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Organizational

Behavior, 8e
Schermerhorn, Hunt, and
Osborn
Prepared by
Michael K. McCuddy
Valparaiso University

John Wiley & Sons, Inc.


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Organizational Behavior: Chapter 13 2


Chapter 13
High Performance
Organizational Cultures
 Study questions.
– What is organizational culture?
– What are the observable aspects of
organizational culture?
– How do values and assumptions influence
organizational culture?
– How can organizational culture be “managed,”
“nurtured,” and “guided”?
Organizational Behavior: Chapter 13 3
Chapter 13
High Performance
Organizational Cultures
 Study questions — cont.
– How can the process of organization
development enhance organizational culture?

Organizational Behavior: Chapter 13 4


What is organizational culture?

 Organizational culture.
– The system of shared actions, values, and
beliefs that develops within an organization
and guides the behavior of its members.
– Called corporate culture in the business
setting.
– No two organizational cultures are identical.

Organizational Behavior: Chapter 13 5


What is organizational culture?

 Organizational culture addresses two


important survival issues.
– External adaptation.
• What precisely needs to be accomplished, and how
can it be done?
– Internal integration.
• How do members resolve the daily problems
associated with living and working together?

Organizational Behavior: Chapter 13 6


What is organizational culture?

 External adaptation.
– Involves reaching goals and dealing with outsiders.
– Issues to be considered:
• Tasks to be accomplished.
• Methods to be used to achieve goals.
• Methods of coping with success and failure.
• Developing acceptable ways of telling outsiders how good
they really are.
• Knowing when to admit defeat.

Organizational Behavior: Chapter 13 7


What is organizational culture?

 External adaptation involves answering important goal-


related questions regarding coping with reality.
– What is the real mission?
– How do we contribute?
– What are our goals?
– How do we reach our goals?
– What external forces are important?
– How do we measure results?
– What do we do if specific targets are not met?
– How do we tell others how good we are?
– When do we quit?

Organizational Behavior: Chapter 13 8


What is organizational culture?

 Internal integration.
– Involves the creation of a collective identity
and with finding ways of matching methods of
working and living together.
– Issues to be considered:
• Deciding who is a member and who is not.
• Developing an understanding of acceptable and
unacceptable behavior.
• Separating friends from enemies.

Organizational Behavior: Chapter 13 9


What is organizational culture?

 Internal integration involves answering important


questions associated with living together.
– What is our unique identity?
– How do we view the world?
– Who is a member?
– How do we allocate power, status, and authority?
– How do we communicate?
– What is the basis for friendship?

Organizational Behavior: Chapter 13 10


What is organizational culture?

 Dominant culture, subcultures, and


countercultures.
– Subcultures.
• Groups of individuals with a unique pattern of
values and philosophy that is consistent with the
organization’s dominant values and philosophy.
• Strong subcultures are often found in high
performance teams.

Organizational Behavior: Chapter 13 11


What is organizational culture?

 Dominant culture, subcultures, and


countercultures — cont.
– Countercultures.
• Groups of individuals with a pattern of values and
philosophy that reject the surrounding culture.
• Mergers and acquisitions may produce
countercultures in an organization.

Organizational Behavior: Chapter 13 12


What is organizational culture?

 Importing subcultures.
– Large organizations import potentially important
subcultures when hiring people.
– Globalization and expansion through mergers and
acquisitions produce challenges with importing
subcultures and dealing with culture clash.
– The relevance of subcultures to the entire organization
can affect operations and the ability to change.

Organizational Behavior: Chapter 13 13


What is organizational culture?

 Valuing cultural diversity — the


multicultural organization.
– A firm that values diversity but systematically
works to block the transfer of societally based
subcultures into the fabric of the organization.
– Taylor Cox provides a five step program for
developing a multicultural organization.
• May not apply to organizations located in countries
with relatively homogeneous populations.

Organizational Behavior: Chapter 13 14


What is organizational culture?

 Taylor Cox’s five step program.


– Step 1: The organization should develop pluralism.
– Step 2: The organization should fully integrate its
structure.
– Step 3: The organization must integrate the informal
networks.
– Step 4: The organization should break the linkage
between naturally occurring group identity and
organizational identity.
– Step 5: The organization must actively work to
eliminate identity-based interpersonal conflict.
Organizational Behavior: Chapter 13 15
What is organizational culture?

 Problems in implementing Cox’s program.


– Separating the organization from the larger
culture in which it must operate.
– Eliminating some societally-based groupings
that are relevant for achieving the
organization’s goals.

Organizational Behavior: Chapter 13 16


What is organizational culture?

 Levels of organizational culture.


– Level 1: Observable culture.
• The way things are done in the organization.
– Level 2: Shared values.
• All members have been exposed to the value and
recognize their importance.
– Level 3: Common assumptions.
• The taken-for-granted truths that members share as
a result of their joint experience.

Organizational Behavior: Chapter 13 17


What are the observable aspects
of organizational culture?
 Stories, rites, rituals, and symbols.
– Organizations are rich with stories about the
organization’s culture and operations.
– Sagas.
• Heroic accounts of organizational
accomplishments.
– Rites.
• Standardized and recurring activities that are used
at special times to influence organizational
members.
Organizational Behavior: Chapter 13 18
What are the observable aspects
of organizational culture?
 Stories, rites, rituals, and symbols — cont.
– Rituals.
• Systems of rites.
– Cultural symbols.
• Any object, act, or event that serves to transmit
cultural meaning.

Organizational Behavior: Chapter 13 19


What are the observable aspects
of organizational culture?

 Culture often specifies rules and roles.


– Rules.
• The various types of actions that are appropriate.

– Roles.
• Where individual members stand in the social
system.

Organizational Behavior: Chapter 13 20


What are the observable aspects
of organizational culture?

 The evolution of shared meaning from


observable culture.
– Outside observers may not see the same
cultural aspects as organizational members do.
– This is because outside observers do not have
the same shared set of meanings and
perceptions.
Organizational Behavior: Chapter 13 21
How do values and assumptions
influence organizational culture?
 Shared common values lie at the heart of
culture.
 Shared values help:
– Turn routine activities into valuable, important
actions.
– Tie the company to the important values of
society.
– Provide a distinctive source of competitive
advantage.
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How do values and assumptions
influence organizational culture?

 Some successful organizations have strong


cultures.
– A strong culture reflects a broadly and deeply
shared value system.
– A strong culture can reinforce a singular view
or the organization and its environment.
• Needed dramatic change may be prevented.

Organizational Behavior: Chapter 13 23


How do values and assumptions
influence organizational culture?
 Organizational myths.
– Unproven and often unstated beliefs that are
accepted uncritically.
– Each firm needs managerial myths.
• Myths enable managers to redefine impossible
problems.
• Myths can facilitate experimentation and
creativity.
• Myths allow managers to govern.
Organizational Behavior: Chapter 13 24
How do values and assumptions
influence organizational culture?
 National culture influences.
– Widely held common assumptions may be
traced to the larger culture of the host society.
– National cultural values may become
embedded in expectations of organization
members.
– Managers need to be sensitive to national
cultural differences and their impact on
organizational culture.

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How can organizational culture be
“managed,” “nurtured,” and “guided”?

 Management philosophy.
– Reflects the management subculture.
– Links key goal-related strategic issues with
key collaboration issues and comes up with a
series of general ways by which the firm will
manage its affairs.

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How can organizational culture be
“managed,” “nurtured,” and “guided”?
 A well-developed management
philosophy:
– Establishes generally understood boundaries
on on all members of the firm.
– Provides a consistent way for approaching
new and novel situations.
– Helps hold individuals together by showing
them a known path to success.

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How can organizational culture be
“managed,” “nurtured,” and “guided”?
 Strategies for managing — or building,
reinforcing, and changing —
organizational culture.
– Directly modifying observable culture, shared
values, and common assumptions.
– Using organization development techniques to
modify specific elements of the culture.

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How can organizational culture be
“managed,” “nurtured,” and “guided”?
 Continuous cultural development.
– Organization development (OD) is the
application of behavioral science knowledge
in a long-range effort to improve an
organization’s ability to cope with change in
its external environment and to increase its
internal problem-solving capabilities.

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How can the process of
organization development enhance
organizational culture?
 Organizational development.
– Provides well-proven methods for developing
and changing external adaptation and internal
integration.
– Helps organization members become more
active and confident in maintaining the culture
and pursuing effectiveness.
Organizational Behavior: Chapter 13 30
How can the process of
organization development enhance
organizational culture?
 Underlying assumptions of OD.
– Individual level.
• Respect for people and their capabilities.

– Group level.
• Belief that groups can be good for both people and
organizations.
– Organizational level.
• Respect for the complexity of an organization as a system of
interdependent parts.
Organizational Behavior: Chapter 13 31
How can the process of
organization development enhance
organizational culture?
 Organization development goals.
– Outcome goals.
• Mainly deal with issues of external adaptation.
• Achieving improvements in task performance by
improving external adaptation capabilities.
– Process goals.
• Mainly deal with issues of internal integration.
• Achieving improvements in communication,
interaction, and decision making among
organization’s members.
Organizational Behavior: Chapter 13 32
How can the process of
organization development enhance
organizational culture?
 In pursuing outcome and process goals, OD helps
by:
– Creating an open problem solving climate.
– Supplementing formal authority with knowledge and
competence.
– Moving decision making where relevant information
is available.
– Building trust and maximizing collaboration.
– Increasing the sense of organizational ownership.
– Allowing people to exercise self-direction and self-
control.

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How can the process of
organization development enhance
organizational culture?
 Action research.
– The process of systematically collecting data
on an organization, feeding it back to the
members for action planning, and evaluating
the results by collecting and reflecting on
more data after the planned actions have been
taken.

Organizational Behavior: Chapter 13 34


How can the process of
organization development enhance
organizational culture?
 Action research diagnostics.
– Diagnosis can use the systems approach for
assessing inputs, throughputs, and outputs at
three levels.
• Organizational.
• Group.
• Individual.

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How can the process of
organization development enhance
organizational culture?
 Systemwide OD interventions.
– Survey feedback.
• Collection and feedback of data to organization
members for action planning purposes.
– Confrontation meetings.
• Activities for quickly determining how an
organization can be improved and taking initial
actions for betterment.

Organizational Behavior: Chapter 13 36


How can the process of
organization development enhance
organizational culture?
 Systemwide OD interventions — cont.
– Structural redesign.
• Realigning the organization’s structure or major
subsystems.
– Collateral organization.
• Using representative organizational members in
periodic small group problem-solving sessions.

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How can the process of
organization development enhance
organizational culture?
 Group and intergroup OD interventions.
– Team building.
• Activities to improve the functioning of a group.
– Process consultation.
• Activities to improve the functioning of key team
processes.
– Intergroup team building.
• Activities to improve the functioning or two or
more groups.

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How can the process of
organization development enhance
organizational culture?
 Individual OD interventions.
– Role negotiation.
• Clarifying expectations in working relationships.
– Job redesign.
• Creating long-term congruence between individual
goals and organizational career opportunities.
– Career planning.
• Structured opportunities for individuals to work
with managers or staff experts on career issues.

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