Professional Documents
Culture Documents
Chapter 14
Chapter 14
Organizational
Culture
14-2
Zappos Organizational Culture
Zappos, the worlds largest
online shoe retailer, relies on
recruitment, selection,
socialization, and other
practices to maintain a
strong organizational culture
14-3
Organizational Culture Defined
The values/assumptions
shared within an
organization
Defines what is important
Provides direction toward
the right way of doing
things
Companys DNA invisible
to the eye, yet a powerful
template that shapes
employee behavior
14-4
Shared Value values people in the work
unit have in common
Shared assumptions deeper element that
expert believe is the essence of corporate
culture
Iceberg video :
https://www.youtube.com/watch?v=cjziCs-
R2S4
14-5
Artifacts of
organizational
culture
Elements of
Organizational
Culture
Organizational
culture
14-6
Content of
Organizational Culture
The relative ordering of values.
A few dominant values
Example: Facebook creative, proactive, risk-oriented
14-7
Organizational Culture Profile
7 different corporate cultures:
Org Culture
Dimensions Dimension Characteristics
Experimenting, opportunity seeking, risk taking, few
Innovation
rules, low cautiousness
Stability Predictability, security, rule-oriented
Respect for people Fairness, tolerance
14-8
Organizational Subcultures
Dominant culture most widely shared
values and assumptions
Subcultures
Located throughout the organization
Can enhance or oppose (countercultures) firms
dominant culture
14-9
Cultural Artifacts at
Goldman Sachs
The language of Goldman
Sachs employees may be
artifacts of underlying
cultural values. Elephant
trades and muppet
clients suggest that the
investment firm values
profitability and individual
performance more than
customer service.
14-10
Organizational Culture Artifacts
Observable symbols and signs
of culture
Physical structures,
ceremonies, language, stories
14-11
Artifacts: Stories and Legends
Social prescriptions of desired (or
dysfunctional) behavior through stories told
14-12
Artifacts: Rituals, Ceremonies,
Language
Rituals
programmed routines
(e.g., how visitors are greeted) in Malaysia, how is this
related? Sultan visits, etc
Ceremonies
Planned activities for an audience
e.g., award ceremonies
Language
How employees address each other and outsiders,
express emotions, describe stakeholders, etc.
Leaders use language to anchor or change culture
Language also differentiates subcultures
14-13
Artifacts: Physical
Structures/Symbols
Building structure may
shape and reflect culture
Office design conveys
cultural meaning
Furniture, office size, wall
hangings, art deco
14-14
Organizational Culture Strength
How widely and deeply employees hold the
companys dominant values and
assumptions
Most employees understand/embrace the culture
Institutionalized through artifacts
Long-lasting possibly back to founder(s)
14-15
Organizational Culture
and Effectiveness
Culture strength
advantages depend on:
Environment fit
Moderate strength
Adaptive culture
Functions of Organizational
Strong Cultures Outcomes
Control system Org performance
Social glue Employee well-being
Sense-making
14-16
Merging Cultures:
Bicultural Audit
Part of due diligence in merger
Minimizes cultural collision by diagnosing
companies
Three steps in bicultural audit:
1. Identify cultural artifacts
2. Analyze data for cultural conflict/compatibility
3. Identify strategies and action plans to bridge
cultures
14-17
Merging Organizational
Cultures
14-18
Changing/Strengthening
Organizational Culture
14-19
Changing/Strengthening
Organizational Culture
1. Actions of founders/leaders
Founders values/personality
Transformational leaders can reshape culture
organizational change practices
2. Aligning artifacts
Artifacts keep culture in place
14-20
Changing/Strengthening
Organizational Culture
3. Introducing culturally consistent rewards
Rewards are powerful artifacts
14-21
Attraction-Selection-Attrition
Theory
Organizations become more homogeneous
(stronger culture) through:
Attraction applicants self-select and weed out
companies based on compatible values
Selection applicants selected based on values
congruent with organizations culture
Attrition employees quit or are forced out when
their values oppose company values
14-22
Organizational Socialization
The process by which individuals learn the values,
expected behaviors, and social knowledge
necessary to assume their roles in the organization
Learning Process
Newcomers make sense of the organizations physical,
social, and strategic/cultural dynamics
Adjustment Process
Newcomers adapt to new work roles, team norms, etc.
14-23
Stages of Socialization
Pre-Employment Encounter Role
Stage Stage Management
Forming Resolving
psychological conflicts
contract
14-24
Improving Organizational
Socialization
Realistic job preview (RJP)
A balance of positive and negative information
about the job and work context
Socialization agents
Supervisors technical information, performance
feedback, job duties
Co-workers ideal when accessible, role models,
tolerant, and supportive
14-25
Activity
https://www.youtube.com/watch?v=EcHpgsT
g458
Look for the :
Shared Values
Shared Assumptions
Organizational culture language
Subculture
Is there any counter cultures?
14-26