Organizational Culture

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Organizational Culture

  1. 1. <ul><li>Definition: The shared beliefs, values, and assumptions that distinguish the organization from other organizations. </li></ul><ul><li>Dimensions </li></ul><ul><ul><li>Robbins’ seven </li></ul></ul><ul><ul><li>Descriptive nature suggests... </li></ul></ul>Organizational Culture
  2. 2. Levels of Culture Artifacts Underlying Assumptions Espoused Values Adopted from Schein, 1990
  3. 3. <ul><li>Creates boundaries </li></ul><ul><li>Conveys identity </li></ul><ul><li>Facilitates commitment </li></ul><ul><li>Enhances stability </li></ul><ul><li>Serves as sense-making mechanism </li></ul><ul><li>Serves to control employee behavior </li></ul>What does culture do?
  4. 4. <ul><li>Robbins emphasizes -- Founders </li></ul><ul><li>More broadly: </li></ul><ul><ul><li>Leaders! Modeling of leaders causes employees to internalize values and assumptions. </li></ul></ul><ul><ul><li>Critical Incidents! Early responses to events become embedded as norms and then, ultimately, beliefs and assumptions. </li></ul></ul>How does culture form?
  5. 5. <ul><li>Selection </li></ul><ul><li>Top Management </li></ul><ul><li>Socialization </li></ul><ul><li>Pick a cultural dimension of your company. What does it do? How was it formed? How is it sustained? </li></ul>How is culture sustained?
  6. 6. Socialization <ul><li>Stages </li></ul><ul><ul><li>Pre-arrival </li></ul></ul><ul><ul><li>Encounter </li></ul></ul><ul><ul><li>Metamorphosis </li></ul></ul><ul><li>Options </li></ul><ul><ul><li>Formal vs. Informal </li></ul></ul><ul><ul><li>Individual vs. Collective </li></ul></ul><ul><ul><li>Fixed vs. Variable </li></ul></ul><ul><ul><li>Serial vs. Random </li></ul></ul><ul><ul><li>Investiture vs. Divestiture </li></ul></ul>
  7. 7. <ul><li>Managers can guide the evolution of culture by (Schein, 1990): </li></ul><ul><ul><li>Unfreezing current system by highlighting threats and encouraging change. </li></ul></ul><ul><ul><li>Articulating new direction and new assumptions, being a new role model for both. </li></ul></ul><ul><ul><li>Filling key positions with new incumbents who hold these assumptions. </li></ul></ul><ul><ul><li>Rewarding the adoption of new directions and punish adherence to old. </li></ul></ul>Can culture be managed?
  8. 8. <ul><ul><li>Seducing or coercing members to adopt new behaviors that are consistent with desired values/assumptions. </li></ul></ul><ul><ul><li>Destroying symbols associated with old dysfunctional traditions. </li></ul></ul><ul><ul><li>Creating new emotionally charged rituals, symbols, artifacts around the new values/assumptions. </li></ul></ul>Can culture be managed? cont’d
  9. 9. <ul><li>It depends </li></ul><ul><li>Key issues-- Focus of cultural assumptions & culture strength can make culture a barrier </li></ul><ul><ul><li>Change </li></ul></ul><ul><ul><li>Diversity </li></ul></ul><ul><ul><li>Mergers and Acquisitions </li></ul></ul>Is culture good for business?

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