C H A P T E R: S I X T E E N

Organizational Culture

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Cirque du Soleils Corporate Culture

Through its strong culture of risk-taking and creativity, Montrealbased Cirque du Soleil has become a leader in big top entertainment.

CP/Paul Chaisson

Organizational Culture Defined

The basic pattern of shared assumptions, values, and beliefs considered to be the correct way of thinking about and acting on problems and opportunities facing the organization.

CP/Paul Chaisson

Elements of Organizational Culture

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Meaning of Cultural Content

Cultural content refers to the relative ordering of beliefs, values, and assumptions. Example: Toronto Stars Atkinson Principles: Canadian independence, social justice, and civic duties An organization emphasizes only a handful of values out of dozens or hundreds of values that exist.

Organizational Subcultures
Located throughout the organization Can enhance or oppose (countercultures) firms dominant culture Two functions of countercultures:

 provide surveillance and critique, ethics  source of emerging values

Mayo Clinic Deciphers its Culture

Courtesy of the Mayo Clinic

To decipher its culture and identify ways to reinforce it at the two newer sites, the Mayo Clinic retained an anthropologist who shadowed employees, joined physicians on patient visits, and posed as a patient to observe what happens in waiting rooms.
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Artifacts: Stories and Legends

Social prescriptions of desired (undesired) behavior Provides a realistic human side to expectations Most effective stories and legends:

 Describe real people  Assumed to be true  Known throughout the organization  Are prescriptive

Artifacts: Rituals and Ceremonies

Rituals

 programmed routines  (e.g., how visitors are greeted)

Ceremonies

 planned activities for an audience  (e.g., award ceremonies)

Artifacts: Organizational Language

Words used to address people, describe customers, etc. Leaders use phrases and special vocabulary as cultural symbols

 e.g., Container Stores Being Gumby

Language also found in subcultures

 e.g., Whirlpools PowerPoint culture

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Artifacts: Physical Structures/Symbols

Building structure -- may shape and reflect culture

 Mountain Equipment Co-ops retail outlets reflect and

maintain an enviro-friendly culture

Office design conveys cultural meaning

 Furniture, office size, wall hangings

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Benefits of Strong Corporate Cultures

Social Control Strong Organizational Culture Social Glue

Improves SenseSense-Making

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Problems with Strong Cultures

1. Culture content might be misaligned with the organizations environment. 2. Strong cultures may focus on mental models that could be limiting 3. Strong cultures suppress dissenting values from subcultures.

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Adaptive Organizational Cultures

 External focus: Firms success depends on continuous change  Focus on processes more than goals  Strong sense of ownership  Proactive: Seek out opportunities

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Org Culture and Ethics

Executives view org culture is one of three main influences on business ethics Organizational culture also an ethical problem when it is very strong --corporate cults

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Bicultural Audit
Part of due diligence in merger Minimizes risk of cultural collision by diagnosing companies before merger Three steps in bicultural audit:
1. Examine artifacts 2. Analyze data for cultural conflict/compatibility 3. Identify strategies and action plans to bridge cultures

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Merging Organizational Cultures

Assimilation
Acquired company embraces acquiring firms cultural values Acquiring firm imposes its culture on unwilling acquired firm Cultures combined into a new composite culture Merging companies remain separate with their own culture

Deculturation

Integration

Separation

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Strengthening Organizational Culture

Founders and leaders Selection and socialization Culturally consistent rewards

Strengthening Organizational Culture

Managing the cultural network

Stable workforce

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Organizational Socialization Defined

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

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Socialization: Learning & Adjustment

Learning Process

 Newcomers make sense of the organizations

Adjustment Process

physical, social, and strategic/cultural dynamics

 Newcomers need to adapt to their new work

environment
New work roles New team norms New corporate cultural values

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Stages of Socialization
PrePre-Employment Stage Encounter Stage Role Management

Outsider Gathering information Forming psychological contract

Newcomer Testing expectations

Insider Changing roles and behaviour Resolving conflicts

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Pre-employment Socialization Conflicts

Individual Attracts Organization Conflict C

Organization Attracts Individual Conflict D

Individual Selects Organization

Organization Selects Individual

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Realistic Job Previews

A balance of positive and negative information about the job and work context Benefits of RJPs

 Less turnover, higher job performance  Less reality shock  Vaccination effect  Builds loyalty

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C H A P T E R: S I X T E E N

Organizational Culture

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