eleventh edition

organizational behavior

stephen p. robbins
 Chapter 16

Organizational
Culture

ORGANIZATIONAL BEHAVIOR
S T E P H E N P. R O B B I N S
E L E V E N T H E D I T I O N
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 After studying this chapter,
OBJECTIVES

you should be able to:

1. Describe institutionalization and its

relationship to organizational culture.
2. Define the common characteristics making up
LEARNING

organizational culture.
3. Contrast strong and weak cultures.
4. Identify the functional and dysfunctional
effects of organizational culture on people and
the organization.
5. Explain the factors determining an
organization’s culture.
© 2005 Prentice Hall Inc. All rights reserved. 16–3
 After studying this chapter,
O B J E C T I V E S (cont’d)

you should be able to:

6. List the factors that maintain an organization’s

culture.
7. Clarify how culture is transmitted to
employees.
8. Outline the various socialization alternatives
LEARNING

available to management.
9. Describe a customer-responsive culture.
10. Identify characteristics of a spiritual culture.

© 2005 Prentice Hall Inc. All rights reserved. 16–4

 Institutionalization:
Institutionalization: AA Forerunner
Forerunner of
of Culture
Culture

Institutionalization
When an organization takes on a life of its own,
apart from any of its members, becomes valued for
itself, and acquires immortality.

© 2005 Prentice Hall Inc. All rights reserved. 16–5

 What
What Is
Is Organizational
Organizational Culture?
Culture?

Organizational Culture
Characteristics:
Characteristics:
A common perception
held by the organization’s 1.1. Innovation
Innovationand
andrisk
risk
taking
taking
members; a system of
shared meaning. 2.2. Attention
Attentionto
todetail
detail
3.3. Outcome
Outcomeorientation
orientation
4.4. People
Peopleorientation
orientation
5.5. Team
Teamorientation
orientation
6.6. Aggressiveness
Aggressiveness
7.7. Stability
Stability

© 2005 Prentice Hall Inc. All rights reserved. 16–6

 Contrasting
Contrasting Organizational
Organizational Cultures
Cultures
Organization A
This organization is a manufacturing firm. Managers are expected to fully document
all decisions; and “good managers” are those who can provide detailed data to
support their recommendations. Creative decisions that incur significant change or
risk are not encouraged. Because managers of failed projects are openly criticized
and penalized, managers try not to implement ideas that deviate much from the
status quo. One lower-level manager quoted an often used phrase in the company:
“If it ain’t broke, don’t fix it.”
There are extensive rules and regulations in this firm that employees are
required to follow. Managers supervise employees closely to ensure there are no
deviations. Management is concerned with high productivity, regardless of the
impact on employee morale or turnover.
Work activities are designed around individuals. There are distinct departments
and lines of authority, and employees are expected to minimize formal contact with
other employees outside their functional area or line of command. Performance
evaluations and rewards emphasize individual effort, although seniority tends to be
the primary factor in the determination of pay raises and promotions.
E X H I B I T 16–1
E X H I B I T 16–1

© 2005 Prentice Hall Inc. All rights reserved. 16–7

 Contrasting
Contrasting Organizational
Organizational Cultures
Cultures (cont’d)
(cont’d)
Organization B
This organization is also a manufacturing firm. Here, however, management
encourages and rewards risk taking and change. Decisions based on intuition are
valued as much as those that are well rationalized. Management prides itself on its
history of experimenting with new technologies and its success in regularly
introducing innovation products. Managers or employees who have a good idea are
encouraged to “run with it.” And failures are treated as “learning experiences.” The
company prides itself on being market-driven and rapidly responsive to the changing
needs of its customers.
There are few rules and regulations for employees to follow, and supervision is
loose because management believes that its employees are hardworking and
trustworthy. Management is concerned with high productivity, but believes that this
comes through treating its people right. The company is proud of its reputation as
being a good place to work.
Job activities are designed around work teams, and team members are
encouraged to interact with people across functions and authority levels. Employees
talk positively about the competition between teams. Individuals and teams have
goals, and bonuses are based on achievement of these outcomes. Employees are
given considerable autonomy in choosing the means by which the goals are attained.
E X H I B I T 16–1 (cont’d)
E X H I B I T 16–1 (cont’d)

© 2005 Prentice Hall Inc. All rights reserved. 16–8

 Do
Do Organizations
Organizations Have
Have Uniform
Uniform Cultures?
Cultures?

Dominant Culture
Expresses the core values that
are shared by a majority of
the organization’s members.

Subcultures
Minicultures within an
organization, typically defined
by department designations
and geographical separation.

© 2005 Prentice Hall Inc. All rights reserved. 16–9

 Do
Do Organizations
Organizations Have
Have Uniform
Uniform Cultures?
Cultures?
(cont’d)
(cont’d)

Core Values
The primary or dominant values that are accepted
throughout the organization.

Strong Culture
A culture in which the
core values are intensely
held and widely shared.

© 2005 Prentice Hall Inc. All rights reserved. 16–10

 What
What Is
Is Organizational
Organizational Culture?
Culture? (cont’d)
(cont’d)
 Culture Versus Formalization
– A strong culture increases behavioral consistency and
can act as a substitute for formalization.
 Organizational Culture Versus National Culture
– National culture has a greater impact on employees
than does their organization’s culture.
– Nationals selected to work for foreign companies may
be atypical of the local/native population.

© 2005 Prentice Hall Inc. All rights reserved. 16–11

 What
What Do
Do Cultures
Cultures Do?
Do?

Culture’s
Culture’sFunctions:
Functions:
1.1. Defines
Definesthe
theboundary
boundarybetween
betweenone
oneorganization
organization
and
andothers.
others.
2.2. Conveys
Conveysaasense
senseof
ofidentity
identityfor
forits
itsmembers.
members.
3.3. Facilitates
Facilitatesthe
thegeneration
generationofofcommitment
commitmentto
to
something
somethinglarger
largerthan
thanself-interest.
self-interest.
4.4. Enhances
Enhancesthe
thestability
stabilityof
ofthe
thesocial
socialsystem.
system.
5.5. Serves
Servesas asaasense-making
sense-makingand
andcontrol
controlmechanism
mechanism
for
forfitting
fittingemployees
employeesininthe
theorganization.
organization.

© 2005 Prentice Hall Inc. All rights reserved. 16–12

 What
What Do
Do Cultures
Cultures Do?
Do?

Culture
Cultureas
asaaLiability:
Liability:
1.1. Barrier
Barrierto
tochange.
change.
2.2. Barrier
Barrierto
todiversity
diversity
3.3. Barrier
Barrierto
toacquisitions
acquisitionsand
andmergers
mergers

© 2005 Prentice Hall Inc. All rights reserved. 16–13

 How
How Culture
Culture Begins
Begins

 Founders hire and keep only employees who

think and feel the same way they do.
 Founders indoctrinate and socialize these
employees to their way of thinking and feeling.
 The founders’ own behavior acts as a role model
that encourages employees to identify with them
and thereby internalize their beliefs, values, and
assumptions.

© 2005 Prentice Hall Inc. All rights reserved. 16–14

 Keeping
Keeping Culture
Culture Alive
Alive
 Selection
– Concern with how well the candidates will fit into the
organization.
– Provides information to candidates about the
organization.
 Top Management
– Senior executives help establish behavioral norms that
are adopted by the organization.
 Socialization
– The process that helps new employees adapt to the
organization’s culture.

© 2005 Prentice Hall Inc. All rights reserved. 16–15

 Stages
Stages in
in the
the Socialization
Socialization Process
Process

Prearrival Stage
The period of learning in the socialization process that occurs
before a new employee joins the organization.

Encounter Stage
The stage in the socialization process in which a new employee
sees what the organization is really like and confronts the
possibility that expectations and reality may diverge.

Metamorphosis Stage
The stage in the socialization process in which a new employee
changes and adjusts to the work, work group, and organization.

© 2005 Prentice Hall Inc. All rights reserved. 16–16

 AA Socialization
Socialization Model
Model

E X H I B I T 16–2
E X H I B I T 16–2

© 2005 Prentice Hall Inc. All rights reserved. 16–17

 Entry
Entry Socialization
Socialization Options
Options

•• Formal
Formalversus
versusInformal
Informal
•• Individual
Individualversus
versusCollective
Collective
•• Fixed
Fixedversus
versusVariable
Variable
•• Serial
Serialversus
versusRandom
Random
•• Investiture
Investitureversus
versusDivestiture
Divestiture

Source: Based on J. Van Maanen, “People Processing: Strategies of Organizational

Socialization,” Organizational Dynamics, Summer 1978, pp. 19–36; and E. H. Schein, E X H I B I T 16–3
E X H I B I T 16–3
Organizational Culture,” American Psychologist, February 1990, p. 116.
© 2005 Prentice Hall Inc. All rights reserved. 16–18
 How
How Organization
Organization Cultures
Cultures Form
Form

E X H I B I T 16–4
E X H I B I T 16–4

© 2005 Prentice Hall Inc. All rights reserved. 16–19

 How
How Employees
Employees Learn
Learn Culture
Culture

•• Stories
Stories
•• Rituals
Rituals
•• Material
MaterialSymbols
Symbols
•• Language
Language

© 2005 Prentice Hall Inc. All rights reserved. 16–20

 Creating
Creating An
An Ethical
Ethical Organizational
Organizational Culture
Culture
 Characteristics of Organizations that Develop
High Ethical Standards
– High tolerance for risk
– Low to moderate in aggressiveness
– Focus on means as well as outcomes
 Managerial Practices Promoting an Ethical
Culture
– Being a visible role model.
– Communicating ethical expectations.
– Providing ethical training.
– Rewarding ethical acts and punishing unethical ones.
– Providing protective mechanisms.

© 2005 Prentice Hall Inc. All rights reserved. 16–21

 Creating
Creating aa Customer-Responsive
Customer-Responsive Culture
Culture
 Key Variables Shaping Customer-Responsive
Cultures
1. The types of employees hired by the organization.
2. Low formalization: the freedom to meet customer
service requirements.
3. Empowering employees with decision-making
discretion to please the customer.
4. Good listening skills to understand customer
messages.
5. Role clarity that allows service employees to act as
“boundary spanners.”
6. Employees who engage in organizational citizenship
behaviors.

© 2005 Prentice Hall Inc. All rights reserved. 16–22

 Creating
CreatingaaCustomer-Responsive
Customer-ResponsiveCulture
Culture(cont’d)
(cont’d)

Managerial
ManagerialActions
Actions::
•• Select
Selectnew
newemployees
employeeswith
withpersonality
personalityand
and
attitudes
attitudesconsistent
consistentwith
withhigh
highservice
service
orientation.
orientation.
•• Train
Trainand
andsocialize
socializecurrent
currentemployees
employeestotobe
be
more
morecustomer
customerfocused.
focused.
•• Change
Changeorganizational
organizationalstructure
structureto
togive
give
employees
employeesmore
morecontrol.
control.
•• Empower
Empoweremployees
employeestotomake
makedecision
decisionabout
about
their
theirjobs.
jobs.

© 2005 Prentice Hall Inc. All rights reserved. 16–23

 Creating
CreatingaaCustomer-Responsive
Customer-ResponsiveCulture
Culture(cont’d)
(cont’d)

Managerial
ManagerialActions
Actions(cont’d)
(cont’d)::
•• Lead
Leadby
byconveying
conveyingaacustomer-focused
customer-focusedvision
vision
and
anddemonstrating
demonstratingcommitment
commitmenttotocustomers.
customers.
•• Conduct
Conductperformance
performanceappraisals
appraisalsbased
basedon
on
customer-focused
customer-focusedemployee
employeebehaviors.
behaviors.
•• Provide
Provideongoing
ongoingrecognition
recognitionfor
foremployees
employeeswho
who
make
makespecial
specialefforts
effortsto
toplease
pleasecustomers.
customers.

© 2005 Prentice Hall Inc. All rights reserved. 16–24

 Spirituality
Spirituality and
and Organizational
Organizational Culture
Culture

Workplace Spirituality
The recognition that people have an inner life that
nourishes and is nourished by meaningful work that
takes place in the context of the community.

Characteristics:
Characteristics:
• • Strong
Strongsense
senseof
ofpurpose
purpose
• • Focus
Focuson
onindividual
individualdevelopment
development
• • Trust
Trustand
andopenness
openness
• • Employee
Employeeempowerment
empowerment
• • Toleration
Tolerationof
ofemployee
employeeexpression
expression

© 2005 Prentice Hall Inc. All rights reserved. 16–25

 Reasons
Reasons for
for the
the Growing
Growing Interest
Interest in
in Spirituality
Spirituality

 As a counterbalance to the pressures and stress of a turbulent

pace of life and the lack of community many people feel and
their increased need for involvement and connection.
 Formalized religion hasn’t worked for many people.
 Job demands have made the workplace dominant in many
people’s lives, yet they continue to question the meaning of
work.
 The desire to integrate personal life values with one’s
professional life.
 An increasing number of people are finding that the pursuit of
more material acquisitions leaves them unfulfilled.

E X H I B I T 16–5
E X H I B I T 16–5

© 2005 Prentice Hall Inc. All rights reserved. 16–26

 How
How Organizational
Organizational Cultures
Cultures Have
Have an
an Impact
Impact
on
on Performance
Performance and
and Satisfaction
Satisfaction

E X H I B I T 16–6
E X H I B I T 16–6

© 2005 Prentice Hall Inc. All rights reserved. 16–27