THE CONCEPT OF ORGANIZATIONAL

CULTURE

OUTLINE

I. The concept of organizational culture: WHY BOTHER?

II. Commonly used words relating to culture

III. What is culture? 3.1. 3 levels of culture3.2. Definition of culture3.3. Implications

I. WHY BOTHER? Look at 4 brief examples:

Digital Equipment Corporation (DEC) Ciba-Geigy Company Amoco Alpha Power Read and summarizes problems that 4

companies encountered.

I. WHY BOTHER?

1. Digital Equipment Corporation (DEC):

Long lasting habits/patterns of work Difficult to change

I. WHY BOTHER?

2. Ciba-Geigy Company Want innovation: ask for consultant Consultant: use wrong way to communicate

(send memo the wrong person)

I. WHY BOTHER?

3. Amoco Change in the way things are done

‘around here’: centralize after merging Resistance from engineers

I. WHY BOTHER?

4. Alpha Power Change to adapt legal requirements Work units do not accept the

requirements, remain the old ways of doing things

I. WHY BOTHER?

OLD WAYS NEW WAYSCHANGE

RESISTANCE

I. WHY BOTHER? Outsiders: cannot understand these

phenomena Can only see throgh cultural lenses

I. WHY BOTHER? Culture reside within individuals Culture = hidden force that drives

our behaviors Each of us has different roles:

• Students• Employees• Family member• Group member• Team leader• Managers

Deal with dif. groups and orgs. of all kinds

I. WHY BOTHER? Difficulties in understanding and justifying

what we observe and experience in our organizational life;

Concept of culture helps: • to explain these phenomena and normalize

them;• Gain deeper understanding of

groups/organizations: why different? Why so hard to change?

• Understand ourselves

I. WHY BOTHER? Culture and leadership: two sides of the

same coin: • Leaders first create cultures when they

create groups and organizations• Once cultures exist, they determine the

criteria for leadership and thus determine who will or will not be a leader.

• An intertwined process

II. COMMONLY USED WORDS RELATED TO CULTURE

Observed behavioral regularities when people interact Group norms Espoused values Formal philosophy Rules of the game Climate Embedded skills Habits of thinking, mental models, linguistic paradigms Shared meanings Root metaphors or integrating symbols Formal rituals and celebrations

III. 1. Structural stability: ‘cultural’ = stable defines the group Group identity stabilizing force Hard to change provides meaning and

predictability Ex. : suggested by students

2. Depth: Culture = deepest, unconscious part of

group Less visible Most concepts examined =

manifestations / indications of culture but NOT what culture is

More deeply embedded = more stable

3. Breadth: Culture covers all of a group’s

functioning Pervasive: widespread, cover all

aspects of how an organization works Not all groups have cultures in this

sense Ex. : suggested by students

4. Patterning or Integration Disorder or senselessness anxious Work hard to reduce anxiety Develop a more consistent an predictable

way of doing things Patterning = rituals, climate, values,

behaviors tie together into a coherent whole Note: opposite viewpoints (Western

v.s. Asian)

HOW DOES CULTURE FORM?

Formal groups

A LEADERPersonal beliefs, values,

assumptions, visions, etc.

Impose

these on the group

O K

FAIL - Disappear - Seek another leader

Group do its tasks,

members feel good

Leader’s beliefs and

values confirmed

and reinforced

SHARED

BELIEFS,

VALUES

Values and

beliefs are taken

for granted

REINFORCED

ASSUMPTIONS

CULTURE