Chap 16
Organizational Culture
stephen p. robbins
What
What Is
Is Organizational
Organizational Culture?
Culture?
Organizational Culture
Characteristics:
Characteristics:
A system of shared
meaning held by 1.1. Innovation
Innovationand
andrisk
risk
taking
taking
members that
distinguishes the 2.2. Attention
Attentionto
todetail
detail
organization from other 3.3. Outcome
Outcomeorientation
orientation
organizations. 4.4. People
Peopleorientation
orientation
5.5. Team
Teamorientation
orientation
6.6. Aggressiveness
Aggressiveness
7.7. Stability
Stability
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
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)
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.
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.
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.
What
What Do
Do Cultures
Cultures Do?
Do?
Culture’s
Culture’sFunctions:
Functions:
1.1. Creates
Createsdistinction
distinctionbetween
betweenone
oneorganization
organizationand
and
others.
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.
What
What Do
Do Cultures
Cultures Do?
Do?
Culture
Cultureas
asaaLiability:
Liability:
[Link]
Institutionalization
[Link]
Barrierto
toChange
Change
[Link]
Barrierto
todiversity
diversity
[Link]
Barrierto
toacquisitions
acquisitionsand
andmergers
mergers
Institutionalization
Institutionalization
Institutionalization
When an organization takes on a life of its own,
apart from it’s founders or members that is, it is
valued for itself and not for the goods and services
it produces. It doesn’t go out of business even if its
original goals are no longer relevant
Behavior and habits that should be questioned and
analyzed become taken for granted
How
How Culture
Culture Begins
Begins
Founders hire and keep only employees who
think and feel the same way they do.
Founders instruct 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.
Keeping
Keeping Culture
CultureAlive
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.
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.
How
How Employees
Employees Learn
Learn Culture
Culture
•• Stories
Stories
•• Rituals
Rituals
•• Material
MaterialSymbols
Symbols
•• Language
Language
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
• • Humanistic
Humanisticwork
workpractices
practices
• • Trust
Trustand
andopenness
openness
• • Toleration
Tolerationof
ofemployee
employeeexpression
expression
16–15