Organizational Culture 16 C H A P T E R S I X T E E N

Organizational Culture Defined 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 organization.

Chapter 17: Organizational Culture 3 Slide 17.2 Components of Organizational Culture Routine behaviors. Norms shared by teams. Dominant values. Guiding philosophy for policies toward employees and customers. The rules of the game for getting along in the organization. The climate of the organization.

Physical Structures Rituals/ Ceremonies Stories Language Beliefs Values Assumptions Artifacts of OrganizationalCulture OrganizationalCulture Elements of Organizational Culture

Organizational Subcultures Located throughout the organization Support or oppose (countercultures) firm’s dominant culture Two functions of countercultures: –provide surveillance and evaluation –source of emerging values

Artifacts of Organizational Culture Organizational stories –social prescriptions and role models Rituals and ceremonies –programmed routines and planned activities Organizational language –Defining words, metaphors Physical structures and space –Building structure, office design

Courtesy of Oakely, Inc. Oakely’s Culture in Building Design Oakely, 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 Oakely, Inc.

Problems with Strong Cultures Strong cultures may be a problem when: –Culture content is incompatible with the organization’s environment. –Strong cultures focus attention on one mental model. –Strong cultures suppress dissenting values from subcultures.

Bicultural Audit Part of “due diligence” in merger Minimizes risk of cultural collision by diagnosing companies before merger Three steps in bicultural audit: 1.Examine artifacts identifying cultural differences between merging companies 2.Analyze audit data -- determine where cultural conflict and compatibility exist 3.Identify ways to bridge the two organizations’ cultures

Merging Organizational Cultures Assimilation Strategy Deculturation Strategy Integration Strategy Separation Strategy

StrengtheningOrganizationalCulture Founders and leaders Culturallyconsistentrewards Stableworkforce Selectionandsocialization Managing the culturalnetwork Strengthening Organizational Culture

Chapter 17: Organizational Culture 12 Slide 17.8 Requirements for Successfully Changing Organizational Culture Understand the old culture first. Support employees and teams who have ideas for a better culture and are willing to act on those ideas. Find the most effective subculture in the organization and use it as a model. Help employees and teams do their jobs more effectively. Use the vision of a new culture as a guide for change. Recognize that significant cultural change takes time. Live the new culture.