1. Organizational Culture, Socialization, and Mentoring
As we begin Chapter 3, you will note the five key areas we will be studying as we learn more about organizational culture, socialization, and mentoring. They include:
Organizational Culture: Definition and Context
Dynamics of Organizational Culture
The Process of Culture Change
The Organizational Socialization Process
And Embedding Organizational Culture through Mentoring.
McGraw-Hill/Irwin
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.

2. Ch. 3 Learning Objectives
Define organizational culture and discuss its three layers.
Discuss the difference between espoused and enacted values.
Describe the four functions of organizational culture.
Discuss the four types of organizational culture associated with the competing values framework.
Summarize the seven conclusions derived from research about the outcomes associated with organizational culture.
The learning objectives provide an overview of the chapter. We will cover the basics by defining terms such as organizational culture, espouses values, and enacted values. In addition, we will examine the manifestations and functions of an organization’s culture, as well as the four functions and four types of organizational culture. Next, we’ll relate culture with organizational outcomes.
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3. Ch. 3 Learning Objectives
Review the three caveats about culture change.
Summarize the methods used by organizations to change organizational culture.
Describe the three phases in Feldman’s model of organizational socialization.
Discuss the various socialization tactics used to socialize employees.
Explain the four developmental networks associated with mentoring.
The remainder of the chapter will cover topics such as caveats about culture change, the methods used by organizations to change culture; a model of organizational socialization and tacktics and developmental networks associated with mentoring.
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4. Organizational Culture
Shared values and beliefs that underlie a company’s identity
What types of organizational cultures have you worked in?
How does the organization’s culture manifest itself?
Organizational Culture is the set of shared values and beliefs that underlie a company’s identity.
You might, for example, describe an organizational culture you’ve worked in as competitive, laid back, stressful, or bureaucratic.
When you think about the indicators of the organization’s culture, you might identify traditions, rituals, mascots, or a host of other indicators.
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5. Understanding Organizational Culture
Antecedents
Organizational Culture
Observable artifacts
Espoused values
Basic assumptions
Organizational Structure & Practices
Reward systems
Organizational
design
Group & Social Processes
Founder’s values
Industry & business
environment
National culture
Senior leaders’
vision and behavior
Socialization
Mentoring
Decision
making
Group
dynamics
Communication
Influence &
empowerment
Leadership
Collective Attitudes & Behavior
Work attitudes
Job satisfaction
Motivation
Organizational Outcomes
Effectiveness
Innovation &
stress
This figure shows the importance of organizational culture on individual, group and organizational behavior. The roots of an organization’s culture are driven by the founder’s and senior leaders’ values, the culture of the nation, and the particular industry and business environment.
Now, let’s look at the organizational culture box specifically to understand what it is comprised of.
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6. Layers of Organizational Culture
Observable artifacts
Examples?
Values – enduring belief in a mode or conduct or end-state
What is the difference between espoused and enacted values?
Organizational Culture can be described as having three layers. Examples of observable artifacts include dress, awards, myths and stories, published lists of values, observable rituals and ceremonies, and visible behavior exhibited by people and groups.
For example, the Ritz-Carlton hotel uses stories to highlight how focused the company is on exceeding customer’s expectations. They share “wow” stories that explain tales of staff members going above and beyond the call of duty for customers. “Wow” winners get $100 check, like the laundry room attendant who dove into a dumpster to retrieve one young guests’ stuffed animal.
Another example of an observable artifact is when the CEO of General Electric, Jeffrey Immelt, declined his earned bonus of $12 million dollars because he felt that was inappropriate since the companies earning were below expectations. He want rewards to be based on performance at all levels of the organization, including his.
Values are the enduring beliefs in a mode or conduct or end-state. The two types of values are espoused—those that are the organization’s stated values that define the expectations of its employees—and enacted—the values and norms exhibited by employees. Organizational cynicism and low morale may occur when an organization acts counter to its espoused values. For example, a company that states that they value work/family balance and then calls a weekend meeting for managers.
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7. Layers of Organizational Culture
Values (con’t)
Sustainability – ability to make a profit without sacrificing the resources of its people, the community and the planet
Safeco, Microsoft, and Unilever
Basic Assumptions
Certain actions would be inconceivable in this culture
One value more companies are espousing today is “sustainability” – ability to make a profit without sacrificing the resources of its people, the community and the planet.
Companies like Safeco, Microsoft, and Unilever are highly committed to sustainability whereas Walmart, General Motors are lagging behind.
Basic assumptions represent the core of the organizational culture that are ingrained and understood by everyone. To act counter to them would be inconceivable. For example, Southwest Airlines assumption is that employees’ welfare and providing high quality service is paramount to what they are all about. Dupont has such a strong safety culture that it is ingrained in every employee that do act in an unsafe way would be shocking and strongly disapproved of.
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8. Test Your Knowledge
Which of the following is most resistant to change?
Observable artifacts
Espoused values
Enacted values
Basic assumptions
Which of the following is most resistant to change?
Observable artifacts
Espoused values
Enacted values
Basic assumptions
Answer “A” Basic assumptions That’s what can make org culture a competitive advantage because it’s hard to imitate and hard to create.
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9. Four Functions of Organizational Culture
The four functions of organizational culture are to establish who the company is and what it stands for, to drive energy around what is really important, to promote social system stability, and to shape behavior by helping members make sense of their surroundings. Decisions made by the company that are consistent with the culture are easy for employees to understand.
Give members an organizational identity. Culture helps to establish who the company is and what is stands for. Ideally, employees should be proud to belong to a company who shares their values.
Facilitate collective commitment – drive energy around what is really important. At Southwest, employees know they’ll be taken care of if they take care of their customers.
Promote social system stability – a positive culture is more likely to be able to resolve conflict using a problem-focused approach rather than person-focused or blaming mentality.
Shape behavior by helping members make sense of their surroundings. Decisions made by the company that are consistent with the culture are easy for employees to understand. Performance is rewarded that is aligned with that corporate strategy and values.
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10. Your Opinion And one more question for you to think about. [Pause.]
Do organization’s have predominantly one culture?
A=Yes, B=No
And one more question for you to think about. [Pause.]
Often there is an overriding culture but sometimes there are sub-cultures within different business units or even different work groups. Leaders need to be wary of sub-cultures that emerge that could erode the organization’s overall ability to meet its objectives.
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11. Competing Values Framework
The Competing Values Framework is a framework for categorizing organizational culture.
As you can see, this framework is based on two continuum’s of organizational effectiveness. One axis pertains to whether an organization focuses its attention and efforts on internal dynamics and employee or outward toward its external environment and its customers and shareholders.
The second axes shows an organization’s preference for flexibility or control and stability. These axes create four types of organizational cultures that are based on different core values and criteria for assessing organizational effectiveness.
The first is the clan culture. This culture is characterized has having an internal focus and valuing flexibility. This type of organization encourages collaboration between employees and is committed to having a cohesive work group and high job satisfaction.
The adhocracy culture has an external focus and values flexibility. This type of culture fosters creation of innovative products and services by being adaptable, creative, and fast to respond to changes in the market place. Centralized power and authority would not be effective structures in an adhocracy. These organizations promote creativity, innovation, and knowledge sharing.
The market culture has a strong external focus and values stability and control. This type of culture focuses on the customer over employee development and satisfaction because the goal of managers is to drive towards productivity, profits, and customer satisfaction. This culture rewards employees who deliver results.
The hierarchy culture has an internal focus and a formalized, structured work environment. It will tend to have reliable internal processes and control mechanisms (e.g., Dell whose focus is on cost-cutting and efficiency.)
This categorization shows how an organization’s core values affect it’s culture. Many companies struggle with attempting to embody conflicting values (e.g., Ritz Carlton values both employees and customers by empowering employees and providing high quality customer service)
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12. Competing Values Framework
Clan Culture: internal focus, values flexibility
Valero Energy; Southwest Airlines; Nucor
“employee focused”
Adhocracy Culture: external focus, values flexibility
GE, W.L. Gore, & Intel
Adaptable to changes in marketplace
Here are some examples of each type of culture in this typology.
The clan culture is characterized has having an internal focus and valuing flexibility. Decagon Devices is an example of a company who devotes tremendous resources for their employees in terms of salaries, benefits, and development.
The adhocracy culture has an external focus and values flexibility. GE, W.L. Gore, and Intel are examples of companies with this type of culture. Their primary focus is on developing innovative products that respond to the changes in the market place.
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13. Competing Values Framework
Market Culture: external focus, values stability and control
Home Depot - Rewards results, productivity, customer satisfaction
Hierarchy Culture: internal focus, values stability and control
Exelon; Dell
Efficiency, timeliness, and reliability are measured
The next two cultures are the market culture and hierarchy culture.
The market culture has a strong external focus and values stability and control. Kia Motors is an example of a company that strives for high customer satisfaction and rewards employees based on profits and productivity.
The hierarchy culture has an internal focus and a formalized, structured work environment. Exelon, the No. 1 US nuclear-power generator and Dell are good examples of companies who focus on reliability and efficiency.
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14. Your Opinion Is there one best type of organizational culture?
A=Yes, B=No
Why or why not?
Before we begin our discussion of the different types of cultures, think about this question. [Pause.]
In general, the organization’s culture has to support it’s achievement of strategic objectives. Research has found that adaptive cultures, i.e., organizations who change their culture overtime based on the market or business situation, will reap greater financial performance.
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15. Outcomes Associated with Culture
This table shows the results of a meta-analysis exploring the relationship between different types of organizational culture and organizational outcomes.
For example there was a positive relationship between job satisfaction and clan cultures and a negative relationship between innovation and hierarchical cultures.
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16. Process of Culture Change
Ensure alignment of vision, strategic plans, and culture
Vision: long-term goal describing “what” an organization wants to become
Strategic plan: A long-term plan outlining actions needed to achieve desired results
A culture can change but first it is important to determine what kind of organizational culture will meet the organization’s long-term objectives.
Ensure alignment of vision, strategic plans, and culture
Vision: long-term goal describing “what” an organization wants to become
For example, Disney wants to be a playground, showplace of beauty and magic
Strategic plan: A long-term plan outlining actions needed to achieve desired results
Let’s discuss what types of things we could shape or change to influence an organization’s culture… go to next slide
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17. Embedding Culture in Organizations
Formal statements of organizational philosophy
Mission, vision, values
Design of physical space
Open floor plan ~ Intel
Slogans & sayings
Progress is our most important product. ~ General Electric
Embedding a culture involves a teaching process where organizational members teach each other about the organization’s preferred values, beliefs, expectations, and behaviors. Here are some factors that affect organizational culture.
Formal statements of organizational philosophy
Mission, vision, values
Design of physical space
Open floor plan ~ Intel
Slogans & sayings
Progress is our most important product. ~ General Electric
Just Do It - Nike
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18. Embedding Culture in Organizations
Deliberate role modeling, training
Explicit rewards, status symbols
Measuring “How” not just “What”
Language
Jargon that defines our culture, creates shared understanding
Stories, legends, myths
The Nike Story: Just Tell It (Fast Company, 2000)
Deliberate role modeling, training
Explicit rewards, status symbols
Measuring “How” not just “What”
Language
Jargon that defines our culture, creates shared understanding
Stories, legends, myths
The Nike Story: Just Tell It (Fast Company, 2000)
Southwest Airlines has an “Airline” graveyard to remind employees how important it is to continually strive to help customers; they also have a wall of LUV that has pictures of the over 1,000 employees who are married to each other.
T-shirts that say “Marry me, fly free”
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19. Embedding Culture in Organizations
Organizational activities, processes, or outcomes leaders attend to
Leader reactions to critical incidents
Workflow and organizational structure
Organizational systems and procedures
Organizational goals and criteria for managing human resources
There are more ways to embed culture:
Leader reactions to critical incidents
Workflow and organizational structure
Organizational activities, processes, or outcomes leaders attend to
Organizational systems and procedures
Organizational goals and criteria for managing human resources
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20. 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
The process by which employees learn an organization’s values, norms, and required behaviors is described in the three-phase model of organizational socialization. On this slide, you see that happens during Phase 1, anticipatory socialization. Phase 1 occurs largely before individuals enter the organization whereby they gather information from current employees or members of the community to form their impression of the company. In addition, a realistic job preview is a useful tool to let people understand the nature of the organization, it’s culture, and what the job entails.
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21. 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
During Phase 2, Encounter, employees begin to understand who plays what roles in the work group and company and they begin to learn the norms and beliefs of employees and managers
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22. 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
Finally, in Phase 3, change and acquisition, employees learn to embrace the culture in order to maximize their effectiveness in working towards their goals.
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23. Organizational Socialization
Outsider
Phases
Anticipatory socialization
Encounter
Change and acquisition
Socialized Insider
Behavioral Outcomes
Performs role assignments
Remains with organization
Spontaneously innovates and
cooperates
Affective Outcomes
Generally satisfied
Internally motivated to work
High job involvement
This model illustrates the three-phase sequence that may take from a few weeks to a year to complete, depending on individual differences and the complexity of the situation. The behavioral and affective outcomes can be used to judge how well and individual has been socialized.
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24. Socialization Tactics
Organizations use a variety of socialization processes or tactics, listed in this table, to help employees to master important tasks and roles and to adjust to their work group’s values and norms.
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25. Mentoring
Mentoring is the process of forming and maintaining developmental relationships between a mentor and a junior person
We’ll conclude this chapter by discussing how mentoring can be used to embed an organizational culture. Developing and instituting a mentoring relationship can contribute to future career success of a new employee or person transitioning to a new role within the organization.
Research indicates that mentored employees earn higher compensation and more promotions and report higher job and career satisfaction than nonmentored employees. They were also found to have higher organizational knowledge, job performance and salaries over time.
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26. Functions of Mentoring
Career Functions
In what ways can mentoring assist in one’s career progression?
Psychological Functions
How can mentoring serve a psychological function?
The two general functions of mentoring are career and psychological.
Mentors can assist in an employee’s career progression by providing sponsorship, coaching, protection, and exposure-and-visibility, and guiding the employee in acquiring challenging assignments.
Likewise, mentors can serve a psychological function through role modeling, providing acceptance-and-confirmation and counseling, and offering friendship.
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27. Developmental Networks Associated with Mentoring
Developmental Relationship Strength
Weak Ties
Strong Ties
Low Range
• D2
• D2
Key:
D = developer
P = protege
D1 •
D1 •
• P
• P
Developmental Relationship Diversity
Receptive
Traditional
D1 •
• D2
D1 •
• D2
Mentoring is not a one-person function but rather a multi-person function.
This figure describes mentoring relationships based on two dimensions—the diversity of the relationship and the strength of the relationship. The diversity dimension has to do with the number of different people the person is networked with as well as the variety of social systems from which the networked relationship stem. The strength dimension reflects the quality of relationships among the individual and those involved in his or her developmental network.
A receptive network is composed of a few weak ties from one social system such as an employer or professional association. A traditional network is made up of a few strong ties between an employee and developer that all come from one social system. The opportunistic network is characterized by weak ties with a diverse set of developers. And the entrepreneurial network is characterized by strong ties with a diverse set of developers.
People who have an entrepreneurial network tend to change their careers and benefit from personal learning more than people with receptive, traditional, or opportunistic networks.
High Range • P • P
D3 •
• D4
D3 •
• D4
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Opportunistic
Entrepreneurial

28. Organizational Culture, Socialization, and Mentoring Supplemental Slides
The following set of slides has been developed in close collaboration with the authors of the text to provide instructors with additional material for class lectures. In most cases, the material is not discussed in the text, and includes updated sources and relevant examples to accompany text information.

29. Sustainability in Action
“Green” workplaces appeal to recruits and employees
Especially younger generations
92% of students and entry-level hires more inclined to work in environmentally friendly company
80% of young professionals want jobs that have a positive impact on environment
81% of U.S. respondents would prefer to work for an eco-friendly employer
Source: Simply Green, HR Magazine, June, 2008
This article discusses the growing appeal of companies who express and follow-through on desires to be environmentally conscious. Eco-friendly companies have an advantage with U.S. employees, particularly the younger generations as these statistics suggest.
Go to next slide for discussion questions on this topic.
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Source: Simply Green, HR Magazine, June, 2008.

30. Sustainability in Action: Clif Bar
Experienced lack of interest in “Ride Bike to Work Day” so got creative….
Implemented the following programs:
Assistance purchasing hybrid cars
Gives points to employees who use alternative forms of transportation redeemable for massages, Whole Foods gift certificates, etc.
$1,000 to make improvements to make homes more energy efficient
Includes sustainability training at new employee orientation
Source: Simply Green, HR Magazine, June, 2008
Clif Bar is a company that is privately owned and makes energy and nutrition bars and snacks.
Clif Bar espouses the following values: the planet, the community, their own people, the health of our brands, and the health of their business model (
In trying to enact their espoused value of caring for the environment, they tried to get employees to rely less on their cars for transportation to work. So they marketed a “Ride your Bike to Work Day”. Unfortunately there wasn’t a very enthusiastic response from their employees and very little participation.
So, they went back to the drawing board to completely re-think their approach to improving the environmental impact of their employees. They decided to take an aggressive approach that was tied to rewards and incentives. For example, they implemented a program where they provided assistance for employees purchasing hybrid cars and gave $500 for people who bought commuter bikes or retrofitted their bikes to be suitable for commuting.
They would give points to employees for everyday they took public transportation, walked, or rode their bike to work. These points would be redeemable for gift cards for massages, coffee shops, Whole Foods, etc.
They embedded this value as part of their culture by having sustainability training at new employee orientation which included how to be more energy efficient at home and at work.
This is an example of a company who takes concrete actions to live their espoused value.
Go to next slide for discussion questions on this topic.
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Source: Simply Green, HR Magazine, June, 2008.

31. Sustainability in Action (con’t)
Why do you think Clif Bar wasn’t successful at first?
What organizational cultural barriers might have been present?
What kinds of programs does your organization have to be more “green”?
What are the costs and benefits of these programs in the short and long-term?
Source: Simply Green, HR Magazine, June, 2008
Discussion Questions:
Why do you think Clif Bar wasn’t successful at first?
What organizational cultural barriers might have been present?
What kinds of programs does your organization have to be more “green”?
What are the costs and benefits of these programs in the short and long-term?
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Source: Simply Green, HR Magazine, June, 2008.

32. Google Gears Down
Google is known for elaborate perks, loose corporate culture
Has allowed hundreds of projects to be initiated through the 20% of “free time” technical experts are given to work on projects of interest to them
Has historically not had a concern with the profitability of these projects
Now, has started to prioritize because it can’t lend technical support to the varied projects that have been started
Source: Vascellaro, J. E. & Morrison, S. Google Gears Down for Tougher Times, Wall Street Journal, p. A1, A13, 12/3/2008
Google is known for its innovative, anything goes (almost) style, super perks, and loose atmosphere. They had a philosophy that encouraged their employees to spend time coming up with creative ideas that may or may not make money. Their focus was on finding products users would want and the theory was the money would come. As a result they ended up with numerous disconnected, non-integrated projects requiring vast technical resources and expertise.
With the downturn of the economy, Google has had to restraint some of these creative endeavors and focus on the ones that have the highest chance for success. They feel that they can no longer afford the luxury of allowing everyone to have their own pet project with dedicated resources.
The article points out that at some point in organization’s lifespan their needs to be a balance between organic bottom-up activity and top-down strategic approach to growth.
That said, Google has weather the downturn better than most competitors and is well-positioned to find alternative ways increase their revenue stream besides from advertisements because of the culture they’ve fostered.
Source: Vascellaro, J. E. & Morrison, S. Google Gears Down for Tougher Times, Wall Street Journal, p. A1, A13, 12/3/2008
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33. Google Gears Down (con’t)
Has Google become “too” employee centered?
What is the impact on the employee when taking away benefits and perks?
Has a benefit, perk, or pay been taken away from you? How did you react to that?
Source: Vascellaro, J. E. & Morrison, S. Google Gears Down for Tougher Times, Wall Street Journal, p. A1, A13, 12/3/2008
Discussion Questions:
Has Google become “too” employee centered?
What is the impact on the employee when taking away benefits and perks?
Has a benefit, perk, or pay been taken away from you? How did you react to that?
Source: Vascellaro, J. E. & Morrison, S. Google Gears Down for Tougher Times, Wall Street Journal, p. A1, A13, 12/3/2008
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34. Why Mentoring Matters
Professional services firms have decreased their focus on mentoring
Mentoring is even more important in competitive environments
Useful way to transmit tacit knowledge
Engages both mentor and protégé in work and organizational success
Builds a sense of belonging, especially when firms get larger
Source: DeLong, T. Gabarro, J. J., & Lees, R. Why Mentoring Matters in a Hypercompetitive World, Harvard Business Review, January 2008.
This article discusses the fact that many professional service firms (law firms, accounting, consulting) have faced increased pressures to bill time and cut costs and that has caused a lack of resources put towards institutionalizing mentorship.
However, in hypercompetitive times, the authors argue, mentoring is most needed.
It is true that it is hard to give stretch assignments to employees because the firm doesn’t have the luxury of the project not going well, going over budget, and generally not being performed as efficiently as it is capable. One suggestion is to have new employees shadow more senior experts (e.g., partners) where they learn what the expert is thinking about with regard to various projects, clients, etc. to gain their insights and expertise. They might also give them projects that aren’t client related or billable so that they can develop expertise in an area and build their reputation that way.
Mentoring programs are also criticized for being too “sterile” and not personalized. Mentoring can be mutually beneficial if both parties are engaged in the learning process and take a real interest in the protégé/mentor.
Source: DeLong, T. Gabarro, J. J., & Lees, R. Why Mentoring Matters in a Hypercompetitive World, Harvard Business Review, January 2008.
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35. Why Mentoring Matters Have you ever had a mentor?
What was your experience?
What impact did it have on your work and/or commitment to the organization?
In what ways does org. culture impact mentoring success?
Source: DeLong, T. Gabarro, J. J., & Lees, R. Why Mentoring Matters in a Hypercompetitive World, Harvard Business Review, January 2008.
Discussion Questions:
Have you ever had a mentor?
What was your experience?
What impact did it have on your work and/or commitment to the organization?
In what ways does org. culture impact mentoring success?
Students may point out that poorly implemented or “espoused” mentoring programs had little value as opposed to those where a sincere interest on the part of the mentor and protégé existed.
Source: DeLong, T. Gabarro, J. J., & Lees, R. Why Mentoring Matters in a Hypercompetitive World, Harvard Business Review, January 2008.
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36. What Makes Apple Golden?
Apple ranked #1 on Worlds Most Admired companies in 2008
Steve Job’s, CEO describes the corporate culture
Products are often inspired by what employees don’t like
Apple hires people who are never satisfied
Teams strive for perfection
During downturn – continue to invest in research and development and won’t lay off employees
Morris, B. (2008). What makes Apple Golden, Fortune, March 17, 2008.
This article addresses some cultural characteristics of the world’s most admired company.
Steve Jobs is interviewed and talks about some aspects of the company that he feels has made it successful.
Products are often inspired by what employees don’t like (e.g., frustration with cell phones inspired the Iphone)
Apple hires people who are never satisfied, have a passion for details and endless improvement of products
Teams strive for perfection, will kick out underperforming team members or revolt against inept management
During downturn – continue to invest in research and development and won’t lay off employees
Morris, B. (2008). What makes Apple Golden, Fortune, March 17, 2008.
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37. Functions of Mentoring
Career Functions
Sponsorship
Exposure and visibility
Coaching
Protection
Challenging assignments
Psychosocial functions
Role modeling
Acceptance and confirmation
Counseling
friendship
Topic Covered: Mentoring
Kathy Kram, a Boston University researcher, identified two general functions of the mentoring process: career and psychological
Five career functions that enhanced career development were:
Sponsorship
Actively nominating a junior manager for promotions and desirable positions
Exposure-and-visibility
Pairing a junior manager with key executives who can provide opportunities
Coaching
Providing practical tips on how to accomplish harmful situations or senior managers
Protection
Shielding a junior from potentially harmful situations or senior managers
Challenging assignments
Helping a junior manager develop necessary competencies through favorable job assignments and feedback
Four psychological functions were:
Role modeling
Giving a junior manager a pattern of values and behavior to emulate (this is the most frequently observed psychological function)
Acceptance-and-confirmation
Providing mutual support and encouragement
Counseling
Helping a junior manger work our personal problems, thus enhancing his or her self image
Friendship
Engaging in mutually satisfying social interaction
The psychological functions clarified the participants’ identities and enhanced their feelings of competence
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38. Video Cases Johnson & Johnson Credo New Belgium Brewery
Videos applicable to this chapter and available on the Organizational Behavior Video DVD, Volume One include:
Johnson & Johnson Credo
New Belgium Brewery
NOTE: Slides for the complete set of video cases on the Organizational Behavior Video DVD, Volume One can be found on the book’s website in the Instructor’s Resources.
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39. Management in the Movies Hoosiers – “Warm Welcome”
In this scene, Coach Dale has been invited to meet and greet with some of the men of the town.
Discussion Questions
What are some of the aspects of the town culture?
How well does Coach Dale accept this organizational socialization?
How do the men communicate the culture to Coach Dale?
Relevant Concepts
Organizational culture
Organizational socialization
Values
Stories and language
Overview
This clip should be used to illustrate the different aspects of organizational culture. This scene shows the men of the town grilling Coach Dale about his preferences for coaching the basketball team. It includes the values of the men, such as the discussion of the man-to-man vs. zone defense. There are examples of norms, language and stories. This is also a good example of organizational socialization. Students may want to discuss organizations they have belonged to and some examples of socialization.
Discussion Questions
What are some aspects of the town culture?
The town is passionate about its basketball team. Smoking is an acceptable social behavior. No one likes change. The men believe they should have some input in how the team is coached.
How well does Coach Dale accept this organizational socialization?
He listens to what they have to say, but does not respond to questions about how to coach the team. He seems to have little interest in adopting the culture of the town.
How do the men communicate the culture to Coach Dale?
The men communicate verbally to Coach Dale. They let him know directly their expectation for the team.
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40. Example: Starbucks Canada
Measures status of corporate culture using “The Partner View Survey” every 18 months
90% response rate
Corrective action or changes taken
Result: lower turnover, higher satisfaction
Starbucks Coffee Canada is an example of a company who takes measuring and forming their corporate culture seriously. Every 18 months they distribute a Partner View Survey that measures job satisfaction and commitment to the company. The goal of the survey is to measure Starbuck’s effectiveness at providing a “great work environment where people treat each other with respect and dignity”.
They have an extremely high response rate because they make it convenient for employees to complete and pay for their time while completing it.
People also respond because they know something will come of it. Starbucks takes direct action in response to the results of the survey.
For example, one year employees noted confusion over how to advance their careers to work in corporate positions. In response, Starbucks held a career fairs in three cities in Canada where department heads came to discuss opportunities in the company.
The outcomes Starbucks Coffee Canada has enjoyed from these efforts include lower than average turnover for their industry and higher employee job satisfaction
Source: Leung, C. (2006). Culture Club, Canadian Business, October 9-22, pp
Source: Leung, C. (2006). Culture Club, Canadian Business, October 9-22, pp
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41. Mentoring Pitfalls 50% of 500 biggest businesses in US offer mentoring
Relationships can sour if:
Pair is incompatible
There is a lack of respect/credibility
Clear goals are not established
There is no consensus on when to end the relationship
Source: BusinessWeek, January 29, 2007, Mentoring Can Be Messy, Susan Berfield
50% of 500 biggest businesses in US offer mentoring
Relationships can sour if:
Pair is incompatible – sometimes people have different styles, work attitudes, career motives
There is a lack of respect/credibility – some mentees become disillusioned by his/her mentor
Clear goals are not established – relationship can be very beneficial for both parties but some structure around what is to be accomplished and some formality around the relationship tends to yield better results
There is no consensus on when to end the relationship – sometimes the mentor is reluctant to see the mentee “grow up” and is hurt when the mentee is ready to move on
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Source: BusinessWeek, January 29, 2007, Mentoring Can Be Messy, Susan Berfield

42. Mentoring Survey
Of 1,400 CFOs asked, 42% said they had a formal or informal mentor
What is the best benefit of having a mentor?
35% - Serves as confidant or advisor
27% - Provides insight into a particular field or industry
22% - Provides encouragement and/or boosts morale
12% - Provides introductions to key networking contacts
1% - Provides educational/training/technical support
1% - Other
3% - Don’t know/can’t choose one
Source: Training, July 2006
1,400 CFOs from a stratified random sample of US companies with more than 20 employees were surveyed.
Entry-level professionals should be proactive about seeking a mentor if their company doesn’t have a formal program.
A good mentor is someone who takes a personal and professional interest in your career and personal development
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Source: Training, July 2006

43. Effect of Culture & Personal Characteristics on Outcomes
Taken from Miron, E. Erez, M., & Naveh, E. Do personal characteristics and cultural values that promote innovation, quality, and efficiency compete or complement each other? Journal of Organizational Behavior, 25, (2004).
This study investigated whether personal characteristics that enhance innovation also could contribute to quality and efficiency. They found “that an innovative culture does not necessarily compete with a culture of quality and efficiency”.
The result on this slide shows that efficient performance increased significantly more for individuals who scored high on conscientiousness only if they worked in a high outcome-oriented culture.
Taken from Miron, E. Erez, M., & Naveh, E. Do personal characteristics and cultural values that promote innovation, quality, and efficiency compete or complement each other? Journal of Organizational Behavior, 25, (2004).
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44. Effect of Culture & Personal Characteristics on Outcomes
Taken from Miron, E. Erez, M., & Naveh, E. Do personal characteristics and cultural values that promote innovation, quality, and efficiency compete or complement each other? Journal of Organizational Behavior, 25, (2004).
“The interaction between creativity and innovative culture demonstrated
(Figure 2(a)) that creative employees who worked in an innovative culture reached higher levels of
innovative performance than creative employees in a low innovative culture.”
Taken from Miron, E. Erez, M., & Naveh, E. Do personal characteristics and cultural values that promote innovation, quality, and efficiency compete or complement each other? Journal of Organizational Behavior, 25, (2004).
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45. Merging Corporate Cultures
Define a realistic culture
Provide savvy leadership
Communicate consistently and carefully
Address the “me” issues
Share space
Topic Covered: Corporate Cultures
Human Resources and business executives with significant experience with mergers and acquisitions identify five crucial steps to a successful merging of corporate cultures:
Define a realistic culture
Terms such as “dominant culture” and “merger of equals” can aggravate an already difficult situation
If a merger is set out as a “merger of equals” than there is an expectation that there will be a perfect balance of power—in reality, no matter how equal the deal is, one company ends up having more influence on the outcome
Most mergers will require a new culture—there can be no “dominant culture” without a “subordinate culture” there has to be a message of only one culture
Provide savvy leadership
a new culture requires visible and strategic leadership
Leaders tend to disappear right after merger to focus on technical and operational issues—should stay out front because most employees will still be in shock/an adjustment phase
Executives should avoid intimidating employees with lofty expectations
Huge figures and expectations—translate to an expectation that managers have to run right out and achieve those lofty goals—will put employees into a state of paralysis
Employees find conservative figures much more palatable and are more involved in identifying opportunities to seek more value
Communicate consistently and carefully
Immediately after a merger takes place employees and leadership should meet to discuss changes in benefits and the training and development programs that will take place
Should be knowledgeable of what they are gaining from merger—not just what company will gain
Determining how such information is delivered is important as well
Employees like and voice mail but only as a back up to face-to-face communication from their immediate managers
Can’t rely solely on top leadership to deliver the message—equip all managers in the organization to help people go through the change
When bad news needs to be communicated it should be relayed in some way the reflects the company’s new values.
Means communicating to people exactly how decisions were made and being very generous to people if their jobs are affected
Address the “me” issues
When merger is announced, employees are in shock—know what they had in old company and need to know what they will have with the new company
Very early on develop the company’s vision for the new company and culture and communicate what this means to each individual employee
Employees might be aware for some time that a merger will take place but will still be jumpy and will want to know:
“Are my benefits going to change?”
“Is my compensation going to change?”
“How about my title?”
Break the merger down into things they deal with everyday
Not just lower employees either—high level managers need their fears and concerns addressed as well
Share space
It is important to unite employees on a physical level as well
Make sure employees share a common headquarters
“we-they” challenges are unavoidable because people fear change but keep in mind that people adjust to change at a different rate. Repeatable, but flexible cultural integration processes can help resolve sticky people issues and prevent mergers from becoming messes.
Source: “Merging Corporate Cultures”, Eric Krell. Training, May Pp
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46. Organizational Culture and Ethical Behavior
Type of Culture
Employee Expectations
Rewards
Leadership
Top-down
Salary
Security
Old Economy
Notes:
Topic Covered: Organizational Culture and Ethics
For most of the 90s CEOs at Old Economy companies struggled to turn from slow-moving organizations into fast-paced and flexible ones.
Many CEOs lost their jobs because they couldn’t’ bring about this cultural change.
Changing the core values, attitudes and fundamental relationships of vast companies is extremely difficult to achieve
Enron was seemingly one of the companies to make itself over from a stodgy/regulated utilities company to a fast-moving enterprise where performance was key
In reality however, Enron was far from true change and in its unrelenting stress on growth and its absence of controls pushed many execs. Into unethical behavior
According to academics studying the Enron case—the company didn’t just fail because of improper accounting or alleged corruption—it also failed because of its entrepreneurial culture—the very reason Enron attracted so much attention and acclaim
The unrelenting emphasis on earnings growth and individual initiative combined with an absence of checks and balances moved Enron’s culture from one that rewarded aggressive strategy to one that increasingly relied on unethical behavior
Source: Business Week, February 25, 2002 p. 118
Inspirational
Stock options
Personal growth
New Economy
Know-it-all arrogant
A stake in the business
Personal wealth
The Enron Twist
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47. Implications For Mentoring Minorities
Mentors must fully appreciate the roles they play:
Coach
Advocate
Counselor
Understand the importance of these roles at each stage of a protégé’s career
Mentor must also be aware of challenges race can present to protégé’s career
Notes:
Topic Covered: Mentoring/minorities
According to research by David Thomas, whites and minorities do not climb the corporate ladder at the same rate.
Promising white professionals enter a fast track early in their careers, arriving in middle management long before their peers
Promising minority professionals arrive in the corporate fast track much later in their careers, usually after their arrival in middle management
Promising minorities who advance the furthest all share one characteristic: a strong network of mentors and corporate sponsors nurturing their professional development.
See above slide for implications for mentors
Slides concerning Thomas’s research findings continue
Source: “The Truth About Mentoring Minorities—Race Matters,” David Thomas. Harvard Business Review, April 2001 pp
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48. Conclusion Questions for discussion
You might consider the following questions for discussion:
How would you respond to someone who made the following statement? “Organizational cultures are not important as far as managers are concerned.”
What are the enacted values within your current classroom? Provide examples to support your evaluation.
Based on Figure 3-2, what type of organizational culture exists within your current or most recent employer? Explain.
Based on Table 3-1, what type of organizational culture exists within your current or most recent employer? Explain.
Why is there a conflict between Clan and Market cultures?
Why is it hard to change an organization’s culture?
Why is socialization essential to organizational success?
Which of the socialization tactics shown in Table 3-2 have you experienced? Discuss whether or not they were effective in the context you experienced them.
How might you find a mentor to assist you in your future career?
What will happen if a manager implements an organizational change that is inconsistent with the organization’s culture? Explain.
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