Organizational Culture

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OrganizationalCulture
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Corporate Culture at Hewlett-Packard

• Whether at its Far East distribution center in
  Singapore (shown), or at research labs in
  Cupertino, California, Hewlett-Packard employees
  live by five corporate culture values known as
  The HP Way.

Courtesy of Hewlett-Packard
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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 220year 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 he or she 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 day.
  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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Physical space

• Interpretation

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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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Oakelys Culture in Building Design

• Oakely, Inc.s protective and competitive
  corporate culture is apparent in its building
  design and workspace. The building looks like a
  vault to protect its cherished product designs
  (eyewear, footwear, apparel and watches).

Courtesy of Oakely, Inc.
Courtesy of Oakely, Inc.
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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

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