Organizational Culture

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Organizational Culture
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Organizational Culture Defined

• 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.

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Elements of Organizational Culture

• Physical Structures
• Rituals/ Ceremonies
• Stories
• Language
• Beliefs
• Values
• Assumptions

Artifacts of Organizational Culture
Organizational Culture
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Organizational Subcultures

• Located throughout the organization
• Support or oppose (countercultures) firms
  dominant culture
• Two functions of countercultures
• provide surveillance and evaluation
• source of emerging values

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Artifacts of Organizational Culture

• Organizational stories
• social prescriptions and role models
• Rituals and ceremonies
• programmed routines and planned activities
• Organizational language
• Defining words, metaphors
• Physical structures and space
• Building structure, office design

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Interpretation of stories

• Newcomers at IBM eventually seem to be told the
  story about Thomas Watson, former chairman of the
  board. One evening Watson, surrounded by a group
  of white- shirted IBMers, approached the desk of
  Lucille Burger, a 22 year old bride who had been
  given a job as a receptionist while her IBM
  husband had been sent overseas. Part of her job
  was to make sure that no one entered her section
  of the plant unless they wore a badge indicating
  the appropriate security clearance. Watson did
  not have the correct bade. I knew who he was,
  she said trembling, but I said, you can not
  enter. Your admittance is not recognised.
  Thats what we are supposed to say. The IBMers
  were appalled. One asked, Dont you know who he
  is?. But Watson raised his hand for silence and
  waited quietly while one of his associates
  fetched the proper badge.

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Dominant vs sub-culture interpretation

• At IBM everyone obeys the rules
• At IBM were all equal
• You have the duty to speak out against your
  superiors
• At IBM some people can break the rules
• Why was Lucy trembling?
• Why was Lucys husband sent away?
• What are Watsons expectations about being obeyed?

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Organizational Culture and Performance

• Org. cultures may improve corporate performance
  through
• Social control
• Social glue
• Sense-making

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Problems with Strong Cultures

• Strong cultures may be a problem when
• Culture content is incompatible with the
  organizations environment.
• Strong cultures focus attention on one mental
  model.
• Strong cultures suppress dissenting values from
  subcultures.

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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 identifying cultural
  differences between merging companies
• 2. Analyze audit data -- determine where cultural
  conflict and compatibility exist
• 3. Identify ways to bridge the two organizations
  cultures

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Merging Organizational Cultures

• Assimilation Strategy
• Deculturation Strategy
• Integration Strategy
• Separation Strategy

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Strengthening Organizational Culture
Foundersand leaders
Strengthening Organizational Culture
Culturally consistent rewards
Selection and socialization
Stable workforce
Managing the cultural network
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Communication and Culture

• Shared meanings are negotiated by communication
• Culture is enacted and made visible through
  communication
• Communication and cultural change
• Top Management
• Socialisation