12-1 Copyright © 2005 Prentice-Hall Chapter 12 Diagnosing and Modifying Organizational Culture Management: A Skills Approach, 2/e by Phillip L. Hunsaker Copyright © 2005 Prentice-Hall

12-2 Copyright © 2005 Prentice-Hall Learning Objectives Identify an Organization’s Culture Assess How a Person Fits into a Specific Culture Instill Cultural Values and Norms in Subordinates Make Appropriate Changes to an Organization’s Culture

12-3 Copyright © 2005 Prentice-Hall Organizational Culture The key characteristics that the organization values and that distinguish it from other organizations.

12-4 Copyright © 2005 Prentice-Hall Enculturation All successful managers and employees must learn what to do and what not to do in their organizations.

12-5 Copyright © 2005 Prentice-Hall Why is Culture Important? Even firms doing well on traditional business criteria can stumble in blending their corporate personalities.

12-6 Copyright © 2005 Prentice-Hall Dimensions of Culture 1.Innovation and Risk Taking 2.Attention to Detail 3.Outcome Orientation 4.People Orientation 5.Team Orientation 6.Aggressiveness 7.Nonstability

12-7 Copyright © 2005 Prentice-Hall Innovation and Risk Taking The degree that employees are encouraged to be innovative and take risks

12-8 Copyright © 2005 Prentice-Hall Attention to Detail The degree that employees are expected to exhibit precision, analysis, and attention to detail

12-9 Copyright © 2005 Prentice-Hall Outcome Orientation The degree that management focuses on results rather than process used to produce those results

12-10 Copyright © 2005 Prentice-Hall People Orientation The degree that management decisions take into account how people in the organization will be affected

12-11 Copyright © 2005 Prentice-Hall Team Orientation The degree that work is organized around teams rather than individuals

12-12 Copyright © 2005 Prentice-Hall Aggressiveness The degree that people are aggressive and competitive rather than easygoing

12-13 Copyright © 2005 Prentice-Hall Non-stability The degree that organizational activities emphasize growth as opposed to maintaining the status quo

12-14 Copyright © 2005 Prentice-Hall The Essence of Nordstrom’s Organizational Culture WELCOME TO NORDSTROM We’re glad to have you with our Company. Our number one goal is to provide outstanding customer service. Set both your personal and professional goals high. We have great confidence in your ability to achieve them. Nordstrom Rules Rule #1: Use your good judgment in all situations. There will be no additional rules. Please feel free to ask your department manager, store manager, or divisional general manager any questions at any time.

12-15 Copyright © 2005 Prentice-Hall Reasons to Strive for a Strong Culture They are associated with high organizational performance. Increased employee commitment and loyalty Yield a sustainable competitive advantage

12-16 Copyright © 2005 Prentice-Hall Where Does Culture Come From? Founders hire and keep employees who think and feel the way they do. Founders indoctrinate and socialize these employees to their way of thinking. Founders act as role models.

12-17 Copyright © 2005 Prentice-Hall How is Culture Transmitted to Employees? Stories Rituals Material Symbols Language

12-18 Copyright © 2005 Prentice-Hall The Role of Subcultures Most organizations have a dominant culture and numerous sets of subcultures.

12-19 Copyright © 2005 Prentice-Hall How to Read an Organization’s Culture Observe the physical surroundings Ask to sit in on a team meeting Listen to the language Note to whom you’re introduced and how they act Ask different people the same questions and compare their answers Get the views of outsiders

12-20 Copyright © 2005 Prentice-Hall Four Types of Organizational Culture TypeDescription AcademyEmployees stay within a narrow specialty and are promoted after they master a new job thoroughly. ClubEmployees are trained as generalists and promoted on the basis of seniority. Baseball teamEmployees are rewarded for what they produce. Risk-taking and innovation are highly valued. FortressPreoccupied with survival, these cultures reward employees who can reverse the organization’s sagging fortunes.

12-21 Copyright © 2005 Prentice-Hall Sustaining a Culture Selection Practices Top Management’s Behavior Socialization

12-22 Copyright © 2005 Prentice-Hall Conditions for Changing Culture A Dramatic Crisis Turnover in Leadership Young and Small Organization Weak Culture

12-23 Copyright © 2005 Prentice-Hall Changing the Culture Actions to Change Culture Do a Cultural Analysis Create Sense of Urgency Appoint a Visionary Change Agent Create Supporting Conditioning Components