Organizational culture Organizational culture

Lecture 3 Lecture 3
efinition efinition
The pattern of shared values, beliefs and The pattern of shared values, beliefs and
assumptions considered to be the appropriate assumptions considered to be the appropriate
way to think and act within an organization. way to think and act within an organization.
÷ ÷ Culture is shared Culture is shared
÷ ÷ Culture helps members solve problems Culture helps members solve problems
÷ ÷ Culture is taught to newcomers Culture is taught to newcomers
÷ ÷ Culture can strongly influence attitudes and Culture can strongly influence attitudes and
behavior behavior
nnovation and risk nnovation and risk- -taking taking÷ ÷ The degree to which The degree to which
employees are encouraged to be innovative and take employees are encouraged to be innovative and take
risks. risks.
Attention to detail Attention to detail÷ ÷ The degree to which employees are The degree to which employees are
expected to exhibit precision, analysis,and attention to expected to exhibit precision, analysis,and attention to
detail. detail.
Outcome orientation Outcome orientation÷ ÷ The degree to which The degree to which
management focuses on results or outcomes rather management focuses on results or outcomes rather
than on technique and process. than on technique and process.
Characteristics of Organizational
Culture
Characteristics of Organizational Characteristics of Organizational
Culture Culture
Team orientation Team orientation÷ ÷ The degree to which work activities The degree to which work activities
are organized around teams rather than individuals. are organized around teams rather than individuals.
People orientation People orientation÷ ÷ The degree to which management The degree to which management
decisions take into consideration the effect of outcomes decisions take into consideration the effect of outcomes
on people within the organization. on people within the organization.
Aggressiveness Aggressiveness÷ ÷ The degree to which people are The degree to which people are
aggressive and competitive rather than easygoing. aggressive and competitive rather than easygoing.
Stability Stability÷ ÷ The degree to which organizational activities The degree to which organizational activities
emphasize maintaining the status quo in contrast to emphasize maintaining the status quo in contrast to
growth. growth.
evels of culture evels of culture
Above water line Above water line÷ ÷ Artifacts of culture, those aspects of Artifacts of culture, those aspects of
culture that are explicit, visible, taught. culture that are explicit, visible, taught.
· Written explanations · Written explanations
· Skills and information passed on through formal lessons. · Skills and information passed on through formal lessons.
Below the water line: Below the water line:÷ ÷ "Hidden" culture "Hidden" culture
· Habits, assumptions, understandings, values, judgments · Habits, assumptions, understandings, values, judgments
that we know but do not or cannot articulate. that we know but do not or cannot articulate.
· Usually these aspects are not taught directly. · Usually these aspects are not taught directly.
evels of culture evels of culture
Artifacts Artifacts÷ ÷ Aspects of an organization's culture Aspects of an organization's culture
that you see, hear, and feel that you see, hear, and feel
Beliefs Beliefs÷ ÷ The understandings of how objects and The understandings of how objects and
ideas relate to each other ideas relate to each other
Values Values÷ ÷ The stable, long The stable, long- -lasting beliefs about lasting beliefs about
what is important what is important
Assumptions Assumptions÷ ÷ The taken The taken- -for for- -granted notions of granted notions of
how things should be in an organization how things should be in an organization
Cultural Artifacts Cultural Artifacts
· Stories · Stories
· Rituals · Rituals
· Material Symbols · Material Symbols
· anguage · anguage
Hofstede's Model of Hofstede's Model of
National Culture National Culture
Dimensions Dimensions
--Individualism vs Collectivism Individualism vs Collectivism
--Power Distance Power Distance
--Achievement vs Nurturing Achievement vs Nurturing
Orientation Orientation
--Uncertainty Avoidance Uncertainty Avoidance
--Long Long--term vs Short term vs Short--term term
Orientation Orientation
ndividualism vs Collectivism ndividualism vs Collectivism
ndividualism ndividualism
ndividual ndividual
achievement achievement
Freedom Freedom
Competition Competition
Example Example
-- United States United States
Collectivism Collectivism
roup harmony roup harmony
Cohesiveness Cohesiveness
Consensus Consensus
Cooperation Cooperation
Example Example
-- apan apan
Power istance Power istance
igh igh
nequalities exist nequalities exist
ap between rich ap between rich
and poor and poor
Example Example
-- uatemala uatemala
-- Malaysia Malaysia
Low Low
$ocial welfare $ocial welfare
programs reduce programs reduce
gaps gaps
Example Example
-- rance rance
-- ermany ermany
Achievement vs Nurturing Achievement vs Nurturing
Orientation Orientation
chievement chievement
ssertiveness ssertiveness
Performance Performance
$uccess $uccess
Competition Competition
Results Results- -oriented oriented
Example Example
-- apan apan
-- United States United States
Nurturing Nurturing
"uality of life "uality of life
warm personal warm personal
relationships relationships
$ervice $ervice
Caring Caring
Example Example
-- Denmark Denmark
-- Sweden Sweden
Uncertainty Avoidance Uncertainty Avoidance
Low Low
Easygoing Easygoing
Value diversity Value diversity
Tolerant of Tolerant of
differences differences
Example Example
-- United $tates United $tates
-- ong Kong ong Kong
igh igh
Rigid Rigid
ntolerant ntolerant
Conformity Conformity
$tructure $tructure
Example Example
-- Japan Japan
-- France France
ong ong- -Term vs Short Term vs Short- -Term Term
Orientation Orientation
Long Long- -term term
Thrift Thrift
Persistence Persistence
igh savings igh savings
rate rate
Patience Patience
Example Example
-- apan apan
-- Hong Kong Hong Kong
$hort $hort- -term term
Personal stability Personal stability
appiness appiness
Living in the Living in the
present present
Example Example
-- United States United States
-- rance rance
What Cultures do? What Cultures do?
Conveys a sense of identity for organization members Conveys a sense of identity for organization members
Facilitates commitment to something larger than one's Facilitates commitment to something larger than one's
individual self individual self- - interest interest
Enhances social system stability Enhances social system stability
Social glue that helps hold an organization together Social glue that helps hold an organization together
÷ ÷ Provides appropriate standards for what employees Provides appropriate standards for what employees
should say or do should say or do
Serves as a "sense Serves as a "sense- - making¨ and control mechanism making¨ and control mechanism ÷ ÷
Guides and shapes the attitudes and behavior of Guides and shapes the attitudes and behavior of
employees employees
OrganizationaI Rites and Ceremonies OrganizationaI Rites and Ceremonies
Rites of passage
TYPE
Basic training, U.S. Army Facilitate transition into new
roles; minimize differences in
way roles are carried out
Reduce power and identity;
reaffirm proper behavior
Enhance power and identity;
emphasize value of proper
behavior
Encourage common feelings
that bind members together
EXAMPLE
POSSIBLE
CONSEQUENCES
Firing a manager
Mary Kay Cosmetics
Company ceremonies
Office party
Rites of degradation
Rites of
enhancement
Rites of integration
Source: Adapted from Trice, H. M., and Beyer, J. M. The Cultures of Work Organizations.
Englewood Cliffs, N.J.: Prentice-Hall, 1993, 111.
Culture as a liability Culture as a liability
arrier to change arrier to change- - shared values shared values
not in agreement with those that not in agreement with those that
further organizational effectiveness further organizational effectiveness
E.g. E.g.- - Mitsubishi, Eastman Kodak Mitsubishi, Eastman Kodak
M Motors M Motors
arrier to diversity arrier to diversity- - new new
employees no like the majority of the employees no like the majority of the
people people..
arrier to acquisition and arrier to acquisition and
mergers mergers- - cultural compatibility is a cultural compatibility is a
major concern major concern
E.g E.g- - T&T T&T- - NCR NCR
Uniformity of Culture Uniformity of Culture
Dominant culture Dominant culture- - a set of core a set of core
values shared by the majority of the values shared by the majority of the
organization organization
$ub cultures $ub cultures- - set of values shared by set of values shared by
minority. minority.
Core values Core values- - primary or the primary or the
dominant value shared by the dominant value shared by the
majority of the organization. majority of the organization.
Continued.. Continued..
$trong vs. Weak culture $trong vs. Weak culture
Culture vs. Formalization Culture vs. Formalization
Organizational culture vs. National Organizational culture vs. National
culture culture
Formation of Organizational Culture Formation of Organizational Culture
"Cultured¨Employees
Top Management
Hiring Criteria
Philosophy
of Company Founders
Organizational Culture
Maintaining & Strengthening Maintaining & Strengthening
Org. culture Org. culture
Act|ons of
founders
|ntroduc|ng
cu|tura||y
cons|stent
rewards
Ha|nta|n|ng
a stab|e work
force
Hanag|ng
cu|tura|
networks
8e|ect|ng
and
soc|a||z|ng
emp|oyees
8trengthen|ng
organ|zat|ona|
cu|ture
Requirements for SuccessfuIIy Changing Requirements for SuccessfuIIy Changing
OrganizationaI CuIture OrganizationaI CuIture
Understand the old culture first Understand the old culture first
Support employees and teams who have ideas for a Support employees and teams who have ideas for a
better culture and are willing to act on those ideas better culture and are willing to act on those ideas
ind the most effective subculture in the organization ind the most effective subculture in the organization
and use it as a model and use it as a model
Help employees and teams do their jobs more Help employees and teams do their jobs more
effectively effectively
Use the vision of a new culture as a guide for change Use the vision of a new culture as a guide for change
Recognize that significant cultural change takes time Recognize that significant cultural change takes time
Live the new culture Live the new culture
ramework of Types of CuItures ramework of Types of CuItures
ormaI
ControI
Orientation
orms of
Attention
IexibIe
StabIe
InternaI ExternaI
CIan
CuIture
Bureaucratic
CuIture
Market
CuIture
EntrepreneuriaI
CuIture
Source: Adapted from Hooijberg, R., and Petrock, F. On cultural change: Using the competing values framework to help
leaders execute a transformational strategy. uman Resource Management, 1993, 32, 29-50; Quinn, R. E. Beyond Rational
Management: Mastering the Paradoxes and Competing Demands of igh Performance. San Francisco: Jossey-Bass, 1988.
Attributes of a Bureaucratic CuIture Attributes of a Bureaucratic CuIture
Long Long- -term concerns are predictability, term concerns are predictability,
efficiency, and stability efficiency, and stability
Members value standardized goods and Members value standardized goods and
services services
Managers view their roles as being good Managers view their roles as being good
coordinators, organizers, and enforcers coordinators, organizers, and enforcers
of written rules and standards of written rules and standards
Tasks, responsibilities, authority, rules, Tasks, responsibilities, authority, rules,
and processes are clearly defined and processes are clearly defined
Attributes of a CIan CuIture Attributes of a CIan CuIture
Members understand that contributions to Members understand that contributions to
the organization exceed any contractual the organization exceed any contractual
agreements agreements
clan culture achieves unity with a long clan culture achieves unity with a long
and thorough socialization process and thorough socialization process
Members share feelings of pride in Members share feelings of pride in
membership, as well as feelings of membership, as well as feelings of
personal ownership of a business, a personal ownership of a business, a
product, or an idea product, or an idea
Attributes of a CIan CuIture Attributes of a CIan CuIture
Peer pressure to adhere to important Peer pressure to adhere to important
norms is strong norms is strong
$uccess is assumed to depend $uccess is assumed to depend
substantially on sensitivity to substantially on sensitivity to
customers and concern for people customers and concern for people
Teamwork, participation, and Teamwork, participation, and
consensus decision making are consensus decision making are
believed to lead to success believed to lead to success
Attributes of an Attributes of an
EntrepreneuriaI CuIture EntrepreneuriaI CuIture
There is a commitment to There is a commitment to
experimentation, innovation, and being on experimentation, innovation, and being on
the leading edge the leading edge
This culture does not just quickly react to This culture does not just quickly react to
changes in the environment changes in the environmentit creates it creates
change change
Effectiveness depends on providing new Effectiveness depends on providing new
and unique products and rapid growth and unique products and rapid growth
ndividual initiative, flexibility, and ndividual initiative, flexibility, and
freedom foster growth and are freedom foster growth and are
encouraged and well rewarded encouraged and well rewarded
Attributes of a Market CuIture Attributes of a Market CuIture
Contractual relationship between Contractual relationship between
individual and organization individual and organization
ndependence and individuality are ndependence and individuality are
valued and members are encouraged to valued and members are encouraged to
pursue their own financial goals pursue their own financial goals
Does not exert much social pressure on Does not exert much social pressure on
an organization an organization' 's members, but when it s members, but when it
does, members are expected to does, members are expected to
conform conform
imensions of Culture imensions of Culture
Sociability Sociability
÷ ÷ Measure of general "friendliness¨ Measure of general "friendliness¨
÷ ÷ Employees "do things¨ for one another Employees "do things¨ for one another
without expecting anything in return without expecting anything in return
Solidarity Solidarity
÷ ÷ Group task orientation Group task orientation
÷ ÷ Strong commitment to the goal Strong commitment to the goal
Typology of culture Typology of culture
Culture typology Culture typology
Mercenary culture Mercenary culture low sociability, high solidarity) low sociability, high solidarity)
÷ ÷ Fiercely goal Fiercely goal- -focused. People are intense and focused. People are intense and
determined to meet goals. determined to meet goals.
÷ ÷ Mercenary cultures aren't just about winning; they're Mercenary cultures aren't just about winning; they're
about destroying the enemy. about destroying the enemy.
÷ ÷ Can lead to an almost inhumane treatment of people who Can lead to an almost inhumane treatment of people who
are perceived as low performers. are perceived as low performers.
Communal culture Communal culture high sociability, high solidarity) high sociability, high solidarity)
÷ ÷ Values both friendship and performance. Values both friendship and performance.
÷ ÷ People have a feeling of belonging People have a feeling of belonging
÷ ÷ Still a ruthless focus on goal achievement. Still a ruthless focus on goal achievement.
÷ ÷ Can consume someone's total life, almost "cult like Can consume someone's total life, almost "cult like
Contd. Contd.
etworked culture etworked culture low solidarity, high sociability) low solidarity, high sociability)
÷ ÷ View members as family and friends. People know and View members as family and friends. People know and
like each other. like each other.
÷ ÷ Focus on friendships can lead to a tolerance for poor Focus on friendships can lead to a tolerance for poor
performance and creation of political cliques. performance and creation of political cliques.
ragmented culture ragmented culture low on sociability, low on solidarity). low on sociability, low on solidarity).
÷ ÷ ittle or no identification with the organization. ittle or no identification with the organization.
÷ ÷ Employees are judged solely on their productivity and the Employees are judged solely on their productivity and the
quality of their work. quality of their work.
÷ ÷ Excessive critiquing of others and an absence of Excessive critiquing of others and an absence of
collegiality. collegiality.
How Organizational Cultures Have How Organizational Cultures Have
an mpact on Performance and an mpact on Performance and
Satisfaction Satisfaction
Spirituality and organizational culture Spirituality and organizational culture
Work place spirituality Work place spirituality -- recognizes that recognizes that
people have an inner self that nourishes and is people have an inner self that nourishes and is
nourished by meaningful work that takes place nourished by meaningful work that takes place
in the context of community. in the context of community.
Concerned with helping people develop their Concerned with helping people develop their
full potential full potential
Why spirituality now? Why spirituality now?
- - s a counterbalance to the pressures and s a counterbalance to the pressures and
stress of a turbulent pace of life stress of a turbulent pace of life
- - aging baby boomers are looking for something aging baby boomers are looking for something
in their life in their life
- - The desire to amalgamate personal life values The desire to amalgamate personal life values
with the professional life. with the professional life.
Organizational socialization Organizational socialization- -a tool for a tool for
maintenance maintenance
$ocialization :a process that adapts $ocialization :a process that adapts
the employee to the organization the employee to the organization
$tages of the process: $tages of the process:
P(ea((|va| Ercourle(
rea||ty shock}
Velaro(pr
os|s
Socialization Vs. ndividualization Socialization Vs. ndividualization
$ocialization :continuous process of $ocialization :continuous process of
transmitting the key elements of an transmitting the key elements of an
organization organization
ndividualization: occurs when employee ndividualization: occurs when employee
successfully exerts influence on the social successfully exerts influence on the social
system around them at work by system around them at work by
challenging the culture or deviating from it challenging the culture or deviating from it
Socialization Vs. Socialization Vs.
ndividualization ndividualization
oW
l|dr
l|dr
lrd|v|dua||zal|or-
|rpacl ol erp|ovee or o(d
3oc|a||zal|or -
lrpacl ol
o(d or erp|ovees
Corlo(r|lv
lso|al|or
C(eal|ve
|rd|v|dua||sr
Reoe|||or
Effects of OrganizationaI CuIture Effects of OrganizationaI CuIture
on EthicaI Behavior on EthicaI Behavior
culture emphasizing ethical norms culture emphasizing ethical norms
provides support for ethical behavior provides support for ethical behavior
Top managers play a key role in Top managers play a key role in
fostering ethical behavior by exhibiting fostering ethical behavior by exhibiting
correct behavior correct behavior
The presence or absence of ethical The presence or absence of ethical
behavior in managerial actions both behavior in managerial actions both
influences and reflects the culture influences and reflects the culture

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