Part IV The Organization System

CHAPTER 14 - ORGANIZATIONAL CULTURE

CHAPTER OBJECTIVES
After reading this chapter, students should be able to:
1 !efine the common characteristics ma"ing up organizational culture
# $ontrast strong and %ea" cultures
& Identify the functional and dysfunctional effects of organizational culture on people
' (ist the factors that maintain an organization)s culture
* $larify ho% culture is transmitted to employees
+ $haracterize a customer,responsi-e culture
. !escribe spirituality and characteristics of a spiritual culture
/ $ontrast organizational culture %ith national culture
0 12plain the parado2 of di-ersity
LECTURE OUTLINE
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A Organizational $ulture
1 Organizational culture refers to a system of shared meaning held by members
that distinguishes the organization from other organizations 9ppt ':
# This system of shared meaning is, on closer e2amination, a set of "ey
characteristics that the organization -alues
& Se-en primary characteristics are: 9ppt *:
a: Inno-ation and ris" ta"ing The degree to %hich employees are encouraged
to be inno-ati-e and ta"e ris"s
b: Attention to detail The degree to %hich employees are e2pected to e2hibit
precision, analysis, and attention to detail
c: Outcome orientation The degree to %hich management focuses on results or
outcomes rather than on the techni;ues and processes used to achie-e those
outcomes
d: People orientation The degree to %hich management decisions ta"e into
consideration the effect of outcomes on people %ithin the organization
e: Team orientation The degree to %hich %or" acti-ities are organized around
teams rather than indi-iduals
f: Aggressi-eness The degree to %hich people are aggressi-e and competiti-e
rather than easy going
g: Stability The degree to %hich organizational acti-ities emphasize
maintaining the status ;uo in contrast to gro%th
' 1ach of these characteristics e2ists on a continuum from lo% to high
* Appraising the organization on these characteristics gi-es a composite picture of
the organization)s culture
< $ulture Is a !escripti-e Term
1 Organizational culture is concerned %ith ho% employees percei-e the se-en char,
acteristics, not %hether they li"e them
# This point differentiates the concept of organizational culture from that of =ob
satisfaction
& 6esearch on organizational culture has sought to measure ho% employees see
their organization 6esearch on =ob satisfaction see"s to measure affecti-e
responses to the %or" en-ironment It is concerned %ith ho% employees feel
10'
Part IV The Organization System
about the organization)s e2pectations, re%ard practices, methods for handling
conflict, and the li"e
' Organizational culture is descripti-e, %hereas =ob satisfaction is e-aluati-e
$ !o Organizations >a-e 8niform $ultures? 9ppt .,/:
1 Organizational culture represents a common perception held by the
organization)s members
# There can be subcultures %ithin any gi-en culture
& @ost large organizations ha-e a dominant culture and numerous sets of
subcultures
a: A dominant culture e2presses the core -alues that are shared by a ma=ority of
the organization)s members
91: It is this macro -ie% of culture that gi-es an organization its distinct per,
sonality
b: Subcultures tend to de-elop in large organizations to reflect common prob,
lems, situations, or e2periences that members face
91: These subcultures are li"ely to be defined by department designations
and geographical separation
' If organizations had no dominant culture and %ere composed only of numerous
subcultures, the -alue of organizational culture as an independent -ariable %ould
be significantly lessened
! Strong Vs

Aea" $ultures 9ppt 0:
1 It has become increasingly popular to differentiate bet%een strong and %ea" cul,
tures
# The argument is that strong cultures ha-e a greater impact on employee beha-ior
and are more directly related to reduced turno-er
& A strong culture is characterized by the organization)s core -alues being both
intensely held and %idely shared
a: The more members %ho accept the core -alues and the greater their
commitment to those -alues, the stronger the culture is
b: A strong culture %ill ha-e a greater influence on the beha-ior
' One specific result of a strong culture should be lo% employee turno-er
a: A strong culture demonstrates high agreement among members about %hat
the organization stands for
II A>AT !O1S $8(T861 !O?
A $ulture)s 3unctions 9ppt 1B:
1 It has a boundary,defining roleC that is, it creates distinctions bet%een one
organization and others
# It con-eys a sense of identity for organization members
& $ulture facilitates the generation of commitment to something larger than one)s
indi-idual self,interest
' It enhances social system stability
* $ulture is the social glue that helps hold the organization together by pro-iding
appropriate standards for %hat employees should say and do
+ 3inally, culture ser-es as a sense,ma"ing and control mechanism that guides and
shapes the attitudes and beha-ior of employees
a: $ulture defines the rules of the game
. Aho is offered a =ob, %ho is appraised as a high performer, and %ho gets a
promotion are strongly influenced by the indi-idual,organization fit, that is,
10*
$hapter 1+ Organization $ulture
%hether the applicant)s or employee)s attitudes and beha-ior are compatible %ith
the culture
< $ulture as a (iability 9ppt 11:
1 $ulture enhances organizational commitment and increases the consistency of
employee beha-ior
# 3rom an employee)s standpoint, culture is -aluable because it reduces ambiguity
& $ulture is a liability %hen the shared -alues do not agree %ith those that %ill
further the organization)s effecti-eness
a: This is most li"ely to occur %hen the organization)s en-ironment is dynamic
b: Ahen the en-ironment is undergoing rapid change, the organization)s
entrenched culture may no longer be appropriate
c: $onsistency of beha-ior is an asset to an organization in a stable
en-ironment
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A >o% a $ulture <egins 9ppt 1#:
1 An organization)s current customs, traditions, and general %ay of doing things
are largely due to %hat it has done before and the degree of success it had %ith
those endea-ors
a: The ultimate source of an organization)s culture is its founders
# The founders of an organization
a: They ha-e a -ision of %hat the organization should be
b: They are unconstrained by pre-ious customs for doing things or ideologies
c: The small size of any ne% organization further facilitates the founders)
imposition of their -ision on all organizational members
d: The organization)s culture results from the interaction bet%een the founders)
biases and assumptions and %hat the original members learn subse;uently
from their o%n e2periences
& @icrosoft)s culture is largely a reflection of co,founder and current $1O, <ill
5ates
a: 5ates himself is aggressi-e, competiti-e, and highly disciplined
b: Those are the same ad=ecti-es often used to describe the soft%are giant he
heads
' Other contemporary e2amplesD<ill 5ates at @icrosoft, Ing-ar Eamrad iat
IE1A, >erb Eelleher at South%est Airlines, 3red Smith at 3ederal 12press,
@ary Eay at @ary Eay $osmetics, and 6ichard <ranson at the Virgin 5roup
< Eeeping a $ulture Ali-e 9ppt 1&:
1 Once a culture is in place, practices %ithin the organization act to maintain it by
e2posing employees to a set of similar e2periences
a: An organization)s human resource practices reinforce its culture
# Three forces play a particularly important part in sustaining a cultureDselection
practices, the actions of top management, and socialization methods
& Selection
a: The e2plicit goal of the selection process is to identify and hire indi-iduals
%ho ha-e the "no%ledge, s"ills, and abilities to perform the =obs %ithin the
organization successfully
b: Aith multiple candidates, the final decision about %ho is hired %ill be
significantly influenced by the decision ma"er)s =udgment of ho% %ell the
candidates %ill fit into the organization
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Part IV The Organization System
c: This results in the hiring of people %ho ha-e common -alues
d: The selection process also gi-es applicants information about the
organization
e: $andidates %ho percei-e a conflict bet%een their -alues and those of the
organization can self,select themsel-es out of the applicant pool
f: 12ampleDA 6 5ore F Association, ma"er of 5ore,Te2 fabric
' Top @anagement
a: The actions of top management ha-e a ma=or impact on an organization)s
culture
b: Ahat they say and ho% they beha-e establish norms that filter do%n through
the organization
9a: 12ampleD6obert Eeirlin, the $1O of 3astenal $o >e ta"es a small
salary and li-es a relati-ely frugal lifestyle, demonstrating that
organizations should not %aste things
* Socialization
a: 4o matter ho% good a =ob the organization does in recruiting and selection,
ne% employees are not fully indoctrinated in the organization)s culture
b: 4e% employees are potentially the most li"ely to disturb the beliefs and
customs that are in place
c: The organization %ill, therefore, %ant to help ne% employees adapt to its
culture This adaptation process is called socialization
d: 12ampleD@arine boot camp
e: The most critical socialization stage is at the time of entry into the
organization
91: 1mployees %ho fail to learn the essential or pi-otal role beha-iors ris"
being labeled nonconformists or rebels and, ultimately, being e2pelled
+ Socialization)s three stagesDpre,arri-al, encounter, and metamorphosis
a: The first stage encompasses all the learning that occurs before a ne% member
=oins the organization
b: In the second stage, the ne% employee sees %hat the organization is really
li"e and confronts the li"elihood that e2pectations and reality may di-erge
c: In the third stage, the relati-ely long,lasting changes ta"e place The ne%
employee masters the s"ills re;uired for his or her =ob, successfully performs
his or her ne% roles, and ma"es the ad=ustments to his or her %or" group)s
-alues and norms
. 12hibit 1',1 depicts this process 9ppt 1':
a: The pre,arri-al stage occurs before the employee =oins the organizationC he or
she arri-es %ith an established set of -alues, attitudes, and e2pectations
91: These co-er both the %or" to be done and the organization from prior
socialization in training and in school
9#: The selection process is part of pre,arri-al, organizations use it to inform
prospecti-e employees about the organization as a %hole and to ensure
the inclusion of the right type
b: 1ntry into the organization begins the encounter stage
91: 4o% the indi-iduals confront the possible dichotomy bet%een their
e2pectationsDabout their =ob, co,%or"ers, boss, and the organization in
general and reality
9#: If e2pectations %ere accurate, the encounter stage is a reaffirmation
10.
$hapter 1+ Organization $ulture
9&: Often this is not the case Ahere e2pectations and reality differ, ne%
employees must undergo socialization that %ill detach them from
pre-ious assumptions and replace them %ith an GacceptableH set
9': At the e2treme, ne% members may become totally disillusioned %ith the
actualities of their =ob and resign
c: 4e% members must %or" out any problems disco-ered during the encounter
stage They may ha-e to go through changes, or the metamorphosis stage
91: 12hibit 1',# presents an organization)s socialization options for fostering
metamorphosis
9#: @etamorphosis and the entry socialization process are complete %hen
ne% members ha-e become comfortable %ith the organization and their
=ob
9&: They ha-e internalized the norms of the organization and their %or"
group, and they understand and accept those norms
9': 4e% members feel accepted by their peers as trusted and -alued
indi-iduals
9*: 12hibit 1',# sho%s, successful metamorphosis should ha-e a positi-e
impact on the ne% employees) producti-ity and their commitment to the
organization and reduce their propensity to lea-e the organization
$ Summary: >o% $ultures 3orm
1 12hibit 1',& summarizes ho% an organization)s culture is established and sus,
tained 9ppt 1*:
a: The original culture is deri-ed from the founder)s philosophy
b: This strongly influences the criteria used in hiring
c: The actions of the current top management set the general climate of %hat is
acceptable beha-ior and %hat is not
d: 1mployee socialization depends on the degree of success achie-ed in
matching ne% employees) -alues to those of the organization in the selection
process and top management)s preference for socialization methods
IV >OA 1@P(OI11S (1A64 $8(T861 9ppt 1+:
A Stories
1 12ampleD>enry 3ord II %as chairman of the 3ord @otor $oDremember GIt)s
my name that)s on the buildingH The message %as clear: >enry 3ord II ran the
company
# 12ampleD4ordstrom refunding a customer)s money for tires, a product the story
didn)t sell because, Gbut %e do %hate-er %e need to do to ma"e the customer
happy I mean it %hen I say %e ha-e a no,;uestions,as"ed return policyH
4ordstrom then pic"ed up the telephone and called a friend in the auto parts
business to see ho% much he could get for the tires
& Stories such as these contain a narrati-e of e-ents about the organization)s
founders, rule brea"ing, rags,to,riches successes, reductions in the %or"force,
relocation of employees, reactions to past mista"es, and organizational coping
These stories anchor the present in the past and pro-ide e2planations and
legitimacy for current practices
< 6ituals
1 6ituals are repetiti-e se;uences of acti-ities that e2press and reinforce the "ey
-alues of the organization, %hat goals are most important, %hich people are
important and %hich are e2pendable
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Part IV The Organization System
# 12ampleDAal,@art)s company chant
$ @aterial Symbols
1 12ampleDThe Alcoa head;uarters is essentially made up of cubicles and
meeting rooms
a: This con-eys their -alues of openness, e;uality, creati-ity, and fle2ibility
# @essages can also be con-eyed by material symbols besto%ed on e2ecuti-es
a: $hauffeur,dri-en limousines and unlimited use of the corporate =et
b: 12ecuti-es at other firms may get a $he-rolet 9%ith no dri-er: and the plane
seat is in the economy section of a commercial airliner
& Other e2amples of material symbols include the size of offices, their furnishings,
e2ecuti-e per"s, the use of employee lounges or on,site dining facilities, and so
on
' These material symbols con-ey to employees %ho is important, the degree of
egalitarianism desired by top management, and the "inds of beha-ior 9for
e2ample, ris" ta"ing, conser-ati-e, authoritarian, participati-e, indi-idualistic,
social: that are appropriate
! (anguage
1 @any organizations and units %ithin organizations use language as a %ay to
identify members of a culture or subculture
# 12ampleDEnight,6idder Information, a $alifornia,based data redistributor:
accession number 9a number assigned each indi-idual record in a data base:C
EAI$ 9a set of "ey,%ords,in,conte2t:C and relational operator 9searching a data
base for names or "ey terms in some order:
& Organizations often de-elop uni;ue terms to describe common business matters
' 4e% employees are fre;uently o-er%helmed %ith acronyms and =argon that, after
si2 months on the =ob, ha-e become fully part of their language
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1 <ecause an organization)s culture is made up of relati-ely stable characteristics,
it)s difficult to change 9ppt 1.:
a: It de-elops o-er many years and is rooted in deeply held -alues
# A number of forces maintain a gi-en culture
a: Aritten statements about the organization)s mission and philosophy
b: The design of physical spaces and buildings
c: The dominant leadership style
d: >istorical selection criteria, past promotion practices, entrenched rituals
e: Popular stories about "ey people and e-ents, etc
& $hanging an organization)s culture is difficult, it isn)t impossible
' $onditions for effecti-e cultural change
a: A dramatic crisis e2ists or is created This is the shoc" that undermines the
status ;uo and calls into ;uestion the rele-ance of the current culture
91: A surprising financial setbac", the loss of a ma=or customer, or a
dramatic technological brea"through by a competitor
9#: Some e2ecuti-es purposely create a crisis in order to stimulate cultural
change
b: Turno-er in leadership 4e% top leadership, %hich can pro-ide an alternati-e
set of "ey -alues, is usually needed to ma"e cultural change %or"
91: A ne% $1O from outside the organization is more li"ely to introduce
ne% cultural -alues
100
$hapter 1+ Organization $ulture
9#: An outside $1O, in contrast to promoting someone from %ithin the
organization, also con-eys a message to employees that change is in the
%ind
c: Ioung and small organizations $ultural change is more li"ely to ta"e if the
organization is both young and small
91: $ultures in younger organizations are less entrenched
9#: It)s easier to communicate ne% -alues
d: Aea" culture The more %idely held a culture is and the higher the
agreement among members on its -alues, the more difficult it %ill be to
change
* 1-en %hen the abo-e conditions are fa-orable, managers shouldn)t loo" for
immediate or dramatic shifts in their organization)s culture $ultural change is a
lengthy process %hich should be measured in years rather than months
VI $61ATI45 A4 1T>I$A( O65A4I7ATIO4A( $8(T861 9ppt 1/,10:
A The 4ature of $ultural Influences an Organization)s 1thical $limate
1 An organizational culture most li"ely to shape high ethical standards is high in
ris" tolerance, lo% to moderate in aggressi-eness, and focuses on means as %ell
as outcomes
# If the culture is strong and supports high ethical standards, it should ha-e a -ery
po%erful and positi-e influence on employee beha-ior
& 12ampleDJohnson F Johnson has a strong culture that has long stressed
corporate obligations to customers, employees, the community, and shareholders,
in that order
a: Poisoned Tylenol case
' Practices for creating a more ethical culture
a: <e a -isible role modelD1mployees %ill loo" to top,management beha-ior
as a benchmar" for appropriate beha-ior
b: $ommunicate ethical e2pectationsDAn organizational code of ethics should
state the organization)s primary -alues and the ethical rules that employees
are e2pected to follo%
c: Pro-ide ethical trainingD8se training sessions to reinforce the
organization)s standards of conduct, to clarify %hat practices are and are not
permissible, and to address possible ethical dilemmas
d: Visibly re%ard ethical acts and punish unethical onesDPerformance
appraisals of managers should include a point,by,point e-aluation of ho%
their decisions measured against the organization)s code of ethics
e: Pro-ide protecti-e mechanismsDThe organization needs to pro-ide formal
mechanisms so that employees can discuss ethical dilemmas and report
unethical beha-ior %ithout fear of reprimand
VII $61ATI45 A $8STO@16,61SPO4SIV1 $8(T861 9ppt #B,##:
A @ost organizations are attempting to create a customer,responsi-e culture because they
recognize the -alue of customer loyalty
< Si2 Eey Variables Shaping $ustomer,6esponsi-e $ultures
1 The selection of employees that are outgoing and friendly
# (o% le-els of formalization
& Aidespread use of empo%erment
' 1mployees %ith good listening s"ills
* >igh le-els of role,clarity
+ 1mployees %ho e2hibit organizational citizenship beha-iors
#BB
Part IV The Organization System
$ Actions @anagement can ta"e <ased upon the Abo-e $haracteristics 9ppt #&:
1 Selection, >ire people %ith the personality and attitudes consistent %ith a high
ser-ice orientation
# Training and socialization, Training e2isting employees on impro-ing product
"no%ledge, acti-e listening, patience, and displaying emotions
& Structural !esign, 6educe the number of rules so employees can handle
customer re;uests
' 1mpo%erment, 5i-e employees the discretion to ma"e decisions about =ob,
related acti-ities
* Performance e-aluation, Appraise employees based on ho% they beha-e or act
+ 6e%ard systems, 6e%ard good customer ser-ice
VIII SPI6IT8A(ITI A4! O65A4I7ATIO4A( $8(T861
A Ahat Is Spirituality?
1 6ecognizes that people ha-e an inner life that nourishes and is nourished by
meaningful %or" that ta"es place in the conte2t of community 9ppt #':
# Organizations that promote a spiritual culture recognize that people ha-e both a
mind and spirit, see" to find meaning and purpose in their %or", and desire to
connect %ith other human being and be part of a community
< Ahy Spirituality 4o%?
1 The study of emotions impro-ed our understanding of organizational beha-ior,
an a%areness of spirituality can help you to better understand employee beha-ior
in the t%entieth century
# See 12hibit 1',' for reasons for the gro%ing interest in Spirituality
$ $haracteristics of a Spiritual Organization 9ppt #*,#+:
1 Spiritual organizations are concerned %ith helping people de-elop and reach their
full potential
# $haracteristics found to be e-ident in spiritual organizations:
a: A strong sense of purpose
91: Spiritual organizations build their cultures around a meaningful purpose
9#: 3i-e cultural characteristics that tend to be e-ident in spiritual
organizations:
9a: Strong sense of purpose
9i: Spiritual organizations build their cultures around a meaningful
purpose
9b: 3ocus on indi-idual de-elopment
9c: Trust and opennessDspiritual organizations are characterized by
mutual trust, honesty, and openness
9d: 1mployee empo%erment
9e: Toleration of employee e2pressionDdegree to %hich they allo%
people to be themsel-es
! $riticisms of Spirituality
1 T%o issues:
a: 3irst, the ;uestion is of legitimacy !o organizations ha-e the right to
impose spiritual -alues on their employees?
b: Second is the ;uestion of economics Are spirituality and profits
compatible?
#B1
$hapter 1+ Organization $ulture
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1 4ational culture must be ta"en into account if accurate predictions are to be made
about organizational beha-ior in different countries
a: <ut does national culture o-erride an organization)s culture?
# The research indicates that national culture has a greater impact on employees
than does their organization)s culture
& This conclusion has to be ;ualified to reflect the self,selection that goes on in
hiring
a: A <ritish multinational corporation, for e2ample, is less li"ely to be
concerned %ith hiring the Gtypical ItalianH for its Italian operations than in
hiring an Italian %ho fits %ith the corporation)s %ay of doing things
b: The employee selection process %ill be used by multinationals to find and
hire =ob applicants %ho are a good fit %ith their organization)s dominant
culture e-en if such applicants are some%hat atypical citizens of their
country
K O65A4I7ATIO4A( $8(T861 A4! T>1 PA6A!OK O3 !IV16SITI
A A $ontemporary $hallenge for @anagers 9ppt #.,#/:
1 Socializing ne% employees %ho, because of race, gender, ethnic, or other
differences, are not li"e the ma=ority of the organization)s members creates %hat
%e call the parado2 of di-ersity
a: @anagement %ants ne% employees to accept the organization)s core cultural
-alues <ut at the same time, management %ants to openly ac"no%ledge and
demonstrate support for the differences that these employees bring to the
%or"place
# Strong cultures put considerable pressure on employees to conform They limit
the range of -alues and styles that are acceptable
& The dilemma is that organizations hire di-erse indi-iduals because of the
alternati-e strengths these people bring to the %or"place, yet these di-erse
beha-iors and strengths are li"ely to diminish in strong cultures as people attempt
to fit in
KI I@P(I$ATIO4S 3O6 @A4A516S
A $ulture has a strong influence on employee beha-ior Ahat can management do to
design a culture that molds employees in the %ay management %ants?
< Ahen an organization is =ust being established, management has a great deal of
influence
1: There are no established traditions The organization is small
#: There are fe%, if any, subcultures
&: 1-eryone "no%s the founder and is directly touched by his or her -ision
': @anagement has the opportunity to create a culture that %ill best facilitate the
achie-ement of the organization)s goals
$ Ahen the organization is %ell established, so, too, is its dominant culture
1: It becomes -ery resistant to change
#: Strong cultures are particularly resistant to change because employees become so
committed to them
&: If a gi-en culture needs to be changed there may be little management can do
#B#
Part IV The Organization System
': 8nder the most fa-orable conditions, cultural changes ha-e to be measured in
years, not %ee"s or months
*: The Gfa-orable conditionsH are the e2istence of a dramatic crisis, turno-er in the
organization)s top leadership, an organization that is both young and small, and a
dominant culture that is %ea"
SUMMARY 9ppt #0,&B:
1 Organizational culture refers to a system of shared meaning held by members that
distinguishes the organization from other organizations Organizational cultures ha-e se-en
primary characteristicsC inno-ation and ris" ta"ing, attention to detail, outcome orientation,
people orientation, team orientation, aggressi-eness, and stability Organizational culture
represents a common perception held by the organization)s members
# It has become increasingly popular to differentiate bet%een strong and %ea" cultures A
strong culture is characterized by the organization)s core -alues being both intensely held and
%idely shared
& Organizational culture has a boundary,defining roleC that is, it creates distinctions bet%een
one organization and others It con-eys a sense of identity for organization members
' $ulture enhances organizational commitment and increases the consistency of employee
beha-ior $ulture is a liability %hen the shared -alues do not agree %ith those that %ill
further the organization)s effecti-eness
* An organization)s current customs, traditions, and general %ay of doing things are largely
due to %hat it has done before and the degree of success it had %ith those endea-ors The
ultimate source of an organization)s culture is its founders
+ Once a culture is in place, practices %ithin the organization act to maintain it by e2posing
employees to a set of similar e2periences Three forces play a particularly important part in
sustaining a culture: selection practices, the actions of top management, and socialization
methods
. Organizations transmit their cultures to their employees in se-eral %ays Stories contain a
narrati-e of e-ents about the organization)s founders, and so on, and they anchor the present
in the past and pro-ide e2planations and legitimacy for current practices 6ituals are
repetiti-e se;uences of acti-ities that e2press and reinforce the "ey -alues of the organization,
%hat goals are most important, %hich people are important and %hich are e2pendable The
material symbols con-ey messages to ne% employees @essages can also be con-eyed by
material symbols besto%ed on e2ecuti-es @any organizations and units %ithin organizations
use language as a %ay to identify members of a culture or subculture <ecause an
organization)s culture is made up of relati-ely stable characteristics, it)s difficult to change It
de-elops o-er many years and is rooted in deeply held -alues Therefore certain conditions
need to e2ist for there to be effecti-e cultural change A dramatic crisis e2ists or is created A
turno-er in leadership
/ An organizational culture most li"ely to shape high ethical standards is high in ris" tolerance,
lo% to moderate in aggressi-eness, and focuses on means as %ell as outcomes If the culture
is strong and supports high ethical standards, it should ha-e a -ery po%erful and positi-e
influence on employee beha-ior
0 4ational cultureDmust be ta"en into account if accurate predictions are to be made about
organizational beha-ior in different countries The research indicates that national culture has
a greater impact on employees than does their organization)s culture
1B @ost organizations are recognizing the need to create a customer ser-ice oriented culture
They recognize the lin" bet%een customer loyalty and long,term profitability
11 Aor"place spirituality is not about organized religious practices It recognizes that people
ha-e an inner life that nourishes and is nourished by meaningful %or" that ta"es place in the
conte2t of community See 12hibit 1',' for reasons for the gro%ing interest in spirituality
#B&
$hapter 1+ Organization $ulture
1# Socializing of ne% employees %ho are not li"e the ma=ority of the organization)s members
creates the parado2 of di-ersity @anagement %ants ne% employees to accept the
organization)s core cultural -alues <ut at the same time, management %ants to openly
ac"no%ledge and demonstrate support for the differences that these employees bring to the
%or"place
DISCUSSION QUESTIONS
1 Ahat elements define an organization)s culture?
Answer - Organizational culture refers to a system of shared meaning held by members that
distinguishes the organization from other organizations There are se-en primary
characteristics 1: Inno-ation and ris" ta"ing The degree to %hich employees are encouraged
to be inno-ati-e and ta"e ris"s #: Attention to detail The degree to %hich employees are
e2pected to e2hibit precision, analysis, and attention to detail &: Outcome orientation The
degree to %hich management focuses on results or outcomes rather than on the techni;ues
and processes used to achie-e those outcomes ': People orientation The degree to %hich
management decisions ta"e into consideration the effect of outcomes on people %ithin the
organization *: Team orientation The degree to %hich %or" acti-ities are organized around
teams rather than indi-iduals +: Aggressi-eness The degree to %hich people are aggressi-e
and competiti-e rather than easy going .: Stability The degree to %hich organizational
acti-ities emphasize maintaining the status ;uo in contrast to gro%th
# >o% many cultures and %hat type of cultures can an organization ha-e?
Answer - Organizational culture represents a common perception held by the organization)s
members There can be subcultures %ithin any gi-en culture @ost large organizations ha-e a
dominant culture and numerous sets of subcultures A dominant culture e2presses the core
-alues that are shared by a ma=ority of the organization)s members Subcultures tend to
de-elop in large organizations to reflect common problems, situations, or e2periences that
members face If organizations had no dominant culture and %ere composed only of numer,
ous subcultures, the -alue of organizational culture as an independent -ariable %ould be
significantly lessened
It has become increasingly popular to differentiate bet%een strong and %ea" cultures The
argument is that strong cultures ha-e a greater impact on employee beha-ior and are more
directly related to reduced turno-er A strong culture is characterized by the organization)s
core -alues being both intensely held and %idely shared The more members %ho accept the
core -alues and the greater their commitment to those -alues, the stronger the culture is A
strong culture demonstrates high agreement among members about %hat the organization
stands for
& Ahat -alue does an organization)s culture bring to the organization? >o% can its culture
hinder organizational effecti-eness?
Answer - Organizational culture has a boundary,defining roleC that is, it creates distinctions
bet%een one organization and others It con-eys a sense of identity for organization
members $ulture facilitates the generation of commitment to something larger than one)s
indi-idual self,interest $ulture is the social glue that helps hold the organization together by
pro-iding appropriate standards for %hat employees should say and do 3inally, culture
ser-es as a sense,ma"ing and control mechanism that guides and shapes the attitudes and
beha-ior of employees
$ulture is a liability %hen the shared -alues do not agree %ith those that %ill further the
organization)s effecti-eness This is most li"ely to occur %hen the organization)s
#B'
Part IV The Organization System
en-ironment is dynamic Ahen the en-ironment is undergoing rapid change, the
organization)s entrenched culture may no longer be appropriate
' Ahat are the possible origins of an organization)s culture?
Answer - An organization)s current customs, traditions, and general %ay of doing things are
largely due to %hat it has done before and the degree of success it had %ith those endea-ors
The ultimate source of an organization)s culture is its founders The organization)s culture
results from the interaction bet%een the founders) biases and assumptions and %hat the
original members learn subse;uently from their o%n e2periences
* Ahen is organizational culture, especially a strong culture, a liability rather than an asset
Answer - $ulture is a liability %hen the shared -alues do not agree %ith those that %ill
further the organization)s effecti-eness This situation is most li"ely to occur %hen the
organization)s en-ironment is dynamic
+ As the president of a medium,sized but gro%ing company, you ha-e become concerned that
your e2isting organizational culture be maintained during the gro%th Ahat could you direct
your managers to do that %ould help maintain the current culture?
Answer - Once a culture is in place, practices %ithin the organization act to maintain it by
e2posing employees to a set of similar e2periences An organization)s human resource
practices reinforce its culture Three forces play a particularly important part in sustaining a
cultureDselection practices, the actions of top management, and socialization methods The
e2plicit goal of the selection process is to identify and hire indi-iduals %ho ha-e the
"no%ledge, s"ills, and abilities to perform the =obs %ithin the organization successfully The
actions of top management ha-e a ma=or impact on an organization)s culture Ahat they say
and ho% they beha-e establish norms that filter do%n through the organization 4o matter
ho% good a =ob the organization does in recruiting and selection, ne% employees are not fully
indoctrinated in the organization)s culture The most critical socialization stage is at the time
of entry into the organization Socialization has three stagesDpre,arri-al, encounter, and
metamorphosis 12hibit 1+,# depicts this process
. Ahat could you do to transmit your organizational culture to your ne% employees?
Answer - Students can offer se-eral tools but should address some of the follo%ing Stories
contain a narrati-e of e-ents about the organization)s founders, rule brea"ing, rags,to,riches
successes, reductions in the %or"force, relocation of employees, reactions to past mista"es,
and organizational coping These stories anchor the present in the past and pro-ide
e2planations and legitimacy for current practices 6ituals are repetiti-e se;uences of acti-ities
that e2press and reinforce the "ey -alues of the organization, %hat goals are most important,
%hich people are important and %hich are e2pendable @aterial symbols con-ey messages to
ne% employees @essages can also be con-eyed by material symbols besto%ed on
e2ecuti-es @any organizations and units %ithin organizations use language as a %ay to
identify members of a culture or subculture
/ If a company %anted to reshape its culture %hat factors might hinder the change? Ahat might
assist the change?
Answer - <ecause an organization)s culture is made up of relati-ely stable characteristics,
it)s difficult to change It de-elops o-er many years and is rooted in deeply held -alues A
number of forces maintain a gi-en culture
Aritten statements about the organization)s mission and philosophy
The design of physical spaces and buildings
#B*
$hapter 1+ Organization $ulture
The dominant leadership style
>istorical selection criteria, past promotion practices, entrenched rituals
Popular stories about "ey people and e-ents, and so on
$onditions for effecti-e cultural change
A dramatic crisis e2ists or is created This is the shoc" that undermines the status ;uo and
calls into ;uestion the rele-ance of the current culture
A surprising financial setbac", the loss of a ma=or customer, or a dramatic technological
brea"through by a competitor
Turno-er in leadership 4e% top leadership, %hich can pro-ide an alternati-e set of "ey
-alues, is usually needed to ma"e cultural change %or"
Ioung and small organization $ultural change is more li"ely to ta"e if the organization
is both young and small
Aea" culture The more %idely held a culture is and the higher the agreement among
members on its -alues, the more difficult it %ill be to change
0 As the leader of your organization, %hat steps might you encourage that %ould foster an
ethical climate?
Answer - An organizational culture most li"ely to shape high ethical standards is high in ris"
tolerance, lo% to moderate in aggressi-eness, and focuses on means as %ell as outcomes If
the culture is strong and supports high ethical standards, it should ha-e a -ery po%erful and
positi-e influence on employee beha-ior There are a number of practices for creating a more
ethical culture
<e a -isible role model 1mployees %ill loo" to top,management beha-ior as a bench,
mar" for appropriate beha-ior
$ommunicate ethical e2pectations An organizational code of ethics should state the
organization)s primary -alues and the ethical rules that employees are e2pected to follo%
Pro-ide ethical training 8se training sessions to reinforce the organization)s standards of
conduct, to clarify %hat practices are and are not permissible, and to address possible eth,
ical dilemmas
Visibly re%ard ethical acts and punish unethical ones Performance appraisals of man,
agers should include a point,by,point e-aluation of ho% their decisions measured against
the organization)s code of ethics
Pro-ide protecti-e mechanisms The organization needs to pro-ide formal mechanisms so
that employees can discuss ethical dilemmas and report unethical beha-ior %ithout fear
of reprimand
1B Ahat steps can managers ta"e to try and create more of a customer ser-ice oriented culture?
Answer- There are a number of actions that management can ta"e, including selecting and
training for customer ser-ice, ha-ing fe% rules combined %ith empo%ered employees, and
ha-ing performance e-aluations and re%ard systems that emphasize customer ser-ice
11 Is spirituality in the %or"place =ust another name for prayer at %or"? Pro-ide reasons for
gro%ing the gro%ing interest in spirituality
Answer L Aor"place spirituality recognizes that people ha-e an inner life that nourishes and
is nourished by meaningful %or" that ta"es place in the conte2t of community Organizations
that promote a spiritual culture recognize the people ha-e both a mind and a spirit, see"ing to
find meaning and purpose in their %or", and desire to connect %ith other human beings and
be part of a community See 12hibit 1+,* for a listing of reasons for the gro%ing interest in
spirituality
#B+
Part IV The Organization System
1# Ahat is the relationship bet%een organizational culture and national culture?
Answer - 4ational culture must be ta"en into account if accurate predictions are to be made
about organizational beha-ior in different countries The research indicates that national
culture has a greater impact on employees than does their organization)s culture This
conclusion has to be ;ualified to reflect the self,selection that goes on in hiring
1& In %hat %ay9s: does an organization)s culture create a di-ersity parado2 for managers?
Answer - Socializing ne% employees %ho, because of race, gender, ethnic, or other
differences, are not li"e the ma=ority of the organization)s members This creates %hat %e call
the parado2 of di-ersity @anagement %ants ne% employees to accept the organization)s core
cultural -alues <ut at the same time, management %ants to openly ac"no%ledge and
demonstrate support for the differences that these employees bring to the %or"place The
dilemma is that organizations hire di-erse indi-iduals because of the alternati-e strengths
these people bring to the %or"place, yet these di-erse beha-iors and strengths are li"ely to
diminish in strong cultures as people attempt to fit in @anagement)s challenge in this
parado2 of di-ersity is to balance t%o conflicting goals
EERCISES
A Ahat !oes Our $ulture 6e-eal About 8s?
The purpose of this e2ercise is to increase students) a%areness of organizational culture and
enhance their ability to read the signs of organizational culture as they enter ne% organizations
1 This may be done indi-idually or in pairs
# !o in class $reate a list of fifteen signs that re-eal an organization)s culture
6efer students to the te2t or gi-e a mini re-ie% lecture
>a-e students brainstorm a list of these signs
$reate a common set of fifteen signs that %ill help students identify:
the strength of the organizational culture
norms and e2pectations
%hat e-ents, acti-ities, or people sustain the e2isting culture
"ey stories, rituals, material symbols, and language specific to an organizational
culture
the degree of ethicality of an organization)s culture
& Outside of class students should pic" an organization to e2amineDsocial group, the college
or uni-ersity, a %or"place, and so on
Students are to e-aluate that organization)s culture in terms of the list of signs and dra%
a conclusion as to the nature of its culture
' Students should report their findings and conclusions in class either in %ritten or oral form If
oral, limit each presentation to ten minutes
* $onclude %ith a general class discussion about organizational culture and ho% %hat they
learned %ill help them in their =ob searches and careers and in choosing %here to %or"
< $ustomer Ser-ice $ultures
As a class, discuss both good and bad customer ser-ice encounters recently Iou might %ant to
do this in small groups first, then ha-e the groups relate the best stories to the class As they tell
stories, try and ma"e them diagnose the reasons for the encounters in the conte2t of the elements
that determine the degree to %hich a customer ser-ice culture e2ist 3or e2ample, a story about a
cler" at a -ideo store %ho charges me a late fee %hen my -ideo %as returned *,minutes late may
#B.
$hapter 1+ Organization $ulture
not ha-e a choice due to a lac" of empo%erment or high le-els of formalization @a"e sure you
discuss both good and bad ser-ice encounters
$ Aor"place Spirituality Muest
In class ha-e students de-elop a strong definition they are comfortable %ith for G%or"place
spiritualityH Then GarmedH %ith this definition, ha-e students inter-ie% * full,time employees
about their %or"places >a-e the student rate each inter-ie%ee)s %or"place on a scale of 1,1B,
%ith 1 being no %or"place spirituality, and 1B being the greatest amount of %or"place
spirituality Then ha-e students %rite a comparati-e analysis piece about the different
inter-ie%ee organizations) le-el of %or"place spirituality
Tell the students to be prepared to share they %ritten ideas to the class, and get GfreeH consulting
An!"#$%n& Y'(r Or&!n%$!)%'n
>a-e the students meet %ith some of the Gold,timersH in their organization >a-e them discuss
the -arious stories that shaped the organization)s culture throughout the years Iou might as"
them %hat the founder %as li"e, and %hat his or her -alues and belief system %ere or are 6elate
these findings to %hat the current organizational culture is Is it the same? If not, %hat has
changed o-er the years, and %hy? 6elate this to the e2isting materials, symbols, or language that
define the culture of the organization
#B/