The document discusses organizational culture and identifies three levels - artifacts, espoused values, and basic underlying assumptions. It also evaluates the four main functions of culture as providing identity, making sense of the organization, reinforcing values, and controlling behavior. The relationship between strong, adaptive, and aligned cultures and organizational performance is explored.

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Chapter 16
Organizational Culture
LearningOutcomes
1. Identify the three levels of culture and the roles they play in an organization.
2. Evaluate the four functions of culture within an organization.
3. Explain the relationship between organizational culture and performance.
4. Describe five ways leaders reinforce organizational culture.
5. Describe the three stages of organizational socialization and the ways
culture is communicated in each step.
6. Discuss how managers assess their organization’s culture.
7. Explain actions managers can take to change organizational culture.
8. Identify the challenges organizations face developing positive, cohesive
cultures.

2. © 2011 Cengage Learning. All rights reserved.
Organizational (Corporate)
Culture
a pattern of basic assumptions that are
considered valid and that are taught to new
members as the way to perceive, think, and
feel in the organization

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Learning Objective
Identify the three levels of culture
and the roles they play in an
organization.
1

4. Levels of
Organizational
Culture
Artifacts – ssymbols of
culture in the physical
and social work environment
Values
Espoused: what members of
an organization say they value
Enacted: reflected in the way
individuals actually behave
Assumptions – deeply held
beliefs that guide behavior and tell
members of an organization how
to perceive and think about things
© 2011 Cengage Learning.
All rights reserved.

5. Artifacts – ssymbols of
culture in the physical
and social work environment
Values
Espoused: what members of
an organization say they value
Enacted: reflected in the way
individuals actually behave
Assumptions – deeply held
beliefs that guide behavior and tell
members of an organization how
to perceive and think about things
© 2011 Cengage Learning.
All rights reserved.
Reprinted with permission from Edgar H. Schein,
Organizational Culture and Leadership: A Dynamic View.
Copyright © 1985 Jossey-Bass
Inc, a subsidiary of John Wiley & Sons, Inc.
Organizational
Culture
Visible, often not
decipherable
Greater level
of awareness
Taken for granted,
Invisible, Preconscious

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Types of Artifacts
• Personal Enactment
• Ceremonies and Rites
• Stories
– About the boss
– About getting fired
– About relocating
– About promotions
– About crisis situations
– About status considerations
• Rituals
• Symbols

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Beyond the Book:
Identifying Norms
This exercise asks you to identify campus norms at your university. Every
organization or group has a set of norms that help determine individuals’ behavior.
A norm is an unwritten rule for behavior in a group. When a norm is not followed,
negative feedback is given. It may include negative comments, stares,
harassment, and exclusion.
1. As a group, brainstorm all the norms you can think of in the following areas:
Dress Classroom behavior; Studying; Weekend activities; Living arrangements;
Campus activities; Dating; Relationships with faculty; Eating on campus versus off
campus; Transportation
2. How did you initially get this information?
3. What happens to students who don’t follow these norms?
4. What values can be inferred from these norms?

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Learning Objective
Evaluate the four functions of
culture within an organization.
2

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Functions of Organizational
Culture
• Culture provides a sense of identity to members
and increases their commitment to the
organization
• Culture is a sense-making device
for organization members
• Culture reinforces the values
of the organization
• Culture serves as a control
mechanism for shaping
behavior

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Beyond the Book:
NetApp’s Culture of Openness
What is the key to success at NetApp? According to top
executives, it’s openness.
Everyone, including the CEO, works in an open cubicle.
Information is shared freely. Every two weeks, employees meet
with the Vice President to share their perspectives.
In addition, NetApp shows employees that they are valuable and
cared for through flexible scheduling, and sponsorship of
volunteer activities.
NetApp’s culture of openness and trust has made it one of
Fortune magazine’s “Best Companies to Work For.”

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Learning Objective
Explain the relationship between
organizational culture and
performance.
3

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reserved.
Theories on the relationship
between organizational culture
and performance
Strong Culture Perspective
Fit Perspective
Adaptive Perspective

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Strong Culture
an organizational culture with a
consensus on the values that drive the
company and with an intensity that is
recognizable even to outsiders

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BECAUSE
• They are characterized by goal
alignment
• They create a high level of motivation
because of shared values by the
members
• They provide control without the
oppressive effects of bureaucracy
Strong Cultures Facilitate Performance

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Fit Perspective
a culture is good only if it fits the
industry or the firm’s strategy

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Three particular industry
characteristics affect culture:
1.Competitive environment
2.Customer requirements
3.Societal expectations
Fit Perspective

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Adaptive Culture
an organizational culture that
encourages confidence and risk taking
among employees, has leadership that
produces change, and focuses on the
changing needs of customers

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Adaptive vs. Nonadaptive Cultures

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Learning Objective
Describe five ways leaders
reinforce organizational culture.
4

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Most Important Elements
in Managing Culture
• What leaders pay attention to
• How leaders react to crises
• How leaders behave
• How leaders allocate rewards
• How leaders hire and fire individuals

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Learning Objective
Describe the three stages of
organizational socialization and
the way culture is communicated
in each step.
5

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Organizational
Socialization
the process by which newcomers are
transformed from outsiders to
participating, effective members of
the organization

23. Organizational Socialization
Process

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1. [Anticipatory Socialization] – all of
the learning that takes place prior to the
newcomer’s first day on the job
2. [Encounter] – newcomer learns the
tasks associated with the job, clarifies
roles, and establishes new relationships
at work
3. [Change and Acquisition] – newcomer
begins to master the demands of the job
[Socialization Process]

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Outcomes of Socialization
Newcomers who are successfully
socialized should exhibit:
– Good performance
– High job satisfaction
– Intention to stay with organization
– Low levels of distress symptoms
– High level of orgnaizational commitment

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Learning Objective
Discuss how managers assess
their organization’s culture.
6

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Organizational Culture Inventory
Focuses on behaviors that help employees fit
into the organization and meet coworker
expectations
Uses Maslow’s hierarchy of
needs to measure twelve
cultural styles

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Kilmann-Saxton Culture-Gap Survey
Focuses on what actually happens in the
organization and the expectations of others
Two underlying dimensions
– technical/human and
time.

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Triangulation
the use of multiple methods to
measure organizational culture

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Learning Objective
Explain actions managers can take
to change organizational culture.
7

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Cultural Changes
With rapid environmental changes such as
globalization, workforce diversity and
technological innovation, the fundamental
assumptions and basic values that drive the
organization may need to be altered.

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Why is Change Difficult?
• Assumptions are often
unconscious
• Culture is deeply ingrained and
behavioral norms and rewards
are well learned

33. Interventions for Changing
Organizational Culture

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Learning Objective
Identify the challenges
organizations face developing
positive, cohesive cultures.
8

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Challenges to Developing Positive,
Cohesive Culture
• Merger or Acquisition
• Developing a global organizational culture
• Developing an ethical organizational culture
• Developing a culture of empowerment and
quality

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Beyond the Book:
Six Guidelines to Creating a Global Culture
1.Create a clear and simple mission statement
2.Create systems that ensure an effective flow
of information
3.Broaden managers’ minds to allow them to
think globally
4.Develop global career paths
5.Use cultural differences as a major asset
6.Implement worldwide management education
and team development programs

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Rendition
1. Review the section, “Basic Design
Dimensions.” Which dimensions
does this scene show or imply?
2. Can you sense the division of labor
represented by Senator Hawkins
and Alan Smith? Corrine Whitman
does not appear in this scene but is
also part of a division of labor.
3. Review the five structural
configurations described in the
chapter. Which of those
configurations best describes the
likely structure of Senator Hawkins’
office? Which configurations do not
apply? Why?