A system of shared meaning

held by members that

distinguishes the
organization from other
organizations
A set of values or beliefs
that is unique to any one
organization
https://www.youtube.com/watch?v=4c
BN8xH-5Qw

15-2
 More Definitions on CULTURE....

Set of shared values, attitudes…

‘a way of life’…. Patterns of ‘how we do
things around here’, the company lore…

Unique to business philosophy, principles &

strategy…manifested in values, practices,
standards & policies..

Can originate anywhere but usually by

founders & leaders
 Cultural symbols in the physical and social work
environments e.g. ceremonies and rituals, stories
 Most visible and accessible level of culture.
 Key to understanding culture through artifacts lies in
figuring out their meanings.
 E.g. the corporate culture of Google is apparent in Google’s HQ,
California. The lobby is replete with lava lamps, pianos, displays
of live searches on the Google search engine from around the
world. Office spaces are laid back with couches and occupied by
dogs which go with their owners to work. The artifacts at Google
reinforce the notion that Google cares about employees and
wants them to be creative and comfortable.
https://www.youtube.com/watch?v=c1jlmdkApTQ

 Ritz-Carlton: training given to employees on value of service. 15

minute session everyday where employees share stories of
exceptional service. This tool is being used to reinforce the
company’s culture and values.
 This is the second deeper level of culture and refer
to what organizational members say they value.
They reflect a person’s inherent beliefs of what
should or should not be.
 Values are often consciously articulated both in a
conversation and in a company’s mission
statement or annual report.
 some organizational cultures are characterized by
values which support healthy lifestyle behaviours.
 E.g Scania invests heavily in the health of its employees.
Employees participate in comprehensive health training
financed by their local plant management.
 These are the deeply held beliefs that guide
behavior and tell organizational members
how to perceive situations and people.
 They are the essence of culture and are often
unconscious.
 Often guides a firm’s actions and decisions.

https://www.youtube.com/watch?v=wd1bsxWeM6Q
 The Clan Culture
◦ A very friendly place
to work where people
share a lot of
themselves. It is like
an extended family.

Cameron, K., & Quinn, R., (1999). Diagnosing and Changing

Organizational Culture. New York: Addison-Wesley.
  The Hierarchy
Culture
◦ A very formalized
structured place to
work. Procedures
govern what people
do.

Cameron, K., & Quinn, R., (1999). Diagnosing and Changing

Organizational Culture. New York: Addison-Wesley.
 The Adhocracy
Culture
◦ A dynamic
entrepreneurial, and
creative place to
work. People stick
their necks out and
take risks.

Cameron, K., & Quinn, R., (1999). Diagnosing and Changing

Organizational Culture. New York: Addison-Wesley.
  The Market Culture
◦ A results oriented
organization whose
major concern is with
getting the job done.
People are
competitive and
goal-oriented.

Cameron, K., & Quinn, R., (1999). Diagnosing and Changing

Organizational Culture. New York: Addison-Wesley.
 In your groups, identify a particular
organization you are familiar with. Discuss
the following:
◦ What are the rites and rituals you observe that
visibly express aspects of the organisation’s
culture?
◦ What are the values and ideologies which determine
the culture of the organisation?
◦ What do you think best describes the culture of this
organisation?
 Organizations with strong culture have consensus on values that
drive the company and with an intensity that is recognizable to
outsiders.
 It is deeply held and widely shared and highly resistant to
change.
 Strong cultures facilitate performance for 3 reasons:
• They are characterized by goal alignment- shared by all
employees
• Strong cultures create high level of motivation due to shared
values by members.
• Strong cultures provide control without oppressive effects of
bureaucracy.
• E.g. Johnson & Johnson’s famous response to Tylenol crisis showed it had a
strong culture that stressed corporate obligations to customers, employees,
community and shareholders. Employees immediately removed the product
from the outlets before company management issued press statement about
the poisoning. They knew what J & J would want them to do and didn’t need
senior management direction on the correct course of action.
 Ultimate source of an organization’s culture is
its founders
 Founders create culture in three ways:
◦ By hiring and keeping those who think and feel
the same way they do
◦ Indoctrinating and socializing those employees to
their way of thinking and feeling
◦ Acting as a role model and encouraging
employees to identify with them

15-15
 Selection – seek out those who fit in
 Top Management – establish norms of
behavior by their actions
 Socialization – help new employees adapt to
the existing culture

15-16
 Pre-arrival –initial knowledge about the
organization and own unique ideas
 Encounter – exposed to the organization
 Metamorphosis – member changed to fit
within the organization

15-17
 Formal – new workers  Informal – new workers
separated for training immediately put to
 Collective – group work
basis  Individual – one-on-
 Fixed – planned one
activities  Variable – no
timetables
 Serial – role models
 Random – on your own
used
 Investiture – accepts
 Divestiture – strip away and confirms existing
characteristics to build characteristics
up new ones

Intense Programs Moderate Programs

15-18
 Success in employee socialization depends on
management’s selection of socialization method
and the closeness of new employees’ values to
those of the organization

15-19
Culture is transmitted to
employees through:
◦ Stories – provide
explanations
◦ Rituals – reinforce key
values
◦ Material Symbols –
convey importance
◦ Language – identify and
segregate members

15-20
A strong culture with high risk tolerance, low-
to-moderate aggressiveness, and focuses on
means as well as outcomes is most likely to
shape high ethical standards
◦ Managers must be visible role models
◦ Communicate ethical expectations
◦ Provide ethical training
◦ Visibly reward ethical acts and punish
unethical ones
◦ Provide protective mechanisms

15-21
A positive culture is one that
emphasizes the following:
 Building on Employee
Strengths
 Rewarding More Than
Punishing
 Emphasizing Vitality and
Growth of the Employee

15-22
National and Organizational Cultures:
 Organizations exist in a global context
 Must be aware of local and national cultures
Suggestions and Observations:
Organizations are heavily dependent on foreign
markets and labor
National culture does influence organizational
culture
 All managers must be culturally sensitive

15-23
 Create the culture
you want when the
organization is
small and new
 If established
culture needs to be
changed, expect it
to take years

15-24
 Organizational culture is concerned with how
employees perceive the culture, not whether
or not they like it
 Ethical and positive organizational cultures
can be created – methods differ
 National culture influences organizational
culture

15-25
In your groups discuss:

How are national culture and

organizational culture related, if at all ?
1. Defined organizational culture and described its
common characteristics.
2. Compared the functional and dysfunctional effects of
organizational culture on people and the
organization.
3. Explained the factors that created and sustained an
organization’s culture.
4. Showed how culture was transmitted to employees.
5. Demonstrated how an ethical culture and a positive
culture could be created.
6. Showed how national culture might affect the way
organizational culture is transported to a different
country.
https://www.youtube.com/watch?v=c1
jlmdkApTQ 15-27