1. Organizational Behaviour Canadian Edition Schermerhorn, Hunt, Osborn, Currie Prepared by: Joan Condie

2. Chapter 13 Organizational Cultures

3. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Questions  What is organizational culture?  What aspects of organizational culture can be observed?  How do values and assumptions influence organizational culture?  How can the organizational culture be managed, nurtured, and guided?  How can the process of organizational development improve organizational culture?

4. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Organizational Culture (or Corporate Culture)  Organizational culture is the system of shared actions, values, and beliefs that develops within an organization and guides the behaviour of its members  Has a major impact on organizational performance and on quality of work life experienced by members

5. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Culture Iceberg Visible - - - - - - - - - - - - - - - - - ExpressedUnconsciousArtifacts Espoused Values Basic Underlying Assumptions

6. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Functions of Organizational Culture  External Adaptation – reaching goals and dealing with outsiders; concerns include the tasks to be accomplished, methods to achieve goals and to cope with success and failure  Done by developing answers to the following: What is our real mission? What is our real mission? How do we contribute? How do we contribute? What are our goals? What are our goals? How do we reach our goals? How do we reach our goals? What external forces are important? What external forces are important? How do we measure results? How do we measure results? What do we do if specific targets aren’t met? What do we do if specific targets aren’t met? How do we tell others how good we are? How do we tell others how good we are? When do we quit? When do we quit?

7. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Functions of Organizational Culture  Internal Integration – the creation of a collective identity and finding ways of working together  Done by developing answers to the following: What is our unique identity? What is our unique identity? How do we view the world? How do we view the world? Who is a member? Who is a member? How do we allocate power, status, authority? How do we allocate power, status, authority? How do we communicate? How do we communicate? What is the basis for friendship? What is the basis for friendship?

8. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Dominant Culture, Subcultures, Countercultures  Dominant culture = unifying set of shared actions, values and beliefs across entire organization  Subculture = unique patterns of values and philosophies within a group that fit with the dominant culture of the larger organization Often found in high-performance teams Often found in high-performance teams May reflect subgroup in larger society (if so, danger of becoming a counterculture) May reflect subgroup in larger society (if so, danger of becoming a counterculture)  Countercultures = patterns of values and philosophies that reject those of the larger organization

9. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Multicultural Organization  Cox suggests organizations should value diversity but block transfer of subcultures from society into the organization by developing pluralism: 1.Educate so increased information, no stereotyping 2.Integrate structure so no relationship between a naturally occurring group and any particular job 3.Integrate informal networks 4.Break link between naturally occurring group identity and identity of firm 5.Work to eliminate conflict between individuals based on group identity or backlash

10. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Levels of Cultural Analysis  Observable culture  Stories, rituals, ceremonies  Espoused values  Strategies, goals, philosophies  Common assumptions  Taken-for-granted truths shared as result of joint experience Artifacts Espoused Values Basic Underlying Assumptions

11. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Observable Culture  Stories  E.g., founding of organization, how boss reacted to a mistake, why someone fired  Rituals  E.g., how certain occasions are celebrated  Language  E.g., jargon  Cultural symbols  E.g., uniform

12. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Values and Organizational Culture  “Strong” culture has value system broadly and deeply shared by members  Result:  Strong corporate identity  Increased commitment of employees  Stable social system  Reduced need for formal, bureaucratic controls  BUT also perhaps a one-dimensional view of the organization and its environment

13. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Organizational Myths  Organizational myth = an unproven and often unstated belief that is accepted uncritically  May not be logical but still have function:  Allow executives to redefine impossible problems into more manageable components  Can encourage experimentation  Allow managers to govern

14. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. National Culture  Often basic assumptions in an organization’s culture derive from the larger society (e.g., preference for individualism or collectivism)  Managers moving from dealing with one national culture to another must be sensitive to different expectations, generally accepted solutions

15. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Managing Organizational Culture  Culture influences performance as do structure and strategy  Starts with management philosophy It establishes generally understood boundaries It establishes generally understood boundaries It provides a consistent way of approaching new situations It provides a consistent way of approaching new situations It helps keep individuals together by assuring them path to success is known It helps keep individuals together by assuring them path to success is known

16. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Managing Organizational Culture (cont’d)  Two approaches:  Directly modifying observable culture, shared values, common assumptions  Using organizational development techniques to modify specific elements of the culture

17. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Building, Reinforcing and Changing Culture  Managers modify visible aspects of culture, e.g., interpret situations in new ways, create new rituals  Managers set example, e.g., relative attention paid to customers, shareholders, employees  Direct attempts to change values by resocializing often fail  Attempts to change values need to be supported by changes to how the organization works and a recognition of importance of individuals  Mistake to force major changes and ignore shared values

18. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Organizational Development (OD)  OD = comprehensive approach to planned change designed to improve overall effectiveness  OD uses behavioural-science knowledge in long-term effort to improve an organization’s ability to respond to change in external environment and increase its problem-solving capabilities  Wants to create change in a way that results in organizational members being active in taking similar steps in future

19. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. OD Assumptions and Values  OD assumes:  Respect for individuals, their need for growth in supportive environment, their capacity to take responsibility  Belief that groups can be good for people and organizations  Respect for complexity of the organization as a system of interdependent parts  OD addresses two main goals:  Outcome goals  Process goals

20. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. Action Research Foundation of OD  Action research = the process of systematically collecting data on an organization, feeding it back for action planning, and evaluating results by collecting and reflecting on more data  Perception of problem  Data gathering  Data feedback  Data analysis  Action planning  Action taken  Results evaluated

21. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. OD Interventions  Organization-wide:  Survey feedback Collection of data from questionnaires answered by members, results interpreted and action planned Collection of data from questionnaires answered by members, results interpreted and action planned  Confrontation meeting One-day meeting conducted by OD facilitator to identify needed improvements One-day meeting conducted by OD facilitator to identify needed improvements  Structural redesign Realign whole organization or major subsystem Realign whole organization or major subsystem  Collateral organization Representative members in periodic, small-group, problem-solving sessions Representative members in periodic, small-group, problem-solving sessions

22. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. OD Interventions  Group and Intergroup Interventions  Team-building Series of activities to collaboratively examine how the group functions and how it could function better Series of activities to collaboratively examine how the group functions and how it could function better  Process consultation Structured activities guided by OD consultant to improve specific aspects, e.g., norms, communication, cohesiveness Structured activities guided by OD consultant to improve specific aspects, e.g., norms, communication, cohesiveness  Intergroup team-building To help two or more groups improve their working relationship To help two or more groups improve their working relationship

23. Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd. OD Interventions  Individual Interventions  Role negotiation Process through which individuals clarify their expectations about what they are to give and receive from each other in the work relationship Process through which individuals clarify their expectations about what they are to give and receive from each other in the work relationship  Job redesign Creates a long-term fit between individual goals and career opportunities in the organization, e.g., job enrichment Creates a long-term fit between individual goals and career opportunities in the organization, e.g., job enrichment  Career planning Structured opportunities for individuals to work with their managers on career issues Structured opportunities for individuals to work with their managers on career issues

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