ORGANIZATIONAL

CULTURE
Chapter 14

Learning Objectives
1 Describe the elements of organisational culture and discuss
the importance of organisational subcultures
2 List four categories of artefacts through which corporate
culture is deciphered
3 Discuss the importance of organisational culture and the
conditions under which organisational culture strength
improves organisational performance
4 Compare and contrast four strategies for merging
organisational cultures
5 Identify four strategies for changing or strengthening an
organisations culture, including the application of
attraction-selection-attrition theory.
6 Describe the organisational socialisation process and
identify strategies to improve that process

LO 1

Organizational Culture

The basic pattern of shared values and

assumptions shared within the organisation

Defines what is important and unimportant

Companys DNAinvisible, yet powerful template

that shapes employee behaviour

LO 1

Elements of Organizational Culture

Artifacts of
organisational
culture

Organisational
culture

LO 1

Content of Organizational
Culture

The relative ordering of values

A few dominant values

Example: Wesfarmersintegrity, openness, boldness

and accountability.

Problems measuring organisational culture

Oversimplifies diversity of possible values

Ignores shared assumptions

Adopts an integration perspective

An organisations culture is blurry/unclear:

Diverse subcultures (fragmentation)

Values exist within individuals, not work units

LO 1

Organizational Culture Profile

Org Culture
Dimensions

Dimension Characteristics

Innovation

Experimenting, opportunity seeking, risk taking, few

rules, low cautiousness

Stability

Predictability, security, rule-oriented

Respect for people

Fairness, tolerance

Outcome
orientation

Action oriented, high expectations, results oriented

Attention to detail

Precise, analytic

Team orientation

Collaboration, people-oriented

Aggressiveness

Competitive, low emphasis on social responsibility

Source: OReilly et al (1991)

LO 1

Organizational Subcultures

Dominant culturemost widely shared values and

assumptions

Subcultures

Located throughout the organisation

Can enhance or oppose (countercultures) firms

dominant culture

Two functions of countercultures:

Provide surveillance and critique, ethics

Source of emerging values

LO 2

Artefacts of Organisational
Culture
Observable

symbols
and signs of culture

Physical

structures,
ceremonies, language,
stories

Maintain

and transmit
organisations culture

Need

many artefacts
to accurately decipher
a companys culture

LO 2

Artefacts:
Stories and Legends

Social prescriptions of desired (or dysfunctional)

behaviour

Provides a realistic human side to expectations

Most effective stories and legends:

Describe real people

Assumed to be true

Known throughout the organisation

Are prescriptive

LO 2

Artefacts:
Rituals and Ceremonies

Rituals

Programmed routines (e.g. how visitors are greeted)

Ceremonies

Planned activities for an audience (e.g. award ceremonies)

LO 2

Artefacts:
Organizational Language

Words used to address people, describe

customers, etc.

Leaders use phrases and special vocabulary as

cultural symbols

Language also found in subcultures

LO 3

Artefacts:
Physical Structures and Symbols

Building structuremay shape and reflect

culture

Office design conveys cultural meaning

Furniture, office size, wall hangings

LO 3

Organizational Culture
Strength

How widely and deeply employees hold the

companys dominant values and assumptions

Strong cultures exist when:

Most employees understand/embrace the dominant

values

Values and assumptions are institutionalised through

well-established artefacts

Culture is long lastingoften traced back to founder

LO 3

Functions of
Strong Corporate Cultures

LO 3

Contingencies of Organizational
Culture and Performance

Organisational culture strength moderately

predicts organisational performance

Need to consider contingencies:

Ensure culture-environment fit

Avoid corporate cult strength

Create an adaptive culture

LO 3

News Corporations
Whatever it Takes Culture
According to various
observers and
government officials,
Rupert Murdochs
powerful media empire
has a whatever it takes
corporate culture that
has tacitly encouraged
staff to cross ethical and
legal boundaries

LO 3

Organizational Culture and

Ethics
Ethical

values become
embedded in an
organisations
dominant culture

To create

a more
ethical organisation,
leaders need to work
on the embedded
culture that steers
employee behaviour

LO 4

Merging Cultures:
Bicultural Audit

Part of due diligence in merger

Minimises cultural collision by diagnosing

companies

Three steps in bicultural audit:

Identify cultural artefacts

Analyse data for cultural conflict or compatibility

Identify strategies and action plans to bridge

cultures

LO 4

Merging Organisational
Cultures
Assimilation

Acquired company embraces acquiring

firms cultural values

Deculturation

Acquiring firm imposes its culture on

unwilling acquired firm

Integration

Cultures combined into a new

composite culture

Separation

Merging companies remain separate

with their own culture

LO 5

Changing/Strengthening
Organisational Culture

Changing/Strengthening
Organisational Culture

Actions of founders/leaders

Organisational culture sometimes reflects the

founders personality

Transformational leaders can reshape culture

organisational change practices

Aligning artefacts

Artefacts keep culture in place

e.g. create memorable events,

communicating stories, transferring
culture carriers

LO 5

Changing/Strengthening
Organisational Culture

Introducing culturally consistent

rewards

Rewards are powerful artefactsreinforce

culturally-consistent behaviour

Attracting, selecting, socialising

employees

Attraction-selection-attrition theory

Socialisation practices

LO 5

LO 5

Attraction-Selection-Attrition
Theory

Organisations become more homogeneous

(stronger culture) through:

Attraction: applicants self-select and weed out

companies based on compatible values

Selection: applicants selected based on values

congruent with organisations culture

Attrition: employees quit or are forced out when

their values oppose company values

LO 6

Organisational Socialisation
Defined
The process by which individuals learn the
values, expected behaviours and social
knowledge necessary to assume their roles in
the organisation

LO 6

Socialisation:
Learning and Adjustment

Learning process

Newcomers make sense of the organisations

physical, social and strategic/cultural dynamics

Adjustment process

Newcomers need to adapt to their new work

environment

New work roles

New team norms

Newcomers with diverse experience adjust better

LO 6

Stages of Socialisation

LO 6

Improving Organisational
Socialisation

Realistic job preview (RJP)

A balance of positive and negative information

about the job and work context

Socialisation agents

Supervisors: technical information, performance

feedback, job duties

Co-workers: ideal when accessible, role models,

tolerant and supportive