Organisational Culture
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Transcript Organisational Culture
C H A P T E R
16
Organisational
culture
2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
Chapter learning objectives
1.
Describe the elements of organisational culture.
2.
Discuss the importance of organisational subcultures.
3.
List four categories of artefacts through which corporate
culture is communicated.
4.
Identify three functions of organisational culture.
5.
Discuss the conditions under which cultural strength
improves corporate performance.
6.
Discuss the effect of organisational culture on business
ethics.
7.
Compare and contrast four strategies for merging
organisational cultures.
8.
Identify five strategies to strengthen an organisation’s
culture.
2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Melso Minerals’ corporate culture
Melso Minerals in
Matamata, New Zealand,
has an egalitarian, teamoriented corporate culture .
This culture is apparent
through numerous
artefacts, such as the noholds barred retreats and
the Melso polo shirts that
Courtesy of Melso Minerals (Matamata) Ltd
everyone wears.
2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Organisational 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 organisation.
Courtesy of Melso Minerals (Matamata) Ltd
2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Elements of organisational culture
Physical structures
Artefacts of
organisational
culture
Organisational
culture
Rituals/ceremonies
Stories
Language
Beliefs
Values
Assumptions
2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Meaning of cultural content
Cultural content refers to the relative ordering of
beliefs, values and assumptions
Example: Brown & Brown values aggressiveness;
SAS Institute values work-life balance
An organisation emphasises only a handful of the
hundreds of cultural values
2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Organisational subcultures
Located throughout the organisation
Can support or oppose (countercultures) firm’s
dominant culture
Two functions of countercultures:
provide surveillance and evaluation
source of emerging values
2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Cultural stories at Four Seasons
The legendary customer
service at Four Seasons
Hotels and Resorts is
reflected in its corporate
culture. Legends and stories
help to support this
customer service culture.
Courtesy of Four Seasons Hotels and Resorts
2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Artefacts: organisational stories
Social prescriptions of
desired behaviour
Demonstrate that
organisational objectives are
attainable
Most effective stories
describe real people
are assumed to be true
are known throughout the
organisation
are prescriptive
Courtesy of Four Seasons Hotels & Resorts
2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Artefacts: rituals and ceremonies
Rituals
programmed routines
eg conducting meetings
Ceremonies
planned activities for an audience
eg award ceremonies
2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Artefacts: organisational language
Words used to address people, describe clients, etc
Leaders use phrases and metaphors as cultural
symbols
eg General Electric’s ‘grocery store’
Language also found in subcultures
eg Whirlpool’s ‘PowerPoint culture’
2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Artefacts: physical structures/space
Oakley, Inc.’s protective and competitive
corporate culture is apparent in its
building design and workspace. The
building looks like a vault to protect its
cherished product designs (eyewear,
footwear, apparel and watches).
Courtesy of Oakley, Inc.
Courtesy of Oakley, Inc.
2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Benefits of strong corporate cultures
Social
control
Strong
organisational
culture
Social
glue
Aids
sense-making
2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Problems with strong cultures
Culture content might be incompatible with the
organisation’s environment
Strong cultures focus attention on one mental
model
Strong cultures suppress dissenting values from
subcultures
2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Adaptive organisational cultures
External focus firm’s success depends on
continuous change
Focus on processes more than goals
Strong sense of ownership
Proactive seek out opportunities
2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Bicultural audit
Part of ‘due diligence’ in merger
Minimises risk of cultural collision by diagnosing
companies before merger
Three steps in bicultural audit
1. collect artefacts
2. analyse data for cultural conflict/compatibility
3. recommend solutions
2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Merging organisational cultures
Assimilation
Deculturation
Acquired company embraces
acquiring firm’s culture
Acquiring firm imposes its culture on
unwilling acquired firm
Integration
Both cultures combined into a new
composite culture
Separation
Merging companies remain
separate with their own culture
2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Strengthening organisational culture
Founders
and leaders
Selection
and
socialisation
Strengthening
organisational
culture
Managing the
cultural
network
Culturally
consistent
rewards
Stable
workforce
2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Overview of the next chapter
Lewin’s force field analysis model
Reasons why people resist organisational change
Strategies to minimise resistance to change
The organisation development process
Appreciative inquiry as a change strategy
Ethical issues in organisation development
2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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C H A P T E R
16
Organisational
culture
2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione