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Presentation Slidesto Accompany

Organizational Behavior 10th EditionDon Hellriegel and John W. Slocum, Jr.

Chapter 15—Cultivating Organizational Culture

Chapter 15: Cultivating Organizational Culture

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Slide 15.1Learning Objectives for Cultivating

Organizational Culture

Explain how organizational cultures are formed,

sustained, and changed

Describe four types of organizational culture

Discuss how organizational culture can influence

ethical behaviors of managers and employees

Explain why fostering cultural diversity is important

Describe the process of organizational socialization

and its affect on culture


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Slide 15.2Components of Organizational

Culture Routine ways of communicating Norms shared by individuals and teams Dominant values held by an organization Guiding philosophy for management’s

policies and decision making Rules of the game for getting along in the

organization Climate of the organization


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Slide 15.3Layers of Organizational Culture

Cultural Values

Shared Assumptions

Shared Behaviors

Cultural Symbols


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Slide 15.4Issues Associated with

External Adaptation and Survival

Identifying the organization's primary mission and

selecting strategies to pursue it

Setting specific targets

Determining how to pursue the goals, including selecting

an organizational structure and reward system

Establishing criteria to measure how well individuals,

teams, and departments are accomplishing their goals


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Slide 15.5Issues Associated with

Internal Integration

Identifying methods of communication and developing a

shared meaning for important concepts

Establishing criteria for membership in groups and teams

Determining rules for acquiring, maintaining, and losing

power and status

Developing systems for encouraging desirable behaviors

and discouraging undesirable behaviors


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Slide 15.6How Cultures Emerge

Top Management

• Agrees on shared assumptions of human behavior

• Develops a shared vision of cultural values

Behaviors

• Employees behave in ways that are consistent with shared values and assumptions

Results

• Financial performance

• Market share

• Employee commitment

Culture

• Strong culture emerges

• Traditions are maintained

• Socialization practices for new employees


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Slide 15.7Methods of MaintainingOrganizational Culture

Recruitment ofemployees whofit the culture

OrganizationalCulture

Removal of employees whodeviate from the culture

Methods of Maintaining Organizational Culture•What managers and teams pay attention to•Reactions to organizational crises•Managerial role modeling•Criteria for rewards•Criteria for selection and promotion•Organizational rites, ceremonies, stories


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Slide 15.8Organizational Rites and Ceremonies

Rites of passage

TYPE

Basic training, U.S. Army Facilitate transition into newroles; minimize differences inway roles are carried out

Reduce power and identity;reaffirm proper behavior

Enhance power and identity;emphasize value of properbehavior

Encourage common feelingsthat bind members together

EXAMPLEPOSSIBLE

CONSEQUENCES

Firing a manager

Mary Kay CosmeticsCompany ceremonies

Office party

Rites of degradation

Rites of enhancement

Rites of integration

Source: Adapted from Trice, H. M., and Beyer, J. M. The Cultures of Work Organizations.Englewood Cliffs, N.J.: Prentice-Hall, 1993, 111.


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Slide 15.9Requirements for Successfully

Changing Organizational Culture

Understand the old culture first

Support employees and teams who have ideas for a better

culture and are willing to act on those ideas

Find the most effective subculture in the organization and

use it as a model

Help employees and teams do their jobs more effectively

Use the vision of a new culture as a guide for change

Recognize that significant cultural change takes time

Live the new culture


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Slide 15.10Framework of Types of Cultures

Formal Control

Orientation

Forms of Attention

Flexible

Stable

Internal External

ClanCulture

BureaucraticCulture

MarketCulture

EntrepreneurialCulture

Source: Adapted from Hooijberg, R., and Petrock, F. On cultural change: Using the competing values framework to helpleaders execute a transformational strategy. Human Resource Management, 1993, 32, 29-50; Quinn, R. E. Beyond RationalManagement: Mastering the Paradoxes and Competing Demands of High Performance . San Francisco: Jossey-Bass, 1988.


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Slide 15.11Attributes of a Bureaucratic Culture

Long-term concerns are predictability, efficiency, and stability

Members value standardized goods and services

Managers view their roles as being good coordinators, organizers, and enforcers of written rules and standards

Tasks, responsibilities, authority, rules, and processes are clearly defined


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Slide 15.12Attributes of a Clan Culture

Members understand that contributions to the organization exceed any contractual agreements

A clan culture achieves unity with a long and thorough socialization process

Members share feelings of pride in membership, as well as feelings of personal ownership of a business, a product, or an idea


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Slide 15.12 (continued)Attributes of a Clan Culture

Peer pressure to adhere to important norms is strong

Success is assumed to depend substantially on sensitivity to customers and concern for people

Teamwork, participation, and consensus decision making are believed to lead to success


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Slide 15.13Attributes of an

Entrepreneurial Culture

There is a commitment to experimentation, innovation, and being on the leading edge

This culture does not just quickly react to changes in the environment—it creates change

Effectiveness depends on providing new and unique products and rapid growth

Individual initiative, flexibility, and freedom foster growth and are encouraged and well rewarded


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Slide 15.14Attributes of a Market Culture

Contractual relationship between individual and organization

Independence and individuality are valued and members are encouraged to pursue their own financial goals

Does not exert much social pressure on an organization’s members, but when it does, members are expected to conform


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Slide 15.14 (continued)Attributes of a Market Culture

Superiors’ interactions with subordinates largely consist of negotiating performance–reward agreements and/or evaluating requests for resource allocations

Has a weak socialization process Few economic incentives are tied directly to

cooperating with peers Often tied to monthly, quarterly, and annual

performance goals based on profits


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Slide 15.15Organizational Uses of Culture

Organizational culture has the potential to enhance organizational performance, individual satisfaction, and a variety of expectations, attitudes, and behaviors in organizations

If an organization’s culture is not aligned with the changing expectations of internal and/or external stakeholders, the organization’s effectiveness can decline


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Slide 15.15 (continued)Organizational Uses of Culture

Organizational culture and performance are related, although the evidence regarding the exact nature of this relationship is mixed

Organizational culture affects employee behavior and performance

Assessing which attributes of an organization’s culture need to be preserved and which ones need to be modified is a constant organization need


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Slide 15.16Relationship Between Culture

and Performance

Organizational culture can have a significant

impact on a firm’s long-term economic

performance

Organizational culture will probably be an

even more important factor in determining

success or failure of firms during the next

decade


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Slide 15.16 (continued)Relationship Between Culture

and Performance

Organizational cultures that inhibit strong long-term financial performance are not rare; they develop easily, even in firms that are filled with reasonable and intelligent people

Although tough to change, organizational cultures can be made more performance enhancing if managers understand what sustains a culture


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Slide 15.17Effects of Organizational Culture onEmployee Behavior and Performance

Allows employees to understand the firm’s history

and current methods of operation

Fosters commitment to corporate philosophy and

values

Serves as a control mechanism for employee

behaviors

Certain cultural types may produce greater

effectiveness and productivity


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Slide 15.18Effects of Organizational Culture

on Ethical Behavior

A culture emphasizing ethical norms provides

support for ethical behavior

Top managers play a key role in fostering

ethical behavior by exhibiting correct behavior

The presence or absence of ethical behavior

in managerial actions both influences and

reflects the culture


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Slide 15.19How Employees Can Change

Unethical Behavior

Secretly or publicly reporting unethical actions to

a higher level within the organization

Secretly or publicly reporting unethical actions to

someone outside the organization

Secretly or publicly threatening an offender or

responsible manager with reporting unethical

actions

Quietly or publicly refusing to implement an

unethical order or policy


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Slide 15.20Actions for Creating a Culture that

Encourages Ethical behavior Be realistic in setting values and goals regarding

employee relationships

Encourage input from organization members

regarding appropriate values and practices for

implementing the culture

Opt for a “strong” culture that encourages and

rewards diversity and principled dissent

Provide training on adopting and implementing

the organization’s values


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Slide 15.21Guidelines for Managing

Cultural Diversity Organization members must:

Understand the nature of diversity and value a variety of opinions and insights

Recognize the learning opportunities and challenges presented by the expression of different perspectives

The organizational culture must: Foster expectations for high standards of performance and ethics for

everyone Stimulate personal development Encourage openness Make workers feel valued

The organization must have a well-articulated and widely understood mission


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Slide 15.22Steps in Socialization

1. Careful selection

2. Challenging early work assignments

3. Training to develop capabilities consistent with culture

4. Rewards that sustain the culture

5. Adoption of cultural value policies

6. Rituals, taboos, rites, and stories to reinforce culture

7. Role model to sustain culture

Removal of employees who deviate from culture

Removal of candidates who do not “fit” culture


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Slide 15.23Possible Outcomes of the

Socialization Process

Job satisfaction Role clarity High work motivation Understanding of culture,

perceived control High job involvement Commitment to

organization Tenure High performance Internalized values

Job dissatisfaction Role ambiguity and conflict Low work motivation Misunderstanding, tension,

perceived lack of control Low job involvement Lack of commitment to

organization Absenteeism, turnover Low performance Rejection of values

Successful socialization isreflected in:

Unsuccessful socialization isreflected in:

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Business

new culture

old culture

better culture

clan culture members

organizational behavior

organizational cultures

fromthe culture methods

organizational structure