1. Chapter 16 Organizational Culture
Identify the three levels of culture and the roles they play in an organization.
Evaluate the four functions of culture within an organization.
Explain the relationship between organizational culture and performance.
Describe five ways leaders reinforce organizational culture.
Describe the three stages of organizational socialization and the ways culture is communicated in each step.
Discuss how managers assess their organization’s culture.
Explain actions managers can take to change organizational culture.
Identify the challenges organizations face developing positive, cohesive cultures.
Learning Outcomes
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2. 1
Learning Outcome
Identify the three levels of culture and the roles they play in an organization.
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3. 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.
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4. Levels of Organizational Culture
Artifacts – symbols of culture in the physical and social work environment
Espoused Values – what members of an organization say they value
Enacted Values – 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
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5. Organizational Culture
Visible, often not
decipherable
Artifacts
Espoused Values
Greater level
of awareness
Enacted Values
Taken for granted,
Invisible, Preconscious
Assumptions
Reprinted with permission from Edgar H. Schein,
Organizational Culture and Leadership: A Dynamic View.
Copyright © 1985 Jossey-Bass
Inc, a subsidiary of John Wiley & Sons, Inc.
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6. Types of Artifacts Personal Enactment Ceremonies and Rites Stories
About the boss
About getting fired
About relocating
About promotions
About crisis situations
About status considerations
Rituals
Symbols
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7. Beyond the Book: Identifying Norms
This exercise asks you to identify campus norms at your university. Every organization or group has a set of norms that help determine individuals’ behavior. A norm is an unwritten rule for behavior in a group. When a norm is not followed, negative feedback is given. It may include negative comments, stares, harassment, and exclusion.
1. As a group, brainstorm all the norms you can think of in the following areas:
Dress Classroom behavior; Studying; Weekend activities; Living arrangements; Campus activities; Dating; Relationships with faculty; Eating on campus versus off campus; Transportation
2. How did you initially get this information?
3. What happens to students who don’t follow these norms?
4. What values can be inferred from these norms?
SOURCE: Dorothy Marcic, “Identifying Behavioral Norms.” Organizational Behavior: Experiences and Cases (St. Paul, MN: West Publishing, 1989). Reprinted by permission.
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8. 2
Learning Outcome
Evaluate the four functions of culture within an organization.
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9. 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 of the organization
Culture serves as a control mechanism for shaping behavior
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10. Beyond the Book: NetApp’s Culture of Openness
What is the key to success at NetApp? According to top executives, it’s openness.
Everyone, including the CEO, works in an open cubicle. Information is shared freely. Every two weeks, employees meet with the Vice President to share their perspectives.
In addition, NetApp shows employees that they are valuable and cared for through flexible scheduling, and sponsorship of volunteer activities.
NetApp’s culture of openness and trust has made it one of Fortune magazine’s “Best Companies to Work For.”
The data storage and management company NetApp has survived the dot-com crash and has enjoyed tremendous success under long-time CEO Dan Warmenhoven. Top executives at NetApp are quick to credit the open, trusting culture for the company’s success—and employees agree, catapulting NetApp to the top of Fortune’s “Best Companies to Work For” list.
A culture of trust and openness gives NetApp a distinct competitive advantage. The office design supports these values. Everyone, including the CEO, works in an open air cubicle. Information is shared fully and openly. A Vice President’s Forum is held every two weeks in which information about the company and the economy is shared, but its main purpose is for the VP to hear what’s on the mind of NetApp employees. Key to the culture is the commitment to simplicity and common sense. Bureaucracy is at a minimum, and products are designed in order to do the job as simply as possible for customers. A twelve-page travel policy was canned in favor of a simple statement asking employees to use their common sense.
Recruiting is done to attract brilliant people to the organization, and care is taken to let employees know how brilliant and appreciated they are. NetApp provides exciting work, provides flexible scheduling for work–life balance, and encourages volunteer efforts in the community. Five paid days off are given to each employee for volunteer work. Unique benefits are provided, too, like adoption aid and autism coverage. NetApp’s culture of trust, openness, simplicity, and common sense has garnered not only recognition, but highly performing employees and loyal customers, both keys to competitive advantage.
SOURCES: R. Levering and M. Moskowitz, “And the Winners Are….” Fortune, February 2, 2009, 67–78;
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11. 3
Learning Outcome
Explain the relationship between organizational culture and performance.
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12. Strong Culture Perspective Fit Perspective Adaptive Perspective
Three Theories on the Relationship Between Organizational Culture and Performance
Strong Culture Perspective
Fit Perspective
Adaptive Perspective
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13. Strong Culture
an organizational culture with a consensus on the values that drive the company and with an intensity that is recognizable even to outsiders
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14. 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
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15. Fit Perspective
a culture is good only if it fits the industry or the firm’s strategy
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16. Fit Perspective
Three particular industry characteristics affect culture:
Competitive environment
Customer requirements
Societal expectations
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17. Adaptive Culture
an organizational culture that encourages confidence and risk taking among employees, has leadership that produces change, and focuses on the changing needs of customers
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18. Adaptive vs. Nonadaptive Cultures
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19. 4
Learning Outcome
Describe five ways leaders reinforce organizational culture.
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20. 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
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21. 5
Learning Outcome
Describe the three stages of organizational socialization and the way culture is communicated in each step.
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22. Organizational Socialization
the process by which newcomers are transformed from outsiders to participating, effective members of the organization
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23. Organizational Socialization Process
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24. [Socialization Process]
Anticipatory Socialization – the first socialization stage, which encompasses all of the learning that takes place prior to the newcomer’s first day on the job
Encounter – the second socialization stage in which newcomers learn the tasks associated with the job, clarifie their roles, and establish new relationships at work
Change and Acquisition – the third socialization stage, in which the newcomer begins to master the demands of the job
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25. Outcomes of Socialization
Newcomers who are successfully socialized should exhibit:
Good performance
High job satisfaction
Intention to stay with organization
Low levels of distress symptoms
High level of orgnaizational commitment
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26. 6
Learning Outcome
Discuss how managers assess their organization’s culture.
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27. Organizational Culture Inventory
Focuses on behaviors that help employees fit into the organization and meet coworker expectations.
Uses Maslow’s hierarchy of needs to measure twelve cultural styles.
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28. Kilmann-Saxton Culture-Gap Survey
Focuses on what actually happens in the organization and the expectations of others
Two underlying dimensions – technical/human and time.
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29. Triangulation
the use of multiple methods to measure organizational culture
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30. 7
Learning Outcome
Explain actions managers can take to change organizational culture.
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31. Cultural Changes
With rapid environmental changes such as globalization, workforce diversity and technological innovation, the fundamental assumptions and basic values that drive the organization may need to be altered.
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32. Why is Change Difficult?
Assumptions are often unconscious
Culture is deeply ingrained and behavioral norms and rewards are well learned
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33. Interventions for Changing Organizational Culture
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34. 8
Learning Outcome
Identify the challenges organizations face developing positive, cohesive cultures.
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35. Challenges to Developing Positive, Cohesive Culture
Merger or Acquisition
Developing a global organizational culture
Developing an ethical organizational culture
Developing a culture of empowerment and quality
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36. Beyond the Book: Six Guidelines to Creating a Global Culture
Create a clear and simple mission statement
Create systems that ensure an effective flow of information
Broaden managers’ minds to allow them to think globally
Develop global career paths
Use cultural differences as a major asset
Implement worldwide management education and team development programs
**Following are six specific guidelines for managers who want to create a global culture:
1. Create a clear and simple mission statement. A shared mission can unite individuals from diverse cultural backgrounds.
2. Create systems that ensure an effective flow of information. Coordination councils and global task forces can be used to ensure that information flows throughout the geographically dispersed organization are consistent.
3. Create “matrix minds” among managers; that is, broaden managers’ minds to allow them to think globally. IBM does this through temporary overseas assignments. Managers with international experience share that experience when they return to the home organization.
4. Develop global career paths. This means ensuring not only that home country executives go overseas but also that executives from other countries rotate into service in the home office.
5. Use cultural differences as a major asset. The former Digital Equipment Corporation (now part of Hewlett-Packard), for example, transferred its research and development functions to Italy to take advantage of the free-flowing Italian management style that encouraged creativity. Its manufacturing operations went to Germany, which offered a more systematic management style.
6. Implement worldwide management education and team development programs. Unified training efforts that emphasize corporate values can help establish a shared identity among employees.
These guidelines are specifically aimed at multinational organizations that want to create a global corporate culture, but other organizations can also benefit from. Companies that want to broaden employees’ views or to use the diversity of their workforce as a resource will find several of these recommendations advantageous.
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37. 1. Artifacts are at the first level of organizational culture and are the
easiest to see. Which artifacts did you observe in this sequence?
2. Values appear at the next level of organizational culture. You can
infer a culture’s values from the behavior of organizational members.
Which values appear in this sequence?
3. Organizational members will unconsciously behave according to an
organization culture’s assumptions. You also can infer these from
observed behavior. Which assumptions appear in this sequence?
Charlie Wilson’s War
Democratic Congressman Charlie Wilson (Tom Hanks) from East Texas lives a reckless life that includes heavy drinking and chasing attractive women. The film focuses on the Afghanistan rebellion against the Soviet troop invasion in the 1980s. Wilson becomes the unlikely champion of the Afghan cause through his role in two major congressional committees that deal with foreign policy and covert operations. Houston socialite Joanne Herring (Julia Roberts) strongly urges the intervention. CIA agent Gust Avrakotos (Philip Seymour Hoffman) helps with some details.
This sequence appears early in the film after the scene showing Charlie Wilson, Paul Brown (Brian Markinson), Crystal Lee (Jud Tyler), and two strippers drinking and partying in a hot tub. It opens with a shot of the Capitol building. Congressman Charlie Wilson talks to his assistant Bonnie Bach (Amy Adams) while walking to chambers for a vote. The sequence ends after Wilson enters the chambers.
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38. What aspects of Camp Bow Wow’s corporate culture are visible and conscious? What aspects are invisible and unconscious?
Why did Camp Bow Wow have to change its culture when it became a national franchise?
What impact does Heidi Ganahl’s story have on employees at Camp Bow Wow?
Camp Bow Wow
According to Heidi Ganahl, Camp Bow Wow’s top dog, corporate culture has many elements: it can mean logos and branded material, a presence on the Internet, or even the relationships developed with customers and employees. But a key element of Camp Bow Wow’s culture that doesn’t exist in other franchises is the staff’s deep emotional connection with animals. The connection is immediately apparent at Camp Bow Wow’s corporate headquarters, where offices are bustling with employees and pets alike. “It’s all about the pets,” Ganahl says. “If we keep that focus and that commitment, I think our culture will be alive and well for a long time.”
Ask your students:
What aspects of Camp Bow Wow’s corporate culture are visible and conscious? What aspects are invisible and unconscious?
Why did Camp Bow Wow have to change its culture when it became a national franchise?
What impact does Heidi Ganahl’s story have on employees at Camp Bow Wow?
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