Title: Organisational culture
1Organisational culture
2Chapter learning objectives
- Describe the elements of organisational culture.
- Discuss the importance of organisational
subcultures. - List four categories of artefacts through which
corporate culture is communicated. - Identify three functions of organisational
culture. - Discuss the conditions under which cultural
strength improves corporate performance. - Discuss the effect of organisational culture on
business ethics. - Compare and contrast four strategies for merging
organisational cultures. - Identify five strategies to strengthen an
organisations culture.
3Melso Minerals corporate culture
- Melso Minerals in Matamata, New Zealand, has an
egalitarian, team-oriented corporate culture .
This culture is apparent through numerous
artefacts, such as the no-holds barred retreats
and the Melso polo shirts that everyone wears.
Courtesy of Melso Minerals (Matamata) Ltd
4Organisational culture defined
- 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 organisation.
Courtesy of Melso Minerals (Matamata) Ltd
5Elements of organisational culture
- Physical structures
- Rituals/ceremonies
- Stories
- Language
- Beliefs
- Values
- Assumptions
Artefacts of organisational culture
Organisational culture
6Meaning of cultural content
- Cultural content refers to the relative ordering
of beliefs, values and assumptions - Example Brown Brown values aggressiveness
SAS Institute values work-life balance - An organisation emphasises only a handful of the
hundreds of cultural values
7Organisational subcultures
- Located throughout the organisation
- Can support or oppose (countercultures) firms
dominant culture - Two functions of countercultures
- provide surveillance and evaluation
- source of emerging values
8Cultural stories at Four Seasons
- The legendary customer service at Four Seasons
Hotels and Resorts is reflected in its corporate
culture. Legends and stories help to support this
customer service culture.
Courtesy of Four Seasons Hotels and Resorts
9Artefacts organisational stories
- Social prescriptions of desired behaviour
- Demonstrate that organisational objectives are
attainable - Most effective stories
- describe real people
- are assumed to be true
- are known throughout the organisation
- are prescriptive
Courtesy of Four Seasons Hotels Resorts
10Artefacts rituals and ceremonies
- Rituals
- programmed routines
- eg conducting meetings
- Ceremonies
- planned activities for an audience
- eg award ceremonies
11Artefacts organisational language
- Words used to address people, describe clients,
etc - Leaders use phrases and metaphors as cultural
symbols - eg General Electrics grocery store
- Language also found in subcultures
- eg Whirlpools PowerPoint culture
12Artefacts physical structures/space
- Oakley, Inc.s protective and competitive
corporate culture is apparent in its building
design and workspace. The building looks like a
vault to protect its cherished product designs
(eyewear, footwear, apparel and watches).
Courtesy of Oakley, Inc.
Courtesy of Oakley, Inc.
13Benefits of strong corporate cultures
Socialcontrol
Strong organisational culture
Socialglue
Aidssense-making
14Problems with strong cultures
- Culture content might be incompatible with the
organisations environment - Strong cultures focus attention on one mental
model - Strong cultures suppress dissenting values from
subcultures
15Adaptive organisational cultures
- External focus ? firms success depends on
continuous change - Focus on processes more than goals
- Strong sense of ownership
- Proactive ? seek out opportunities
16Bicultural audit
- Part of due diligence in merger
- Minimises risk of cultural collision by
diagnosing companies before merger - Three steps in bicultural audit
- 1. collect artefacts
- 2. analyse data for cultural conflict/compatibilit
y - 3. recommend solutions
17Merging organisational cultures
Assimilation
Acquired company embraces acquiring firms culture
Deculturation
Acquiring firm imposes its culture on unwilling
acquired firm
Integration
Both cultures combined into a new composite
culture
Separation
Merging companies remain separate with their own
culture
18Strengthening organisational culture
Foundersand leaders
Strengthening organisational culture
Culturally consistent rewards
Selection and socialisation
Stable workforce
Managing the cultural network
19Overview of the next chapter
- Lewins force field analysis model
- Reasons why people resist organisational change
- Strategies to minimise resistance to change
- The organisation development process
- Appreciative inquiry as a change strategy
- Ethical issues in organisation development
20Organisational culture