1. Chapter 16 Organizational Culture Nelson & Quick

2. Organizational (Corporate) Culture
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 2

3. Assumptions - Deeply held
Organizational
Culture Levels
Artifacts - Symbols of
culture in the physical
and social work environment
Visible, often not
decipherable
Values
Espoused: what members of
an organization say they value
Enacted: reflected in the way
individuals actually behave
Greater level
of awareness
Assumptions - Deeply held
beliefs that guide behavior and tell
members of an organization how
to perceive and think about things
Taken for granted
Invisible
Preconscious
Reprinted with permission from Edgar H. Schein, Organizational
Culture and Leadership: A Dynamic View. Copyright © 1985 Jossey-Bass
Inc,, Publishers, 350 Sansome Street, San Francisco, CA (800) 3

4. Artifacts - Symbols of culture in the physical
and social work environment
Personal enactment
Ceremonies and rites (rites of passage, enhancement, renewal, integration, conflict reduction, degradation)
Stories (about the boss, getting fired, company handling of relocating employees, whether lower-level employees can rise to the top, how the company deals with crises, how status considerations work when rules are broken)
Ritual
Symbols

5. Testable in the physical environment
Testable only by social consensus
Values
Espoused: what members of
an organization say they value
Enacted: reflected in the way
individuals actually behave

6. Relationship to environment Nature of reality, time, and space
Nature of human nature
Nature of human activity
Nature of human relationships
Assumptions - Deeply held
beliefs that guide behavior and tell
members of an organization how
to perceive and think about things

7. 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

8. organizational culture and performance
Theories about the
relationship between
organizational culture
and performance
Strong Culture
Perspective
Fit
Perspective
Adaptive
Perspective

9. Reasons Strong cultures facilitate performance
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
Reasons Strong cultures facilitate
performance
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

10. Argument that a culture is good only if it fits the industry’s or the
firm’s strategy.
Three characteristics of the organization may affect culture
Competitive environment
Customer requirements
Societal expectations
Fit
Perspective

11. 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
Perspective
Adaptive
Nonadaptive
Most managers care
about themselves,
their work group, or
an associated product
about customers,
stockholders, and
employees
Managers tend to
behave somewhat
insularly, politically,
and bureaucratically
Managers pay close
attention to all
their constituencies,
esp. customers
Core Values
Common
Behavior
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.

12. 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

13. Organizational Socialization
Organizational Socialization - the process by which newcomers are transformed from outsiders to participating, effective members of the organization

14. Stages of Socialization
1. Anticipatory
Socialization
Realism
Congruence
Job demands
Task
Role
Interpersonal
2. Encounter
3. Change and
Acquisition
Mastery
Stages of Socialization

15. Stages of Socialization
1. Anticipatory
Socialization
Realism
Congruence
Job demands
Task
Role
Interpersonal
2. Encounter
3. Change and
Acquisition
Mastery
Outcomes of Socialization
Performance
Satisfaction
Mutual influence
Low levels of distress
Intent to remain
Stages of Socialization
From “An Ethical Weather Repart: Assessing the Organizaiton’s Ethical Climate” by John B. Cullen, et
al. In Organizational Dynamics, Autumn Copyright © 1989 American Management Asociation
International. Reprinted by permission of American Management Association International, New York, N.Y.
All rights reserved. Org.

16. 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

17. 3. Change & Acquisition
the third socialization stage--the newcomer begins to master the demands of the job

18. 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

19. 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 is the use of multiple methods to measure organizational culture

20. 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

21. Interventions for Changing Organizational Culture
Hiring and
socializing
members who
fit in with the
new culture
Culture
Removing
members who
reject the
new culture 4 5
Cultural
communication
Changing
behavior 1 3
Examining
justifications
for changed
behavior
Interventions for
Changing
Organizational
Culture 2
Reprinted with permission from Vijay Sathe “How to Decipher & Change
Corporate Culture,” Copyright © 1985 Jossey-Bass Inc, Publishers, 350 Sansome
Street, San Francisco, CA (800)

22. Cultural Modifications in the Current Business Environment
Support for a global
view of business
Empowerment of
employees to excel
in product and
service quality
Reinforcement of
ethical behavior

23. 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

24. 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

25. 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