organization culture

Chapter 9, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, Third Canadian Edition.Copyright © 2003 Pearson Education Canada Inc.

Chapter 9

Organizational Culture



• What is organizational culture?• When is organizational culture functional?

Dysfunctional?• How do employees learn about the culture of

their organization?

Questions for ConsiderationQuestions for Consideration


Henry Mintzberg on Culture

• “Culture is the soul of the organization — the beliefs and values, and how they are manifested. I think of the structure as the skeleton, and as the flesh and blood. And culture is the soul that holds the thing together and gives it life force.”



• The pattern of shared values, beliefs and assumptions considered to be the appropriate way to think and act within an organization.– Culture is shared– Culture helps members solve problems

– Culture is taught to newcomers– Culture strongly influences behaviour


Exhibit 9-1 Layers of Culture

Artifacts of Organizational

Culture

Material SymbolsLanguage

RitualsStories


BeliefsValues

Assumptions


Characteristics of Organizational Culture

• Innovation and risk-taking– The degree to which employees are encouraged to be innovative and

take risks.

• Attention to detail– The degree to which employees are expected to exhibit precision,

analysis, and attention to detail.

• Outcome orientation– The degree to which management focuses on results or outcomes

rather than on technique and process.

• People orientation– The degree to which management decisions take into consideration the

effect of outcomes on people within the organization.


Characteristics of Organizational Culture

• Team orientation– The degree to which work activities are organized around

teams rather than individuals.

• Aggressiveness– The degree to which people are aggressive and competitive

rather than easygoing.

• Stability– The degree to which organizational activities emphasize

maintaining the status quo in contrast to growth.


Cultural Artifacts

• Stories

• Rituals

• Material Symbols

• Language


Do Organizations Have Uniform Cultures?

• Organizational culture represents a common perception held by the organization members.

• Core values or dominant (primary) values are accepted throughout the organization.– Dominant culture

• Expresses the core values that are shared by a majority of the organization’s members.

– Subcultures • Tend to develop in large organizations to reflect

common problems, situations, or experiences.


Exhibit 9-3 How Organizational Culture Forms

Selectioncriteria

Socialization

Organization'sculture

Philosophyof

organization'sfounders

Topmanagement


Keeping a Culture Alive

• Selection– Identify and hire individuals who will fit in with the

culture

• Top Management– Senior executives establish and communicate the

norms of the organization

• Socialization– Organizations need to teach the culture to new

employees


Exhibit 9-5A Socialization Model

Prearrival Encounter Metamorphosis

Socialization Process Outcomes

Commitment

Productivity

Turnover


Exhibit 9-6 Entry Socialization Options

• Formal vs. Informal

• Individual vs. Collective

• Fixed vs. Variable

• Serial vs. Random

• Investiture vs. Divestiture


Exhibit 9-7 Culture Typology

Fragmented

Networked

Low

High

Solidarity

Mercenary

Low High

Communal

Sociability


Culture’s Functions

• Social glue that helps hold an organization together – Provides appropriate standards for what

employees should say or do

• Boundary-defining

• Conveys a sense of identity for organization members


Culture’s Functions

• Facilitates commitment to something larger than one’s individual self-interest

• Enhances social system stability

• Serves as a “sense-making” and control mechanism – Guides and shapes the attitudes and

behaviour of employees


Culture as a Liability• Culture can have dysfunctional aspects in some

instances– Culture as a Barrier to Change

• When organization is undergoing change, culture may impede change

– Culture as a Barrier to Diversity• Strong cultures put considerable pressure on

employees to conform– Culture as a Barrier to Mergers and Acquisitions

• Merging the cultures of two organizations can be difficult, if not impossible


How to Change Culture• Have top-management people become positive

role models, setting the tone through their behaviour.

• Create new stories, symbols, and rituals to replace those currently in vogue.

• Select, promote, and support employees who espouse the new values that are sought.

• Redesign socialization processes to align with the new values.


How to Change Culture• Change the reward system to encourage

acceptance of a new set of values.• Replace unwritten norms with formal rules and

regulations that are tightly enforced.• Shake up current subcultures through

transfers, job rotation, and/or terminations.• Work to get peer group consensus through

utilization of employee participation and creation of a climate with a high level of trust.


Summary and Implications• Employees form an overall subjective perception of the

organization based on such factors as degree of risk tolerance, team emphasis, and support of people.– This overall perception becomes, in effect, the organization’s

culture or personality.

– These favourable or unfavourable perceptions then affect employee performance and satisfaction, with the impact being greater for stronger cultures.

• Just as people’s personalities tend to be stable over time, so too do strong cultures.– This makes strong cultures difficult for managers to change.


Summary and Implications• One of the more important managerial implications of

organizational culture relates to selection decisions.– Hiring individuals whose values don't align with those of the

organization is not good.

• An employee's performance depends to a considerable degree on knowing what he should or should not do.


Point-CounterPoint• Why Culture Doesn’t

Change� Culture develops over

many years, and becomes part of how the organization thinks and feels

� Selection and promotion policies guarantee survival of culture

� Top management chooses managers likely to maintain culture

• When Culture Can Change� There is a dramatic crisis

� There is a turnover in leadership

� The organization is young and small

� There is a weak culture

organization culture

Business

culture culture

organizational behaviour

organizational activities

pearson education canada

canadian edition

organizational culturechapter

nancy langton

shared culture