1. Organisational culture

2. Chapter learning objectives
Describe the elements of organisational culture.
Discuss the importance of organisational subcultures.
List four categories of artefacts through which corporate culture is communicated.
Identify three functions of organisational culture.
Discuss the conditions under which cultural strength improves corporate performance.
Discuss the effect of organisational culture on business ethics.
Compare and contrast four strategies for merging organisational cultures.
Identify five strategies to strengthen an organisation’s culture.
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

3. Melso Minerals’ corporate culture
Melso Minerals in Matamata, New Zealand, has an egalitarian, team-oriented corporate culture . This culture is apparent through numerous artefacts, such as the no-holds barred retreats and the Melso polo shirts that everyone wears.
Courtesy of Melso Minerals (Matamata) Ltd
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

4. Organisational 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 organisation.
Courtesy of Melso Minerals (Matamata) Ltd
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

5. Elements of organisational culture
Physical structures
Rituals/ceremonies
Stories
Language
Beliefs
Values
Assumptions
Artefacts of
organisational
culture
Organisational
culture
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

6. Meaning of cultural content
Cultural content refers to the relative ordering of beliefs, values and assumptions
Example: Brown & Brown values aggressiveness; SAS Institute values work-life balance
An organisation emphasises only a handful of the hundreds of cultural values
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

7. Organisational subcultures
Located throughout the organisation
Can support or oppose (countercultures) firm’s dominant culture
Two functions of countercultures:
provide surveillance and evaluation
source of emerging values
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

8. Cultural stories at Four Seasons
The legendary customer service at Four Seasons Hotels and Resorts is reflected in its corporate culture. Legends and stories help to support this customer service culture.
Courtesy of Four Seasons Hotels and Resorts
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

9. Artefacts: organisational stories
Social prescriptions of desired behaviour
Demonstrate that organisational objectives are attainable
Most effective stories
describe real people
are assumed to be true
are known throughout the organisation
are prescriptive
Courtesy of Four Seasons Hotels & Resorts
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

10. Artefacts: rituals and ceremonies
programmed routines
eg conducting meetings
Ceremonies
planned activities for an audience
eg award ceremonies
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

11. Artefacts: organisational 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’
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

12. Artefacts: physical structures/space
Oakley, 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 Oakley, Inc.
Courtesy of Oakley, Inc.
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

13. Benefits of strong corporate cultures
Social control
Strong
organisational
culture
Social glue
Aids sense-making
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

14. Problems with strong cultures
Culture content might be incompatible with the organisation’s environment
Strong cultures focus attention on one mental model
Strong cultures suppress dissenting values from subcultures
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

15. Adaptive organisational cultures
External focus  firm’s success depends on continuous change
Focus on processes more than goals
Strong sense of ownership
Proactive  seek out opportunities
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

16. Bicultural audit Part of ‘due diligence’ in merger
Minimises risk of cultural collision by diagnosing companies before merger
Three steps in bicultural audit
1. collect artefacts
2. analyse data for cultural conflict/compatibility
3. recommend solutions
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

17. Merging organisational 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
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

18. Strengthening organisational culture
Founders and leaders
Strengthening
organisational
culture
Selection
and
socialisation
Culturally
consistent
rewards
Managing the
cultural
network
Stable
workforce
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

19. Overview of the next chapter
Lewin’s force field analysis model
Reasons why people resist organisational change
Strategies to minimise resistance to change
The organisation development process
Appreciative inquiry as a change strategy
Ethical issues in organisation development
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

20. Organisational culture