Chapter 16 - Organizational Culture

Organizational Culture

Shared social knowledge within an organization regarding the rules, norms, and values that shape the attitudes and behaviors of its employees

3 components of culture

The basic underlying assumptions, espoused values, observable facts

Observable facts

Manifestations within an organization that employees can easily see or talk about

Symbol

Picture or image that conveys a message (observable fact)

Physical structure

The organization's buildings and internal design (observable facts)

Language

The jargon or slang used within an organization (observable fact)

Stories

Anecdotes, accounts, and legends passed down from cohort to cohort (observable facts)

Rituals

The daily or weekly planned routines that occur within an organization (observable facts)

Ceremonies

Formal events, generally performed in front of an audience of organizational members (observable facts)

Espoused values

Beliefs, philosophies, and norms that a company explicitly states

Basic underlying assumptions

Taken-for-granted beliefs and philosophies that are so integrated that employees simply act on them rather than question the validity of their behavior in a given situation

General culture types

Solidarity, sociability, adaptive, aggressive, people-oriented

Solidarity

Degree to which members think and act alike (general culture)

Sociability

How friendly employees are with one another (general culture)

Adaptive

Degree to which members seek out opportunity and the organization allows for decentralized decision making (general culture)

Aggresive

How competitive or easy-going an environment is (general culture)

People-oriented

Extent to which organizations consider the effects that decisions have on its members (general culture)

Specific culture types

Customer service, safety, diversity, sustainability, creativity

Culture strength

Extent to which employees definitely agree about the way things are supposed to happen within an organization

Culture variety

The degree to which different cultures arise within a single organization

Subculture

A culture created within a small subset of the organization's employees

Counterculture

When a subculture's values do not match those of the larger organization

Culture maintenance

Keeping culture alive and prevalent within a company - utilize ASA framework

ASA Framework

Attraction, Selection, Attrition - Culture maintenance

Attraction

What interest potential employees

Selection

Who does the company choose

Attrition

Why do employees leave the company

Socialization

Primary process by which employees learn the social knowledge that enables them to understand and adapt to the organization's culture - anticipatory stage, encounter stage, understanding and adaption

Managing socialization

Realistic job previews, orientation programs, and mentoring

Culture change

Shifting the organization's culture to make work/life better for employees

Leadership change

Changing top level management to shift culture

Mergers and acquisitions

Buying out another company or merging with another company to change company culture

Person-organization fit

Degree to which a person's personality fits with the organizational culture

External forces for Organizational change

Technology, market, social trends, and politics

Internal forces for organizational change

Nature of the workforce, leadership/management change, problems with current structure, and avoid stagnancy

Planned change

Change that is structured and implemented from top-down

3-stage model for planned change

Unfreezing > Changing > Refreezing

Unfreezing

Creating motivation to change culture

Changing

Providing employees new information to affect and shift the whole company culture

Refreezing

Supporting the new culture by integrating the changes into everyday policies, rules, and behaviors