1. MGMT 371: Organizational Culture
“A pattern of basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think and feel in relation to those problems.”
Edgar Schein, 1992

2. 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

3. Organizational Culture
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

4. 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

5. 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

6. Understanding Organizational Culture
Observable artifacts
Espoused values
Basic assumptions
Group & Social Processes
Socialization
Mentoring
Decision
making
Group
dynamics
Communication
Influence &
empowerment
Leadership
Antecedents
Founder’s values
Industry & business
environment
National culture
Senior leaders’
vision and behavior
Organizational Structure & Practices
Reward systems
Organizational
design
Collective Attitudes & Behavior
Work attitudes
Job satisfaction
Motivation
Organizational Outcomes
Effectiveness
Innovation &
stress

7. Types of Cultures Constructive Passive-defensive Aggressive-defensive
Valuing members, self-actualizing, affiliative, and humanistic/encouraging normative beliefs (expected behavior or conduct)
Passive-defensive
Approval-oriented, traditional and bureaucratic, dependent and nonparticipative, punish mistakes but ignore success
Aggressive-defensive
Confrontation and negativism are rewarded, nonparticipative, positional power, winning valued, competitiveness rewarded, perfectionistic

8. Constructive Culture
High priority on constructive interpersonal relationships, and focus on work group satisfaction
Affiliative
Participative, employee centered, and supportive
Humanistic-encouraging
Value self-development and creativity
Self-actualizing
Goal and achievement oriented
Achievement
Organizational Characteristics
Normative Beliefs

9. Passive Defensive Culture
Negative reward system and Defensive avoid accountability
Avoidance
Nonparticipative, centralized decision making, and employees do what they are told
Dependent
Conservative, bureaucratic, and people follow the rules
Conventional
Avoid conflict, strive to be liked by others, and approval oriented
Approval
Organizational Characteristics
Normative Beliefs

10. Aggressive-Defensive Culture
Perfectionistic, persistent, and hard working
Perfectionistic
Winning is values and a win-lose approach is used
Competitive
Nonparticipative, take charge of Defensive subordinates, and responsive to superiors
Power
Confrontation and negativism rewarded
Oppositional
Organizational Characteristics
Normative Beliefs

11. Organizational Culture Research Suggests:
Organizational culture correlated with employee attitudes and behavior
Congruence between an individual’s values and the organization’s values associated with organizational commitment, job satisfaction, intentions to quit, and turnover
Organizational culture did not predict a company’s financial performance
Mergers frequently failed due to incompatible cultures

12. Theories on the relationship between organizational culture and performance
Strong Culture Perspective
Fit Perspective
Adaptive Perspective

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

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

15. Fit Perspective
a culture is good only if it fits the industry or the firm’s strategy

16. Fit Perspective
Three particular industry characteristics affect culture:
Competitive environment
Customer requirements
Societal expectations

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

18. Adaptive vs. Nonadaptive Cultures

19. 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

20. Organizational Socialization
Phase 1: Anticipatory
Phase 2: Encounter
Phase 3: Change and acquisition

21. Organizational Socialization Process

22. Organizational Socialization
Phases
Perceptual and Social Processes
Anticipatory socialization learning that occurs prior to joining the organization
Anticipating realities about the organization and the new job
Anticipating organization’s needs for one’s skills and abilities
Anticipating organization’s sensitivity to one’s needs and values

23. Organizational Socialization
Phases
Perceptual and Social Processes
Encounter values, skills, and attitudes start to shift as new recruit discovers what the organization is truly like
Managing lifestyle-versus-work conflicts
Managing intergroup role conflicts
Seeking role definition and clarity
Becoming familiar with task and group dynamics

24. Organizational Socialization
Phases
Perceptual and Social Processes
Change and acquisition recruit masters skills and roles and adjusts to work group’s values and norms
Competing role demands are resolved
Critical tasks are mastered
Group norms and values are internalized

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 organizational commitment

26. How cultures are embedded in organizations
Formal/public statements
Physical Layout
Slogans, co. lingo
Mentoring, modeling
Explicit rewards, promotion criteria
Stories, legends, myths
Processes and outcomes, measurement
Workflow and systems

27. Mentoring Outcomes for Mentees Outcomes for Mentors
Outcomes for Organizations
Maintaining the Culture

28. Functions of Mentoring
Career Functions
Sponsorship
Exposure-and-Visibility
Coaching
Protection
Challenging Assignments
Psychological Functions
Role Modeling
Acceptance-and-Confirmation
Counseling
Friendship

29. 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

30. 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.

31. Interventions for Changing Organizational Culture

32. Questions on Culture Can the organizational culture change?
How?
Where does the culture come from? 1. 2. 3.
Does the culture look the same from the top and from the bottom?