Robbins, Judge, and Vohra

Organizational Behavior
15th Edition

Organizational
Organizational Culture
Culture

Kelli J. Schutte
Copyright © 2014 Dorling Kindersley (India) Pvt. Ltd William Jewell College
Authorized adaptation from the United States edition of Organizational Behavior,
15e
16-1
 Chapter
Chapter Learning
Learning Objectives
Objectives

 After studying this chapter, you should be able to:

– Define organizational culture and describe its common
characteristics.
– Compare the functional and dysfunctional effects of organizational
culture on people and the organization.
– Identify the factors that create and sustain an organization’s
culture.
– Show how culture is transmitted to employees.

– How to build a culture

16-2
 The
The Organization’s
Organization’s Culture
Culture

Organizational culture has a strong influence on the

people in the organization and it shapes the way how
they think, act, dressup, and perform their jobs. 3–3
Why
Why study
study culture?
culture?
 Culture’s Functions
1. Defines the boundary between one organization
and others
2. Conveys a sense of identity for its members
3. Facilitates the generation of commitment to
something larger than self-interest
4. Enhances the stability of the social system
5. Serves as a sense-making and control
mechanism for fitting employees in the
organization

16-4
Seven
Seven primary
primary characteristics
characteristics that
that capture
capture
the
the essence
essence of
of an
an organization’s
organization’s culture:
culture:
– Innovation and risk taking
» The degree to which employees are encouraged to do
both
– Attention to detail
» Degree to which employees are expected to exhibit
precision, analysis, and attention to detail

– Outcome orientation
» Degree to which management focuses on results
rather than on processes used to achieve them.

– People orientation
» Degree to which management decisions consider the
effect of outcomes on people within the organization
» How would you tell????? 17-5
Seven
Seven primary
primary characteristics
characteristics that
that capture
capture
the
the essence
essence of
of an
an organization’s
organization’s culture:
culture:
– Team orientation
» Degree to which work activities are organized around teams
rather than individuals

– Aggressiveness
» Degree to which people are aggressive and competitive

– Stability
» Degree to which activities emphasize maintaining the status
quo.

What type of personality/ people show a good person-

organization fit in this culture????????
17-6
How
How Culture
Culture Begins
Begins
Stems from the actions of the founders:
– 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.
– The founders’ own behavior acts as a role model that
encourages employees to identify with them and thereby
internalize their beliefs, values, and assumptions.

16-7
How
How employees
employees diagnose/learn
diagnose/learn culture?
culture?
 Stories
– Anchor the present into the past and provide explanations
and legitimacy for current practices.
 Rituals/ ceremonies
– Repetitive sequences of activities that express and reinforce
the key values of the organization.
 Material Symbols (Artifacts)
– Acceptable attire, office size, opulence of the office
furnishings, and executive perks that convey to employees
who are important in the organization.
 Language
– Jargon and special ways of expressing one’s self to indicate
membership in the organization.
16-8
Person
Dress
Language

Architecture furniture, paintings

Products

institutions
Food

3–9
How
How can
can you
you tell
tell the
the culture???
culture???
 Artifacts of an office which boasts an inclusion
culture…….

 Artifacts of a company which claims of a culture which

puts customers first……….

 practices of an organization which claims of a fairness

culture?????

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 17-10

Rituals….Formal
Rituals….Formal dining
dining hall
hall experience
experience
• Cambridge University Formal Hall,
https://www.bing.com/videos/sear
ch?q=videos+of+cambridge+dining
+halls&docid=6080408096278453
78&mid=AE110A783C7AE0FFBF5C
AE110A783C7AE0FFBF5C&view=d
etail&FORM=VIRE

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 17-11

Culture
Culture as
as aa Liability
Liability
 Institutionalization
– A company can become institutionalized where it is valued
for itself and not for the goods and services it provides
 Barrier to change
– Occurs when culture’s values are not aligned with the values
necessary for rapid change
 Barrier to diversity
– Strong cultures put considerable pressure on employees to
conform, which may lead to institutionalized bias
 Barrier to acquisitions and mergers
– Incompatible cultures can destroy an otherwise successful
merger

16-12
 Keeping
Keeping aa Culture
Culture Alive
Alive
Three forces play a particularly important role in sustaining a culture:
 Selection
– Identify and select individuals who are high performers and whose values
are consistent with at least a good portion of the organization’s values
 Top Management
– Through words and behaviors, senior executives establish norms that filter
through the organization
 Socialization
– The process that helps new employees adapt to the prevailing
organizational culture

 Visibility
 Make your cultural expectations and role models visible
– How do you think socialization process of LUMS keeps its values
alive?????

16-7
 Strong
Strongversus
versusWeak
WeakOrganizational
OrganizationalCultures
Cultures

Rewards for upholding the cultural values and No Rewards for upholding the cultural values and
punishment for any deviations from values . No punishment for any deviations from values .
Creating
Creatingaa Culture……
Culture……Suggestions
Suggestionsfor
forManagers:
Managers:

3–15
What
What will
will you
you do
do as
as aa manager?????
manager?????
 To build tolerance culture??????

 To build performance culture??????

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 17-16

 ..
• Culture at Microsoft: CMO of Microsoft

• https://www.bing.com/videos/search?
q=videos+of+culture+at+microsoft&docid=608027718488753924&mid=DA8FD01760EA22C7F0AFD
A8FD01760EA22C7F0AF&view=detail&FORM=VIRE

 Culture at Google
• https://www.bing.com/videos/search?view=detail&mid=F73D0F4697E68281D18AF73D0F4697E68281D18A&shtp=GetUrl&shid=2174b016-
44a1-4d2b-8935-
f3bd5b569e99&shtk=TGlmZSBhdCBHb29nbGUuIEluc2lkZSBHb29nbGUncyBsYWlyIC0gSG93IGdvb2dsZSBlbXBsb3llZXMgd29yaw%3D
%3D&shdk=R29vZ2xlIGVtcGxveWVlcyBlbmpveSBxdWFsaXR5IGN1aXNpbmUgYXQgbm8gY29zdCBldmVyeSBtZWFsdGltZSBhbmQgdGhlIHBlcmt
zIGdvIHdlbGwgYmV5b25kIGp1c3QgYSBmdWxseSBmZWQgd29ya2ZvcmNlLiBGcm9tIEJCQyBDbGljay4gSG93IGdvb2dsZSBlbXBsb3llZXMgd29ya
yAtIExpZmUgYXQgR29vZ2xlLg%3D%3D&shhk=GVeLDbR18bTwQFnuJP1UUFQPN6MB8L%2BfRjNHQ5lRDVc
%3D&form=VDSHOT&shth=OSH.uZtJuokU7Bd8cQrXALmmQA

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 17-17

International
International Culture
Culture
Hofstede’s Cultural Dimensions Theory - Overview and
Categories (corporatefinanceinstitute.com)

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 17-18

Guanxi
Guanxi Culture
Culture in
in China
China as
as aa collectivist
collectivist
society
society

 https://youtu.be/QIkECIFd4R8

 Do you see a future for Guanxi as a golden rule for

Pakistan’s business landscape?????

 Which OB area/ insight seems to reflect in this

concept???

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 17-19