culture.ppt

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e

Organizational Organizational CultureCultureOrganizational Organizational CultureCulture


Defining organizational culture…a collective understanding, a shared and integrated set or perceptions, memories, values and attitudes that have been learned over time and which determine the expectations of behavior that are taught to new members in their socialization into the organization.

Impact of culture Culture gives identity, provides collective

commitment, builds social system stability and allows people to make sense of the organization (Sannwald, 2000)


Culture is…Culture is…

Concrete We can observe cultural practices

that define human experience.

Abstract It is a way of thinking, feeling,

believing, and behaving.


Reinventing Hewlett-Packard’s CultureReinventing Hewlett-Packard’s Culture

Carly Fiorina wants to reinvent

Hewlett-Packard’s legendary

culture, known as ‘The H-P

Way’. She documented a new

set of values, called “The

Rules of the Garage” and is

merging H-P with Compaq to

create a more performance-

oriented culture.

© Reuters/New media, Inc./ CORBIS


Organizational Culture DefinedOrganizational 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.© Reuters/New media, Inc./ CORBIS


Physical Structures

Rituals/ Ceremonies

Stories

Language

BeliefsBeliefs

ValuesValues

AssumptionsAssumptions

Artifacts ofOrganizationalCulture

OrganizationalOrganizationalCultureCulture

Elements of Organizational CultureElements of Organizational Culture


Brown & Brown’s Cultural Content Brown & Brown’s Cultural Content

Brown & Brown, Inc. in Daytona

Beach has an aggressive culture

that helps it succeed in the highly

competitive insurance business. At

its annual sales meeting,

managers of poorly performing

divisions are led to the podium by

medieval executioners while a

funeral dirge plays.E. M. Samelson/Orlando Sentinel


Meaning of Cultural Content Meaning of Cultural Content

Cultural content refers to the relative ordering of beliefs, values, and assumptions.

Example: Brown & Brown values aggressiveness; SAS Institute values work-life balance

An organization emphasizes only a handful of the hundreds of cultural values.

E. M. Samelson/Orlando Sentinel


Organizational Subcultures Organizational Subcultures

Located throughout the organization

Can support or oppose (countercultures) firm’s dominant culture

Two functions of countercultures: provide surveillance and

evaluation source of emerging values

E. M. Samelson/Orlando Sentinel


Dominant CultureDominant Culture

The dominant culture is the most powerful group in society.

It receives the most support from major institutions and constitutes the major belief system.

Social institutions in the society perpetuate the dominant culture and give it a degree of legitimacy that is not shared by other cultures.


SubculturesSubcultures

The cultures of groups whose values and norms of behavior differ from the dominant culture.

Members of subcultures interact frequently and share a common world view.

Subcultures share some elements of the dominant culture and coexist within it.


CounterculturesCountercultures

Subcultures created as a reaction against the values of the dominant culture.

Members of the counterculture reject the dominant cultural values and develop cultural practices that defy the norms and values of the dominant group.

Nonconformity to the dominant culture is often the mark of a counterculture.


Popular CulturePopular Culture

The beliefs, practices, and objects that are part of everyday traditions.

It is mass-produced and mass-consumed.

Has enormous significance in the formation of public attitudes and values, and plays a significant role in shaping the patterns of consumption in contemporary society.


Benefits of Strong Corporate CulturesBenefits of Strong Corporate Cultures

StrongOrganizational

Culture

SocialSocialControlControl

AidsAidsSense-MakingSense-Making

SocialSocialGlueGlue


Problems with Strong CulturesProblems with Strong Cultures

Culture content might be incompatible with the organization’s environment.

Strong cultures focus attention on one mental model.

Strong cultures suppress dissenting values from subcultures.


Adaptive Organizational CulturesAdaptive Organizational Cultures

External focus -- firm’s success depends on continuous change

Focus on processes more than goals

Strong sense of ownership

Proactive --seek out opportunities

AP/Wide World


Bicultural AuditBicultural Audit

Part of “due diligence” in merger

Minimizes risk of cultural collision by diagnosing companies before merger

Three steps in bicultural audit:1. Collect artifacts

2. Analyze data for cultural conflict/compatibility

3. Recommend solutions


Merging Organizational CulturesMerging Organizational Cultures

AssimilationAssimilation

DeculturationDeculturation

Acquired company embraces acquiring firm’s culture

Acquiring firm imposes its culture on unwilling acquired firm

IntegrationIntegrationBoth cultures combined into a new composite culture

SeparationSeparationMerging companies remain separate with their own culture


StrengtheningStrengtheningOrganizationalOrganizational

CultureCulture

FoundersFoundersand leadersand leaders

CulturallyCulturallyconsistentconsistentrewardsrewards

StableStableworkforceworkforce

SelectionSelectionandand

socializationsocialization

Managing theManaging theculturalculturalnetworknetwork

Strengthening Organizational CultureStrengthening Organizational Culture


STRONG CULTURESTRONG CULTURE

A strong organizational culture could be one were the majority of the the participants hold the same basic beliefs and values as applies to the organization. The people in this group may follow the perceived rules and ethical procedures that are basic to the organization, even if those values are not publicly stated by the organization.


WEAK CULTUREWEAK CULTURE

A weak organizational culture could be one that is loosely knit. It may encourage individual thought and contributions and in a company that needs to grow through innovation, it could be a valuable asset.

culture.ppt

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