Essentials of Organizational Behavior, 10/e

Stephen P. Robbins & Timothy A. Judge

Chapter 15

Organizational Culture
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After studying this chapter, you should be able to:

1. Define organizational culture and describe its common characteristics. 2. Compare the functional and dysfunctional effects of organizational culture on people and the organization. 3. Explain the factors that create and sustain an organizations culture. 4. Show how culture is transmitted to employees. 5. Demonstrate how an ethical culture and a positive culture can be created. 6. Show how national culture may affect the way organizational culture is transported to a different country.

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Organizational Culture
A system of shared meaning held by members that distinguishes the organization from other organizations Composed of seven key characteristics
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Seven Characteristics of Organizational Culture

1. Innovation and Risk Taking 2. Attention to Detail 3. Outcome Orientation 4. People Orientation 5. Team Orientation 6. Aggressiveness 7. Stability
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Culture Is a Descriptive Term

Culture Organizational culture is concerned with how employees perceive an organizations culture, not whether or not they like it Descriptive

Job Satisfaction Measures affective responses to the work environment: concerned with how employees feel about the organization Evaluative
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Do Organizations Have Uniform Cultures?

The dominant culture expresses the core values that are shared by a majority of the organizations members

Subcultures tend to develop in large organizations to reflect common problems, situations, or experiences of members Subcultures mirror the dominant culture but may add to or modify the core values
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Strong Cultures
In a strong culture, the organizations core values are both intensely held and widely shared Strong cultures will:
Have great influence on the behavior of its members Increase cohesiveness Result in lower employee turnover
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Culture Versus Formalization

Both seek predictability, orderliness, and consistency Culture controls by increasing behavioral consistency Formalization controls through policies and written documentation Strong cultures can be a substitute for formalization
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Cultures Five Basic Functions

Defines Boundaries Conveys a Sense of Identity Generates Commitment Beyond Oneself Enhances Social Stability Sense-making and Control Mechanism

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Culture as a Liability
Barrier to Change
Culture is slow to change even in a dynamic environment

Barrier to Diversity
Culture seeks to minimize diversity Can embed prevalent bias and prejudice

Barrier to Acquisitions and Mergers

Most mergers fail due to cultural incompatibility

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Creating Culture
Ultimate source of an organizations 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
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Keeping a Culture Alive

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

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A Socialization Model

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

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Dimensions of Socialization Programs

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

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How Organization Cultures Form

Success in employee socialization depends on managements selection of socialization method and the closeness of new employees values to those of the organization
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How Employees Learn Culture

Culture is transmitted to employees through:
Stories provide explanations Rituals reinforce key values Material Symbols convey importance Language identify and segregate members
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Creating an Ethical Organizational Culture

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
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Creating a Positive Organizational Culture

A positive culture is one that emphasizes the following:
Building on Employee Strengths Rewarding More Than Punishing Emphasizing Vitality and Growth of the Employee
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Global Implications
National and Organizational Cultures:
Organizations exist in a global context Must be aware of local and national cultures

Suggestions and Observations:

Organizations heavily dependent on foreign markets and labor National culture does influence organizational culture All managers must be culturally sensitive
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Implications for Managers

Create the culture you want when the organization is small and new If established culture needs to be changed, expect it to take years
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Keep in Mind
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
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Summary
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 organizations 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.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

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