Organizational Culture
◼ “A pattern of basic assumptions that the
group learned as it solved its problems of
external adaptation and internal
integration, that has worked well enough
to be considered valid and, therefore, to
be taught to new members as the correct
way to perceive, think and feel in relation
to those problems.”
Edgar Schein, 1992
Artifacts – symbols of
culture in the physical
and social work environment , visible in nature and most accessible
Shared Values
Espoused: what members of Levels of
an organization say they value Organizational
Enacted: reflected in the way
individuals actually behave
Culture
Common Assumptions – deeply held
beliefs that guide behavior and tell
members of an organization how
to perceive and think about things
Artifacts – symbols of Organizational Culture
culture in the physical Visible, often not
and social work environment decipherable
Values
Espoused: what members of Greater level
an organization say they value of awareness
Enacted: reflected in the way
individuals actually behave
Assumptions – deeply held Taken for granted,
beliefs that guide behavior and tell Invisible, Preconscious
members of an organization how
to perceive and think about things
Types of Artifacts
◼ Personal Enactment
(Organizational Leadership)
◼ Ceremonies and Rites
◼ Stories
About the boss
About getting fired
About relocating
About promotions
About crisis situations
About status considerations
◼ Rituals
◼ Symbols
Functions of Organizational Culture
◼ It gives members an organizational identity
◼ It facilitates collective commitment
◼ It promotes system stability
◼ It shapes behavior by helping members
makes sense of their surroundings
◼ It provides a boundary
◼ It helps organizational members stick to
conformity and expected mode of behavior.
Formation of culture
◼ Fulfilment of social objective
◼ Myths
◼ Sub-culture
◼ Counterculture
◼ Top Management(selection, socialization,
adaption( pre arrival stage,
Metamorphosis stage)
Understanding
Organizational Culture
Antecedents Organizational Organizational Group & Social
Culture Structure & Processes
• Founder’s values Practices • Socialization
• Observable artifacts
• Industry & business • Reward systems • Mentoring
environment
• National culture • Organizational • Decision
• Espoused values making
• Senior leaders’ design
vision and behavior • Group
• Basic assumptions dynamics
• Communication
Collective • Influence &
Attitudes & empowerment
Organizational • Leadership
Behavior
Outcomes
• Work attitudes
• Effectiveness
• Job satisfaction
• Innovation &
stress • Motivation
Types of Cultures
◼ Constructive
Valuing members, self-actualizing, affiliative, and
humanistic/encouraging normative beliefs (expected behavior or
conduct)
◼ Passive-defensive
Approval-oriented, traditional and bureaucratic, dependent and
nonparticipative, punish mistakes but ignore success
◼ Aggressive-defensive
Confrontation and negativism are rewarded, nonparticipative,
positional power, winning valued, competitiveness rewarded,
perfectionistic
Constructive Culture
Normative Beliefs Organizational
Characteristics
Achievement Goal and achievement
oriented
Self-actualizing Value self-development and
creativity
Participative, employee
Humanistic-
centered, and supportive
encouraging
High priority on constructive interpersonal
Affiliative
relationships, and focus on work group
satisfaction
Passive Defensive Culture
Normative Beliefs Organizational
Characteristics
Approval Avoid conflict, strive to be
liked by others, and
approval oriented
Conventional Conservative, bureaucratic,
and people follow the rules
Dependent Nonparticipative, centralized decision
making, and employees do what they are
told
Avoidance Negative reward system and Defensive avoid
accountability
Aggressive-Defensive Culture
Normative Beliefs Organizational
Characteristics
Oppositional Confrontation and
negativism rewarded
Power Nonparticipative, take
charge of Defensive
subordinates, and
responsive to superiors
Winning is values and a
Competitive
win-lose approach is used
Perfectionistic, persistent, and hard working
Perfectionistic
Organizational Culture Research
Suggests:
1) Organizational culture correlated with employee
attitudes and behavior
2) Congruence between an individual’s values and
the organization’s values associated with
organizational commitment, job satisfaction,
intentions to quit, and turnover
3) Organizational culture did not predict a
company’s financial performance
4) Mergers frequently failed due to incompatible
cultures
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
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
Fit Perspective
Three particular industry
characteristics affect culture:
1.Competitive environment
2.Customer requirements
3.Societal expectations
Adaptive 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
Adaptive vs. Nonadaptive Cultures
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
Organizational Socialization
◼ Phase 1: Anticipatory
◼ Phase 2: Encounter
◼ Phase 3: Change and acquisition
Organizational Socialization Process
Organizational Socialization
Phases Perceptual and
Social Processes
1) Anticipatory ▪ Anticipating realities about
socialization learning the organization and the
that occurs prior to new job
joining the ▪ Anticipating organization’s
organization needs for one’s skills and
abilities
▪ Anticipating organization’s
sensitivity to one’s needs
and values
Organizational Socialization
Phases Perceptual and
Social Processes
2) Encounter values, ▪ Managing lifestyle-versus-
skills, and attitudes work conflicts
start to shift as new ▪ Managing intergroup role
recruit discovers conflicts
what the ▪ Seeking role definition and
organization is truly clarity
like
▪ Becoming familiar with task
and group dynamics
Organizational Socialization
Phases Perceptual and
Social Processes
3) Change and ▪ Competing role demands
acquisition recruit are resolved
masters skills and ▪ Critical tasks are mastered
roles and adjusts to
▪ Group norms and values are
work group’s values internalized
and norms
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 organizational commitment
How cultures are embedded in
organizations
◼ Formal/public statements
◼ Physical Layout
◼ Slogans, co. lingo
◼ Mentoring, modeling
◼ Explicit rewards, promotion criteria
◼ Stories, legends, myths
◼ Processes and outcomes, measurement
◼ Workflow and systems
Mentoring
◼ Outcomes for Mentees
◼ Outcomes for Mentors
◼ Outcomes for Organizations
◼ Maintaining the Culture
Functions of Mentoring
◼ Career Functions
Sponsorship
Exposure-and-Visibility
Coaching
Protection
Challenging
Assignments
◼ Psychological
Functions
Role Modeling
Acceptance-and-
Confirmation
Counseling
Friendship
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.
Interventions for Changing
Organizational Culture
Questions on Culture
◼ Can the organizational culture change?
How?
◼ Where does the culture come from?
1.
2.
3.
◼ Does the culture look the same from the
top and from the bottom?
