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Organizational Culture
7- 1
Learning Objectives
1. Differentiate between values and norms and understand
the way culture is shared by an organization’s members
2. Describe how individuals learn culture both formally and
informally
3. Identify the four building blocks or foundations of an
organization’s culture
4. Understand how an organization’s culture, like its
structure, can be designed or managed
5. Discuss an important outcome of an
organization’s culture: corporate social responsibility
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What is Organizational Culture?
7- 3
Organizational (Corporate)
Culture
Values
Espoused: what members of Levels of
an organization say they value Organizational
Enacted: reflected in the way Culture
individuals actually behave
Values
Testable in physical environment Greater level
Testable only by social consensus of awareness
Assumptions
Relationship to environment Taken for granted
Nature of reality, time, and space Invisible
Nature of human nature Preconscious
Nature of human activity Reprinted with permission from Edgar H. Schein, Organizational
Culture and Leadership: A Dynamic View. Copyright © 1985 Jossey-Bass
Nature of human relationships Inc, asubsidiary of John Wiley & Sons, Inc.
Four Functions of Organizational Culture
Organizational
identity
Social system
stability
Functions of Organizational Culture
Fit
Adaptive Perspective
Perspective
An organizational culture
with a consensus on the
values that drive the company Strong
and with an intensity that is Culture
recognizable even to outsiders Perspective
Adaptive Nonadaptive
Most managers care Most managers care
Core Values about customers, about themselves,
stockholders, and their work group, or
employees an associated product
Managers pay close Managers tend to
Common attention to all behave somewhat
Behavior their constituencies, insularly, politically,
esp. customers and bureaucratically
Reprinted with the permission of The Free Press, a Division of Simon & Schuster, Inc. from Corporate Culture and Performance by
John P. Kotter and James L Heskett. Copyright © 1992 by Kotter Associates, Inc. and James L. Heskett.
Types of Organizational Culture –
Collaborative
Normative
Belief Characteristics
Achievement Goal and achievement oriented
Normative
Belief Characteristics
Oppositional Confrontation and negativism rewarded
Job demands
2. Encounter •Task
•Role
•Interpersonal
3. Change and
Mastery
Acquisition
Merger or acquisition
Employment of people from different countries
Cultural Changing
1
3 communication behavior
Examining
justifications
Interventions for
for changed
Changing
behavior
Organizational
Reprinted with permission from Vijay Sathe “How to Decipher & Change
Culture 2 Corporate Culture,” Copyright © 1985 Jossey-Bass Inc, Reprinted by permission
Of Jossey-Bass, Inc., a subsidiary of John Wiley & Sons, Inc..
Cultural Modifications in the
Current Business Environment
quality