1. Organizational Culture

2. Organizational Culture Defined
The 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.

3. The Basic Functions of Organizational Culture
Provides a
sense of
identity for
members
Clarifies and
reinforces
standards of
behaviour
Enhances
commitment
to the
organization’s
mission

4. Voluntary Survival: Its Connection to Organizational Culture
More people voluntarily
completed six years of work
in organizations whose
cultures emphasized the value
of interpersonal relationships
than those emphasizing
the value of hard work
Organizational cultures
emphasizing the value of
interpersonal relationships
100 75
(percentage voluntarily remaining
employed in the organization)
Voluntary Survival Rate
Organizational cultures
emphasizing the value
of hard work 50 25
Year 1 Year Year Year Year 5 Year 6
Time Since First Hired
Organizational cultures
emphasizing the value of
interpersonal relationships
Organizational cultures
emphasizing the value
of hard work

5. Rule #1: Use your good judgment in all situations.
An example
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.

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

7. Meaning of Cultural Content
Cultural content refers to the relative ordering of beliefs, values, and assumptions.
Example: RIM values intensity whereas Q-Media values thrift.
An organization emphasizes only a handful of the hundreds of cultural values.
Kitchener-Waterloo Record

8. Organizational Culture as Shared Meanings
Yes
Organizational
Culture
Shared
interpretation
of organizational
events?
Regular
interaction? No

9. Organizational Subcultures
Located throughout the organization
Can support or oppose (countercultures) firm’s dominant culture
Two functions of countercultures:
provide surveillance and evaluation
source of emerging values
Most Organizations Have a Dominant Culture and Numerous Sets of Subcultures.

10. Values of the Dominant Organizational Culture and Subcultures
Subculture values:
Honest representation
of products
Sales group
Values of the
Dominant
Organizational
Culture
Open to
new ideas
Customer
service
Subculture values:
Thorough product
testing
Engineering Group
Subculture values:
Accurate reporting
of financial data
Accounting group
High
quality

11. Avocational subcultures
The employee at the next work station may really be from Mars

12. Artifacts: Organizational Stories
Social prescriptions of desired behaviour
Demonstrate that organizational objectives are attainable
Most effective stories:
Describe real people
Assumed to be true
Known throughout the organization
Are prescriptive

13. Artifacts: Rituals and Ceremonies
programmed routines
(e.g., conducting meetings)
Ceremonies
planned activities for an audience
(e.g., award ceremonies)

14. Artifacts: Organizational Language
Words used to address people, describe clients, etc.
Leaders use phrases and metaphors as cultural symbols
eg. General Electric’s “grocery store”
Language also found in subcultures
eg. Whirlpool’s “PowerPoint culture”

15. Artifacts: Physical Structures/Space
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.
Courtesy of Oakely, Inc.

16. Benefits of Strong Corporate Cultures
Social Control
Strong
Organizational
Culture
Social Glue
Aids Sense-Making

17. Problems with Strong Cultures
Culture content might be incompatible with the organization’s environment.
Strong cultures focus attention on one mental model.
Strong cultures suppress dissenting values from subcultures.

18. Mergers and Collaboration
Firms Well Matched on Traditional Business Can Stumble in Blending Their Corporate “Personalities.”

19. Bicultural Audit Part of “due diligence” in merger
Minimizes risk of cultural collision by diagnosing companies before merger
Three steps in bicultural audit:
1. Collect artifacts
2. Analyze data for cultural conflict/compatibility
3. Recommend solutions

20. Merging Organizational Cultures
Assimilation
Acquired company embraces acquiring firm’s culture
Deculturation
Acquiring firm imposes its culture on unwilling acquired firm
Integration
Both cultures combined into a new composite culture
Separation
Merging companies remain separate with their own culture

21. What does this mean for you?

22. Strengthening Organizational Culture
Founders and leaders
Strengthening
Organizational
Culture
Selection
and
socialization
Culturally
consistent
rewards
Managing the
cultural
network
Stable
workforce

23. 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.

24. Assessing the Individual-to-organization Fit