Chapter 15: Cultivating Organizational Culture
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Transcript Chapter 15: Cultivating Organizational Culture
Presentation Slides
to Accompany
Organizational Behavior
10th Edition
Don Hellriegel and John W. Slocum, Jr.
Chapter 15—Cultivating Organizational Culture
Prepared by
Michael K. McCuddy
Valparaiso University
Slide 15.1
Learning Objectives for Cultivating
Organizational Culture
Explain how organizational cultures are formed,
sustained, and changed
Describe four types of organizational culture
Discuss how organizational culture can influence
ethical behaviors of managers and employees
Explain why fostering cultural diversity is important
Describe the process of organizational socialization
and its affect on culture
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Organizational Culture
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Slide 15.2
Components of Organizational Culture
Routine ways of communicating
Norms shared by individuals and teams
Dominant values held by an organization
Guiding philosophy for management’s
policies and decision making
Rules of the game for getting along in the
organization
Climate of the organization
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Organizational Culture
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Slide 15.3
Layers of Organizational Culture
Cultural
Symbols
Shared
Behaviors
Cultural
Values
Shared
Assumptions
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Organizational Culture
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Slide 15.4
Issues Associated with
External Adaptation and Survival
Identifying the organization's primary mission and selecting
strategies to pursue it
Setting specific targets
Determining how to pursue the goals, including selecting
an organizational structure and reward system
Establishing criteria to measure how well individuals,
teams, and departments are accomplishing their goals
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Slide 15.5
Issues Associated with
Internal Integration
Identifying methods of communication and developing a
shared meaning for important concepts
Establishing criteria for membership in groups and teams
Determining rules for acquiring, maintaining, and losing
power and status
Developing systems for encouraging desirable behaviors
and discouraging undesirable behaviors
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Slide 15.6
How Cultures Emerge
Top
Management
• Agrees on
shared
assumptions of
human behavior
• Develops a
shared vision of
cultural values
Behaviors
Results
Culture
• Employees
behave in ways
that are
consistent with
shared values
and
assumptions
• Financial
performance
• Strong culture
emerges
• Market share
• Traditions are
maintained
• Employee
commitment
Chapter 15: Cultivating
Organizational Culture
• Socialization
practices for
new employees
265
Slide 15.7
Methods of Maintaining
Organizational Culture
Methods of Maintaining Organizational Culture
•What managers and teams pay attention to
•Reactions to organizational crises
•Managerial role modeling
•Criteria for rewards
•Criteria for selection and promotion
•Organizational rites, ceremonies, stories
Recruitment of
employees who
fit the culture
Organizational
Culture
Chapter 15: Cultivating
Organizational Culture
Removal of
employees who
deviate from
the culture
266
Slide 15.8
Organizational Rites and Ceremonies
TYPE
EXAMPLE
POSSIBLE
CONSEQUENCES
Rites of passage
Basic training, U.S. Army
Facilitate transition into new
roles; minimize differences in
way roles are carried out
Rites of degradation
Firing a manager
Reduce power and identity;
reaffirm proper behavior
Rites of
enhancement
Mary Kay Cosmetics
Company ceremonies
Enhance power and identity;
emphasize value of proper
behavior
Rites of integration
Office party
Encourage common feelings
that bind members together
Source: Adapted from Trice, H. M., and Beyer, J. M. The Cultures of Work Organizations.
Englewood Cliffs, N.J.: Prentice-Hall, 1993, 111.
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Slide 15.9
Requirements for Successfully
Changing Organizational Culture
Understand the old culture first
Support employees and teams who have ideas for a better
culture and are willing to act on those ideas
Find the most effective subculture in the organization and
use it as a model
Help employees and teams do their jobs more effectively
Use the vision of a new culture as a guide for change
Recognize that significant cultural change takes time
Live the new culture
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Slide 15.10
Framework of Types of Cultures
Flexible
Formal
Control
Orientation
Clan
Culture
Entrepreneurial
Culture
Bureaucratic
Culture
Market
Culture
Stable
Internal
External
Forms of
Attention
Source: Adapted from Hooijberg, R., and Petrock, F. On cultural change: Using the competing values framework to help
leaders execute a transformational strategy. Human Resource Management, 1993, 32, 29-50; Quinn, R. E. Beyond Rational
Management: Mastering the Paradoxes and Competing Demands of High Performance. San Francisco: Jossey-Bass, 1988.
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Slide 15.11
Attributes of a Bureaucratic Culture
Long-term concerns are predictability,
efficiency, and stability
Members value standardized goods and
services
Managers view their roles as being good
coordinators, organizers, and enforcers of
written rules and standards
Tasks, responsibilities, authority, rules, and
processes are clearly defined
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Slide 15.12
Attributes of a Clan Culture
Members understand that contributions to the
organization exceed any contractual
agreements
A clan culture achieves unity with a long and
thorough socialization process
Members share feelings of pride in
membership, as well as feelings of personal
ownership of a business, a product, or an
idea
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Slide 15.12 (continued)
Attributes of a Clan Culture
Peer pressure to adhere to important
norms is strong
Success is assumed to depend
substantially on sensitivity to customers
and concern for people
Teamwork, participation, and consensus
decision making are believed to lead to
success
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Slide 15.13
Attributes of an
Entrepreneurial Culture
There is a commitment to experimentation,
innovation, and being on the leading edge
This culture does not just quickly react to
changes in the environment—it creates
change
Effectiveness depends on providing new and
unique products and rapid growth
Individual initiative, flexibility, and freedom
foster growth and are encouraged and well
rewarded
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Slide 15.14
Attributes of a Market Culture
Contractual relationship between individual
and organization
Independence and individuality are valued
and members are encouraged to pursue their
own financial goals
Does not exert much social pressure on an
organization’s members, but when it does,
members are expected to conform
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Slide 15.14 (continued)
Attributes of a Market Culture
Superiors’ interactions with subordinates
largely consist of negotiating performance–
reward agreements and/or evaluating
requests for resource allocations
Has a weak socialization process
Few economic incentives are tied directly to
cooperating with peers
Often tied to monthly, quarterly, and annual
performance goals based on profits
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Slide 15.15
Organizational Uses of Culture
Organizational culture has the potential to
enhance organizational performance,
individual satisfaction, and a variety of
expectations, attitudes, and behaviors in
organizations
If an organization’s culture is not aligned with
the changing expectations of internal and/or
external stakeholders, the organization’s
effectiveness can decline
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Slide 15.15 (continued)
Organizational Uses of Culture
Organizational culture and performance are
related, although the evidence regarding the
exact nature of this relationship is mixed
Organizational culture affects employee
behavior and performance
Assessing which attributes of an
organization’s culture need to be preserved
and which ones need to be modified is a
constant organization need
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Slide 15.16
Relationship Between Culture
and Performance
Organizational culture can have a significant
impact on a firm’s long-term economic
performance
Organizational culture will probably be an
even more important factor in determining
success or failure of firms during the next
decade
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Slide 15.16 (continued)
Relationship Between Culture
and Performance
Organizational cultures that inhibit strong
long-term financial performance are not rare;
they develop easily, even in firms that are
filled with reasonable and intelligent people
Although tough to change, organizational
cultures can be made more performance
enhancing if managers understand what
sustains a culture
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Slide 15.17
Effects of Organizational Culture on
Employee Behavior and Performance
Allows employees to understand the firm’s history
and current methods of operation
Fosters commitment to corporate philosophy and
values
Serves as a control mechanism for employee
behaviors
Certain cultural types may produce greater
effectiveness and productivity
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Slide 15.18
Effects of Organizational Culture
on Ethical Behavior
A culture emphasizing ethical norms provides
support for ethical behavior
Top managers play a key role in fostering
ethical behavior by exhibiting correct behavior
The presence or absence of ethical behavior
in managerial actions both influences and
reflects the culture
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Slide 15.19
How Employees Can Change
Unethical Behavior
Secretly or publicly reporting unethical actions to
a higher level within the organization
Secretly or publicly reporting unethical actions to
someone outside the organization
Secretly or publicly threatening an offender or
responsible manager with reporting unethical
actions
Quietly or publicly refusing to implement an
unethical order or policy
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Slide 15.20
Actions for Creating a Culture that
Encourages Ethical behavior
Be realistic in setting values and goals regarding
employee relationships
Encourage input from organization members
regarding appropriate values and practices for
implementing the culture
Opt for a “strong” culture that encourages and
rewards diversity and principled dissent
Provide training on adopting and implementing
the organization’s values
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Slide 15.21
Guidelines for Managing
Cultural Diversity
Organization members must:
Understand the nature of diversity and value a variety of opinions
and insights
Recognize the learning opportunities and challenges presented by
the expression of different perspectives
The organizational culture must:
Foster expectations for high standards of performance and ethics for
everyone
Stimulate personal development
Encourage openness
Make workers feel valued
The organization must have a well-articulated and widely
understood mission
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Slide 15.22
Steps in Socialization
7. Role model to
sustain culture
6. Rituals, taboos,
rites, and stories to
reinforce culture
5. Adoption of
cultural value policies
Removal of employees
who deviate from culture
4. Rewards that
sustain the culture
3. Training to develop
capabilities consistent
with culture
2. Challenging early
work assignments
Removal of candidates
who do not “fit” culture
1. Careful selection
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Slide 15.23
Possible Outcomes of the
Socialization Process
Successful socialization is
reflected in:
Unsuccessful socialization is
reflected in:
Job satisfaction
Job dissatisfaction
Role clarity
Role ambiguity and conflict
High work motivation
Low work motivation
Understanding of culture,
Misunderstanding, tension,
perceived control
High job involvement
Commitment to
organization
Tenure
High performance
Internalized values
perceived lack of control
Low job involvement
Lack of commitment to
organization
Absenteeism, turnover
Low performance
Rejection of values
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