Organizational Culture.ppt [Read-Only]ocw.usu.ac.id/.../plo_slide_chapter_15_:_organizational_culture.pdf · Title: Microsoft PowerPoint - Organizational_Culture.ppt [Read-Only] [Compatibility

Organizational Organizational Organizational Organizational

C H A P T E RC H A P T E R 1515

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e

Organizational Organizational CultureCultureOrganizational Organizational CultureCulture

Reinventing HewlettReinventing Hewlett--Packard’s CulturePackard’s Culture

Carly Fiorina wants to reinvent

Hewlett-Packard’s legendary

culture, known as ‘The H-P

Way’. She documented a new


Way’. She documented a new

set of values, called “The

Rules of the Garage” and is

merging H-P with Compaq to

create a more performance-

oriented culture.

© Reuters/New media, Inc./ CORBIS

Organizational 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.© Reuters/New media, Inc./ CORBIS

Physical Structures

Rituals/ Ceremonies

Stories

Language

Artifacts of

Organizational

Culture

Elements of Organizational CultureElements of Organizational Culture


BeliefsBeliefs

ValuesValues

AssumptionsAssumptions

OrganizationalOrganizational

CultureCulture

Brown & Brown’s Cultural Content Brown & Brown’s Cultural Content

Brown & Brown, Inc. in Daytona

Beach has an aggressive culture

that helps it succeed in the highly

competitive insurance business. At


its annual sales meeting,

managers of poorly performing

divisions are led to the podium by

medieval executioners while a

funeral dirge plays.E. M. Samelson/Orlando Sentinel

Meaning of Cultural Content Meaning of Cultural Content

Cultural content refers to the

relative ordering of beliefs,

values, and assumptions.

Example: Brown & Brown


Example: Brown & Brown

values aggressiveness; SAS

Institute values work-life

balance

An organization emphasizes

only a handful of the

hundreds of cultural values.

E. M. Samelson/Orlando Sentinel

Organizational Subcultures Organizational Subcultures

Located throughout the organization

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


dominant culture

Two functions of countercultures:� provide surveillance and

evaluation

� source of emerging valuesE. M. Samelson/Orlando Sentinel

Artifacts: Organizational StoriesArtifacts: Organizational Stories

Social prescriptions of desired behavior

Demonstrate that organizational objectives

are attainable

Most effective stories:


Most effective stories:� Describe real people

� Assumed to be true

� Known throughout the organization

� Are prescriptive

Artifacts: Rituals and CeremoniesArtifacts: Rituals and Ceremonies

Rituals

�programmed routines

�e.g., conducting meetings


Ceremonies

�planned activities for an audience

�e.g., award ceremonies

Artifacts: Organizational LanguageArtifacts: Organizational Language

Words used to address people, describe

clients, etc.

Leaders use phrases and metaphors as

cultural symbols


cultural symbols � e.g.. General Electric’s “grocery store”

Language also found in subcultures� e.g.. Whirlpool’s “PowerPoint culture”

Artifacts: Physical Structures/SpaceArtifacts: Physical Structures/Space

Oakley, 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 Oakley, Inc.

watches).

Courtesy of Oakley, Inc.

Benefits of Strong Corporate CulturesBenefits of Strong Corporate Cultures

StrongOrganizational

SocialSocialControlControl

SocialSocial


OrganizationalCulture

AidsAidsSenseSense--MakingMaking

SocialSocialGlueGlue

Problems with Strong CulturesProblems with Strong Cultures

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

Strong cultures focus attention on one mental model.


model.

Strong cultures suppress dissenting values from subcultures.

Adaptive Organizational CulturesAdaptive Organizational Cultures

External focus -- firm’s

success depends on

continuous change

Focus on processes more

than goals


than goals

Strong sense of ownership

Proactive --seek out

opportunities

AP/Wide World

Bicultural 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

Merging Organizational CulturesMerging Organizational Cultures

AssimilationAssimilation

DeculturationDeculturation

Acquired company embraces acquiring firm’s culture

Acquiring firm imposes its culture on unwilling acquired firm


unwilling acquired firm

IntegrationIntegrationBoth cultures combined into a new composite culture

SeparationSeparationMerging companies remain separate with their own culture

StrengtheningStrengthening

FoundersFoundersand leadersand leaders

CulturallyCulturallyconsistentconsistent

SelectionSelectionandand

Strengthening Organizational CultureStrengthening Organizational Culture


StrengtheningStrengthening

OrganizationalOrganizational

CultureCulture

consistentconsistentrewardsrewards

StableStableworkforceworkforce

andandsocializationsocialization

Managing theManaging theculturalculturalnetworknetwork

Organizational Organizational Organizational Organizational

C H A P T E RC H A P T E R 1515


Organizational Organizational CultureCultureOrganizational Organizational CultureCulture

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Organizational Culture.ppt [Read-Only]ocw.usu.ac.id/.../plo_slide_chapter_15_:_organizational_culture.pdf · Title: Microsoft PowerPoint - Organizational_Culture.ppt [Read-Only] [Compatibility