Slide 17.1 Learning Objectives for Organizational Culture

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Slide 17.1Learning Objectives for Organizational
Culture

• Developing, maintaining, and changing
  organizational cultures.
• Types of organizational culture.
• Organizational culture and performance.
• Organizational culture and the ethical behaviors
  of employees.
• Effectively managing cultural diversity.
• Organizational socialization and organizational
  culture.

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Slide 17.2Components of Organizational Culture

• Routine behaviors.
• Norms shared by teams.
• Dominant values.
• Guiding philosophy for policies toward employees
  and customers.
• The rules of the game for getting along in the
  organization.
• The climate of the organization.

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Slide 17.3Levels of Organizational Culture
Cultural Symbols
Shared Behaviors
Cultural Values
Shared Assumptions
Source Adapted from Cummings, T.G., and Worley,
C.G. Organization Development and Change, 6th ed.
Cincinnati South-Western, 1997.
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Slide 17.4Methods of Maintaining Organizational
Culture

• Methods of Maintaining Organizational Culture
• What managers and teams pay attention to
• Reactions to organizational crises
• Managerial role modeling
• Criteria for rewards
• Criteria for selection and promotion
• Organizational rites, ceremonies, stories

Removal of employees who deviate from the
culture
Recruitment of employees who fit the culture
Organizational Culture
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Slide 17.5Requirements for Successfully Changing
Organizational Culture

• Understand the old culture first.
• Support employees and teams who have ideas for a
  better culture and are willing to act on those
  ideas.
• Find the most effective subculture in the
  organization and use it as a model.
• Help employees and teams do their jobs more
  effectively.
• Use the vision of a new culture as a guide for
  change.
• Recognize that significant cultural change takes
  time.
• Live the new culture.

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Slide 17.6Framework of Types of Cultures
Flexible
Clan Culture
Entrepreneurial Culture
Formal Control Orientation
Bureaucratic Culture
Market Culture
Stable
Internal
External
Forms of Attention
Source Adapted from Hooijberg, R., and Petrock,
F. On cultural change Using the competing values
framework to help leaders execute a
transformational strategy. Human Resource
Management, 1993, 32, 29-50 Quinn, R.E. Beyond
Rational Management Mastering the Paradoxes and
Competing Demands of High Performance. San
Francisco Jossey-Bass, 1988.
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Slide 17.7Effects of Organizational Culture
onEmployee Behavior and Performance

• Allows employees to understand the firms history
  and current approach.
• Fosters commitment to corporate philosophy and
  values.
• Serves as a control mechanism for employee
  behaviors.
• Certain cultural types may produce greater
  effectiveness and productivity.

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Slide 17.8Actions Organizations Can Taketo
Develop an Ethical Culture

• Be realistic in setting values and goals
  regarding employee relationships.
• Encourage input from organization members
  regarding appropriate values and practices for
  implementing the culture.
• Do not automatically opt for a strong culture.
• Provide training on adopting and implementing the
  organizations values.

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Slide 17.9Guidelines for Managing Cultural
Diversity

• Organization members must
• Recognize and value a variety of opinion and
  insight.
• Recognize the learning opportunities and
  challenges presented by the expression of
  different perspectives.
• The organizational culture must
• Foster high performance expectations for
  everyone.
• Stimulate personal development.
• Encourage openness.
• Make workers feel valued.
• The organization must have
• A well-articulated and widely understood mission.
• A relatively egalitarian, nonbureaucratic
  structure.

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Slide 17.10The Organizational Socialization
Process
Careful selection of new employees who fit the
culture
Removal of candidates who do not fit
Challenging early work experiences
Consistent role modeling tied to company culture
Extensive training to help develop needed skills
Use of folklore to validate cultural values
Use of reward systems tied to company culture
Careful adherence to cultural values rewarded
Removal of employees who deviate from culture
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Slide 17.11Possible Outcomes of the
Socialization Process
Successful socialization is reflected in
Unsuccessful socialization is reflected in

• Job satisfaction
• Role clarity
• High work motivation
• Understanding of culture, perceived control
• High job involvement
• Commitment to organization
• Tenure
• High performance

• Job dissatisfaction
• Role ambiguity and conflict
• Low work motivation
• Misunderstanding, tension, perceived lack of
  control
• Low job involvement
• Lack of commitment to organization
• Absenteeism, turnover
• Low performance