1. Chapter 16 Organizational Behavior Nelson & Quick 6th edition
Organizational Culture
Chapter 16 Organizational Behavior Nelson & Quick 6th edition

2. Organizational (Corporate) Culture
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. Levels of Organizational Culture
Artifacts - symbols of
culture in the physical
and social work environment
Values
Espoused: what members of
an organization say they value
Enacted: reflected in the way
individuals actually behave
Levels of Organizational Culture
Assumptions - deeply held
beliefs that guide behavior and tell
members of an organization how
to perceive and think about things
Copyright ©2009
South-Western, a division
of Cengage Learning
All rights reserved

4. Invisible Preconscious
Organizational
Culture Levels
Artifacts
Personal enactment
Ceremonies and rites
Stories
Ritual
Symbols
Visible, often not
decipherable
Values
Testable in the physical
environment
Testable only by social consensus
Greater level
of awareness
Basic Assumptions
Relationship to environment
Nature of reality, time, and space
Nature of human nature
Nature of human activity
Nature of human relationships
Taken for granted
Invisible Preconscious
Copyright ©2009
South-Western, a division
of Cengage Learning
All rights reserved
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. 3

5. Functions of Organizational Culture
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

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

7. Strong Culture Perspective
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
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

8. Argument that a culture is good only if it fits the industry’s or the firm’s strategy.
Fit
Perspective
Organizational characteristics that may affect culture
Customer requirements
Competitive environment
Societal expectations
Useful to explain short term but not long term performance
Indicates the difficulty of changing culture quickly but doesn’t
explain how firms can adapt to environmental change.

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

10. Five Most Important Elements in Managing Culture
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

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

12. 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
Copyright ©2009
South-Western, a division
of Cengage Learning
All rights reserved
From “An Ethical Weather Repart: Assessing the Organization's Ethical Climate” by John B. Cullen, et al. In Organizational Dynamics, Autumn Copyright © 1989 American Management Association International. Reprinted by permission of American Management Association International, New York, N.Y. All rights reserved. Org.

13. The Three Stages of Socialization
1. Anticipatory Socialization – encompasses all of the learning that takes place prior to the newcomer’s first day on the job
2. Encounter - the newcomer learns the tasks associated with the job, clarifies roles, and establishes new relationships at work
3. Change & Acquisition - the newcomer begins to master the demands of the job

14. Socialization as Cultural Communication
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

15. 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 - the use of multiple methods to measure organizational culture

16. Situations That May Require Cultural Changes
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

17. Interventions for Changing Organizational
Culture
Cultural
communication 2 1 5 3 4
Interventions for
Changing
Organizational
Removing
members who
reject the
new culture
Hiring and
socializing
fit in with the
behavior
Examining
justifications
for changed
Managers seeking to create change must intervene at these points
Copyright ©2009
South-Western, a division
of Cengage Learning
All rights reserved
Reprinted with permission from Vijay Sathe “How to Decipher & Change Corporate Culture,” Copyright © Jossey-Bass Inc, Reprinted by permission Of Jossey-Bass, Inc., a subsidiary of John Wiley & Sons, Inc.. 17

18. Cultural Modifications in the Current Business Environment
Cultural Modifications in the Current Business Environment
Support for a global
view of business
Reinforcement of
ethical behavior
Empowerment of
employees to excel
in product and
service quality
Photos courtesy of Clips Online, © 2008 Microsoft Corporation

19. Support for a Global View of Business
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
Photos courtesy of Clips Online, © 2008 Microsoft Corporation

20. Reinforcement of Ethical Behavior
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
Photos courtesy of Clips Online, © 2008 Microsoft Corporation

21. Empowerment of Employees to Excel in Product and Service Quality
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
Photos courtesy of Clips Online, © 2008 Microsoft Corporation

22. Chapter 16: Reflect & Discuss
Backdraft Video Clip
What to Watch for and Ask Yourself
What parts of the Chicago fire department culture does this scene show? Does the scene show any cultural artifacts or symbols? If it does, what are they?
Does the scene show any values or norms that guide the firefighters’ behavior? If it does, what are they?
What does Brian McCaffrey learn on his first workday?
Backdraft
Two brothers follow their late father, a legendary Chicago firefighter, and join the department. Stephen “Bull” McCaffrey (Kurt Russell) joins first and rises to the rank of lieutenant. Younger brother Brian (William Baldwin) joins later and becomes a member of Bull’s Company 17. Sibling rivalry tarnishes their work relationships, but they continue to successfully fight Chicago fires. Add a plot element about a mysterious arsonist and you have the basis for an extraordinary film. The intense, unprecedented special effects give the viewer an unparalleled experience of what it is like to fight a fire.
The scene appears early in the Backdraft as part of “The First Day” sequence. Brian McCaffrey has graduated from the fire academy, and the fire department has assigned him to his brother’s company. This scene shows Company 17 preparing to fight a garment factory fire. The film continues with Brian receiving some harsh first-day lessons as Company 17 successfully fights the fire.
What to Watch for and Ask Yourself
What parts of the Chicago fire department culture does this scene show? Does the scene show any cultural artifacts or symbols? If it does, what are they?
Does the scene show any values or norms that guide the firefighters’ behavior? If it does, what are they?
What does Brian McCaffrey learn on his first workday? 22