Subject Managing People and Organisations

Segment Work Structure and Design

Topic The Informal Organisation

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Table of Contents
1. Introduction
2. Organisational Culture
3. Exercise
4. Components of Culture
5. Exercise
6. National Culture
7. Two Frameworks for Understanding Culture
8. Self-Assessment
9. Summary

1. Introduction
In the prior segments, you learned about organisational design and structure –
topics that are usually associated with the formal organisation. Now you will shift
your attention to the less visible yet powerful forces that shape organisational
behaviour. These forces make up the "informal organisation" and include topics such
as organisational and national culture, values, norms and politics.
Objectives: The Informal Organisation
Upon completion of this topic, you should be able to
 describe the three elements of organisational behaviour
 describe the three components of culture
 describe the impact of national culture on organisation
 distinguish between the two principle frameworks use to understand culture

2. Organisational Culture
What is organisational culture? Start by thinking about the company you work for (or
one you have worked for). Does your organisation celebrate with parties, drinks and
food when it meets goals? Or does your organisation reserve parties for holidays?
Are employees expected to wear suits and dresses to work? Or do employees wear
casual shoes and T-shirts? Are employees expected to answer the phone in a formal,
professional manner at your organisation? Or do they answer the phone with an
informal "Hello?"
Generally, behaviours at the surface-level stem from less visible, often unconscious
values. If your company values formality, the dress code will require employees to
wear suits and dresses rather than allow informal dress. But how does a set of
values become the dominant values for a company?
Definition of Organisational Culture
Edgar Schein, a leading researcher in this field, wrote that organisational culture can
be defined as "a pattern of shared basic assumptions that the group learned as it
solved its problems of external adaptation and internal integration, that has worked
well enough to be considered valid and, therefore, to be taught to new members as
the correct ways to perceive, think and feel in relation to those problems." What
does that mean? It tells us that values evolve as a company learns to adapt and

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Subject Managing People and Organisations
Segment Work Structure and Design
Topic The Informal Organisation

survive. The values that have helped a company to grow and prosper are the ones
that become integrated into its core identity. Values that are deemed important for
the organisation's survival are then taught to new employees so that these values
are continually reinforced by organisational members.
An organisation's culture, in the most simple terms, is the accepted behaviour,
beliefs and processes people use in organisations to get work done. Several key
elements of organisational behaviour include socialisation, response to adaptation
and shared assumptions.
Click each tab to learn more.

Key Aspects of Organisational Culture

 Socialisation
Providing formal orientation and training, as well as informal discussion with
experienced employees are ways to transmit assumptions, values and norms
to new employees. In other words, experienced organisational members
"socialise" new workers by shaping their beliefs and educating them in the
"right" ways to think and act within an organisation. If the socialisation
process is successful, new employees succeed at fitting into the organisation's
culture.

Socialisation is a process of learning by new members of which an important

part is their acquisition of information about their new organisation.
Socialisation can occur quickly.

 Response to adaptation
As companies grow, they change. The most successful companies are those
that are able to adapt by adopting successful responses to threats and
opportunities. Companies grow successfully not only by adapting to external
pressures (such as competition, market forces and political changes), but also
by integrating their infrastructures (for example, setting strategy and goals,
designing an organisational structure and developing control processes and
mechanisms).

The methods, behaviours and values that help companies grow become
ingrained and incorporated into a company's work culture. For example,
Southwest Airlines began as a tiny player in the huge airline industry. Up
against multiple threats to their survival, their founder, Herb Kelleher, refused
to let the large airlines stop Southwest Airlines from success. His focus on low
costs, fun and teamwork allowed the fledgling airline to grow into a very
successful airline in the United States (as measured by on-time arrivals,
customer satisfaction and profitability). Today, all Southwest Airlines
employees are extensively trained to incorporate the company's fundamental
values, such as teamwork, cost consciousness and having fun, into their daily
work activities. The values that allowed the airline to thrive and prosper are
continually reinforced through leadership practices, work processes, training
and rewards. Because these values allowed the airline to evolve, adapt and
grow, they are considered valid and are therefore taught to new members.

 Shared assumptions
Culture strength can be measured by the extent to which group members
share their beliefs, worldviews, perspectives, philosophies and values. The

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Subject Managing People and Organisations
Segment Work Structure and Design
Topic The Informal Organisation

more employees at work agree about the "right" way to do things, the
stronger an organisation's culture tends to be. The more disagreement
between individual employees, departments or functional/geographical
business units, the weaker the organisational culture tends to become.

Click the link below to view an animation on Social Influence.

Social Influence

Social Influence

Social influence occurs when you use another person's desire to belong in order to
change what they do or think so that you can attain your wishes.

Social influence is possible because people are affected by a situation's context and
by others' actions.

Robert Cialdini has written extensively on the topic of social influence and argues
that influence occurs in all social and organisational settings – both consciously and
unconsciously.

Social influence is a subtle and powerful process that can give individuals and groups
a competitive advantage. Yet, it can also detract from an organisation's effectiveness
when it is used inappropriately.

One such inappropriate use of social influence is to stop new employees from
working too hard. This occurs often enough that it has its own vocabulary: New
employees who are seen as working too hard are called "rate-busters" and are often
subjected to pressure from their peers to change their behaviour.

The desire to avoid being visibly "different" from a group supports social influence
tactics.

Most people unconsciously want to agree with others so that they will be accepted.

Simply put, people want to belong.

Groups tend to reward members who are similar to existing members and who agree
with a group's shared behaviours and values.

There are three tactics that are especially effective in applying social influence in
groups.

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Subject Managing People and Organisations
Segment Work Structure and Design
Topic The Informal Organisation

The first tactic uses peoples' desire to avoid being inconsistent by exerting social
influence.

The desire to be consistent can be manipulated by getting people to make a small,

initial commitment. Once they have made that commitment, they often feel
compelled to behave in a way that is consistent with it – especially if they made that
commitment or took a stand in the presence of others.

For example, if a person announces to her co-workers (who are mostly vegetarian)
that she is committing to a vegetarian diet, she is likely to remain on the vegetarian
diet (at least at work) to appear consistent and dedicated to the commitment in the
eyes of her co-workers.

The second tactic is called social proof and it works because people have a tendency
to rely on the judgement of others to help them form an opinion and to follow their
examples.

Social proof is commonly used as a shortcut in gathering information to deal with

complex issues or environments.

For instance, if Jim is hiring new employees, he may need to look at resumes and
files for about 100 applicants – a time-consuming task. However, if a co-worker tells
Jim that he has heard that a particular candidate is "outstanding and a great team
player," Jim may then use this information to help him make a hiring decision – even
without concrete evidence. This reduces the amount of work he has to do to reach a
conclusion about the applicant.

A third tactic used to exert social influence is to use the degree to which people like
each other in order to get them to agree to requests.

This concept of "liking" relies on the fact that in social and organisational situations,
people are most likely to agree to requests made by someone they like or whom
they believe likes them. According to Cialdini, liking others is based on a number of
factors, including:

 Compliments and flattery: people react positively when others express

positive sentiments toward them or show affection for them.
 Contact and co-operation: people tend to like other people whom they know
well and with whom they share common goals.
 Positive associations: people tend to like people who bring good news and
dislike the bearers of bad news.

Similarity and physical attraction: most research indicates that attractive people are
liked better and considered more likable.

Finally, it is useful to remember that the effectiveness of these tactics of social

influence can and will be affected by cultural factors. They also operate both
consciously and unconsciously, inside and outside of organisations.

Click the link below to view an animation that illustrates the concept of internal
culture.

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Subject Managing People and Organisations
Segment Work Structure and Design
Topic The Informal Organisation

Internal Culture

Internal Culture

All organisations have a culture – a set of unspoken values and expectations that act
as an informal social control system and that govern how members behave.

An organisation's culture can be identified by observing its people and their

interactions in the organisation over a period of time.

An organisation's members may interact in a specific way that sets them apart from
people working in other organisations. They may use specialised jargon, share
common work phrases and have specific rituals. Language, stories and rituals are
important ways that culture is transmitted and maintained.

Culture also is communicated in a variety of ways that create taken-for-granted

assumptions about how to perceive, think, and feel.

Culture forms a common understanding among group members about what attitudes
and behaviours are appropriate.

It may be strong or weak, harmful or helpful, depending on the given situation.

And, culture has a powerful influence on employee behaviour and is highly resistant
to change.

Most large organisations have a dominant culture and numerous subcultures.

A dominant culture expresses the core values shared by the majority of the
organisation's members; it affects the entire organisation – from the CEO to the
workers on the line.

Subcultures develop as a result of shared problems, situations or experiences.

For example, employees who work in an Accounting department may develop a

subculture that values accuracy and precision, with less attention paid to creativity.
Employees in product development, however, may form their own subculture that
values creativity and flexibility, with less attention to accuracy.

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Subject Managing People and Organisations
Segment Work Structure and Design
Topic The Informal Organisation

3. Exercise
Click the link below for an exercise to test your understanding of what you have just
learned about organisational culture.
Exercise: Organisational Culture
Q1. Which is not a true statement about social influence?
1. Social influence occurs in all social settings in unconscious, rather than
conscious, ways
2. Social influence is possible because humans are affected by others' actions
and the situational context
3. Social influence happens when you convince others to conform to group
norms
4. Social influence can contribute to or detract from organisational effectiveness
Q2. Which is an important aspect of commitment and consistency?
1. The notion that changes in behaviour are usually short-lived
2. Social influence can detract from organisational effectiveness
3. Social proof can be used with social influence
4. People accept responsibility for a behaviour when they choose to perform it in
the absence of strong outside pressure
Q3. Making small requests of someone, followed by larger requests, is a tactic to
gain influence and compliance. Is this statement true or false?
1. True
2. False
Q4. Which of the following describes the use of social proof?
1. People make small requests to gain compliance
2. People rely on the judgement of others to help them form an opinion
3. Compliments and flattery are given
4. Consistency is required
Q5. Which of the following is not a factor in how much a person likes another?
1. Physical attraction
2. Contact and co-operation
3. Association with positive events
4. Consistent behaviour
Q6. In general, social influence is more powerful in less connected groups. Is this
statement true or false?
1. True
2. False

4. Components of Culture
Culture is transmitted to employees in a number of ways, including stories, rituals,
material symbols and language. Values, norms and roles are important components
of organisational culture.
Click each tab to learn more about each component.

Components of Culture

 Values
Values are basic, general beliefs about right and wrong. For instance, some

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Subject Managing People and Organisations
Segment Work Structure and Design
Topic The Informal Organisation

common values at work include safety, high quality and efficiency. Values can
be both conscious and unconscious and are often the basis for attitudes about
appropriate or inappropriate forms of behaviour (ie, norms). There are two
types of values, espoused values and "values in use". Espoused values are
values that companies say are important. Values in use, on the other hand,
are the values that actually govern behaviour. For example, a company may
say they value teamwork, but actually reward individual contribution. When
espoused values differ from values in use, employees may become confused,
which can lead to a dysfunctional company.

 Norms
Norms are specific behaviours that are expected of all members of a group.
They are socially created standards that guide interpretations and evaluations
of events. Norms are typically unwritten and rarely discussed openly in
organisations. For example, an organisation that strongly values safety may
have norms that include checking all machinery daily or requiring people to
always use handrails when using the stairs.

Norms have a powerful effect on group and organisational behaviour. If you

know the norms of a given group, you can generally explain the attitudes and
behaviours of its members. Norms develop in a variety of ways, including
through explicit statements by supervisors or co-workers or critical events in
an organisation's history.

Typically, group members positively reinforce individuals who adhere to

norms and criticise or reject those who do not conform. Managers can
influence group norms by making explicit statements about desirable
behaviours and by regularly reinforcing these preferred behaviours.

Norms can exist around a wide variety of issues, for instance, dress codes,
quality of performance, flexibility or methods of dealing with conflict. For
example, a newcomer's refusal to participate in the office soccer team may
not be overtly criticised, but team members may notice that she did not join
and may question her reason for choosing not to join.

 Roles
Roles are sets of behaviours that are expected of persons in a specific
position. Individuals generally play a number of diverse roles both on and off
the job. Roles are different from norms; people generally play different roles
from one another, but everyone is expected to follow the group norms. For
example, the person who plays the role of informal leader is expected to tell
others what to do; if another group member suddenly did so, he or she would
be challenged.

The following are four aspects of roles. Understanding these aspects will help
you better understand organisational culture.

• Role identity: a set of attitudes and actual behaviours required of a person

in a particular role

• Role perception: a person's belief about how to act given a particular role
and situation

• Role expectations: others' beliefs about how a person in a particular role

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Subject Managing People and Organisations
Segment Work Structure and Design
Topic The Informal Organisation

should act

• Role conflict: conflict that occurs when different, and sometimes

contradictory, expectations of different roles exists (for example, when a
person plays the role of a friend and a boss, conflict can occur)

Click the link below to view the animation which illustrates the concept of norm and
role enforcement.

Norm and Role Enforcement

Norm and Role Enforcement

Many kinds of social influences are used to get people to follow norms at work.

Generally speaking, social pressure is what keeps people behaving as expected.

Norm enforcement or influence activities can be applied directly or indirectly in two
ways.

First, enforcement can happen indirectly by simply applying social pressure – as if to

suggest, "Everyone else is following the rules (even if it's unspoken), so you should
too."

Say, for example, if everyone wears a white shirt and blue-striped tie to work, social
pressure makes it very difficult to show up dressed in an orange T-shirt and blue
jeans.

Enforcement can also happen directly or indirectly by providing feedback on

individual behaviors. People expect others to follow norms, and they will respond –
directly and indirectly – with surprise or disapproval when someone fails to do so.
This feedback can occur in a number of ways.

For example, think about what might happen if you were to wear a swimsuit to work
tomorrow – assuming that you are not a lifeguard. You would definitely get
feedback, and here is how it might happen:

People could nonverbally communicate that you have broken a norm by staring,
grinning, rolling their eyes or using any number of non-verbal behaviours that
communicate you are doing something odd or different. Simply being pointed out as
different is often enough to get people to follow norms.

Or, they might enforce the appropriate dress norm verbally by joking, using sarcasm
or directly commenting on your behaviour. Joking is an extremely effective way of
enforcing norms. It can encourage others to laugh at the person violating the norms

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Subject Managing People and Organisations
Segment Work Structure and Design
Topic The Informal Organisation

and increase the likelihood that the norm violation will stop.

Finally, the norms can be enforced directly with a warning such as, "Hey, if the boss
sees you dressed like that, you're going to be in big trouble."

For the most part, these techniques are successful in getting people to follow norms.
At the extreme, norm enforcement may involve ostracising the "rebel" from the
group and eventually drive that person to leave the group.

Unlike norms, which apply to all people within an organisation, roles are behaviour
expectations that are different for different people. Additionally, there is often less
rigid enforcement of roles than norms.

Roles can be chosen or ascribed to an individual by other group members. This is

particularly true for the "tokens" in groups who have been stereotyped.

When a person chooses a role – such as playing the role of "clown" by injecting
humour into groups, making jokes and even playfully making light of problems –
others expect him or her to stay in that role. In fact, they come to rely on that
person to play that role.

In essence, roles are enforced, no matter how they are acquired.

Roles tend to be enforced by decisions and speech that "frame" people in the eyes of
others – and at times, even in the person's own eyes.

For example, group "consensus" decisions about who will make coffee and take notes
will "frame" that person into a subordinate role.

When people refuse a role – as in a woman refusing to make the coffee or take the
meeting's notes – they typically encounter negative feedback for that refusal.

Perhaps the most difficult aspect of norm and role enforcement activities is their
informal, subtle and often unconscious nature.

Dealing with inappropriate role enforcement often takes a conscious action of raising
the issue to change the pattern of enforcement.

In the example of the woman refusing to make coffee or take notes, she would need
to openly question why the role was assigned to her. This questioning can be risky
behaviour, and thus, it is not often done.

Finally, when dealing with role and norm enforcement, you should be careful to
recognise and manage these activities to ensure that they are being used
appropriately in the workplace.

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Subject Managing People and Organisations
Segment Work Structure and Design
Topic The Informal Organisation

5. Exercise
Click the link below for an exercise to test your understanding of organisational
culture and its components.
Exercise: Components of Culture
Q1. Which statement best describes organisational culture?
1. The set of values and expectations that act as a formal social control system
2. A high level of sophistication among employees
3. The set of values and expectations that act as an informal social control
system and govern how its members behave
4. A highly innovative workplace atmosphere
Q2. A strong organisational culture is better for productivity than a weak one. Is this
statement true or false?
1. True
2. False
Q3. Which of the following is a true statement about subcultures?
1. Subcultures do not co-exist with dominant cultures
2. Subcultures do co-exist with dominant cultures
3. Subcultures are composed of racial minority groups
4. Subcultures are usually discriminated against within small organisations
Q4. Which of the following is a defining feature of an organisational subculture?
1. Sharing core values among a majority of the organisational members
2. Sharing common problems with members of one department in an
organisation
3. Sharing common problems with industry trade groups
4. Sharing job titles with other employees
Q5. Which of the following is a primary means by which an organisation's culture is
transmitted to employees?
1. Training manuals
2. Stories and rituals
3. Community outreach programs
4. Human resource development
Q6. Which of the following best describes norms?
1. Written statements of organisational values
2. Often discussed openly within and outside of organisations
3. Specific behaviours that are expected of all members of a group
4. The set of attitudes and actual behaviours required of a role
Q7. Which of the following best describes roles?
1. Sets of behaviours that are expected of people in given positions
2. Basic beliefs about what is right and wrong
3. Specific behaviours that are expected of all members of a group
4. Only enforced nonverbally
Q8. Which of the following is not one of the four aspects of roles?
1. Role identity
2. Role perception
3. Role reversal
4. Role conflict
Q9. People exert pressure on their co-workers to follow group norms. Is this
statement true or false?

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Subject Managing People and Organisations
Segment Work Structure and Design
Topic The Informal Organisation

1. True
2. False
Q10. Under which of the following circumstances would the force of social
pressure be strongest in keeping people behaving as expected?
1. Everyone else is doing the same thing
2. There is a minority doing something different
3. Just one person is doing something different
Q11. People expect others to follow norms and often will respond directly or
indirectly when people are not following norms. Is this statement true or false?
1. True
2. False
Q12. Which of the following is not an example of nonverbal behaviour?
1. Pointing
2. Shrugging
3. Shouting
4. Winking
Q13. Paralinguistic communication, or vocal communication other than words, is a
less effective way of enforcing norms. Is this statement true or false?
1. True
2. False
Q14. Like norms, roles are universal expectations of behaviours for people. Is this
statement true or false?
1. True
2. False
Q15. Only negative comments can lead a group member to be viewed as holding a
role that compromises his or her professional role. Is this statement true or false?
1. True
2. False

6. National Culture

The behaviour of organisations and the people within them is heavily influenced by
national culture. National culture refers to the ways in which your geographical
region influences your beliefs and norms. Research has found that organisational
culture does not erase or diminish the influence of national culture and that most
people are unaware of how their culture has shaped and influenced their attitudes
and behaviour.
The differences among national cultures become important in a workplace with
diverse employees. Managers and employees from different national cultures bring
diversity and a wide range of experience and ideas to the workplace. However,
differences in national culture can also create conflict. Understanding and managing

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Subject Managing People and Organisations
Segment Work Structure and Design
Topic The Informal Organisation

the differences among national cultures is key to understanding and managing the
behaviour of individuals in the workplace.
As you have learned, values can be conscious or unconscious. A value reflects beliefs
about what is right and wrong, as well as broad notions about what is important to
people. Values can be expressed by members of a group as attitudes, or as a
tendency to act/react in a certain way. For example, one nation may value hiring
family members; another may consider this practice unethical and unacceptable.
Norms are unwritten rules about what people are supposed to do in specific
situations. National cultural norms, therefore, are common and accepted patterns of
behaviours in certain countries. For example, multinational firms operating in Latin
American countries would be violating a norm if they chose to hire exclusively on the
basis of individual achievement without considering family connections. As this
example shows, norms of how people should act can reflect deep underlying values
of a nation or group.
National cultural norms also include verbal and nonverbal communication. Examples
of nonverbal communication are clothing and adornment, the sense of personal
space, styles of moving and gestures, the approach to touching others and other
aspects of body language such as eye contact.

7. Two Frameworks for Understanding Culture

There are two principal approaches to understanding the variations among cultures,
the Kluckhohn-Strodbeck framework and the Hofstede framework.
1. The Kluckhohn-Strodbeck identifies six basic dimensions for understanding
the differences between national cultures.
2. Hofstede, on the other hand, identifies five dimensions in which cultures differ
in their work-related values and behaviours.
Both approaches provide information managers can use to understand the
behaviours and attitudes of employees and customers from different cultures.
The characteristics described by these two frameworks are accurate for many
members of a culture, but there is much variability among individuals and groups.
Kluckhohn-Strodbeck framework
The six basic cultural dimensions found in this framework are:
1. relationship to the environment
2. time orientation
3. nature of people
4. activity orientation
5. focus of responsibility
6. conception of space
Many individuals from different cultures vary along these dimensions. Click each tab
to learn more about these dimensions.

The Kluckhohn-Strodbeck Framework of Cultural Dimensions

 Relationship to the environment

This refers to a culture's view of whether people should be dominated by their
environment, harmonise with it, or dominate it themselves. For example,
most people in the United States and Canada view their relationship to the

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Subject Managing People and Organisations
Segment Work Structure and Design
Topic The Informal Organisation

environment as something they are able to shape, control and dominate. This
translates into specific behaviours, such as bioengineering the grain "canola",
which is resistant to climatic variations and extremely low in cholesterol. On
the other hand, nations with cultures that view people and the environment
as operating in harmony, such as China and many Middle Eastern countries,
focus on planting the right crops in the right places at the right times rather
than changing the crops or the land.
 Time orientation
This dimension measures how much a culture focuses on the past, present
and future. A culture that focuses on the past follows traditions and seeks to
preserve historical practices. A focus on the present means that time is
viewed as a scarce resource; this culture would have a short-term orientation.
A focus on the future produces a long-term orientation, as seen in the
commitment of some Japanese firms to hire employees for life.
 Nature of people
This is a measure of whether a culture views people as good, evil or a mixture
of the two. North Americans tend to see people as a mixture of good and evil,
and they tend to believe people can change. People in many undeveloped
countries see themselves and others as honest and trustworthy, whereas
people in the former Soviet Union tended to view human nature as generally
evil. Understandably then, a culture's views about people have a significant
effect on its leadership styles.
 Activity orientation
This is a measure of whether the emphasis is on doing, being, or controlling
as a mode of activity. Cultures that emphasise "doing" stress
accomplishments, and employees maximise their time at work. Cultures that
emphasise "being," or living for the moment, focus on experiencing life and
working only as much as needed to live. People in cultures that value control
focus on logic and detachment in their work decisions.
 Focus of responsibility
This is a dimension of culture that focuses on where the responsibility lies for
the welfare of others. Individualistic cultures (eg, the United States) believe
people are responsible for taking care of themselves and emphasise personal
achievements. Group cultures (eg, Malaysia) emphasise reliance on the group
for the welfare of individuals; thus, getting along with others is likely to be
emphasised. Hierarchical cultures (eg, Great Britain) place people into a
ranking that remains stable over time and is the basis for decisions about
their welfare.
 Conception of space
This is a dimension of the Kluckhohn-Strodbeck framework that deals with
ownership of space. Some cultures are very open and conduct business in
public. At the other extreme are cultures that believe business should be
conducted in private. Some cultures are a mix of the two. Cultures that see
space as public will have few private offices, and meetings will be held with
open doors. Cultures that emphasise private space will use offices and privacy
to reflect status, and meetings will be held in large rooms behind closed
doors. Cultures that are a mix might tend to blend the two by offering
"limited privacy", perhaps via a large office with walls that are only six-feet
high.

The Hofstede framework

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Subject Managing People and Organisations
Segment Work Structure and Design
Topic The Informal Organisation

Hofstede's framework focuses on the differences in work-related values and attitudes

that are based in national culture. It has five dimensions:
1. individualism-collectivism
2. power distance
3. uncertainty avoidance
4. femininity versus masculinity
5. Confucian dynamism
Click each tab to learn more about these dimensions.

The Hofstede Framework of Cultural Dimensions

 Individualism-collectivism
This dimension describes the extent to which a society is organised around
groups or individuals. Cultures that emphasise individual choice and action
have a loosely-knit social framework with lots of freedom. In such cultures,
people tend to look after their own interests and those of their immediate
family. Cultures with a focus on collectivism will have a tight social framework
where people expect others in their groups (eg, their organisation) to look
after and protect them.
 Power distance
This dimension describes the extent to which a society accepts unequally
distributed power in institutions and organisations. A society in which power
distance is high (eg, Singapore) accepts a wide range of power in
organisations. Employees in those cultures tend to show a great deal of
respect to those in authority. However, a society in which power distance is
low (eg, Sweden) is less accepting of power differences. In such a culture,
subordinates will feel free to question their bosses' decisions. Titles, status
and formality are also less important in countries with low-power distance.
 Uncertainty avoidance
This is a measure of the extent to which people feel threatened by uncertain
and ambiguous situations and try to avoid them. The higher the level of
security is, the greater the tolerance for difference and the less the need for
rules and procedures. Lifetime employment is more common in countries such
as Japan, where uncertainty avoidance is high. High job mobility is more
common in countries like Singapore or the United States, where uncertainty
avoidance is low.
 Femininity versus masculinity
This is sometimes referred to as quality versus quantity of life. It represents
a dichotomy between the degree to which members of a culture are focused
on career, success and materialism, and the degree to which they are focused
more broadly on relationships and quality of life. This has important
implications for motivation issues. Japan's orientation to masculinity/quantity
can be seen in the wide use of "quality circles", which focus primarily on
solving problems that limit production and are directed toward work
outcomes. In contrast, many Swedish companies design work to be done in
groups. These groups are designed to focus more on job satisfaction and work
flexibility (ie, on "feminine" issues, rather than on work outcomes.
 Confucian dynamism
This results from later research Hofstede conducted with Michael Bond, when
they studied Chinese managers and employees. It focuses on maintaining a
long-term orientation, which involves patience, perseverance and a work ethic
of investing for future results. Cultures with low levels of Confucian dynamism
tend to take a short-term focus, orienting to the past or the present. The

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Subject Managing People and Organisations
Segment Work Structure and Design
Topic The Informal Organisation

tendency of US companies to closely observe quarterly reports to evaluate

management decisions in terms of their effect within a year's time,
exemplifies low Confucian dynamism.

Neither the Kluckhohn-Strodbeck framework nor the Hofstede framework explains all
aspects of national culture. However, these ideas can help people understand human
behaviour and values – and thus how to work with and motivate others.

8. Self-Assessment
Now, try the self-assessment questions to test your understanding of the topic. Click
the following link to open the Self-Assessment in a new window.
Self-Assessment
Q1. Which statement best describes organisational culture?
1. The set of values and expectations that act as a formal social control system
2. A high level of sophistication among employees
3. The set of values and expectations that act as an informal social control
system and govern how its members behave
4. A highly innovative workplace atmosphere
Q2. A strong organisational culture is better for productivity than a weak one.
1. True
2. False
Q3. Which is a true statement about subcultures?
1. Subcultures do not co-exist with dominant cultures
2. Subcultures do co-exist with dominant cultures
3. Subcultures are composed of racial minority groups
4. Subcultures are usually discriminated against within small organisations
Q4. A defining feature of an organisational subculture would be
1. sharing core values among a majority of the organisational members
2. sharing common problems with members of one department in an
organisation
3. sharing common problems with industry trade groups
4. sharing job titles with other employees
Q5. The primary means by which an organisation's culture is transmitted to
employees is via
1. training manuals
2. stories and rituals
3. community outreach programs
4. human resource development
Q6. Norms are
1. written statements of organisational values
2. often discussed openly within and outside of organisations
3. specific behaviours that are expected of all members of a group
4. the set of attitudes and actual behaviours required of a role
Q7. Roles are
1. sets of behaviours that are expected of people in given positions
2. basic beliefs about what is right and wrong
3. specific behaviours that are expected of all members of a group

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Subject Managing People and Organisations
Segment Work Structure and Design
Topic The Informal Organisation

4. only enforced nonverbally

Q8. Which of the following is not one of the four aspects of roles?
1. Role identity
2. Role perception
3. Role reversal
4. Role conflict
Q9. People exert pressure on their co-workers to follow group norms.
1. True
2. False
Q10. The force of social pressure is strongest in keeping people behaving as
expected when
1. everyone else is doing the same thing
2. there is a minority doing something different
3. just one person is doing something different
Q11. People expect others to follow norms and often will respond directly or
indirectly when people are not following norms.
1. True
2. False
Q12. Which is not an example of nonverbal behaviour?
1. Pointing
2. Shrugging
3. Shouting
4. Winking
Q13. Paralinguistic communication, or vocal communication other than words, is a
less effective way of enforcing norms.
1. True
2. False
Q14. Like norms, roles are universal expectations of behaviours for people.
1. True
2. False
Q15. Only negative comments can lead a group member to be viewed as holding a
role that compromises his or her professional role.
1. True
2. False
Q16. Research has found that organisational culture does diminish the influence of
national culture. Is this statement true or false?
1. True
2. False
Q17. Most people are not aware of the ways culture has shaped them and influenced
their behaviour. Is this statement true or false?
1. True
2. False
Q18. Values, which reflect a group's beliefs about what is right and wrong, are
always conscious. Is this statement true or false?
1. True
2. False
Q19. Which of the following statements best defines a norm for a culture?

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Subject Managing People and Organisations
Segment Work Structure and Design
Topic The Informal Organisation

1. Conscious "rules" guiding accepted behaviour

2. The average, or typical, level of performance
3. The most common and accepted patterns of values, attitudes and behaviours
4. Behaviours demonstrated by key players and figures in the society
Q20. Which of the following best describes the use of the Kluckhohn-Strodbeck
framework and the Hofstede framework?
1. Create a better understanding of individual meaning and sense of purpose
2. Help managers understand the behaviours of their employees who come from
different cultures
3. Help managers predict which employees will perform at very high or very low
levels
4. Create a better understanding of how body language can enhance or hinder
effective communication
Q21. Which of the following reflects the cultural dimension of "relationship to the
environment"?
1. Whether or not people are dominated by their environment
2. Whether or not people have rituals respecting their environment
3. Whether context is considered in the organisation's dominant management
style
4. The extent to which people can predict environmental conditions
Q22. Which of the following is a measure of time orientation?
1. The punctuality of members of a culture
2. The extent and type of time management systems in use
3. The degree to which past traditions are honoured
4. Whether a culture focuses on the past, present or future
Q23. Which of the following is a measure activity orientation?
1. Whether an organisation's emphasis is on planning or implementing
2. Whether an organisation's emphasis is on doing, being or controlling as a
mode of activity
3. Whether the reward system accurately captures appropriate employee activity
4. The extent of community involvement
Q24. Which of the following does the conception of space refer to?
1. The ownership of space
2. The efficiency of cubicles
3. The prestige of private offices
4. The amount of personal space people need when holding business
conversations with others
Q25. Which of the following does individualism-collectivism refer to?
1. The amount of power and freedom of speech society grants to the individual
2. The extent to which the society is organised around the group or the
individual
3. The effectiveness of group movements
4. The extent to which a compensation system rewards individuals versus group
performance
Q26. Which of the following does power distance refer to?
1. The extent to which a society accepts that power in organisations is
distributed unequally
2. The difference between the lowest- and highest-paid employees
3. The amount of control one individual can exert over another

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Subject Managing People and Organisations
Segment Work Structure and Design
Topic The Informal Organisation

4. The extent to which employees engage in "power plays" against those

beneath them
Q27. Which of the following does Confucian dynamism refer to?
1. The didactic style of inquiry among employees
2. Employees' devotion to the work ethic
3. The blending of "East" and "West" within a company culture
4. Respect for elders within the culture

9. Summary
This topic covered the following main points:
 Organisational culture refers to the values and norms that are shared by the
members of an organisation. It also includes the shared basic assumptions
that a group considers valid and, therefore, is taught to new members as the
correct ways to perceive, think and feel, ie, socialisation into the
organisational culture and roles.
 National culture refers to the ways in which one's geographic region
influences one's beliefs. The Kluckhohn-Strodbeck framework and Hofstede
framework are two principal approaches to understanding variations among
national cultures.
Credits and Disclaimer
Adapted from Geert Hofstede, CULTURES AND ORGANIZATIONS: Software of the Mind, New York, McGraw-Hill 1997.
Used with permission.

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