This chapter discusses organizational culture. It defines organizational culture as the shared assumptions, values, and beliefs of how to think and act. Elements of culture include artifacts like stories, rituals, language, and physical structures. Subcultures can support or oppose the dominant culture. Strong cultures provide social control and sense-making but can suppress dissent. The chapter compares strategies for merging cultures and lists ways to strengthen culture, such as through founders and consistent rewards.

1. © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
C H A P T E RC H A P T E R 1616
OrganisationalOrganisational
cultureculture

2. 2
Chapter learning objectivesChapter learning objectives
1. Describe the elements of organisational culture.
2. Discuss the importance of organisational subcultures.
3. List four categories of artefacts through which corporate
culture is communicated.
4. Identify three functions of organisational culture.
5. Discuss the conditions under which cultural strength
improves corporate performance.
6. Discuss the effect of organisational culture on business
ethics.
7. Compare and contrast four strategies for merging
organisational cultures.
8. Identify five strategies to strengthen an organisation’s
culture.

3. 3
Melso Minerals’ corporate cultureMelso Minerals’ corporate culture
Melso Minerals in
Matamata, New Zealand,
has an egalitarian, team-
oriented corporate culture .
This culture is apparent
through numerous
artefacts, such as the no-
holds barred retreats and
the Melso polo shirts that
everyone wears.
Courtesy of Melso Minerals (Matamata) Ltd

4. 4
Organisational culture definedOrganisational culture defined
The basic pattern of shared
assumptions, values and
beliefs considered to be the
correct way of thinking
about and acting on
problems and opportunities
facing the organisation.
Courtesy of Melso Minerals (Matamata) Ltd

5. 5
Physical structures
Rituals/ceremonies
Stories
Language
Artefacts of
organisational
culture
OrganisationalOrganisational
cultureculture
Elements of organisational cultureElements of organisational culture

6. 6
Meaning of cultural contentMeaning of cultural content
 Cultural content refers to the relative ordering of
beliefs, values and assumptions
 Example: Brown & Brown values aggressiveness;
SAS Institute values work-life balance
 An organisation emphasises only a handful of the
hundreds of cultural values

7. 7
Organisational subculturesOrganisational subcultures
 Located throughout the organisation
 Can support or oppose (countercultures) firm’s
dominant culture
 Two functions of countercultures:
 provide surveillance and evaluation
 source of emerging values

8. 8
Cultural stories at Four SeasonsCultural stories at Four Seasons
The legendary customer
service at Four Seasons
Hotels and Resorts is
reflected in its corporate
culture. Legends and stories
help to support this customer
service culture.
Courtesy of Four Seasons Hotels and Resorts

9. 9
Artefacts: organisational storiesArtefacts: organisational stories
 Social prescriptions of
desired behaviour
 Demonstrate that
organisational objectives
are attainable
 Most effective stories
 describe real people
 are assumed to be true
 are known throughout the
organisation
 are prescriptive
Courtesy of Four Seasons Hotels & Resorts

10. 10
Artefacts: rituals and ceremoniesArtefacts: rituals and ceremonies
 Rituals
 programmed routines
 eg conducting meetings
 Ceremonies
 planned activities for an audience
 eg award ceremonies

11. 11
Artefacts: organisational languageArtefacts: organisational language
 Words used to address people, describe clients, etc
 Leaders use phrases and metaphors as cultural
symbols
 eg General Electric’s ‘grocery store’
 Language also found in subcultures
 eg Whirlpool’s ‘PowerPoint culture’

12. 12
Courtesy of Oakley, Inc.
Artefacts: physical structures/spaceArtefacts: physical structures/space
Oakley, Inc.’s protective and competitive
corporate culture is apparent in its
building design and workspace. The
building looks like a vault to protect its
cherished product designs (eyewear,
footwear, apparel and watches).
Courtesy of Oakley, Inc.

13. 13
Benefits of strong corporate culturesBenefits of strong corporate cultures
Strong
organisational
culture
SocialSocial
controlcontrol
AidsAids
sense-makingsense-making
SocialSocial
glueglue

14. 14
Problems with strong culturesProblems with strong cultures
 Culture content might be incompatible with the
organisation’s environment
 Strong cultures focus attention on one mental
model
 Strong cultures suppress dissenting values from
subcultures

15. 15
Adaptive organisational culturesAdaptive organisational cultures
 External focus − firm’s success depends on
continuous change
 Focus on processes more than goals
 Strong sense of ownership
 Proactive − seek out opportunities

16. 16
Bicultural auditBicultural audit
 Part of ‘due diligence’ in merger
 Minimises risk of cultural collision by diagnosing
companies before merger
 Three steps in bicultural audit
1. collect artefacts
2. analyse data for cultural conflict/compatibility
3. recommend solutions

17. 17
Merging organisational culturesMerging organisational cultures
AssimilationAssimilation
DeculturationDeculturation
Acquired company embraces
acquiring firm’s culture
Acquiring firm imposes its culture on
unwilling acquired firm
IntegrationIntegration
Both cultures combined into a new
composite culture
Separation
Merging companies remain
separate with their own culture

18. 18
StrengtheningStrengthening
organisationalorganisational
cultureculture
FoundersFounders
and leadersand leaders
CulturallyCulturally
consistentconsistent
rewardsrewards
StableStable
workforceworkforce
SelectionSelection
andand
socialisationsocialisation
Managing theManaging the
culturalcultural
networknetwork
Strengthening organisational cultureStrengthening organisational culture

19. 19
Overview of the next chapterOverview of the next chapter
 Lewin’s force field analysis model
 Reasons why people resist organisational change
 Strategies to minimise resistance to change
 The organisation development process
 Appreciative inquiry as a change strategy
 Ethical issues in organisation development

20. © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
C H A P T E RC H A P T E R 1616
OrganisationalOrganisational
cultureculture