Hiring for What Culture Managing Multiple Cultures

1
Hiring for What? Culture/ Managing Multiple
Cultures

• Hiring for what?
• What is culture?
• What do cultures do for an organization?
• How do you assess and measure culture?
• How are cultures formed?
• How do you assure fit?
• How do you manage multiple cultures?
• The New HP case discussion
• Techniques for managing multiple cultures

2
Hiring for What?

• Supplemental and complimentary fit point to two
  sources of fit
• Job
• Culture is a critical component of HRM
• Most companies forget to seek fit for culture
  (e.g., BHC case) largely because culture is
  difficult to measure

(adapted from Bowen, et al., 1991)
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What Culture Is

• A FRAMEWORK OF SHARED ASSUMPTIONS, VALUES, AND
  BELIEFS THAT AREPASSED ON FROM GENERATION TO
  GENERATION.

4
Different Types of Cultures

• Geographic national (e.g., Paraguay) / regional
  (Tuscany)
• Individualism Collectivism
• Horizontal Vertical (see notes)
• Organizational (e.g., Microsoft)
• Group / Subgroup (e.g., department, work team)

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What Culture Does
Internally
Externally

• Control stabilityacross situations burnout
• Integration of people of actions strategy
  (e.g., Merck)inability to change
• Commitment loyalty motivation.
  Culturesburnout, unethical behavior

• Reputation
• Pricing
• customers
• suppliers
• Attracting Resources
• investors
• qualified applicants

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How to Assess Measure Culture Levels
SYMBOLS (creations)
MOST VISIBLE
VALUES (ideals / testable)
ASSUMPTIONS (taken-for-granted)
INVISIBLE
adapted from Schein, 1985
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How to Assess Measure Culture Symbols

• BEHAVIORAL SYMBOLS
• Rites Ceremonies routine sets of symbolic
  behaviors (see notes page)
• Norms Informal Rules
• PHYSICAL SYMBOLS material objects
• organizational dress
• value statement posters mugs
• architecture (E.G., cubicles at HP)
• C. VERBAL SYMBOLS spoken words
• Legends, myths, stories

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Assessing Measuring Culture Cultural Spirals
(adapted from Schultz, 1995)
Key symbol behavioral (ritual)
Key symbol verbal (e.g., myth or story)
Cultural Theme
Key symbol physical
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Assessing Culture

• Seek out multiple types of symbols behavioral,
  verbal, physical
• Discover patterns among symbols (spirals)

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How Cultures Are Developed Managed
(OReilly, 1989)

• IDENTIFY STRATEGIC OBJECTIVES
• ANALYZE EXISTING VALUES NORMS (understand
  existing culture)
• mission statements
• physical symbols, norms, rituals, etc.
• LOOK FOR FITS AND MISFITS

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How Cultures Are Developed and Managed

• DEVELOP PROGRAMS FOR CULTURAL CHANGE
• values of founders leaders (symbolic
  management participation)
• selection mechanisms
• managerial behaviors (acting out corporate
  values consistent information)
• reward systems
• socialization

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How Cultures are Formed Centrality of HR
Practices
(Adapted from Robbins, 1993)

• BROADER
• CULTURES
• national
• occupational

• MANAGERS/LEADERS
• reward system

• ORGANIZATIONAL
• CULTURE
• Assumptions
• Values
• Symbols

• SELECTION
• MECHANISMS
• interviews (e.g.,Disney)
• tests

• SOCALIZATION
• training /
• indoctrination

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Selection Assuring Fit

• Assess the Work Environment
• Job analysis (FIT personal KSAs task/skill
  demands of job)
• Organizational analysis (FIT person culture)
• Infer the Type of Person Required

(adapted from Bowen, et al., 1991)
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Selection Assuring Fit

• Design Rites of Passage to Allow Organization and
  Person to Assess Fit
• Realistic job previews
• Skill tests
• Personality tests that match individuals to
  culture
• Reinforce P-O fit at work
• KSAs job design and training/ socialization
• Personal orientation organizational design
  (e.g., reward structure)

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The New HP
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The New HP Debrief
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Managing Multiple Cultures

• Begin by answering 2 fundamental questions
• How many cultures to I want? (Cultural Plurality)
  
• Are the cultures similar? (Cultural Synergy)
• Do the cultures easily fit together?
• Similar or compatible values, beliefs, and
  practices?

(Pratt Foreman, 2000)
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Managing Multiple Cultures
High
CULTURE PLURALITY
Low
Low
High
CULTURAL SYNERGY
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Managing Multiple Cultures

• DELETION
• Weak stakeholders in at least one company
  insufficient resources to maintain multiple
  cultures
• Low compatibility among cultures
• COMPARTMENTALIZATION
• Powerful stakeholders for both ample resources
  for new company
• Low compatibility among cultures
• INTEGRATION
• Weak stakeholders for both cultures
  insufficient resources to maintain multiple
  cultures
• High compatibility among cultures
• AGGREGATION --
• Powerful stakeholders for both cultures ample
  resources for new company
• High compatibility among cultures

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Managing Multiple Cultures Lessons

• Organizations run into difficulty when they
  attempt to use the wrong strategy for the
  conditions they face.
• Organizations can change strategies over time to
  meet goals(e.g., moving from compartmentalization
  , to aggregation, to integration).
• Organizations can use different strategies for
  different parts ofthe organization (e.g., top
  managers may be aggregated, butlower levels
  workers may be integrated).

Adapted from Pratt Corley (forthcoming)
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Managing Multiple Cultures Lessons

• How you manage cultures may be critical for your
  personnel
• decision-making involvement at all levels is
  critical
• try to reduce magnitude of change (e.g. dont
  jump from compartmentalization to integration)
• be aware of how managing multiple cultures
  influences roles (e.g., for boundary spanners)

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The New HP Additional Questions

• Based on what we discussed, should HP and Compaq
  have attempted cultural integration? Why or why
  not?
• If not, how SHOULD the two companies have managed
  their multiple cultures at least in the short
  run?
• How could HPQ move towards more integration
  over time?

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Questions?
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Business Jargon

• Downsizing / rightsizing
• Win-win
• Hit the ground running
• Paradigm shift
• Core competencies
• Thought leader
• No I in team