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Chapter 12: Organizational

Culture

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Organizational Culture

Organizational culture is the shared social

knowledge within an organization regarding the

rules, norms, and values that shape the attitudes

and behaviors of its employees.» Culture is social knowledge among members of the

organization.

» Culture tells employees what the rules, norms, and

values are within the organization.» Organizational culture shapes and reinforces certain

employee attitudes and behaviors by creating a

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Culture Components

Observable artifacts are the manifestations of an

organization¶s culture that employees can easily

see or talk about.

» Symbols can be found throughout an organization, from

its corporate logo to the images it places on its Web site

to the uniforms its employees wear.

» Physical structures are the organization¶s buildings

and internal office designs.

» Language reflects the jargon, slang, and slogans used

within the walls of an organization.

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Culture Components, Cont¶d

Observable artifacts, continued» Stories consist of anecdotes, accounts, legends, and

myths that are passed down from cohort to cohortwithin an organization.

» Rituals are the daily or weekly planned routines thatoccur in an organization.

» Ceremonies are formal events, generally performedin front of an audience of organizational members.

Espoused values are the beliefs, philosophies,and norms that a company explicitly states.» Published documents, verbal statements made to

employees by managers.

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Culture Components, Cont¶d

Basic underlying assumptions are taken-for-granted beliefs and philosophies that are soingrained that employees simply act on them

rather than questioning the validity of their behavior in a given situation.» Represent the deepest and least observable part of a

culture and may not be consciously apparent, even toorganizational veterans.

» Its hidden beliefs are those that are the most likely todictate employee behavior and affect employeeattitudes.

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General Culture Types

F ragmented culture is an organizational culture type inwhich employees are distant and disconnected from oneanother.

Mercenary culture is an organizational culture type inwhich employees think alike but are not friendly to oneanother.

Communal culture is an organizational culture type inwhich employees are friendly to one another, but

everyone thinks differently and does his or her ownthing.

Networked culture is an organizational culture type inwhich employees are friendly to one another and all thinkalike.

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Specific Culture Types

Customer service culture is a specific

culture type focused on service quality.

» Shown to change employee attitudes andbehaviors toward customers.

Figure 12-3

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Specific Culture Types, Cont¶d

Diversity culture is a specific culture type

focused on fostering or taking advantage of a

diverse group of employees. Creativity culture is a specific culture type

focused on fostering a creative atmosphere.

» Affects both the quantity and quality of creative ideas

within an organization.

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Culture Strength

Culture strength exists when employees definitivelyagree about the way things are supposed to happenwithin the organization (high consensus) and when their subsequent behaviors are consistent with thoseexpectations (high intensity).

Subcultures unite a smaller subset of the organization¶semployees.» Created because there is a strong leader in one area of the

company that engenders different norms and values

» Created because different divisions in a company actindependently and create their own cultures.

Countercultures exist when a subcultures¶ values donot match those of the organization.

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Maintaining an Organizational

Culture

Attraction-Selection- Attrition ( AS A)

framework holds that potential employees will

be attracted to organizations whose cultures

match their own personality.» Some potential job applicants won¶t apply due to a

perceived lack of fit.

» Organizations will select candidates based on

whether their personalities fit the culture, further weeding out potential ³misfits.´

» Those people who still don¶t fit will either be unhappy

or ineffective when working in the organization.

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Maintaining an Organizational

Culture, Cont¶d

Socialization is the primary process by whichemployees learn the social knowledge that enables themto understand and adapt to the organization¶s culture.» It is a process that begins before an employee starts work and

doesn¶t end until an employee leaves the organization.» Realistic job preview (RJP) is the process of ensuring that a

potential employee understands both the positive and negativeaspects of the potential job. ± One of the most inexpensive and effective ways of reducing early

turnover among new employees.

» Mentoring is a process by which a junior-level employee(protégé) develops a deep and long-lasting relationship with amore senior-level employee (mentor) within the organization. ± Can provide social knowledge, resources, and psychological

support to the protégé both at the beginning of employment and asthe protégé continues his or her career with the company.

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Changing an Organizational

Culture

Changes in leadership

» New leaders bring their own ideas and values,and leaders are expected to be a driving forcefor change.

Mergers and Acquisitions

» Two companies with distinct cultures are

merged to form a new culture.

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How Important Is Organizational

Culture?

Person±organization fit is the degree to whicha person¶s personality and values match theculture of an organization.

» Employees judge fit by thinking about the values theyprioritize the most, then judging whether theorganization shares those values.

» When employees feel that their values andpersonality match those of the organization, theyexperience higher levels of job satisfaction and feelless stress about their day-to-day tasks.

» Employees also feel higher levels of trust toward their managers.

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