Chapter 16

Organizational
Culture

Objectives
Define organizational culture and explain
its function
Explain how organizational culture evolves
and is transmitted
Contrast the characteristics of strong and
weak cultures
Explain the relationship between strong
cultures and high performance
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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Objectives
Describe the importance of organizational
justice
Explain the impact of organizational
culture in mergers
Describe how leaders can manage culture
Identify the four stages in the
organizational life cycle

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

16 -2

Organizational Culture Defined

Pattern of shared values
and beliefs that produce
certain norms of
behavior

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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Uncovering Levels of
Culture
Artifacts
Espoused
Values

Visible organizational
structures and processes
Strategies, goals, philosophies

Unconscious, taken-forBasic
Underlying granted beliefs, perceptions,
Assumptions thoughts, and feelings
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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Types of Cultures
Dominant culture manifests the values shared by a
majority of the organization's members.EG performance
linked pay
Subculture shares the dominant cultures core values
as well as other values that characterize their own
department, geographical unit, etc.
Ongc culture where departmental culture
Counterculture its values are in opposition to those of
the dominant culture.[ what you preach you dont
practice. Eg railways

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

16 -5

Functions of Organizational
Culture
Provide a sense of identity
Generate commitment
Helps make sense of occurrences
Control mechanism

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

16 -6

Sources of Culture
Beliefs, values and assumptions of
founders, leaders
Learning experiences of group members
as their organization evolves
New beliefs, values, and assumptions
brought in by new members and leaders
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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Strong Cultures - Defined

Strong cultures have core values and
beliefs that are intensely held, more
widely shared and more ordered than
weak cultures

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

16 -8

Characteristics of Strong Cultures

Easily identified dominant values
Selection process targets people who fit the
culture
Socialization and training teach newcomers the
ropes
[To hold]
Employees who dont fit are fired
Rewards for acting in accordance with cultural
values
Leaders and managers send clear signals about
desired values and norms
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

16 -9

Strong Cultures
Advantages
High performance under
certain conditions
Clear sense of purpose
More value-driven
decision making
Employee commitment
Loyalty
Pride

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

Disadvantages
Pressure for
conformity
Resistance to
change

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Strong Cultures and

Performance

Strong Culture
Focus on Key Constituencies
Leadership at all Levels

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

High
Performance

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The Importance of Fit

People

Strategy
Culture

Organizations
task

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

Environment

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Transmitting Culture Via

Socialization
Stories
Symbols
Jargon
Rituals and Ceremonies
Statements of Principles

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

16 -13

Socialization - Defined
Socialization is the systematic process by
which organizations bring new members into
their cultures

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

16 -14

Seven Steps of Socialization

Careful selection
of candidates

Humility-inducing
In-the-trenches
experiences
training
Careful attention
to rewards & control
systems

Consistent role
models

Reinforcing
stories

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

Careful adherence
to core values

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Organizational Justice
Distributive Justice - Fair distribution of
resources (pay, rewards, promotions and
dispute resolutions)
Procedural Justice - Fair decisionmaking procedures regarding resource
distribution
Interactional Justice - Fair treatment
from others
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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Outcomes of
Organizational Justice
Higher performance
Compliance
Trust

Cooperation with coworkers

Organizational citizenship behavior
Less turnover
Less absenteeism
Less employee silence
Less counterproductive behaviors

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

16 -17

Outcomes of
Organizational Justice
Increased
Performance
Compliance
Trust in managers
Cooperation with
coworkers
Organizational
citizenship behavior
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

Decreased
Less turnover
Less absenteeism
Less employee
silence
Less
counterproductive
behaviors
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Mergers and Culture

50% failure rate on mergers and
acquisitions due to culture.
To ensure a successful merger
Analyze cultural compatibility of both
organizations beforehand
Develop shared values rather than
imposing the values of one firm on the
other
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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How Leaders Create and Modify

Culture Primary Mechanisms
What they regularly pay attention to,
measure, and control
Their reaction to critical incidents and
crises
Criteria used to allocate scarce resources

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

16 -20

How Leaders Create and

Modify Culture
Deliberate role modeling, teaching, and
coaching
Criteria for allocating rewards and status
Criteria for recruitment, selection,
promotion and termination

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

16 -21

How Leaders Create and Modify

Culture - Secondary Mechanisms
1.
2.
3.
4.
5.

Organizational design
Systems and procedures
Rites and rituals
Design of physical space, buildings
Stories about important events and
people
6. Formal statements of organizational
philosophy, creeds,[faith] and authority
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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Organization Stages of
Development

Large

Renewal
Continuing
maturity

Size

Decline

Small

1.
2.
3.
Entrepreneurial Collectivity Formalizatio
Stage
Stage
n Stage

Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

4.
Elaboration
Stage
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How Can You Renew a Mature

Organization?
Instill a customer perspective and focusing
on customer demands
Increase their capacity for change
Alter both hardware and software within
the organization
Create empowered employees who act as
leaders at all organizational levels
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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