Organizational culture

Organizational Culture Chapter 10

  • Definition of Organizational Culture
      - A system of shared meaning held by members that distinguishes the organization from other organizations.
      - Quote from Henry Mintzberg (Professor at McGill University):
        - "Culture is the soul of the organization — the beliefs and values, and how they are manifested. I think of the structure as the skeleton, and as the flesh and blood. And culture is the soul that holds the thing together and gives it life force."

How Organizational Cultures Form

  • Key Factors Influencing Culture Formation
      - Philosophy of Founders
      - Top Management
      - Selection Criteria for Employees
      - Socialization Practices
      - Organization's Culture

Culture as a Descriptive Term

  • Employee Perceptions of Culture
      - Does the culture encourage teamwork?
      - Does it reward innovation?
      - Is it inclusive?
      - Does it stifle innovation?
      - Does it empower employees?
      - Is it competitive?

Functions of Culture

  • Roles of Organizational Culture
      - Boundary-Defining Role: Creates distinctions between organizations.
      - Sense of Identity: Conveys a sense of belonging and identity among members.
      - Commitment: Helps create a commitment to something larger than individual self-interest.
      - Stability: Acts as social glue, providing standards for behavior among employees.
      - Control Mechanism: Guides and shapes attitudes and behaviors of employees, aiding in making sense of the organization.

Cultural Elements

  • Components of Culture
      - Stories
      - Images
      - Rituals
      - Ceremonies
      - Uniforms
      - Language
      - Behaviors/Norms/Work Etiquette
      - Relationships
      - Leadership Styles

Dominant Culture and Subcultures

  • Dominant Culture
      - Expresses core values shared by a majority of members, giving the organization its distinct personality.

  • Subcultures
      - Mini-cultures within an organization, typically defined by department designations and geographical separation.

Organizational Climate

  • Definition of Organizational Climate
      - The shared perceptions organizational members have about their organization and work environment.

  • Implications of Climate
      - Affects employee motivation and engagement.
      - Questions concerning experience include:
        - What is it like to work there?
        - How do individuals feel operating in that culture?
        - How do business conditions affect the mood?

Case Studies on Organizational Culture

  • Hootsuite
      - Vancouver-based social media management platform.
      - 1500 employees supporting over 16 million users.
      - Values employee experience and growth through funding learning opportunities.
      - Maintains a startup culture with informal practices like offering beer on tap and social gatherings.

  • Eco (Noise-Cancelling Company)
      - Emphasizes a flexible, unconventional start-up culture and quickly incorporates customer feedback.

  • Samsung Electronics
      - Fosters a climate of creativity through “C-Labs” supporting new ventures and allowing idea generation.

Examples of Innovative Company Cultures

  • Intuit
      - Recognized for workshops promoting unconventional creative thinking.
      - Managers use puppetry and bake sales to engage employees.
      - Culture stresses accountability and solid idea presentation.

My Personal Experience and Reflections

  • Prompt
      - Reflect on early experiences at SFU and how they reinforced or changed perceptions of culture.
      - Compare early experiences with current understanding of the university's culture.

Managing Organizational Culture in Global Contexts

  • Global Corporations and Culture Management
      - Strong organizational culture is vital for managing thousands of employees across multiple locations.

  • Case Study of Hyatt Hotels Corporation
      - CEO Mark Hoplamazian focused on introducing changes after significant growth in 2013 with over 90,000 employees in 45 countries.
      - Developed a cohesive orientation program for new hires.
      - Addressed cultural translation challenges in diverse locations.

Organizational Values at Hyatt

  • Core Values of Hyatt Properties
      - Exceptional guest service, upscale amenities, and innovative designs reflecting local art.
      - Importance of core value communication to all employees.

Enhancing Guest Connections

  • Improvements for Employee Experience
      - Needed to enhance meaningful guest interactions while simplifying operational processes.
      - Implemented user-friendly interfaces and mobile scheduling apps to ease scheduling issues.

Key Characteristics of Organizational Culture

  • Seven Primary Characteristics
      1. Innovation and Risk-Taking: Degree of encouragement for innovation and risk.
      2. Attention to Detail: Expectation of precision and analysis.
      3. Outcome Orientation: Focus on results over processes.
      4. People Orientation: Considerations of people in decisions.
      5. Team Orientation: Activities organized around teams rather than individuals.
      6. Aggressiveness: Degree of competitiveness vs. supportiveness.
      7. Stability: Emphasis on maintaining status quo vs. growth.

Contrasting Organizational Cultures

  • Organization A
      - Rigid, extensive rules, and low employee morale.

  • Organization B
      - Encourages risk-taking, values people, and focuses on teamwork.

Major Culture Types by Competing Values Framework

  • Clan Culture
      - Collaborative, focuses on human development and participation.

  • Adhocracy Culture
      - Creative, focuses on innovation and entrepreneurship.

  • Hierarchy Culture
      - Controlling, aims for efficiency and control.

  • Market Culture
      - Competing, customer-focused achiever orientation.

Horizontal Corporate Culture

  • Characteristics
      - Common among startups; promotes collaboration and flexibility.
      - Requires balance between collaboration and clearly defined goals.

Zappos Case Study

  • Organizational Behavior Impact
      - Encourages fun and "weirdness" to maintain a positive atmosphere.

Culture Strength and Management

  • Stability and Rules in Strong Cultures
      - A strong culture reduces the need for formal rules and regulations.

Culture Creation

  • Methods
      1. Founders hire like-minded individuals.
      2. Induct and socialize employees into the culture.
      3. Founders' behaviors encourage identification with organizational values.

PCL and Founders' Influence

  • PCL Company Example
      - Influenced by founder Ernest Poole's vision and rules which still govern hiring and training.

Innovation Continuation in Samsung

  • Samsung’s Creative Labs
      - Employees take time off to focus on innovative projects while promoting creativity.

GSoft’s Culture and Leadership

  • GSoft Overview
      - Recognized for its corporate culture that promotes creativity and efficiency across its products.

Barriers to Mergers and Acquisitions

  • Cultural Compatibility
      - Cultural mismatch can jeopardize mergers, with studies showing high failure rates (70% of mergers failed to increase shareholder value).

Socialization in Organizations

  • Definition
      - The process of adapting new employees to an organization’s culture.

  • Example: Sanyo
      - Comprehensive training program enfolding new employees in its culture.

Starbucks’ Socialization Process

  • Training Program
      - New employees undergo training involving company culture, philosophy, and customer engagement strategies.

Stages of Socialization

  • Three Stages
      1. Prearrival Stage: Learning occurs before employment begins.
      2. Encounter Stage: New employees confront reality versus expectations post hiring.
      3. Metamorphosis Stage: Adjustment to organizational values and norms.

TELUS and Candidate Engagement

  • Culture Focus in Hiring
      - Focus on collaborative learning and guiding job applicants on preparation for interviews and integration.

Diversity in Hiring at Wattpad

  • Cultural Fit and User Representation
      - CEO Allen Lau emphasizes diversity to mitigate blind spots.

Baidu’s Casual Culture

  • Description
      - Culture characterized as simple, open, and reliable, promoting trust among colleagues.

Customer Stories at BMO

  • Culture Communication Strategy
      - Every meeting starts with a customer story to reinforce focus on customer service.

WestJet's Positive Culture

  • Corporate Culture Description
      - Fun-oriented environment; positive culture reinforced through events and recognition programs.

Future of Organizational Culture

  • Future Focus Areas
      - Employee well-being, adaptability, inclusivity, data-driven culture, empowerment, leadership alignment, effective communication, and social responsibility.

Climate Meaning in Organizational Culture

  • Instrumental Self-Interest / Competitive: This aspect describes a focus on personal gains and competitiveness among individuals within the organization.

  • Caring / Reciprocal Helping Others: Highlights the importance of supportiveness and mutual assistance among team members, fostering a collaborative environment.

  • Laws & Codes: Refers to external rules and regulations that impact organizational behavior and the obligations of members.

  • Systematic Internal Procedures: Emphasizes the role of established internal protocols and procedures that guide behavior and operations within the organization.