1. Organizational Behavior, 8e Schermerhorn, Hunt, and Osborn
Prepared by
Michael K. McCuddy
Valparaiso University
John Wiley & Sons, Inc.

2. Organizational Behavior: Chapter 13
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Organizational Behavior: Chapter 13

3. Chapter 13 High Performance Organizational Cultures
Study questions.
What is organizational culture?
What are the observable aspects of organizational culture?
How do values and assumptions influence organizational culture?
How can organizational culture be “managed,” “nurtured,” and “guided”?
Organizational Behavior: Chapter 13

4. Chapter 13 High Performance Organizational Cultures
Study questions — cont.
How can the process of organization development enhance organizational culture?
Organizational Behavior: Chapter 13

5. What is organizational culture?
The system of shared actions, values, and beliefs that develops within an organization and guides the behavior of its members.
Called corporate culture in the business setting.
No two organizational cultures are identical.
Organizational Behavior: Chapter 13

6. What is organizational culture?
Organizational culture addresses two important survival issues.
External adaptation.
What precisely needs to be accomplished, and how can it be done?
Internal integration.
How do members resolve the daily problems associated with living and working together?
Organizational Behavior: Chapter 13

7. What is organizational culture?
External adaptation.
Involves reaching goals and dealing with outsiders.
Issues to be considered:
Tasks to be accomplished.
Methods to be used to achieve goals.
Methods of coping with success and failure.
Developing acceptable ways of telling outsiders how good they really are.
Knowing when to admit defeat.
Organizational Behavior: Chapter 13

8. What is organizational culture?
External adaptation involves answering important goal-related questions regarding coping with reality.
What is the real mission?
How do we contribute?
What are our goals?
How do we reach our goals?
What external forces are important?
How do we measure results?
What do we do if specific targets are not met?
How do we tell others how good we are?
When do we quit?
Organizational Behavior: Chapter 13

9. What is organizational culture?
Internal integration.
Involves the creation of a collective identity and with finding ways of matching methods of working and living together.
Issues to be considered:
Deciding who is a member and who is not.
Developing an understanding of acceptable and unacceptable behavior.
Separating friends from enemies.
Organizational Behavior: Chapter 13

10. What is organizational culture?
Internal integration involves answering important questions associated with living together.
What is our unique identity?
How do we view the world?
Who is a member?
How do we allocate power, status, and authority?
How do we communicate?
What is the basis for friendship?
Organizational Behavior: Chapter 13

11. What is organizational culture?
Dominant culture, subcultures, and countercultures.
Subcultures.
Groups of individuals with a unique pattern of values and philosophy that is consistent with the organization’s dominant values and philosophy.
Strong subcultures are often found in high performance teams.
Organizational Behavior: Chapter 13

12. What is organizational culture?
Dominant culture, subcultures, and countercultures — cont.
Countercultures.
Groups of individuals with a pattern of values and philosophy that reject the surrounding culture.
Mergers and acquisitions may produce countercultures in an organization.
Organizational Behavior: Chapter 13

13. What is organizational culture?
Importing subcultures.
Large organizations import potentially important subcultures when hiring people.
Globalization and expansion through mergers and acquisitions produce challenges with importing subcultures and dealing with culture clash.
The relevance of subcultures to the entire organization can affect operations and the ability to change.
Organizational Behavior: Chapter 13

14. What is organizational culture?
Valuing cultural diversity — the multicultural organization.
A firm that values diversity but systematically works to block the transfer of societally based subcultures into the fabric of the organization.
Taylor Cox provides a five step program for developing a multicultural organization.
May not apply to organizations located in countries with relatively homogeneous populations.
Organizational Behavior: Chapter 13

15. What is organizational culture?
Taylor Cox’s five step program.
Step 1: The organization should develop pluralism.
Step 2: The organization should fully integrate its structure.
Step 3: The organization must integrate the informal networks.
Step 4: The organization should break the linkage between naturally occurring group identity and organizational identity.
Step 5: The organization must actively work to eliminate identity-based interpersonal conflict.
Organizational Behavior: Chapter 13

16. What is organizational culture?
Problems in implementing Cox’s program.
Separating the organization from the larger culture in which it must operate.
Eliminating some societally-based groupings that are relevant for achieving the organization’s goals.
Organizational Behavior: Chapter 13

17. What is organizational culture?
Levels of organizational culture.
Level 1: Observable culture.
The way things are done in the organization.
Level 2: Shared values.
All members have been exposed to the value and recognize their importance.
Level 3: Common assumptions.
The taken-for-granted truths that members share as a result of their joint experience.
Organizational Behavior: Chapter 13

18. What are the observable aspects of organizational culture?
Stories, rites, rituals, and symbols.
Organizations are rich with stories about the organization’s culture and operations.
Sagas.
Heroic accounts of organizational accomplishments.
Rites.
Standardized and recurring activities that are used at special times to influence organizational members.
Organizational Behavior: Chapter 13

19. What are the observable aspects of organizational culture?
Stories, rites, rituals, and symbols — cont.
Rituals.
Systems of rites.
Cultural symbols.
Any object, act, or event that serves to transmit cultural meaning.
Organizational Behavior: Chapter 13

20. What are the observable aspects of organizational culture?
Culture often specifies rules and roles.
Rules.
The various types of actions that are appropriate.
Roles.
Where individual members stand in the social system.
Organizational Behavior: Chapter 13

21. What are the observable aspects of organizational culture?
The evolution of shared meaning from observable culture.
Outside observers may not see the same cultural aspects as organizational members do.
This is because outside observers do not have the same shared set of meanings and perceptions.
Organizational Behavior: Chapter 13

22. How do values and assumptions influence organizational culture?
Shared common values lie at the heart of culture.
Shared values help:
Turn routine activities into valuable, important actions.
Tie the company to the important values of society.
Provide a distinctive source of competitive advantage.
Organizational Behavior: Chapter 13

23. How do values and assumptions influence organizational culture?
Some successful organizations have strong cultures.
A strong culture reflects a broadly and deeply shared value system.
A strong culture can reinforce a singular view or the organization and its environment.
Needed dramatic change may be prevented.
Organizational Behavior: Chapter 13

24. How do values and assumptions influence organizational culture?
Organizational myths.
Unproven and often unstated beliefs that are accepted uncritically.
Each firm needs managerial myths.
Myths enable managers to redefine impossible problems.
Myths can facilitate experimentation and creativity.
Myths allow managers to govern.
Organizational Behavior: Chapter 13

25. How do values and assumptions influence organizational culture?
National culture influences.
Widely held common assumptions may be traced to the larger culture of the host society.
National cultural values may become embedded in expectations of organization members.
Managers need to be sensitive to national cultural differences and their impact on organizational culture.
Organizational Behavior: Chapter 13

26. How can organizational culture be “managed,” “nurtured,” and “guided”?
Management philosophy.
Reflects the management subculture.
Links key goal-related strategic issues with key collaboration issues and comes up with a series of general ways by which the firm will manage its affairs.
Organizational Behavior: Chapter 13

27. How can organizational culture be “managed,” “nurtured,” and “guided”?
A well-developed management philosophy:
Establishes generally understood boundaries on on all members of the firm.
Provides a consistent way for approaching new and novel situations.
Helps hold individuals together by showing them a known path to success.
Organizational Behavior: Chapter 13

28. How can organizational culture be “managed,” “nurtured,” and “guided”?
Strategies for managing — or building, reinforcing, and changing — organizational culture.
Directly modifying observable culture, shared values, and common assumptions.
Using organization development techniques to modify specific elements of the culture.
Organizational Behavior: Chapter 13

29. How can organizational culture be “managed,” “nurtured,” and “guided”?
Continuous cultural development.
Organization development (OD) is the application of behavioral science knowledge in a long-range effort to improve an organization’s ability to cope with change in its external environment and to increase its internal problem-solving capabilities.
Organizational Behavior: Chapter 13

30. Organizational Behavior: Chapter 13
How can the process of organization development enhance organizational culture?
Organizational development.
Provides well-proven methods for developing and changing external adaptation and internal integration.
Helps organization members become more active and confident in maintaining the culture and pursuing effectiveness.
Organizational Behavior: Chapter 13

31. Organizational Behavior: Chapter 13
How can the process of organization development enhance organizational culture?
Underlying assumptions of OD.
Individual level.
Respect for people and their capabilities.
Group level.
Belief that groups can be good for both people and organizations.
Organizational level.
Respect for the complexity of an organization as a system of interdependent parts.
Organizational Behavior: Chapter 13

32. Organizational Behavior: Chapter 13
How can the process of organization development enhance organizational culture?
Organization development goals.
Outcome goals.
Mainly deal with issues of external adaptation.
Achieving improvements in task performance by improving external adaptation capabilities.
Process goals.
Mainly deal with issues of internal integration.
Achieving improvements in communication, interaction, and decision making among organization’s members.
Organizational Behavior: Chapter 13

33. Organizational Behavior: Chapter 13
How can the process of organization development enhance organizational culture?
In pursuing outcome and process goals, OD helps by:
Creating an open problem solving climate.
Supplementing formal authority with knowledge and competence.
Moving decision making where relevant information is available.
Building trust and maximizing collaboration.
Increasing the sense of organizational ownership.
Allowing people to exercise self-direction and self-control.
Organizational Behavior: Chapter 13

34. Organizational Behavior: Chapter 13
How can the process of organization development enhance organizational culture?
Action research.
The process of systematically collecting data on an organization, feeding it back to the members for action planning, and evaluating the results by collecting and reflecting on more data after the planned actions have been taken.
Organizational Behavior: Chapter 13

35. Organizational Behavior: Chapter 13
How can the process of organization development enhance organizational culture?
Action research diagnostics.
Diagnosis can use the systems approach for assessing inputs, throughputs, and outputs at three levels.
Organizational.
Group.
Individual.
Organizational Behavior: Chapter 13

36. Organizational Behavior: Chapter 13
How can the process of organization development enhance organizational culture?
Systemwide OD interventions.
Survey feedback.
Collection and feedback of data to organization members for action planning purposes.
Confrontation meetings.
Activities for quickly determining how an organization can be improved and taking initial actions for betterment.
Organizational Behavior: Chapter 13

37. Organizational Behavior: Chapter 13
How can the process of organization development enhance organizational culture?
Systemwide OD interventions — cont.
Structural redesign.
Realigning the organization’s structure or major subsystems.
Collateral organization.
Using representative organizational members in periodic small group problem-solving sessions.
Organizational Behavior: Chapter 13

38. Organizational Behavior: Chapter 13
How can the process of organization development enhance organizational culture?
Group and intergroup OD interventions.
Team building.
Activities to improve the functioning of a group.
Process consultation.
Activities to improve the functioning of key team processes.
Intergroup team building.
Activities to improve the functioning or two or more groups.
Organizational Behavior: Chapter 13

39. Organizational Behavior: Chapter 13
How can the process of organization development enhance organizational culture?
Individual OD interventions.
Role negotiation.
Clarifying expectations in working relationships.
Job redesign.
Creating long-term congruence between individual goals and organizational career opportunities.
Career planning.
Structured opportunities for individuals to work with managers or staff experts on career issues.
Organizational Behavior: Chapter 13