Transcript Chapter 15 Nelson & Quick Organizational Culture Copyright ©2005 by South-Western, a division of Thomson Learning.

Chapter 15
Nelson & Quick
Organizational Culture
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.
Organizational (Corporate)
Culture
A pattern of basic assumptions that are considered
valid and that are taught to new members as
the way to perceive, think, and
feel in the organization
Artifacts - symbols of
culture in the physical
and social work environment
Values
Espoused: what members of
an organization say they value
Enacted: reflected in the way
individuals actually behave
Assumptions - deeply held
beliefs that guide behavior and tell
members of an organization how
to perceive and think about things
Levels of
Organizational
Culture
Artifacts
Personal enactment
Ceremonies and rites
Stories
Ritual
Symbols
Values
Testable in physical environment
Testable only by social consensus
Assumptions
Relationship to environment
Nature of reality, time, and space
Nature of human nature
Nature of human activity
Nature of human relationships
Organizational
Culture Levels
Visible, often not
decipherable
Greater level
of awareness
Taken for granted
Invisible
Preconscious
Reprinted with permission from Edgar H. Schein, Organizational
Culture and Leadership: A Dynamic View. Copyright © 1985 Jossey-Bass
Inc, asubsidiary of John Wiley & Sons, Inc.
Functions of Organizational Culture
 Culture provides a sense of identity to members and
increases their commitment to the organization
 Culture is a sense-making device
for organization members
 Culture reinforces the values
in the organization
 Culture serves as a control
mechanism for shaping
behavior
Theories about the
relationship between
organizational culture
and performance
Adaptive
Perspective
Strong
Culture
Perspective
Fit
Perspective
An organizational culture
with a consensus on the
values that drive the company
and with an intensity that is
recognizable even to outsiders
Strong
Culture
Perspective
Strong cultures facilitate performance because
•
They are characterized by goal alignment
• They create a high level of motivation because
of shared values by the members
• They provide control without the oppressive
effects of bureaucracy
Argument that a culture is good
only if it fits the industry’s or the
firm’s strategy.
Fit
Perspective
Organizational characteristics that may affect culture
 Customer requirements
 Competitive environment
 Societal expectations
An organizational culture that
encourages confidence and risk
taking among employees, has
leadership that produces change, and
focuses on the changing needs of
customers
Adaptive
Adaptive
Perspective
Nonadaptive
Core Values
Most managers care
about customers,
stockholders, and
employees
Most managers care
about themselves,
their work group, or
an associated product
Common
Behavior
Managers pay close
attention to all
their constituencies,
esp. customers
Managers tend to
behave somewhat
insularly, politically,
and bureaucratically
Reprinted with the permission of The Free Press, a Division of Simon & Schuster, Inc. from Corporate Culture and Performance by
John P. Kotter and James L Heskett. Copyright © 1992 by Kotter Associates, Inc. and James L. Heskett.
Five Most Important Elements
in Managing Culture
 What leaders pay attention to
 How leaders react to crises
 How leaders behave
 How leaders allocate rewards
 How leaders hire and fire individuals
Organizational Socialization
The process by which newcomers are
transformed from outsiders to
participating, effective members of the
organization
1. Anticipatory
Socialization
Realism
2. Encounter
3. Change and
Acquisition
Outcomes of Socialization
Stages of
Socialization
From “An Ethical Weather Repart: Assessing the Organizaiton’s Ethical Climate” by John B. Cullen, et
al. In Organizational Dynamics, Autumn 1989. Copyright © 1989 American Management Asociation
International. Reprinted by permission of American Management Association International, New York, N.Y.
All rights reserved. Http://www.amanet. Org.
Congruence
Job demands
•Task
•Role
•Interpersonal
Mastery
Performance
Satisfaction
Mutual influence
Low levels of distress
Intent to remain
1. Anticipatory Socialization - the first socialization
stage--encompasses all of the learning that takes
place prior to the newcomer’s first day on the job
2. Encounter - the second socialization stage-- the
newcomer learns the tasks associated with the job,
clarifies roles, and establishes new relationships at
work
3. Change & Acquisition - the third socialization
stage—the newcomer begins to master the demands
of the job
Socialization as
Cultural Communication
Core values are transmitted to new organization
members through

the role models they interact with

the training they receive

the behavior they observe being rewarded and
punished
Assessing Organizational
Culture
 Organizational Culture Inventory focuses on
behaviors that help employees fit into the
organization & meet coworker expectations
 Kilman-Saxton Culture-Gap Survey focuses on the
expectations of others in the organization
 Triangulation - the use of multiple methods to
measure organizational culture
Situations That May Require
Cultural Changes
 Merger or acquisition
 Employment of people from different countries
Reasons That Change Is Difficult
 Assumptions are often unconscious
 Culture is deeply ingrained and behavioral norms
and rewards are well learned
Hiring and
socializing
members who
fit in with the
new culture
4
3
Culture
Cultural
communication
Interventions for
Changing
Organizational
Culture
Removing
members who
reject the
new culture
Changing
behavior
5
1
Examining
justifications
for changed
behavior
2
Reprinted with permission from Vijay Sathe “How to Decipher & Change
Corporate Culture,” Copyright © 1985 Jossey-Bass Inc, Reprinted by permission
Of Jossey-Bass, Inc., a subsidiary of John Wiley & Sons, Inc..
Cultural Modifications in the
Current Business Environment
Support for a global
view of business
Reinforcement of
ethical behavior
Empowerment of
employees to excel
in product and
service quality
Support for a global
view of business
 Create a clear and simple mission statement
 Create systems that ensure effective information
flow
 Create “matrix minds” among managers
 Develop global career paths
 Use cultural differences as major assets
 Implement worldwide management education and
team development programs
Reinforcement of
ethical behavior
 Clear communication of the boundaries of ethical
conduct
 Selection of employees who support the ethical
culture
 Reward of ethical behavior
 Conspicuous punishment of members who engage
in unethical behavior
Empowerment of employees to
excel in product and service quality
 Empowerment unleashes employees’ creativity
 Empowerment requires eliminating traditional
hierarchical notions of power
 Involve employees in decision making
 Remove obstacles to their performance
 Communicate the value of product and service
quality