Transcript Introduction to the Field of Organizational Behavior

Organizational
Culture
McGraw-Hill/Irwin
McShane/Von Glinow OB 5e
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
Re-aligning Dell’s Organizational
Culture
Dell’s “winning” culture, which emphasized cost efficiency
and competitiveness, became more of a liability as the
market moved toward a preference for style and
innovation.
14-2
Organizational Culture Defined
The basic pattern of shared values and assumptions
governing the way employees within an organization
think about and act on problems and opportunities.
14-3
Artifacts of
organizational
culture
Elements of
Organizational
Culture
Organizational
culture
14-4
Content of Organizational Culture

The relative ordering of values.
• A few dominant values
• Example: Dell -- efficiency and competitiveness

Problems with measuring org culture
• Oversimplifies diversity of possible values
• Ignore shared assumptions
• Adopts an “integration” perspective

An organization’s culture is fuzzy:
• Diverse subcultures (“fragmentation”)
• Values exist within individuals, not work units
14-5
Organizational Culture Profile
Org Culture
Dimensions
Dimension Characteristics
Innovation
Experimenting, opportunity seeking, risk taking, few
rules, low cautiousness
Stability
Predictability, security, rule-oriented
Respect for people
Fairness, tolerance
Outcome
orientation
Action oriented, high expectations, results oriented
Attention to detail
Precise, analytic
Team orientation
Collaboration, people-oriented
Aggressiveness
Competitive, low emphasis on social responsibility
Source: O’Reilly et al (1991)
14-6
Organizational Subcultures

Dominant culture -- most widely shared
values and assumptions

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
14-7
Cirque du Soleil’s Risky Culture
Cirque du Soleil’s founders promote a risktaking and creative corporate culture. They
frequently take gambles on new forms of
creativity and initiatives.
14-8
Artifacts in Organizational Culture




Observable symbols and signs of culture
Physical structures, ceremonies, language, stories
Maintain and transmit organization’s culture
Not easy to decipher artifacts -- need many of them
14-9
Artifacts: Stories and Legends

Social prescriptions of desired (undesired)
behavior
 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
14-10
Artifacts: Rituals and Ceremonies

Rituals
• programmed routines
• (eg., how visitors are greeted)

Ceremonies
• planned activities for an audience
• (eg., award ceremonies)
14-11
Artifacts: Organizational Language

Words used to address people, describe
customers, etc.

Leaders use phrases and special vocabulary
as cultural symbols

Language also found in subcultures
14-12
Artifacts: Physical Structures/Symbols

Building structure -- may shape and reflect
culture
 Office design conveys cultural meaning
• Furniture, office size, wall hangings
Courtesy of Microsoft Corp.
14-13
Organizational Culture Strength
How widely and deeply employees hold the
company’s dominant values and assumptions
Strong cultures exist when:
• most employees understand/embrace the
dominant values
• values and assumptions are institutionalized
through well-established artifacts
• culture is long lasting -- often traced back to
founder
14-14
Functions of Strong Corporate
Cultures
Culture strength
advantages depend on:
• Environment fit
• Not cult-like
• Adaptive culture
Functions of
Strong Cultures
• Control system
• Social glue
• Sense-making
Organizational
Outcomes
• Org performance
• Employee well-being
14-15
Contingencies of Org Culture &
Performance

Effect of organizational culture strength on
organizational performance is moderate

Need to consider contingencies:
1. Ensure culture-environment fit
2. Avoid strength to level of corporate cult
- Cults restrict mental models, suppress subcultures
3. Create an adaptive culture
- External focus, process focus, ownership, proactive
14-16
Merging Cultures: 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
14-17
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
14-18
Changing/Strengthening
Organizational Culture
14-19
Changing/Strengthening
Organizational Culture
1.
Actions of Founders/Leaders
• Org culture sometimes reflects the
founder’s personality
• Transformational Leaders can reshape
culture -- organizational change practices
2.
Aligning Artifacts
• Artifacts keep culture in place
• e.g., building structure, communicating
stories, transferring culture carriers
14-20
Changing/Strengthening
Organizational Culture
3.
Introducing Culturally Consistent
Rewards
• Rewards are powerful artifacts – reinforce
culturally-consistent behavior
4.
Attracting, Selecting, Socializing
Employees
• Attraction-selection-attrition theory
• Socialization practices
14-21
Attraction-Selection-Attrition Theory
Organizations become more homogeneous
(stronger culture) through:
• Attraction -- applicants self-select and weed out
companies based on compatible values
• Selection -- Applicants selected based on values
congruent with organization’s culture
• Attrition -- Employee quite or are forced out when
their values oppose company values
14-22
Lindblad’s Shipshape Socialization
Lindblad Expeditions can’t
afford to have crew members
jump ship soon after starting
the job, so the adventure cruise
company gives applicants a
DVD showing a realistic picture
of what it’s like to work on
board. This realistic job preview
is one part of the company’s
socialization process.
14-23
Organizational Socialization Defined
The process by which
individuals learn the
values, expected
behaviors, and social
knowledge necessary to
assume their roles in the
organization.
14-24
Socialization: Learning & Adjustment
Learning Process
• Newcomers make sense of the organization’s
physical, social, and strategic/cultural dynamics
Adjustment Process
• Newcomers need to adapt to their new work
environment
- New work roles
- New team norms
- New corporate cultural values
14-25
Stages of Socialization
Pre-Employment
Stage
Encounter
Stage
Role
Management
• Outsider
• Newcomer
• Insider
• Gathering
information
• Testing
expectations
• Changing roles
and behavior
• Forming
psychological
contract
• Resolving
conflicts
14-26
Improving Organizational Socialization

Realistic job preview (RJP)
• A balance of positive and negative information
about the job and work context

Socialization agents
• Supervisors– technical information, performance
feedback, job duties
• Coworkers – ideal when accessible, role models,
tolerant, and supportive
14-27
Organizational
Culture
McGraw-Hill/Irwin
McShane/Von Glinow OB 5e
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
14-28