MBA 635 chapter 16

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May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in
part.
Organizational
Culture

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Learning Objectives
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1 Describe organizational culture.
2 Critically evaluate the roles of the three
levels of culture.
3 Evaluate the four functions of culture
within an organization.
4 Explain the relationship between
organizational culture and performance.
5 Contrast the characteristics of adaptive and
nonadaptive cultures.
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Learning Objectives continued
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6 Describe five ways leaders reinforce
organizational culture.
7 Describe the three stages of organizational
socialization and the ways culture is
communicated in each step.
8 Identify ways of assessing organizational
culture.
9 Explain actions managers can take to
change organizational culture.
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Organizational Culture
Organizational 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
• Shared
• Communicated through symbols
• Passed down from generation to generation
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Levels of Organizational Culture
Artifacts
Values
Assumptions
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Artifacts
• Artifacts are symbols of culture in the physical
and social work environment
• The most visible and accessible level of culture
• Artifacts of culture include
• Personal enactment
• Ceremonies and rites
• Stories
• Rituals
• Symbols
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Values and Assumptions
• Values are underlying beliefs about what
should or should not be
• Espoused values—what members say they value
• Enacted values—values reflected in behavior
• Assumptions are deeply held beliefs that
guide behavior and tell members how to
perceive and think about things
• The essence of culture
• Violating assumptions is unthinkable
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Functions of Culture
Provides a sense of identity to members and
increases commitment
Provides a way for employees to interpret the
meaning of events
Reinforces the values in the organization
Serves as a control mechanism for shaping
behavior
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Culture and Performance
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Theories about the relationship
between organizational culture
and performance
Strong
Culture
Perspective
Adaptive
Perspective
Fit
Perspective

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Strong Culture Perspective
• Strong culture: a culture with a consensus
on the values that drive the company and
with an intensity that is recognizable even to
outsiders
• Strong cultures outperform other
organizations
• Goal alignment
• High level of motivation
• Control without bureaucracy
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The Fit Perspective
• A culture is good only if it fits the industry or
the firm’s strategy
• Useful in explaining short-term performance
but not long-term performance
• Fails to explain how firms can adapt to
environmental change
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The Adaptation Perspective
An adaptive culture
• Encourages confidence and risk taking
• Has leadership that produces change
• Focuses on the changing needs of customers
• Facilitates change to meet the needs of
stockholders, customers, and employees
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Shaping and Reinforcing Culture
What leaders
pay attention
to
How leaders
react to crises
How leaders
behave
How leaders
allocate
rewards
How leaders
hire and fire
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Organizational Socialization
• Organizational socialization: the process by
which newcomers are transformed from
outsiders to participating, effective members
of the organization
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Anticipatory
socialization
Encounter
Change and
acquisition

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Stages of the Socialization Process
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1. Anticipatory socialization—newcomers
bring prior learning and expectations to the
job
• Realism and congruence
2. Encounter—newcomers learn the tasks
associated with the job, clarify their roles,
and establish new relationships
• Task, role, and interpersonal demands
3. Change and acquisition—newcomers begin
to master the demands of the job

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Outcomes of Socialization
• Good performance
• High job satisfaction
• Intent to stay with organization
• Low levels of distress symptoms
• High levels of organizational commitment
• Adoption of values and norms
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Socialization as Cultural Communication
• Companies use the socialization process to
communicate messages about organizational
culture
• The message must reflect the underlying values
of the organization
• Core values are transmitted to new organization
members through
• Role models
• Training
• Observed behavior that is rewarded and punished
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Assessing Organizational Culture
• Focuses on behaviors that help employees fit into the
organization and meet expectations of coworkers
• Underlying dimensions are task/people and
security/satisfaction
Organizational Culture Inventory
• Focuses on what actually happens and on the
expectations of others in the organization
• Underlying dimensions are technical/human and time
Kilmann-Saxton Culture-Gap Survey
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Triangulation
• The use of multiple methods to measure
organization culture
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Obtrusive
observations
Self-administered
questionnaires
Personal
interviews

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Changing Organizational Culture
• Changing an organization’s culture is feasible
but difficult
• Assumptions—the deepest level of culture—
are often unconscious
• Culture is deeply ingrained and behavioral
norms and rewards are well learned
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Five Actions to Change Culture
1. Change behavior in the organization
2. Examine the justifications for the changed
behavior
3. Send consistent messages about the new
values and beliefs
4. Review selection strategies to reflect the
new culture
5. Identify individuals who resist the culture
change
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^ Three Cultural Modifications for Today’s
Environment
Support for a
global view of
business
Reinforcement
of ethical
behavior
Empowerment
of employees to
excel in product
and service
quality
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Creating a Global Culture
• Create a clear and simple mission statement
• Create systems that ensure effective
information flow
• Create “matrix minds” among managers
• Develop global career paths
• Use cultural differences as a major asset
• Implement worldwide management
education and team development programs
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Developing an Ethical Culture
• Model ethical behavior
• Discuss ethical issues openly
• Establish trust
• Communicate boundaries of ethical conduct
• Select employees who support an ethical
culture
• Reward ethical behavior
• Punish unethical behavior
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Developing a Culture of Empowerment and Quality
• Unleash employees’ creativity and
productivity
• Eliminate traditional hierarchical notions of
power
• Involve employees in decision making
• Remove obstacles to performance
• Communicate the value of product and
service quality
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Chapter 16: Reflect & Discuss
Charlie Wilson’s War Video Clip
• This chapter described organizational culture as having
three levels of visibility. Artifacts are at the first level and
are the easiest to see. Which artifacts did you observe in
this sequence?
• Values appear at the next level of organizational culture.
You can infer a culture’s values from the behavior of
organizational members. Which values appear in this
sequence?
• Organizational members will unconsciously behave
according to an organizational culture’s assumptions. You
also can infer these from observed behavior. Which
assumptions appear in this sequence?
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