prepared by michael k. mccuddy valparaiso university

Presentation SlidesPresentation Slidesto Accompanyto AccompanyOrganizational BehaviorOrganizational Behavior 1010thth Edition EditionDon Hellriegel and John W. Slocum, Jr.Don Hellriegel and John W. Slocum, Jr.

Prepared byMichael K. McCuddyValparaiso University

Chapter 15—Cultivating Organizational Culture

Learning Objectives for Cultivating Learning Objectives for Cultivating Organizational CultureOrganizational Culture

Explain how organizational cultures are formed, sustained, and changed

Describe four types of organizational culture Discuss how organizational culture can influence

ethical behaviors of managers and employees Explain why fostering cultural diversity is

important Describe the process of organizational

socialization and its affect on culture

Chapter 15: Cultivating Organizational Culture 2

Components of Organizational Components of Organizational CultureCulture

Routine ways of communicatingNorms shared by individuals and teamsDominant values held by an

organizationGuiding philosophy for management’s

policies and decision makingRules of the game for getting along in

the organizationClimate of the organization


Layers of Organizational CultureLayers of Organizational Culture


Cultural Values

Shared Assumptions

Shared Behaviors

Cultural Symbols

Issues Associated withIssues Associated withExternal Adaptation and SurvivalExternal Adaptation and Survival

Identifying the organization's primary mission and

selecting strategies to pursue it

Setting specific targets

Determining how to pursue the goals, including

selecting an organizational structure and reward

system

Establishing criteria to measure how well individuals,

teams, and departments are accomplishing their goalsChapter 15: Cultivating Organizational Culture 5

Issues Associated withIssues Associated withInternal IntegrationInternal Integration

Identifying methods of communication and developing

a shared meaning for important concepts

Establishing criteria for membership in groups and

teams

Determining rules for acquiring, maintaining, and

losing power and status

Developing systems for encouraging desirable

behaviors and discouraging undesirable behaviors


How Cultures EmergeHow Cultures Emerge


Top Management• Agrees on shared assumptions of human behavior

• Develops a shared vision of cultural values

Behaviors• Employees behave in ways that are consistent with shared values and assumptions

Results• Financial performance

• Market share

• Employee commitment

Culture• Strong culture emerges

• Traditions are maintained

• Socialization practices for new employees

Methods of MaintainingMethods of MaintainingOrganizational CultureOrganizational Culture


Recruitment ofemployees whofit the culture

OrganizationalCulture

Removal of employees whodeviate from the 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

Organizational Rites and CeremoniesOrganizational Rites and Ceremonies


Rites of passage

TYPE

Basic training, U.S. Army Facilitate transition into newroles; minimize differences inway roles are carried out

Reduce power and identity;reaffirm proper behavior

Enhance power and identity;emphasize value of properbehavior

Encourage common feelingsthat bind members together

EXAMPLEPOSSIBLE

CONSEQUENCES

Firing a manager

Mary Kay CosmeticsCompany ceremonies

Office party

Rites of degradation

Rites of enhancement

Rites of integration

Source: Adapted from Trice, H. M., and Beyer, J. M. The Cultures of Work Organizations.Englewood Cliffs, N.J.: Prentice-Hall, 1993, 111.

Requirements for Successfully Changing Requirements for Successfully Changing Organizational CultureOrganizational 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


Framework of Types of CulturesFramework of Types of Cultures


Formal Control

Orientation

Forms of Attention

Flexible

Stable

Internal External

ClanCulture

BureaucraticCulture

MarketCulture

EntrepreneurialCulture

Source: Adapted from Hooijberg, R., and Petrock, F. On cultural change: Using the competing values framework to helpleaders execute a transformational strategy. Human Resource Management, 1993, 32, 29-50; Quinn, R. E. Beyond RationalManagement: Mastering the Paradoxes and Competing Demands of High Performance . San Francisco: Jossey-Bass, 1988.

Attributes of a Bureaucratic CultureAttributes of a Bureaucratic Culture

Long-term concerns are predictability, efficiency, and stability

Members value standardized goods and services

Managers view their roles as being good coordinators, organizers, and enforcers of written rules and standards

Tasks, responsibilities, authority, rules, and processes are clearly defined


Attributes of a Clan CultureAttributes of a Clan CultureMembers understand that

contributions to the organization exceed any contractual agreements

A clan culture achieves unity with a long and thorough socialization process

Members share feelings of pride in membership, as well as feelings of personal ownership of a business, a product, or an idea


Attributes of a Clan CultureAttributes of a Clan CulturePeer pressure to adhere to

important norms is strongSuccess is assumed to depend

substantially on sensitivity to customers and concern for people

Teamwork, participation, and consensus decision making are believed to lead to success


Attributes of anAttributes of anEntrepreneurial CultureEntrepreneurial CultureThere is a commitment to

experimentation, innovation, and being on the leading edge

This culture does not just quickly react to changes in the environment—it creates change

Effectiveness depends on providing new and unique products and rapid growth

Individual initiative, flexibility, and freedom foster growth and are encouraged and well rewarded


Attributes of a Market CultureAttributes of a Market Culture

Contractual relationship between individual and organization

Independence and individuality are valued and members are encouraged to pursue their own financial goals

Does not exert much social pressure on an organization’s members, but when it does, members are expected to conform


Attributes of a Market CultureAttributes of a Market CultureSuperiors’ interactions with subordinates

largely consist of negotiating performance–reward agreements and/or evaluating requests for resource allocations

Has a weak socialization processFew economic incentives are tied directly

to cooperating with peersOften tied to monthly, quarterly, and

annual performance goals based on profits


Organizational Uses of CultureOrganizational Uses of CultureOrganizational culture has the potential

to enhance organizational performance, individual satisfaction, and a variety of expectations, attitudes, and behaviors in organizations

If an organization’s culture is not aligned with the changing expectations of internal and/or external stakeholders, the organization’s effectiveness can decline


Organizational Uses of CultureOrganizational Uses of Culture

Organizational culture and performance are related, although the evidence regarding the exact nature of this relationship is mixed

Organizational culture affects employee behavior and performance

Assessing which attributes of an organization’s culture need to be preserved and which ones need to be modified is a constant organization need


Relationship Between CultureRelationship Between Cultureand Performanceand Performance

Organizational culture can have a significant impact on a firm’s long-term economic performance

Organizational culture will probably be an even more important factor in determining success or failure of firms during the next decade


Relationship Between CultureRelationship Between Cultureand Performanceand Performance

Organizational cultures that inhibit strong long-term financial performance are not rare; they develop easily, even in firms that are filled with reasonable and intelligent people

Although tough to change, organizational cultures can be made more performance enhancing if managers understand what sustains a culture


Effects of Organizational Culture onEffects of Organizational Culture onEmployee Behavior and PerformanceEmployee Behavior and Performance

Allows employees to understand the firm’s history and current methods of operation

Fosters commitment to corporate philosophy and values

Serves as a control mechanism for employee behaviors

Certain cultural types may produce greater effectiveness and productivity


Effects of Organizational CultureEffects of Organizational Cultureon Ethical Behavioron Ethical Behavior

A culture emphasizing ethical norms provides support for ethical behavior

Top managers play a key role in fostering ethical behavior by exhibiting correct behavior

The presence or absence of ethical behavior in managerial actions both influences and reflects the culture


How Employees Can ChangeHow Employees Can ChangeUnethical BehaviorUnethical Behavior

Secretly or publicly reporting unethical actions to a higher level within the organization

Secretly or publicly reporting unethical actions to someone outside the organization

Secretly or publicly threatening an offender or responsible manager with reporting unethical actions

Quietly or publicly refusing to implement an unethical order or policy


Actions for Creating a Culture that Actions for Creating a Culture that Encourages Ethical behaviorEncourages Ethical behavior

Be realistic in setting values and goals regarding employee relationships

Encourage input from organization members regarding appropriate values and practices for implementing the culture

Opt for a “strong” culture that encourages and rewards diversity and principled dissent

Provide training on adopting and implementing the organization’s values


Guidelines for ManagingGuidelines for ManagingCultural DiversityCultural Diversity

Organization members must: Understand the nature of diversity and value a variety of opinions and

insights Recognize the learning opportunities and challenges presented by the

expression of different perspectives The organizational culture must:

Foster expectations for high standards of performance and ethics for everyone

Stimulate personal development Encourage openness Make workers feel valued

The organization must have a well-articulated and widely understood mission


22Slide 15.22Steps in SocializationSteps in Socialization


1. Careful selection

2. Challenging early work assignments

3. Training to develop capabilities consistent with culture

4. Rewards that sustain the culture

5. Adoption of cultural value policies

6. Rituals, taboos, rites, and stories to reinforce culture

7. Role model to sustain culture

Removal of employees who deviate from culture

Removal of candidates who do not “fit” culture

23Slide 15.23Possible Outcomes of the Possible Outcomes of the Socialization ProcessSocialization Process

Job satisfaction Role clarity High work motivation Understanding of

culture, perceived control

High job involvement Commitment to

organization Tenure High performance Internalized values

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 Rejection of values


Successful socialization isreflected in:

Unsuccessful socialization isreflected in:

prepared by michael k. mccuddy valparaiso university

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