Organizational

Culture
Chapter 16
Organizational
Behavior
Nelson & Quick
6th edition

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of Cengage Learning
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 Organizational (Corporate)
Culture
Organizational (Corporate) Culture -
a pattern of basic assumptions that
are considered valid and that are
taught to new members as
the way to perceive, think, and
feel in the organization.
A system of shared meaning held by
members that distinguishes the
organization from other organization.
A set of key characteristics that the organization
values. Copyright ©2009
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of Cengage Learning
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 A set of Seven key characteristics that the
organization values
1. Innovation risk and taking-degree of innovation and risk
taking
2. Attention to detail- precision ,analysis, attention
3. Outcome orientation-results rather techniques used.
4. People orientation-people centric decision
5. Team orientation-work activities around teams
6. Aggressiveness-competitive not easy going
7. Stability-status-quo vs growth
Each characteristic exists on a continuum from low to high

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 Artifacts - symbols of
culture in the physical
and social work environment

Values
Espoused: what members of
Levels of
an organization say they value Organizational
Enacted: reflected in the way
individuals actually behave Culture

Assumptions - deeply held

beliefs that guide behavior and tell
members of an organization how
to perceive and think about things Copyright ©2009
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Artifacts Organizational
•Personal enactment Culture Levels
•Ceremonies and rites
•Stories Visible, often not
•Ritual decipherable
•Symbols

Values
•Testable in the physical Greater level
environment of awareness
•Testable only by social consensus

Basic Assumptions Taken for granted

•Relationship to environment Invisible Preconscious
•Nature of reality, time, and space
•Nature of human nature
•Nature of human activity Copyright ©2009

•Nature of human relationships

Reprinted with permission from Edgar H. Schein, South-Western, a division
Organizational Culture and Leadership: A Dynamic View.
of Cengage Learning
Copyright © 1985 Jossey-Bass
Inc, a subsidiary of John Wiley & Sons, Inc. All rights reserved
Functions of Organizational Culture
1. Culture provides a sense of identity to
members and increases their
commitment to the organization.
2. Culture is a sense-making device
for organization members
3. Culture reinforces the values
in the organization
4. Culture serves as a control
mechanism for shaping
behavior.

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 Strong
Theories about the Culture
relationship between Perspective
organizational culture
and performance

Fit
Adaptive Perspective
Perspective

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An organizational culture with a
consensus on the values that Strong
drive the company and with an Culture
intensity that is recognizable
Perspective
even to outsiders

Strong cultures facilitate performance because

• 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
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 Argument that a culture is
good only if it fits the industry’s Fit
or the firm’s strategy.
Perspective

Organizational characteristics that may affect culture

• Customer requirements
• Competitive environment
• Societal expectations

Useful to explain short term but not long term performance

Indicates the difficulty of changing culture quickly but doesn’t
explain how firms can adapt to environmental change.

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 An organizational culture that
encourages confidence and Adaptive
risk taking among employees,
has leadership that produces Perspective
change, and focuses on the
changing needs of customers
Adaptive Nonadaptive
Most managers care Most managers care
Core about customers, about themselves,
stockholders, and their work group, or
Values
employees an associated product

Managers pay close Managers tend to

Common attention to all behave somewhat
Behavior their constituencies, insularly, politically,
esp. customers and bureaucratically
Reprinted with the permission of The Free Press, a Division of Simon & Schuster, Inc. from Corporate Culture and Performance by Copyright ©2009
John P. Kotter and James L Heskett. Copyright © 1992 by Kotter Associates, Inc. and James L. Heskett. South-Western, a division
of Cengage Learning
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Five Most Important Elements
in Managing Culture

1. What leaders pay attention to

2. How leaders react to crises
3. How leaders behave
4. How leaders allocate rewards
5. How leaders hire and fire individuals

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Organizational Socialization

Organizational socialization - the

process by which newcomers are
transformed from outsiders to
participating, effective members
of the organization

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 1. Anticipatory Realism Congruence
Socialization

Job demands
•Task
2. Encounter
•Role
•Interpersonal

3. Change and
Mastery
Acquisition

Outcomes of Socialization Performance

Satisfaction
Stages of Mutual influence
Low levels of distress
Socialization Intent to remain
Copyright ©2009
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From “An Ethical Weather Repart: Assessing the Organization's Ethical Climate” by John B. Cullen, et al. In Organizational Dynamics, Autumn 1989. Copyright ©
of Cengage Learning
1989 American Management Association International. Reprinted by permission of American Management Association International, New York, N.Y. All rights
reserved. Http://www.amanet. Org. All rights reserved
The Three Stages of Socialization

1. Anticipatory Socialization – encompasses

all of the learning that takes place prior to the
newcomer’s first day on the job
2. Encounter - the newcomer learns the tasks
associated with the job, clarifies roles, and
establishes new relationships at work
3. Change & Acquisition - the
newcomer begins to master the
demands of the job
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 Socialization as
Cultural Communication
Core values are transmitted to new organization
members through

– the role models they interact with

– the training they receive
– the behavior they observe being rewarded
and punished
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 Assessing Organizational Culture
• Organizational Culture Inventory focuses on
behaviors that help employees fit into the
organization & meet coworker expectations
• Kilman-Saxton Culture-Gap Survey focuses on
the expectations of others in the organization
• Triangulation - the use of multiple methods to
measure organizational culture

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 Situations That May Require
Cultural Changes
• Merger or acquisition
• Employment of people from different
countries

Reasons That Change Is Difficult

• Assumptions are often unconscious
• Culture is deeply ingrained and
behavioral norms and rewards are well
learned
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 Hiring and Removing
socializing members who
members who Culture
reject the
fit in with the new culture
4 new culture 5

Cultural Changing
3 communication behavior 1

Examining
justifications
Interventions for for changed
Changing behavior
Organizational
Culture 2
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Managers seeking to create change must intervene at these points South-Western, a division
Reprinted with permission from Vijay Sathe “How to Decipher & Change Corporate Culture,” Copyright © of Cengage Learning
1985 Jossey-Bass Inc, Reprinted by permission Of Jossey-Bass, Inc., a subsidiary of John Wiley & Sons, Inc.. All rights reserved
 Cultural Modifications in the
Current Business Environment
Support for a global
view of business
Reinforcement of
ethical behavior
Empowerment of
employees to excel
in product and
service quality
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 Support for a Global
View of Business
• Create a clear and simple
mission statement
• Create systems that ensure
effective information flow
• Create “matrix minds” among managers
• Develop global career paths
• Use cultural differences as major assets
• Implement worldwide management
education and team development programs
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 Reinforcement of
Ethical Behavior
• Clear communication of the
boundaries of ethical conduct
• Selection of employees who support the
ethical culture
• Reward of ethical behavior
• Conspicuous punishment of members
who engage in unethical behavior

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 Empowerment of Employees
to Excel in Product and
Service Quality
• Empowerment unleashes
employees’ creativity
• Empowerment requires eliminating
traditional hierarchical notions of power
– Involve employees in decision making
– Remove obstacles to their performance
– Communicate the value of product and
service quality

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 Chapter 16: Reflect & Discuss
Backdraft Video Clip

What to Watch for and Ask Yourself

• What parts of the Chicago fire department
culture does this scene show? Does the scene
show any cultural artifacts or symbols? If it does,
what are they?
• Does the scene show any values or norms that
guide the firefighters’ behavior? If it does, what
are they?
• What does Brian McCaffrey learn on his first
workday?
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of Cengage Learning
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