ADMN 2220 Chapter 14

Chapter 14: Organizational Culture

Learning Objectives

• Describe the elements of organizational culture and discuss the importance of organizational subcultures.

• Compare and contrast four strategies for merging organizational cultures.

• Describe five strategies for changing and strengthening an organization’s culture, including the application of attraction–selection–attrition theory.

• Describe the organizational socialization process and identify strategies to improve that process.

Organizational Culture Defined

• Definition: The values and assumptions shared within an organization.

• Importance: Provides direction toward what is considered the "right way" of doing things.

• Represents the company’s "DNA":

  • Acts as an invisible yet powerful template for employee behavior.

Elements of Organizational Culture

Artifacts

• Definition: Observable elements of an organization’s culture.

• Examples:

  • Physical structures

  • Language

  • Rituals and ceremonies

  • Stories and legends

Shared Values

• The conscious beliefs of an organization which guide evaluation of good/bad, right/wrong.

Shared Assumptions

• Nonconscious, taken-for-granted beliefs that influence the organization’s norms and behaviors.

Organizational Culture Profile

Dimensions and Characteristics

• Innovation: Experimentation, opportunity seeking, risk-taking.

• Stability: Predictability, security, rule-oriented.

• Respect for People: Fairness, tolerance.

• Outcome Orientation: Action-oriented with high expectations.

• Attention to Detail: Precise and analytical.

• Team Orientation: Focus on collaboration and people.

• Aggressiveness: Competitive, low emphasis on social responsibility.

Organizational Subcultures

• Dominant Culture: Values/assumptions shared most consistently throughout the organization.

• Subcultures: Present throughout the organization and reflect localized values.

• Countercultures: Subcultures that oppose aspects of the dominant culture.

  • Functions: Surveillance, critical review, and emergence of new values.

Artifacts of Culture

Observable Symbols and Signs

• Elements: Physical structures, ceremonies, language, stories.

  • These artifacts maintain and transmit the organization's culture.

Stories and Legends

• Serve social prescriptions for desired behaviors.

• Most effective when they:

  • Describe real individuals.

  • Are perceived as true.

  • Are widely disseminated throughout the organization.

  • Prescribe behaviors.

Language, Rituals, and Ceremonies

• Language: Affects how employees communicate and express interactions within the organization.

• Rituals: Programmed routines, e.g., visitor greetings.

• Ceremonies: Planned events, e.g., award ceremonies.

Physical Structures/Symbols

• Office design and building structures reflect and shape culture.

• Cultural meaning conveyed through furniture, office size, and decor.

Organizational Culture Strength

• Refers to how deeply employees share the organization's dominant values and assumptions.

• Institutionalization: Strong cultures are reinforced through artifacts and long-lasting practices, often originating from founders.

Organizational Culture and Effectiveness

• Culture content should align with the environment to guide appropriate decisions and behaviors.

• Cult strength does not equate to cult-like behaviors; it should allow for subculture dissent without suppressing diversity.

Merging Cultures

Bicultural Audit

• Conducting a bicultural audit minimizes cultural collisions during mergers.

• Steps:

  1. Identify cultural artifacts

  2. Analyze data for cultural conflicts

  3. Develop strategies and action plans to bridge cultures.

Merging Organizational Cultures

• Assimilation: Acquired firm adopts acquiring firm’s culture.

• Deculturation: Imposing culture from acquiring firm.

• Integration: Creation of a composite culture.

• Separation: Firms maintain their distinct cultures.

Changing/Strengthening Organizational Culture

• Use attraction–selection–attrition theory:

  • Attraction: Applicants self-select based on cultural fit.

  • Selection: Firms choose applicants whose values align with the culture.

  • Attrition: Employees who do not fit leave on their own or are removed.

Strategies for Improvement

• Aligning firm artifacts with desired culture.

• Clear communication of cultural expectations.

• Providing culturally consistent rewards and recognition.

Organizational Socialization

Definition

• The process by which individuals learn the values and behaviors necessary to fulfill roles within the organization.

Learning Process

• Newcomers develop comprehension of organizational culture, expectations, and dynamics.

• Form social relationships and adapt to work roles.

Stages of Socialization

• Pre-employment: Learning about the organization.

• Role Management: Testing expectations against job realities, Relationship strengthening.

Improving Socialization

• Realistic Job Preview (RJP): Offer balanced information about job roles.

• Socialization Agents: Supervisors provide technical feedback; co-workers serve as role models.

Authors and References

• Edgar H. Schein's contributions to the study of organizational culture and leadership.