McShane, Organisational Behaviour, 6e 14-1 Organisational culture
• The values and assumptions
shared within the organisation • Defines what is important and unimportant • A company’s DNA: an invisible yet powerful template that shapes employee behaviour
McShane, Organisational Behaviour, 6e 14-3 Espoused vs enacted values • Espoused values: – values that are desired to guide employee behaviour – socially desirable • Enacted values: – values most staff truly rely on to guide decisions and behaviours
McShane, Organisational Behaviour, 6e 14-4 Content of organisational culture • The relative ordering of values: – a few dominant values • Problems measuring organisational culture: – oversimplifies diversity of possible values – ignores shared assumptions – adopts an ‘integration’ perspective • An organisation’s culture is ill-defined: – diverse subcultures (‘fragmentation’) – values exist within individuals, not work units
McShane, Organisational Behaviour, 6e 14-6 Organisational subcultures • Dominant culture: most widely shared values and assumptions • Subcultures: – located throughout the organisation – can enhance or oppose (countercultures) firm’s dominant culture • Two functions of countercultures: – provide surveillance and critique, ethics – source of emerging values
McShane, Organisational Behaviour, 6e 14-10 Artefacts: rituals and ceremonies • Rituals: – programmed routines (e.g. how visitors are greeted) • Ceremonies: – planned activities for an audience (e.g. award ceremonies)
McShane, Organisational Behaviour, 6e 14-11 Artefacts: physical structures and symbols • Building structure may reflect culture: – size, shape, location, age of building • Office design conveys cultural meaning: – furniture, office size, wall hangings
McShane, Organisational Behaviour, 6e 14-12 Organisational culture strength • How widely and deeply employees hold the company’s dominant values and assumptions • Increases effectiveness • Strong cultures exist when: – most employees understand/embrace the dominant values – values and assumptions are institutionalised through well-established artefacts – culture is long-lasting: often traced back to founder
McShane, Organisational Behaviour, 6e 14-14 Organisational culture and business ethics • Ethical values become embedded in an organisation’s dominant culture. • To create a more ethical organisation, leaders need to work on the embedded culture that steers employee behaviour.
McShane, Organisational Behaviour, 6e 14-17 Strategies for changing and strengthening organisational culture • Actions of founders and leaders: – organisational culture sometimes reflects the founder’s personality – transformational leaders can reshape culture: organisational change practices • Align artefacts with desired culture: – artefacts keep culture in place – e.g. create memorable events, communicating stories, transferring culture carriers
McShane, Organisational Behaviour, 6e 14-18 Strategies for changing and strengthening organisational culture (cont.) • Introduce culturally-consistent rewards and recognition: – rewards are powerful artefacts: reinforce culturally-consistent behaviour • Support workforce stability and communication – through the development of shared stories, language and artefacts
McShane, Organisational Behaviour, 6e 14-19 Strategies for changing and strengthening organisational culture (cont.) • Attracting, selecting, socialising for cultural ‘fit’: – recruit and select those whose values are culturally compatible: attraction-selection-attrition theory socialisation practices
McShane, Organisational Behaviour, 6e 14-20 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 organisation’s culture – attrition: employees quit or are forced out when their values oppose company values
McShane, Organisational Behaviour, 6e 14-21 Organisational socialisation
The process by which individuals
learn the values, expected behaviours and social knowledge necessary to assume their roles in the organisation: • can align employee values with company culture • helps newcomers adjustment
McShane, Organisational Behaviour, 6e 14-22 Learning and adjustment process • Learning process: – newcomers make sense of the organisation’s 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
McShane, Organisational Behaviour, 6e 14-23 Psychological contracts • Individual’s beliefs about the terms and conditions of a reciprocal exchange agreement between the person and another (e.g. employer) – Transactional – Relational
McShane, Organisational Behaviour, 6e 14-25 Improving the socialisation process • 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