Chapter 16: Organizational Culture

Learning Outcomes

Identify the three levels of culture and the roles they play in an organization.
Evaluate the four functions of culture within an organization.
Explain the relationship between organizational culture and performance.
Describe five ways leaders reinforce o

Learning Outcome 1

Identify the three levels of culture and the roles they play in an organization

Organizational (Corporate) Culture

A pattern of basic assumptions that are considered valid and that are taught to new members as the way to perceive, think and feel in the organization

Levels of Organizational Culture

Artifacts
Espoused Values
Enacted Values
Assumptions

Artifacts

Symbols of culture in the physical and social work environment

Espoused Values

What members of an organization say they value

Enacted Values

Reflected in the way individuals actually behave

Assumptions

Deeply held beliefs that guide behavior and tell members of an organization how to perceive and think about things

Types of Artifacts

Personal Enactment
Ceremonies and Rites
Stories
-About the boss
-getting fired
-relocating
-promotions
-crisis situations
-status considerations
Rituals
Symbols

Norm

An unwritten rule for behavior in a group. When a norm is not followed, negative feedback is given

Learning Outcome 2

Evaluate the four functions of culture within an organization

Functions of Organizational Culture

Culture provides a sense of identity to members and increases their commitment to the organization
Culture is a sense-making device for organization members
Culture reinforces the values of the organization
Culture serves as a control mechanism for shapin

Sense of identity

It depends if this is good or bad and people leave because it doesn't match
Based on motivation

Learning Outcome 3

Explain the relationship between organizational culture and performance

Three Theories on the Relationship Between Organizational Culture and Performance

Strong Culture Perspective
Fit Perspective
Adaptive Perspective

Strong Culture

An organizational culture with a consensus on the values that drive the company and with an intensity that is recognizable even to outsiders
Military: Strong sense of expectation, you have to follow

Strong Cultures Facilitate Performance BECAUSE

They are characterized by goal alignment
They create a high level of motivation
because of shared values by the members
They provide control without the
oppressive effects of bureaucracy

Fit Perspective

A culture is good only if it fits the industry or the firm's strategy
Match to the environment

Fit Perspective

Three particular industry characteristics affect culture:
Competitive environment
Customer requirements
Societal expectations

Adaptative Culture

An organizational culture that encourages confidence and risk taking among employees, has leadership that produces change and focuses on the changing needs of customers

Learning Outcome 4

Describe 5 ways leaders reinforce organizational culture

5 Most Important Elements in Managing Culture

What leaders pay attention to
How leaders react to crises
How leaders behave
How leaders allocate rewards
How leaders hire and fire individuals

Learning Outcome 5

Describe the three stages of organizational socialization and the way culture is communicated in each step

Organizational Socialization

The process by which newcomers are transformed from outsiders to participating, effective members of the organization

Organizational Socialization Process

The process by which newcomers are transformed from outsiders to participating effective members of the organization
Realistic Job Preview (RJP)

Socialization Process

Anticipatory Socialization
Encounter
Change and Acquisition

Anticipatory Socialization

The first socialization stage, which encompasses all of the learning that takes place prior to the newcomer's first day on the job

Encounter

The second socialization stage in which newcomers learn the tasks associated with the job, clarify their roles, and establish new relationships at work

Change and Acquisition

The third socialization stage, in which the newcomer begins to master the demands of the job

Outcomes of Socialization

Newcomers who are successfully socialized should exhibit
Good performance
High job satisfaction
Intention to stay with organization
Low levels of distress symptoms
High level of orgnaizational commitment

Learning Outcome 6

Discuss how managers assess their organizations culture

Organizational Culture Inventory

Focuses on behaviors that help employees fit into the organization and meet coworker expectations.
Uses Maslow's hierarchy of needs to measure twelve cultural styles.

Kilmann-Saxton Culture-Gap Survey

Focuses on what actually happens in the organization and the expectations of others
Two underlying dimensions
-technical/human and time

Triangulation

The use of multiple methods to measure organizational culture

Learning Outcome 7

Explain actions managers can take to change organizational culture

Cultural Changes

With rapid environmental changes such as globalization, workforce diversity and technological innovation, the fundamental assumptions and basic values that drive the organization may need to be altered
Creating and Sustaining Org Culture

...

Creating an Org Culture
-Founders
Sustaining and organizational culture
-Selection
-Top MGMT
-Socialization

Socialization

The process that adapts employees to the organization's culture

Philosophy of org founders

Selection criteria
Top management
Socialization
Organizational Culture

Why is Change Difficult?

Assumptions are often unconscious
Culture is deeply ingrained and behavioral norms and rewards are well learned