C H A P T E R

16

Organisational
culture

2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione

Chapter 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

organisations culture.

Melso Minerals corporate culture

Melso Minerals in
Matamata, New Zealand,
has an egalitarian, teamoriented corporate
culture . This culture is
apparent through
numerous artefacts, such
as the no-holds barred
retreats and the Melso

Courtesy of Melso Minerals (Matamata) Ltd

polo shirts that everyone

wears.

Organisational 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

Elements of organisational culture

Physical structures

Artefacts of
organisational
culture

Rituals/ceremonies
Stories
Language

Organisational
culture

Meaning of cultural content

Cultural content refers to the relative
ordering of beliefs, values and assumptions
Example: Brown & Brown values
aggressiveness; SAS Institute values worklife balance
An organisation emphasises only a handful
of the hundreds of cultural values

Organisational subcultures
Located throughout the organisation
Can support or oppose (countercultures)
firms dominant culture
Two functions of countercultures:
provide surveillance and evaluation
source of emerging values

Cultural 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

Artefacts: 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

Artefacts: rituals and ceremonies

Rituals
programmed routines
eg conducting meetings

Ceremonies
planned activities for an audience
eg award ceremonies

Artefacts: organisational language

Words used to address people, describe
clients, etc
Leaders use phrases and metaphors as
cultural symbols
eg General Electrics grocery store

Language also found in subcultures

eg Whirlpools PowerPoint culture

Artefacts: 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.

Courtesy of Oakley, Inc.

Benefits of strong corporate cultures

Social
control
Strong
organisational
culture

Social
glue
Aids
sense-making

Problems with strong cultures

Culture content might be incompatible
with the organisations environment
Strong cultures focus attention on one
mental model
Strong cultures suppress dissenting values
from subcultures

Adaptive organisational cultures

External focus firms success depends on
continuous change
Focus on processes more than goals
Strong sense of ownership
Proactive seek out opportunities

Bicultural 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

Merging organisational cultures

Assimilation

Acquired company embraces

acquiring firms culture

Deculturation

Acquiring firm imposes its culture on

unwilling acquired firm

Integration

Both cultures combined into a new

composite culture

Separation

Merging companies remain

separate with their own culture

Strengthening organisational culture

Founders
and leaders
Selection
and
socialisation

Strengthening
organisational
culture

Managing the
cultural
network

Culturally
consistent
rewards

Stable
workforce

Overview of the next chapter

Lewins 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

C H A P T E R

16

Organisational
culture

2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione