1. Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McShane 5th Canadian Edition Transparency 16.1 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.

2. Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McShane 5th Canadian Edition Transparency 16.2 Physical Structures Rituals/ Ceremonies Stories LanguageBeliefsValuesAssumptions Artifacts of Organizational Culture Organizational Culture Elements of Organizational Culture

3. Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McShane 5th Canadian Edition Transparency 16.3 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

4. Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McShane 5th Canadian Edition Transparency 16.4 Organizational Subcultures  Located throughout the organization  Can enhance or oppose (countercultures) firm’s dominant culture  Two functions of countercultures:  provide surveillance and critique, ethics  source of emerging values

5. Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McShane 5th Canadian Edition Transparency 16.5 Artifacts: Stories and Legends  Social prescriptions of desired (undesired) behaviour  Provides a realistic human side to expectations  Most effective stories and legends:  Describe real people  Assumed to be true  Known throughout the organization  Are prescriptive

6. Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McShane 5th Canadian Edition Transparency 16.6 Artifacts: Rituals and Ceremonies  Rituals  programmed routines  (eg., how visitors are greeted)  Ceremonies  planned activities for an audience  (eg., award ceremonies)

7. Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McShane 5th Canadian Edition Transparency 16.7 Artifacts: Organizational Language  Words used to address people, describe customers, etc.  Leaders use phrases and special vocabulary as cultural symbols  eg. Container Store’s “Being Gumby”  Language also found in subcultures  eg. Whirlpool’s “PowerPoint culture”

8. Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McShane 5th Canadian Edition Transparency 16.8 Artifacts: Physical Structures and Symbols  Building structure -- may shape and reflect culture  Mountain Equipment Co-op’s downtown Toronto store roof holds a 10,000 square foot garden with 4-inch thick soil  Office design conveys cultural meaning  Furniture, office size, wall hangings

9. Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McShane 5th Canadian Edition Transparency 16.9 Benefits of Strong Corporate Cultures Strong Organizational Culture Social Control Aids Sense-Making Social Glue

10. Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McShane 5th Canadian Edition Transparency 16.10 Problems with Strong Cultures  Culture content might be misaligned with the organization’s environment.  Strong cultures may focus on mental models that could be limiting  Strong cultures suppress dissenting values from subcultures.

11. Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McShane 5th Canadian Edition Transparency 16.11 Adaptive Organizational Cultures  External focus -- firm’s success depends on continuous change  Focus on processes more than goals  Strong sense of ownership  Proactive --seek out opportunities

12. Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McShane 5th Canadian Edition Transparency 16.12 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 2.Analyze data for cultural conflict/compatibility 3.Identify strategies and action plans to bridge cultures

13. Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McShane 5th Canadian Edition Transparency 16.13 Merging Organizational Cultures Assimilation Deculturation Acquired company embraces acquiring firm’s cultural values Acquiring firm imposes its culture on unwilling acquired firm Integration Cultures combined into a new composite culture Separation Merging companies remain separate with their own culture

14. Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McShane 5th Canadian Edition Transparency 16.14 Strengthening Organizational Culture Founders and leaders Culturally consistent rewards Stable workforce Selection and socialization Managing the cultural network Strengthening Organizational Culture