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Chapter 12

Diagnosing and Modifying


Organizational Culture

Management: A Skills Approach, 2/e


by Phillip L. Hunsaker 12-1
Copyright © 2005 Prentice-Hall
Learning Objectives

• Identify an Organization’s Culture


• Assess How a Person Fits into a
Specific Culture
• Instill Cultural Values and Norms in
Subordinates
• Make Appropriate Changes to an
Organization’s Culture

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Organizational Culture
• The key characteristics that the
organization values and that
distinguish it from other
organizations.

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Enculturation
• All successful managers and
employees must learn what to
do and what not to do in their
organizations.

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Why is Culture Important?
• Even firms doing well on traditional
business criteria can stumble in
blending their corporate personalities.

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Dimensions of Culture
1. Innovation and Risk Taking
2. Attention to Detail
3. Outcome Orientation
4. People Orientation
5. Team Orientation
6. Aggressiveness
7. Nonstability

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Innovation and Risk Taking

• The degree that


employees are
encouraged to be
innovative and take
risks

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Attention to Detail

• The degree that


employees are
expected to exhibit
precision, analysis,
and attention to
detail

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Outcome Orientation

• The degree that


management
focuses on results
rather than process
used to produce
those results

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People Orientation

• The degree that


management
decisions take into
account how people
in the organization
will be affected

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Team Orientation

• The degree that


work is organized
around teams rather
than individuals

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Aggressiveness

• The degree that


people are
aggressive and
competitive rather
than easygoing

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Non-stability

• The degree that


organizational
activities emphasize
growth as opposed
to maintaining the
status quo

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The Essence of Nordstrom’s
Organizational Culture
WELCOME TO NORDSTROM

We’re glad to have you with our Company.


Our number one goal is to provide
outstanding customer service.

Set both your personal and professional goals high.

We have great confidence in your ability to achieve them.

Nordstrom Rules

Rule #1: Use your good judgment in all situations.


There will be no additional rules.
Please feel free to ask your department manager, store
manager, or divisional general manager any questions at any
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Reasons to Strive for a Strong Culture
• They are associated with high
organizational performance.
• Increased employee commitment and
loyalty
• Yield a sustainable competitive
advantage

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Where Does
Culture Come From?
• Founders hire and keep employees who
think and feel the way they do.
• Founders indoctrinate and socialize
these employees to their way of
thinking.
• Founders act as role models.

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How is Culture Transmitted to
Employees?
• Stories
• Rituals
• Material Symbols
• Language

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The Role of Subcultures

• Most organizations have a


dominant culture and
numerous sets of
subcultures.

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How to Read an Organization’s
Culture
• Observe the physical surroundings
• Ask to sit in on a team meeting
• Listen to the language
• Note to whom you’re introduced and
how they act
• Ask different people the same
questions and compare their answers
• Get the views of outsiders
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Four Types of Organizational Culture
Type Description

Academy Employees stay within a narrow specialty and are


promoted after they master a new job thoroughly.

Club Employees are trained as generalists and


promoted on the basis of seniority.

Baseball team Employees are rewarded for what they produce.


Risk-taking and innovation are highly valued.

Fortress Preoccupied with survival, these cultures reward


employees who can reverse the organization’s
sagging fortunes.

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Sustaining a Culture
• Selection Practices
• Top Management’s Behavior
• Socialization

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Conditions for Changing Culture
• A Dramatic Crisis
• Turnover in Leadership
• Young and Small
Organization
• Weak Culture

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Changing the Culture

• Actions to Change Culture


• Do a Cultural Analysis
• Create Sense of Urgency
• Appoint a Visionary Change Agent
• Create Supporting Conditioning
Components

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