Organizational Culture - McGraw
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Transcript Organizational Culture - McGraw
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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.
McShane 5th Canadian Edition
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
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Elements of Organizational Culture
Physical Structures
Artifacts of
Organizational
Culture
Rituals/ Ceremonies
Organizational
Culture
Beliefs
Stories
Language
Values
Assumptions
McShane 5th Canadian Edition
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
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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.
McShane 5th Canadian Edition
Kitchener-Waterloo Record
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
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Organizational Subcultures
Located throughout the organization
Can enhance or oppose (countercultures)
firm’s dominant culture
Two functions of countercultures:
provide surveillance and critique, ethics
source of emerging values
McShane 5th Canadian Edition
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
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Artifacts: Stories and Legends
Social prescriptions of desired (undesired)
behaviour
Provides a realistic human side to
expectations
Most effective stories and legends:
Describe real people
Assumed to be true
Known throughout the organization
Are prescriptive
McShane 5th Canadian Edition
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
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Artifacts: Rituals and Ceremonies
Rituals
programmed routines
(eg., how visitors are greeted)
Ceremonies
planned activities for an audience
(eg., award ceremonies)
McShane 5th Canadian Edition
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
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Artifacts: Organizational Language
Words used to address people, describe
customers, etc.
Leaders use phrases and special vocabulary
as cultural symbols
eg. Container Store’s “Being Gumby”
Language also found in subcultures
eg. Whirlpool’s “PowerPoint culture”
McShane 5th Canadian Edition
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
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Artifacts: Physical Structures and Symbols
Building structure -- may shape and reflect
culture
Mountain Equipment Co-op’s downtown Toronto store
roof holds a 10,000 square foot garden with 4-inch thick
soil
Office design conveys cultural meaning
Furniture, office size, wall hangings
McShane 5th Canadian Edition
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
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Benefits of Strong Corporate Cultures
Social
Control
Strong
Organizational
Culture
Social
Glue
Aids
Sense-Making
McShane 5th Canadian Edition
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
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Problems with Strong Cultures
Culture content might be misaligned with the
organization’s environment.
Strong cultures may focus on mental models
that could be limiting
Strong cultures suppress dissenting values
from subcultures.
McShane 5th Canadian Edition
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
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Adaptive Organizational Cultures
External focus -- firm’s success depends on
continuous change
Focus on processes more than goals
Strong sense of ownership
Proactive --seek out opportunities
McShane 5th Canadian Edition
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
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Bicultural Audit
Part of “due diligence” in merger
Minimizes risk of cultural collision by
diagnosing companies before merger
Three steps in bicultural audit:
1. Examine artifacts
2. Analyze data for cultural conflict/compatibility
3. Identify strategies and action plans to bridge cultures
McShane 5th Canadian Edition
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
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Merging Organizational Cultures
Assimilation
Deculturation
Acquired company embraces
acquiring firm’s cultural values
Acquiring firm imposes its culture on
unwilling acquired firm
Integration
Cultures combined into a new
composite culture
Separation
Merging companies remain
separate with their own culture
McShane 5th Canadian Edition
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
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Strengthening Organizational Culture
Founders
and leaders
Selection
and
socialization
Strengthening
Organizational
Culture
Managing the
cultural
network
McShane 5th Canadian Edition
Culturally
consistent
rewards
Stable
workforce
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.