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CHAPTER 15: ORGANIZATIONAL CULTURE |
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CHAPTER 15 ORGANIZATIONAL CULTURE CHAPTER OUTLINE
I. ELEMENTS OF ORGANIZATIONAL CULTURE
A. Organizational culture is 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 organization.
1. Assumptions are the shared mental models, the broad world views or theories in use that people rely on to guide their perceptions and behaviors. 2. Beliefs represent the individual’s perceptions of reality. 3. Values are more stable, long-lasting beliefs about what is important.
B. Content of organizational culture – the relative ordering of beliefs, values, and assumptions.
C. Organizational subcultures
1. Dominant culture – the themes shared most widely by the organization’s members. 2. Subcultures located throughout its various divisions, geographic regions, and occupational groups. 3. Countercultures are directly opposed to the organization’s core values.
a. create conflict and dissension among employees. b. maintain the organization’s standards of performance and ethical behavior. c. the spawning grounds for emerging values that keep the firm aligned with the needs of customers, suppliers, society, and other stakeholders.
II. DECIPHERING ORGANIZATIONAL CULTURE THROUGH ARTIFACTS
A. Artifacts are the observable symbols and signs of an organization’s culture, such as the way visitors are greeted, the physical layout, and how employees are rewarded.
B. Organizational stories and legends – not all are positive—are most effective at communicating cultural values when they describe real people, are assumed to be true, and known by employees throughout the organization. C. Rituals and ceremonies.
1. Rituals are the programmed routines of daily organizational life that dramatize the organization’s culture. 2. Ceremonies are more formal artifacts than rituals and are planned activities conducted specifically for the benefit of an audience.
D. Organizational language speaks volumes about the company’s culture.
1. How employees address coworkers. 2. Describe customers. 3. Express anger. 4. Greet stakeholders.
E. Physical structures and symbols
III. ORGANIZATIONAL CULUTRE AND PERFORMANCE
A. Corporate culture is a deeply embedded form of social control that influences employee decisions and behavior.
B. Corporate culture is the “social glue” that bond people together and makes them feel part of the organization’s dominant culture because it fulfills their need for social identity.
C. Corporate culture assists the sense-making process.
D. Organizational culture strength and fit.
E. Adaptive cultures exist when employees focus on the changing needs of customers and other stakeholders, and support initiatives to keep pace with these changes.
F. Organizational culture and business ethics.
IV. MERGING ORGANIZATIONAL CULTURES
A. Bicultural audit diagnoses cultural relations between the companies and determines the extent to which cultural clashes will likely occur.
B. Strategies to merge different organizational cultures.
1. Assimilation occurs when employees at the acquired company willingly embrace the cultural values of the acquiring organization. 2. Deculturation is applied by imposing a culture and business practice on an acquired organization. 3. Integration involves combining the two or more cultures into a new composite culture that preserves the best features of the previous cultures. 4. Separation strategy occurs where the merging companies agree to remain distinct entities with minimal exchange of culture or organizational practices.
V. CHANGING AND STRENGTHENING ORGANIZATIONAL CULTURE
A. Strengthening organizational culture by:
1. Actions of founders and leaders. 2. Introducing culturally consistent rewards. 3. Maintaining a stable work force. 4. Managing the cultural network. 5. Selecting and socializing employees.
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