Organization culture theory argues that to change organizations, one must change their underlying culture. Culture is determined by shared values, norms, and traditions that guide employee behavior. Leaders play a key role in establishing and changing an organization's culture. Various models describe how to analyze and understand organizational culture, such as identifying shared behaviors, language, decision-making processes, and symbols that embody a culture. Appreciative inquiry focuses on identifying strengths within a culture to facilitate positive change.

1. Bill Adams, FEA, University of Malaya
Organization
Culture Theory

2. Organization Culture Theory
[Classics book turned to strong advocacy!]
 Boomed since the early 1980s reform efforts to
change organizations.
 To change orgs must change the culture!
 Claims that the rational model rarely works.
Bill Adams, FEA, University of Malaya
 Big management reform approaches (like Total
Quality Management) all require changed culture.

3. Organization Culture Theory
Behavior determined by ingrained values, norms,
and traditions of behavior (“the way we do things”).
Org cultures made by society, type of activity,
personality of the founder/early leaders, past
Bill Adams, FEA, University of Malaya
practices – and other things.
Often use “ethnography” & participant observation.

4. “Symbolic Management”
[Influenced by “postmodern” philosophy
& “The Social Construction of Reality”]
Lots of uncertainty exits in many organizations.
People use symbols as tools for reducing ambiguity.
[OK, sure, symbols are important.]
“The interpretation of what is happening in organi-
Bill Adams, FEA, University of Malaya
zations is more important than what is actually
happening.”!!!
“If people believe things are real,
they are real in their consequences.”

5. [Schein] Organizational Culture
 Culture guides our behavior.
 Culture = the “personality” of a group.
 Culture = “pattern of shared basic assumptions”
 Ingrained, unthinking, nonnegotiable assumptions
 Group has a shared history, things in common.
Bill Adams, FEA, University of Malaya
 Role of leaders in establishing & changing culture.
 New members “socialized” into the culture.
 In large organizations, may be subcultures.
 Importance of learning the culture when new!

6. Observable manifestations
of underlying cultural values
Bill Adams, FEA, University of Malaya

7. [Schein] Describing aspects of culture
(“Observables associated with culture”)
Behavioral regular- Group norms Rules of the game
ities (language, (implicit standards (unwritten rules for
customs, rituals) and values) “getting along”)
Habits of thinking Shared meanings Root metaphors/
(shared paradigms) (intra-org lingo) shared symbols
Embedded skills Formal rituals
Bill Adams, FEA, University of Malaya
Climate (feeling &
(special practices (group traditions for
group atmosphere)
passed along) “passages”)
Espoused values Formal philosophy
(announced values) (broad principles)

8. [Martin] Manifestations of Culture: “Cultural Forms”
Rituals
Other
Content
Stories
Culture
Bill Adams, FEA, University of Malaya
Bldg.,
Décor, Jargon
Dress
Humor

9. [Ouchi “Oh’chi”] Z Organization (aka Japanese Mgt.)
 Lifetime employment
 Low turnover rates
 Increased job commitment
 Company-specific skills
 Slow promotions but “wandering around” moves
 Long-range staff development (& generalists)
Bill Adams, FEA, University of Malaya
 Use but not obsessed by quantitative analysis
 Consensus decision-making & staff cohesion
 Importance of warm holistic relationships
 Attitude/symbols of egalitarianism and trust

10. [Ouchi “Oh’chi”] Z Organization (aka Japanese Mgt.)
Disadvantages of “Type Z”:
● The “clan” can be “clanish” toward
“outsiders” (xenophobic, sexist, racist!)
● Cultural conformity resists valuable innovations
Bill Adams, FEA, University of Malaya
● Loss of external professionalism (inward looking)

11. McGregor’s Theory X & Theory Y
Focus on employee-mgt relations; not organization.
Theory X Theory Y
Workers need Workers are willing
to be led & like to participate
Bill Adams, FEA, University of Malaya
Mgt must do Mgt should allow &
all thinking & facilitate worker
issue orders participation in
decision making

12. Bill Adams, FEA, University of Malaya
SWOT Analysis

13. Appreciative Inquiry
Positive reinforcement on steroids.
Avoid negativity and exploit strengths.
An organization is not a
problem to be solved.
An organization is a
mystery to be embraced!
Bill Adams, FEA, University of Malaya
 Discover (appreciate strengths).…. Inquire
 Dream (envision opportunities)…. Imagine
 Design (dialog future directions). Innovate
 Deliver (then do it)…………………. Implement

14. Appreciative Inquiry
Example:
Denver Office of Finance
Saved lots of money by
consolidating, downsizing,
discarding an old program.
Bill Adams, FEA, University of Malaya
Weren’t they asking “where
are we wasting money now?”

15. One typology of org cultures
Rewards creativity, risk- External Focus External but stable focus,
taking, innovation, rapid measureable performance
responses; likes of achievement,
unconventional aggressive, and
styles. Adapt- competitive
Mission
ability
Culture
Culture
Flexibility Stability
Bill Adams, FEA, University of Malaya
Consis-
Clan
tency Bureaucratic;
Family style, Culture established
flexibility not Culture procedures
so bureaucratic, always followed
consensus style, with lots of order
cohesive group styles & discipline; cautious styles
Internal Focus Denison/Mishra

16. Bill Adams, FEA, University of Malaya
One typology of org cultures