Organisational Culture

Organisational Culture
Shared values, beliefs, norms
influence the way employees think, feel, and
behave towards each other and towards
people outside the organization
Pattern of shared basic assumptions
Organizational culture is the system of shared
beliefs and values that develops within an
organization and guides the behavior of its
members
The basic pattern of shared assumptions,
values, and beliefs considered to be the
correct way of thinking about and acting
on problems and opportunities facing the
organization.
Organisational Culture
Culture Pockets Subcultures
Dominant CuIture
expresses the core values that are shared by
the majority of organisational members
is a macro view of culture that gives an
organisation its distinct personality
Sub-CuItures
potential for multiple and even competing
sub-cultures in organisations
typically defined by departmental
designations and geographical separation
Organizational Subcultures
Located throughout the organization
Can enhance or oppose (countercultures) firm's
dominant culture
Two functions of countercultures:
provide surveillance and critique, ethics
source of emerging values
Organizational subcultures
Cultures based on shared work responsibilities
and/or personal characteristics.
Common subcultures include:
Occupational
Functional
Ethnic or national
Racial
Generational
Gender
Organizational Subcultures
The ceberg Model
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clearly visible
language, behaviours, and
other workplace symbols
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shared rules residing just under the
surIace that govern behaviours
Assumptions
taken-Ior-granted belieIs about human nature
and the environment that reside deep below the
surIace

Physical Structures
Language
Rituals and Ceremonies
Stories and Legends
eIiefs eIiefs
VaIues VaIues
Assumptions Assumptions
Artifacts of
OrganizationaI
CuIture
OrganizationaI OrganizationaI
CuIture CuIture
EIements of OrganizationaI CuIture EIements of OrganizationaI CuIture EIements of OrganizationaI CuIture EIements of OrganizationaI CuIture
Elements of Organisational Culture
DirectIy Observed EIements: Physical structure,
Language, Rituals and ceremonies, stories and
legends.
eneath surface EIements: Beliefs, Values and
Assumptions.
Values are socially desirable, so what people say they
value may differ from what they truly value.
a. Espoused Values: These are not the true vaIues of
organisation, rather they establish the public image
that corporate leaders want to display.
b. Enacted Values: These are the true vaIues that are
in use. They are the values that guide individual
decisions and behaviour in the workplace.
Artifacts
Social prescriptions of desired
(undesired) behavior
The observable symbols & signs of an
organization's culture
Provides a realistic human side to
expectations
Artifacts: Stories and Legends
Most effective stories and legends:
(narrative events)
Describe real people
Assumed to be true
Known throughout the organization
Are prescriptive
Artifacts: Rituals and Ceremonies
Rituals
programmed routines ((More nformal)
(eg., how visitors are greeted)
Ceremonies
planned activities for an audience
Dramatic Displays ((More formal)
(eg., award ceremonies)
Artifacts: Organizational Language
Words used to address people, describe
customers, etc.
Leaders use phrases and special
vocabulary as cultural symbols
Language also found in subcultures
Artifacts: Physical Structures/Symbols
Building structure -- may shape and reflect
culture
Office design conveys cultural meaning
Furniture, office size, wall hangings
Who is pictured on annual reports, web
pages, or brochures?
What colors represent the company; where
are they used?
What logos are in use?
Benefits of Strong Corporate Cultures
Strong
OrganizationaI
CuIture
SociaI SociaI
ControI ControI
Improves Improves
Sense Sense- -Making Making
SociaI SociaI
GIue GIue
Adaptive Organizational Cultures
External focus -- firm's success
depends on continuous change
Focus on processes
Strong sense of ownership
Proactive --seek out opportunities
Bicultural Audit
Part of "due diligence in merger
Minimizes risk of cultural collision by
diagnosing companies before merger
Three steps in bicultural audit:
1. Examine artifacts
2. Analyze data for cultural conflict/compatibility
3. dentify strategies and action plans to bridge
cultures
Merging Organizational Cultures
Assimilation Assimilation
Deculturation Deculturation
Acquired company embraces
acquiring firm's cultural values
Acquiring firm imposes its culture on
unwilling acquired firm
ntegration ntegration
Cultures combined into a new
composite culture
Separation Separation
Merging companies remain
separate with their own culture
Strategies to merge different organisational
cultures
Strategy Description Works best
1. Assimilation
Acquired co embraces
acquiring co
Acquired firm has a
weak culture
2. Deculturation
Acquiring firm imposes
its culture on unwilling
acquired firm
Acquired firm's culture
doesn't work
3. ntegration
Combining two or more
cultures into a new
composite culture
Existing culture can be
improved
4. Separation
Merging co's remain
distinct entities with
minimal exchange of
culture
Firms operate
successfully in different
businesses requiring
different culture
Changing and strengthening organisational
culture
Corporate leaders can "unfreeze the
existing culture by removing artifacts and
"refreeze new culture by introducing
new artifacts.
Strengthening Strengthening
OrganizationaI OrganizationaI
CuIture CuIture
Founders Founders
and leaders and leaders
Culturally Culturally
consistent consistent
rewards rewards
Stable Stable
workforce workforce
Selection Selection
and and
socialization socialization
Managing the Managing the
cultural cultural
network network
Strengthening Organizational
Culture
Organisational Socialisation
Socialisation: t is the process of learning social
dynamics existing in the environment concern.
Organisational socialisation: t is the process by
which individuals learn the values, expected
behaviours and social knowledge necessary to
assume their roles in an organisation.
Why organisational socialisation?
* OS is the process of learning and change.
* Newcomers try to make sense of the
company's physical workplace, social
dynamics and strategic / cultural environment.
* They learn about what is expected of them
and what they can expect for the loyalty.
Stages of Socialisation
1. Pre-employment Socialisation: This happens before few
days were an employee actively search for information about
the company. This happens prior to the first day of
employment.
2. Encounter: Newcomers degree of reality shock. Newcomers
are immediately inundated with unfamiliar signals.
Ex: Hotel industry.
3. Role management: Employees settle in as they change from
outsiders to insiders. They strengthen their relationships with
co-workers and supervisors. They bring a balance between
work life and family life.