1. Business Leadership and Organizational Behavior Organizational Culture Craig W. Fontaine, Ph.D.

2. Organizational Culture An organization’s culture is a set of beliefs, values, and assumptions that an organization’s members share and use to guide their functioning

3. Organizational Culture (quotes) Shared view in existence long enough to be taken for granted by group members “Culture” is learned as a result of group experience and may be identified in a group or organization with a significant history

4. How Employees Learn Culture Stories Rituals/Traditions Ceremonies Material Symbols Language Stories Rituals/Traditions Ceremonies Material Symbols Language

5. Culture provides a sense of identity to members and increases their commitment to the organization Culture is a sense-making device for organization members Culture reinforces the values of the organization Culture serves as a control mechanism for shaping behavior Functions of Organizational Culture

6. Innovation People orientation Outcome orientation Easygoingness Detail Orientation Team Orientation Communication Training & development Rewards Decision making Risk-taking Management practices Dimensions of Organizational Culture

7. Contrasting Organizational Cultures Organization AOrganization B Managers must fully document all decisions. Creative decisions, change, and risks are not encouraged. Extensive rules and regulations exist for all employees. Productivity is valued over employee morale. Employees are encouraged to stay within their own department. Individual effort is encouraged. Management encourages and rewards risk-taking and change. Employees are encouraged to “run with” ideas, and failures are treated as“learning experiences.” Employees have few rules and regulations to follow. Productivity is balanced with treating its people right. Team members are encouraged to interact with people at all levels and functions. Many rewards are team based.

8. Support business strategy Make staffing decisions Set performance criteria Guide style of interpersonal relationships Select appropriate management style Functions of Organizational Culture

9. Layers of Organizational Culture Artifacts of Organizational Culture Material Symbols Language Rituals Stories Organizational Culture Beliefs Values Assumptions

10. Artifacts – symbols of culture in the physical and social work environment Espoused Values – what members of an organization say they value Assumptions – deeply held beliefs that guide behavior and tell members of an organization how to perceive and think about things Enacted Values – reflected in the way individuals actually behave Levels of Organizational Culture

11. Reprinted with permission from Edgar H. Schein, Organizational Culture and Leadership: A Dynamic View. Copyright © 1985 Jossey-Bass Inc, a subsidiary of John Wiley & Sons, Inc. Organizational Culture Visible, often not decipherable Greater level of awareness Taken for granted, Invisible, preconscious Artifacts Espoused Values Assumptions Enacted Values © 2013 Cengage Learning

12. Variations in Organizational Culture Core Culture and Subcultures Mini-cultures within an organization, typically defined by department designations and geographical separation. Strong or Weak Culture A culture in which the core values are intensely held and widely shared.

13. © 2013 Cengage Learning They are characterized by goal Alignment They create a high level of motivation because of shared values by the members They provide control without the oppressive effects of bureaucracy Strong Cultures Improve Performance because…

14. Negative Aspects of Organizational Culture 1.Barrier to change. 2.Barrier to diversity 3.Barrier to acquisitions and mergers 1.Barrier to change. 2.Barrier to diversity 3.Barrier to acquisitions and mergers

15. Founding Organizational Culture The founders’ own behavior often acts as a role model that encourages employees to identify with them and thereby internalize their beliefs, values, and assumptions. Founders hire and keep only employees who think and feel the same way they do. Founders indoctrinate and socialize these employees to their way of thinking and feeling.

16. Maintaining Organizational Culture Selection Concern with how well the candidates will fit into the organization. Provides information to candidates about the organization. Top Management Senior executives help establish behavioral norms that are adopted by the organization. Socialization The process that helps new employees adapt to the organization’s culture.

17. A Socialization Model

18. Stages in the Socialization Process Prearrival Stage The period of learning in the socialization process that occurs before a new employee joins the organization. Metamorphosis Stage The stage in the socialization process in which a new employee changes and adjusts to the work, work group, and organization. Encounter Stage The stage in the socialization process in which a new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge.

19. How Organization Cultures Form

20. How Organizational Cultures Have an Impact on Performance and Satisfaction