Organizational culture consists of shared assumptions, values, and behaviors within an organization. It operates on three levels - visible artifacts, espoused values, and deep basic assumptions. Culture provides identity, sense-making, control, and shapes employee behavior. It is communicated through socialization, role models, training, and rewards/punishments. Assessing and changing culture requires examining core values, hiring/socializing new members, cultural communication, and modifying behaviors through interventions.

1. Organizational Culture

2. 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

3. Artifacts – symbols of
s
culture in the physical
and social work environment
Values
Espoused: what members of Levels of
an organization say they value Organizational
Enacted: reflected in the way
individuals actually behave Culture
Assumptions – deeply held
beliefs that guide behavior and tell
members of an organization how
to perceive and think about things

4. Artifacts Organizational
• Personal enactment Culture Levels
• Ceremonies and rites
• Stories Visible, often not
• Ritual decipherable
• Symbols
Values
• Testable in the physical Greater level
environment of awareness
• Testable only by social consensus
Basic Assumptions Taken for granted
• Relationship to environment Invisible Preconscious
• Nature of reality, time, and space
• Nature of human nature
• Nature of human activity
• Nature of human relationships

5. 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
in the organization
• Culture serves as a control
mechanism for shaping
behavior

6. Theories
about the Strong
Culture
relationship
Perspective
between
organizational
culture Fit
and Perspective
performance
Adaptive
Perspective

7. An organizational
culture with a
consensus on the
values that drive the Strong
company and with an Culture
intensity that is Perspective
recognizable even to
outsiders
Strong cultures facilitate performance
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

8. Argument that a
culture is good only
if it fits the Fit
industry’s or the Perspective
firm’s strategy.
Organizational characteristics that
may affect culture
 Customer requirements
 Competitive environment
 Societal expectations

9. An organizational culture
that encourages
confidence and risk
taking among employees, Adaptive
has leadership that Perspective
produces change, and
focuses on the changing
needs of customers
Adaptive Nonadaptive
Most managers care Most managers care
Core about customers, about themselves,
stockholders, and their work group, or
Values
employees an associated product
Managers pay close Managers tend to
Common attention to all behave somewhat
Behavior their constituencies, insularly, politically,
esp. customers and bureaucratically

10. Five 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

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

12. 1. Anticipatory Realism Congruence
Socialization Realistic exp Abilities and demands fo job
Job demands
2. Encounter • Task
• Role
• Interpersonal
3. Change and
Acquisition Mastery -master demands of job
Outcomes of Socialization Performance
Satisfaction
Stages of Mutual influence
Socialization Low levels of distress
From “An Ethical Weather Repart: Assessing the Organization's Ethical Climate” by John B. Cullen, et Intent to remain
al. In Organizational Dynamics, Autumn 1989. Copyright © 1989 American Management Association
International. Reprinted by permission of American Management Association International, New York, N.Y.
All rights reserved. Http://www.amanet. Org.

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

14. Socialization as
Cultural Communication
Core values are transmitted to new
organization members through
– the role models they interact with
– the training they receive
– the behavior they observe being
rewarded and punished

15. Assessing Organizational
Culture
• Organizational Culture Inventory
focuses on behaviors that help
employees fit into the organization and
meet coworker expectations
• Kilman-Saxton Culture-Gap Survey
focuses on the expectations of others in
the organization
• Triangulation – the use of multiple
methods to measure organizational
culture

16. Situations That May Require
Cultural Changes
 Merger or acquisition
 Employment of people from different
countries
Reasons That Change Is Difficult
• Assumptions are often unconscious
• Culture is deeply ingrained and
behavioral norms and rewards are well
learned

17. Hiring and Removing
socializing Culture members who
members who reject the
fit in with the new culture
4 new culture 5
Cultural Changing
communication behavior 1
3
(Buy new set values)
Examining
Interventions for justifications
Changing for changed
Organizational behavior
Culture 2

18. Cultural Modifications in the
Current Business
Environment
Support for a global Empowerment of
view of business employees to excel
in product and
service quality
Reinforcement of
ethical behavior

19. Support for a global
view of business
• Create a clear and simple mission
statement
• Create systems that ensure effective
information flow
• Develop global career paths
• Use cultural differences as major assets
• Implement worldwide management
education and team development
programs

20. Reinforcement of
ethical behavior
• Clear communication of the boundaries
of ethical conduct
• Selection of employees who support the
ethical culture
• Reward of ethical behavior
• Conspicuous punishment of members
who engage in unethical behavior

21. Empowerment of
employees to excel in
product and service
quality
• Empowerment unleashes employees’
creativity
• Empowerment requires eliminating
traditional hierarchical notions of power
– Involve employees in decision making
– Remove obstacles to their performance
– Communicate the value of product and
service quality