Organization Culture Definition of Culture Edgar Schein “A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems.” Culture Internal environment Comprises the forces inside an organization that affect how managers set expectations, how employees perform their roles, and how the company interacts with stakeholders and responds to external environments External environment Specific and general factors outside an organization that can change how it operates Internal Environment Organizational culture Collection of beliefs, shared by individuals and groups, to help their organization to respond to environmental forces and changes Experienced at the: Conscious level – can be seen or heard openly Unconscious level – things that employees think or feel - 4 Organizational Culture 90/10 The Iceberg Model of Culture Beliefs Norms Values Assumptions Observable Unobservable Architecture Material symbols Dress Behavior Rules Stories, myths, legends Language Favorite topics of conversation Rituals, ceremonies 6 Levels of organizational culture—observable culture and core culture in the organizational “iceberg ” CORE CULTURE Core Values Beliefs about the right ways to behave Copyright ©2015 John Wiley & Sons, Inc. Artifacts The visible and tangible elements of culture Types of Cultures Tradition is Important at Mary Kay Cosmetics Pink Cadillacs are given to top performers at large annual events Southwest Airlines Team-oriented cultures are collaborative and emphasize cooperation among employees L.L. Bean Low - 3% turn over rate Ranked in Fortune’s 100 Best Companies to work For “Every employee is the most important in the company.” Goldman Sacs 12 handy hints for fitting into Goldman Sachs’ culture You must adopt a uniform Fitness first You must pull out the stops for colleagues Everything is career-related It’s still survival of the fittest You need advocates You must be flexible to survive Rising stars are rock stars But don’t shout about it You need to take criticism The job is the center of your new universe The intense competition is ultimately rewarding Microsoft The software process was something that was very individualistic. Today, it is much more collaborative. Big cultural change moving from an individual centric organization to one that is more about teams and the group work. Gig Economy Multicultural Organizations and Diversity Multiculturalism involves inclusiveness and respect for diversity Multicultural organizations has a culture with core values that respect diversity and support multiculturalism Copyright ©2015 John Wiley & Sons, Inc. 17 18 I.

1. Organization Culture
Definition of Culture
Edgar Schein
“A pattern of shared basic assumptions that the group learned as
it solved its problems of external adaptation and internal
integration, that has worked well enough to be considered valid
and, therefore, to be taught to new members as the correct way
to perceive, think, and feel in relation to those problems.”
Culture
Internal environment
Comprises the forces inside an organization that affect how
managers set expectations, how employees perform their roles,
and how the company interacts with stakeholders and responds
to external environments
External environment
Specific and general factors outside an organization that can
change how it operates

2. Internal Environment
Organizational culture
Collection of beliefs, shared by individuals and groups, to help
their organization to respond to environmental forces and
changes
Experienced at the:
Conscious level – can be
seen or heard openly
Unconscious level – things
that employees think or feel
- 4
Organizational Culture
90/10
The Iceberg Model of Culture
Beliefs
Norms

3. Values
Assumptions
Observable
Unobservable
Architecture
Material symbols
Dress
Behavior
Rules
Stories, myths, legends
Language
Favorite topics of conversation
Rituals, ceremonies
6
Levels of organizational culture—observable culture and core
culture in the organizational “iceberg ”
CORE CULTURE
Core Values
Beliefs about the right ways to behave
Copyright ©2015 John Wiley & Sons, Inc.
Artifacts

4. The visible and tangible elements of culture
Types of Cultures
Tradition is Important at Mary Kay Cosmetics
Pink Cadillacs are given to top performers at large
annual events
Southwest Airlines
Team-oriented cultures are collaborative and emphasize
cooperation among employees
L.L. Bean
Low - 3% turn over rate

5. Ranked in Fortune’s 100 Best Companies to work For
“Every employee is the most important in the company.”
Goldman Sacs
12 handy hints for fitting into Goldman Sachs’ culture
You must adopt a uniform
Fitness first
You must pull out the stops for colleagues
Everything is career-related
It’s still survival of the fittest
You need advocates
You must be flexible to survive
Rising stars are rock stars
But don’t shout about it
You need to take criticism
The job is the center of your new universe
The intense competition is ultimately rewarding
Microsoft
The software process was something that was very
individualistic. Today, it is much more collaborative.
Big cultural change moving from an individual centric
organization to one that is more about teams and the group
work.

6. Gig Economy
Multicultural Organizations and Diversity
Multiculturalism
involves inclusiveness and respect for diversity
Multicultural organizations
has a culture with core values that respect diversity and support
multiculturalism
Copyright ©2015 John Wiley & Sons, Inc.
17
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Innovative Cultures

7. Strong vs. Weak Culture

9. How widely shared are the beliefs?
How deeply are they held?
STRONG CULTURES are widely shared and deeply held
19
Challenges of a Strong Culture
Difficult to change
Can be a liability during a merger as each separate culture must
merge together
Culture Maintenance

10. Culture Creation
Creating and Maintaining Organizational Culture
Founder values and preferences
Industry demands
Early values, goals, assumptions
Attraction-selection-attrition
New employee onboarding
Leadership
Reward systems
Organizational Culture
Organization Change
Change leaders
versus
status quo managers
Copyright ©2015 John Wiley & Sons, Inc.
Organizational Change
Top-down change
Change initiatives come from senior management
Success depends on support of middle-level and lower-level
workers

11. Copyright ©2015 John Wiley & Sons, Inc.
24
Organizational Change
Bottom-up change
The initiatives for change come from any and all parts of the
organization, not just top management
Crucial for organizational innovation
Made possible by:
Employee empowerment
Employee involvement
Employee participation
Copyright ©2015 John Wiley & Sons, Inc.
25
Organizational Change
Copyright ©2015 John Wiley & Sons, Inc.
26

12. Organizational Change
Transformational and incremental change
Transformational change
Results in a major and comprehensive redirection of the
organization
Incremental change
Bends and adjusts existing ways to improve performance
Copyright ©2015 John Wiley & Sons, Inc.
27
Resistance to Change
Resistance to change in an organization can be viewed as
providing valuable feedback that should not be ignored
The Power of Habit
by Charles Duhigg
Habits or routines – we do them without thinking about them

13. When Habits emerge, the brain stops fully participating in
decision-making. Unless you deliberately fight a habit – unless
you find new routines the pattern will unfold automatically
Habits never really disappear – good & bad
Habits emerge without our permission
Duke University – more than 40% of the actions people perform
each day weren’t actual decisions, but rather habits
Habit Examples
Impact of exercise on daily routine – people that habitually
exercise, even only once a week start changing other unrelated
patterns. They start to eat better, more productive at work,
smoke less, more patient and use their credit cards less
frequently, less stressed. Small change spills over
Families who habitually eat together – children have higher
grades, use fewer drugs, better homework skills – chain reaction
Habits in Organizations
Attack one habit and then watch the changes ripple through the
organization
Keystone Habit – small wins have enormous power. Small wins

14. fuel
transformational change by leveraging tiny advantages into
patterns that convince people bigger achievements are within
reach. Small wins are scattered, they do not always go in an
organized path
Cultures grow out of Keystone Habits in every organization,
whether leaders are aware of them or not
Organizational Culture is a collection of habits
Acceleration of Change