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Organizational CultureOrganizational CultureOrganizational CultureOrganizational Culture

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Organizational Culture DefinedOrganizational Culture DefinedOrganizational Culture DefinedOrganizational Culture Defined

The basic pattern of

shared assumptions,

values, and beliefs

considered to be the

correct way of thinking

about and acting on

problems and

opportunities facing the

organization.

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The Basic Functions of The Basic Functions of Organizational CultureOrganizational Culture

OrganizationalCulture

Provides asense of

identity formembers

Enhancescommitment

to theorganization’s

mission

Clarifies andreinforces

standards ofbehaviour

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Voluntary Survival: Its Connection to Voluntary Survival: Its Connection to Organizational CultureOrganizational Culture

Vol

unta

ry S

urvi

val R

ate

(per

cent

age

volu

nta

rily

rem

ain

ing

empl

oyed

in t

he o

rgan

izat

ion)

2525

5050

7575

100100

Time Since First HiredTime Since First Hired

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

More people voluntarilycompleted six years of work

in organizations whosecultures emphasized the valueof interpersonal relationships

than those emphasizingthe value of hard work

Organizational cultures emphasizing the value of interpersonal relationships

Organizational culturesemphasizing the valueof hard work

Organizational culturesemphasizing the valueof hard work

Organizational cultures emphasizing the value of interpersonal relationships

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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 time.

An exampleAn exampleAn exampleAn example

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Physical Structures

Rituals/ Ceremonies

Stories

Language

Beliefs

Values

Assumptions

Artifacts ofOrganizationalCulture

OrganizationalCulture

Elements of Organizational CultureElements of Organizational CultureElements of Organizational CultureElements of Organizational Culture

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Kitchener-Waterloo Record

Meaning of Cultural Content Meaning of Cultural Content Meaning of Cultural Content Meaning of Cultural Content

• Cultural content refers to the relative ordering of beliefs, values, and assumptions.

• Example: RIM values intensity whereas Q-Media values thrift.

• An organization emphasizes only a handful of the hundreds of cultural values.

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Organizational Culture as Shared MeaningsOrganizational Culture as Shared Meanings

Regularinteraction?

Sharedinterpretation

of organizationalevents?

OrganizationalCultureYes

No

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Organizational Subcultures Organizational Subcultures Organizational Subcultures Organizational Subcultures

• Located throughout the organization

• Can support or oppose (countercultures) firm’s dominant culture

• Two functions of countercultures:– provide surveillance and

evaluation– source of emerging values

Most Organizations Have a Dominant

Culture and Numerous Sets of

Subcultures.

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Values of the Dominant Organizational Values of the Dominant Organizational Culture and SubculturesCulture and Subcultures

Values of theDominant

OrganizationalCulture

Subculture values:

Honest representationof products

Sales group

Subculture values:

Thorough producttesting

Engineering Group

Subculture values:

Accurate reportingof financial data

Accounting group

Open tonew ideas

Customerservice

Highquality

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Avocational subculturesAvocational subculturesAvocational subculturesAvocational subcultures

• The employee at the next work station may really be from Mars

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Artifacts: Organizational StoriesArtifacts: Organizational StoriesArtifacts: Organizational StoriesArtifacts: Organizational Stories

• Social prescriptions of desired behaviour

• Demonstrate that organizational objectives are attainable

• Most effective stories:– Describe real people – Assumed to be true– Known throughout the organization– Are prescriptive

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Artifacts: Rituals and CeremoniesArtifacts: Rituals and CeremoniesArtifacts: Rituals and CeremoniesArtifacts: Rituals and Ceremonies

• Rituals– programmed routines – (e.g., conducting meetings)

• Ceremonies– planned activities for an audience– (e.g., award ceremonies)

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Artifacts: Organizational LanguageArtifacts: Organizational LanguageArtifacts: Organizational LanguageArtifacts: Organizational Language

• Words used to address people, describe clients, etc.

• Leaders use phrases and metaphors as cultural symbols – eg. General Electric’s “grocery store”

Language also found in subcultures– eg. Whirlpool’s “PowerPoint culture”

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Courtesy of Oakely, Inc.

Artifacts: Physical Structures/SpaceArtifacts: Physical Structures/SpaceArtifacts: Physical Structures/SpaceArtifacts: Physical Structures/Space

Oakely, Inc.’s protective and competitive corporate culture is apparent in its building design and workspace. The building looks like a vault to protect its cherished product designs (eyewear, footwear, apparel and watches).

Courtesy of Oakely, Inc.

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Benefits of Strong Corporate CulturesBenefits of Strong Corporate CulturesBenefits of Strong Corporate CulturesBenefits of Strong Corporate Cultures

StrongOrganizational

Culture

SocialControl

AidsSense-Making

SocialGlue

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Problems with Strong CulturesProblems with Strong CulturesProblems with Strong CulturesProblems with Strong Cultures

• Culture content might be incompatible with the organization’s environment.

• Strong cultures focus attention on one mental model.

• Strong cultures suppress dissenting values from subcultures.

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Mergers and CollaborationMergers and Collaboration

• Firms Well Matched on Traditional Business Can Stumble in Blending Their Corporate “Personalities.”

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Bicultural AuditBicultural AuditBicultural AuditBicultural Audit

• Part of “due diligence” in merger

• Minimizes risk of cultural collision by diagnosing companies before merger

• Three steps in bicultural audit:1. Collect artifacts

2. Analyze data for cultural conflict/compatibility

3. Recommend solutions

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Merging Organizational CulturesMerging Organizational CulturesMerging Organizational CulturesMerging Organizational Cultures

Assimilation

Deculturation

Acquired company embraces acquiring firm’s culture

Acquiring firm imposes its culture on unwilling acquired firm

IntegrationBoth cultures combined into a new composite culture

SeparationMerging companies remain separate with their own culture

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What does this mean for you?What does this mean for you?What does this mean for you?What does this mean for you?

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StrengtheningStrengtheningOrganizationalOrganizational

CultureCulture

FoundersFoundersand leadersand leaders

CulturallyCulturallyconsistentconsistentrewardsrewards

StableStableworkforceworkforce

SelectionSelectionandand

socializationsocialization

Managing theManaging theculturalculturalnetworknetwork

Strengthening Organizational CultureStrengthening Organizational CultureStrengthening Organizational CultureStrengthening Organizational Culture

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How to Read an Organization’s How to Read an Organization’s CultureCulture

• 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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Assessing theAssessing theIndividual-to-organization FitIndividual-to-organization Fit