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.