, discovered, or developed by a
given group as it learns to cope with its
problems of external adaptation and
internal integration
That has worked well enough to be
considered valid and, therefore, to be
taught to new members as the correct
way to perceive, think, and feel in
relation to those problems (Schien, 1985).
IBUS 681, Dr. Yang

National and Global Culture


Relationship between national and
corporate culture is complex:
Logic of industrialization" may affect
all organizations the same way
National culture and other elements in
an organization's environment may
determine internal organizational culture
Globalization also affects organizational
culture
IBUS 681, Dr. Yang

Henry Ford, founder of the Ford


Motor Company said:
Getting together is beginning
Keeping together is progress
Working together is success

IBUS 681, Dr. Yang

National and Global Culture


One can not understand whats going on inside
an organizational culture without understanding
what exists outside the boundary.
National culture provides basic assumptions that
legitimize and guide organizational behavior.
Industrialization promotes changes in national
culture.
Globalization increases awareness of successful
practices elsewhere.
Modern communication enhances connections
among manufacturers, merchants, financiers,
consumers, etc. globally.
MNCs seek consistency and shape organizational
culture on a global
basis.
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Yang
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Culture-Free Approach
It argues that technology, policies, rules,
organizational structure, and other
variables that contribute to efficiency
and effectiveness make national culture
irrelevant for management.
McDonalds fast food service
World Disney
IKEA
Disney Paris Ears
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Understanding Organizational
Culture
Organizations are culture free in
some respects, but culture bound
in many others (Trice & Beyer, 1993).
Global, national, and
organizational elements interact to
influence organizational culture
and behavior.
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McDonald's Restaurants
Moscow or some
others
Types of the
restaurant
Food adaptation
Service adaptation
Perceptions of jobs
Workplace culture
Employee
commitment
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U.S.
Fast food life style
Convenience
Temporary jobs
High turnover rate
Standard food
items
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Levels of Organizational Culture


Artifacts
Espoused Values
Actual Values
Basic Underlying Assumptions
Subcultures

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Artifacts

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Microsofts Mission:
To enable people and businesses
throughout the world to realize
their full potentials

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Great People with Great Values


Delivering on our mission requires great
people who are bright, creative, and energetic,
and who share the following values:
Integrity and honesty.
Passion for customers, partners, and technology.
Open and respectful with others and dedicated to
making them better.
Willingness to take on big challenges and see them
through.
Self-critical, questioning, and committed to personal
excellence and self-improvement.
Accountable for commitments, results, and quality to
customers, shareholders, partners, and employees.
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National Vs. Organizational Culture


National culture
Broader
More complex
Influence org.
culture
Primary and
secondary
socialization

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Organizational
culture
Narrower
Manageable
Secondary
socialization
Subcultures
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What Organizational Culture Does


FUNCTIONS
FUNCTIONS
Provides
Provides an
an external
external
identity
identity
Creates
Creates aa sense
sense of
of
commitment
commitment
Acts
Acts as
as source
source of
of
high
high reliability
reliability
Defines
Defines an
an
interpretive
interpretive scheme
scheme
Acts
Acts as
as aa social
social
control
control mechanism
mechanism
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DYSFUNCTIONS
DYSFUNCTIONS
Can
Can create
create barriers
barriers
to
to change
change
Can
Can create
create conflict
conflict
within
within the
the
organization
organization
Subcultures
Subcultures can
can
change
change at
at different
different
rates
rates than
than other
other
units
units
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Some Underlying Dimensions of


Organizational Culture
Dimension

Questions to be answered

1. The organizations
relationship to its
environment
2. The nature of human
activity
3. The nature of reality
and truth

Does the organization perceive itself to be


dominant, submissive, harmonizing,
searching out a niche?
Is it the correct way for humans to behave
to be dominant/proactive, harmonizing, or
passive/fatalistic?
How do we define what is true and what is
not true; and how is truth ultimately
determined both in the physical and social
world?

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Some Underlying Dimensions of


Organizational Culture (cont.)
Dimension

Questions to be answered

4. The nature of time

What is our basic orientation in terms


of past, present, and future, and what
kinds of time units are most relevant
for the conduct of daily affairs?

5. The nature of human


nature

Are humans basically good, neutral,


or evil, and is human nature
perfectible or fixed?

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Some Underlying Dimensions of


Organizational Culture (cont.)
Dimension

Questions to be answered

6. The nature of human What is the correct way for people to relate to
each other, to distribute power and affection? Is
relationships
life competitive or cooperative? Is the best way
to organize society on the basis of individualism
or groupism? Is the best authority system
autocratic/paternalistic or collegial/participative?

7. Homogeneity versus Is the group best off if it is highly diverse or if it is


highly homogeneous, and should individuals in a
diversity
group be encouraged to innovate or conform?
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Trompenaars Four Corporate


Cultures
Family Culture
Eiffel Tower Culture
Guided Missile Culture
Incubator Culture

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Characteristics of Trompenaars Four Types of


Corporate Culture
Variables

Guided
Missile

Family

Eiffel Tower

Incubator

Relationship
between
employees

Diffuse relationships
to organic whole to
which one is bonded

Specific role in
mechanical system
of required
interactions

Specific tasks in
cybernetic system
targeted upon
shared objectives

Diffuse,
spontaneous
relationships
growing out of
shared creative
process

Attitudes toward
authority

Status is ascribed to
parent figures who
are close and
powerful

Status is ascribed
to superior roles,
which are distant
yet powerful

Status is achieved by
project group
members who
contribute to
targeted goals

Status is achieved
by individuals
exemplifying
creativity and
growth

Ways of thinking
and learning

Intuitive, holistic,
lateral, and errorcorrecting

Logical, analytical,
vertical, and
rationally efficient

Problems centered,
professional,
practical, crossdisciplinary

Process oriented,
creative, an hoc,
inspirational

Attitudes towards
people

Family members

Human resources

Specialists and
experts

Co-creators

Ways of changing

Father changes
course

Change rules and


procedures

Shift aim as target


moves

Improvise and
attune

Ways of
motivating and
rewarding

Intrinsic satisfaction
in being loved and
respected

Promote to greater
position, larger role

Pay or credit for


performance and
problems solved

Participating in the
process of creating
new realities

Management

Management by

Management by

Management by

Management by

Managing and Changing


Organizational Culture
Leadership and organizational
culture
Elements of culture leaders can
change
Employee selection criteria
Socialization of new members
Meaning of work
Artifacts/surface
manifestations
of
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Convergence or Divergence?
Use of organizational
Industrialization
Emphasis on
standardization
Organizational
strategies for
managing culture
globally
Emphasis on
consistency across
borders
MNCs
MNCs
Global
Global institutions
institutions

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Use of organizational
culture as a
competitive tool
Impact of diverse
national cultures on
organizational culture
Benefits in specific
and culturally
sensitive ways
Seniority
Seniority
Job
Job security
security
Group
Group versus
versus
individual
individual
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Implications for Managers


For managerial effectiveness, it is
helpful to analyze organizational
cultures in order to coordinate activities
or change them;
Understand what levels of culture can
be influenced and how;
Know how national culture and
organizational culture can interact to
influence management philosophy and
employee behaviors.
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