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Presentation Slides to Accompany Organizational Behavior 10th Edition Don Hellriegel and John W. Slocum, Jr.


Presentation Slides to Accompany Organizational Behavior 10th Edition Don Hellriegel and John W. Slocum, Jr. Chapter 15 Cultivating Organizational Culture – PowerPoint PPT presentation

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Title: Presentation Slides to Accompany Organizational Behavior 10th Edition Don Hellriegel and John W. Slocum, Jr.

Presentation Slides to Accompany Organizational
Behavior 10th Edition Don Hellriegel and John W.
Slocum, Jr.
Chapter 15Cultivating Organizational Culture
  • Prepared by
  • Michael K. McCuddy
  • Valparaiso University

Slide 15.1 Learning Objectives for Cultivating
Organizational Culture
  • Explain how organizational cultures are formed,
    sustained, and changed
  • Describe four types of organizational culture
  • Discuss how organizational culture can influence
    ethical behaviors of managers and employees
  • Explain why fostering cultural diversity is
  • Describe the process of organizational
    socialization and its affect on culture

Slide 15.2 Components of Organizational Culture
  • Routine ways of communicating
  • Norms shared by individuals and teams
  • Dominant values held by an organization
  • Guiding philosophy for managements policies and
    decision making
  • Rules of the game for getting along in the
  • Climate of the organization

Slide 15.3 Layers of Organizational Culture
Cultural Symbols
Shared Behaviors
Cultural Values
Shared Assumptions
Slide 15.4 Issues Associated with External
Adaptation and Survival
  • Identifying the organization's primary mission
    and selecting strategies to pursue it
  • Setting specific targets
  • Determining how to pursue the goals, including
    selecting an organizational structure and reward
  • Establishing criteria to measure how well
    individuals, teams, and departments are
    accomplishing their goals

Slide 15.5 Issues Associated with Internal
  • Identifying methods of communication and
    developing a shared meaning for important
  • Establishing criteria for membership in groups
    and teams
  • Determining rules for acquiring, maintaining, and
    losing power and status
  • Developing systems for encouraging desirable
    behaviors and discouraging undesirable behaviors

Slide 15.6 How Cultures Emerge
  • Top Management
  • Agrees on shared assumptions of
    human behavior
  • Develops a shared vision of cultural values
  • Culture
  • Strong culture emerges
  • Traditions are maintained
  • Socialization practices for new employees
  • Behaviors
  • Employees behave in ways that are consistent
    with shared values and assumptions
  • Results
  • Financial performance
  • Market share
  • Employee commitment

Slide 15.7 Methods of Maintaining Organizational
  • Methods of Maintaining Organizational Culture
  • What managers and teams pay attention to
  • Reactions to organizational crises
  • Managerial role modeling
  • Criteria for rewards
  • Criteria for selection and promotion
  • Organizational rites, ceremonies, stories

Removal of employees who deviate from the
Recruitment of employees who fit the culture
Organizational Culture
Slide 15.8 Organizational Rites and Ceremonies
Rites of passage
Basic training, U.S. Army
Facilitate transition into new roles minimize
differences in way roles are carried out
Reduce power and identity reaffirm proper
Firing a manager
Rites of degradation
Enhance power and identity emphasize value of
proper behavior
Mary Kay Cosmetics Company ceremonies
Rites of enhancement
Encourage common feelings that bind members
Office party
Rites of integration
Source Adapted from Trice, H. M., and Beyer, J.
M. The Cultures of Work Organizations. Englewood
Cliffs, N.J. Prentice-Hall, 1993, 111.
Slide 15.9 Requirements for Successfully Changing
Organizational Culture
  • Understand the old culture first
  • Support employees and teams who have ideas for a
    better culture and are willing to act on those
  • Find the most effective subculture in the
    organization and use it as a model
  • Help employees and teams do their jobs more
  • Use the vision of a new culture as a guide for
  • Recognize that significant cultural change takes
  • Live the new culture

Slide 15.10 Framework of Types of Cultures
Clan Culture
Entrepreneurial Culture
Formal Control Orientation
Bureaucratic Culture
Market Culture
Forms of Attention
Source Adapted from Hooijberg, R., and Petrock,
F. On cultural change Using the competing values
framework to help leaders execute a
transformational strategy. Human Resource
Management, 1993, 32, 29-50 Quinn, R. E. Beyond
Rational Management Mastering the Paradoxes and
Competing Demands of High Performance. San
Francisco Jossey-Bass, 1988.
Slide 15.11 Attributes of a Bureaucratic Culture
  • Long-term concerns are predictability,
    efficiency, and stability
  • Members value standardized goods and services
  • Managers view their roles as being good
    coordinators, organizers, and enforcers of
    written rules and standards
  • Tasks, responsibilities, authority, rules, and
    processes are clearly defined

Slide 15.12 Attributes of a Clan Culture
  • Members understand that contributions to the
    organization exceed any contractual agreements
  • A clan culture achieves unity with a long and
    thorough socialization process
  • Members share feelings of pride in membership, as
    well as feelings of personal ownership of a
    business, a product, or an idea

Slide 15.12 (continued) Attributes of a Clan
  • Peer pressure to adhere to important norms is
  • Success is assumed to depend substantially on
    sensitivity to customers and concern for people
  • Teamwork, participation, and consensus decision
    making are believed to lead to success

Slide 15.13 Attributes of an Entrepreneurial
  • There is a commitment to experimentation,
    innovation, and being on the leading edge
  • This culture does not just quickly react to
    changes in the environmentit creates change
  • Effectiveness depends on providing new and unique
    products and rapid growth
  • Individual initiative, flexibility, and freedom
    foster growth and are encouraged and well

Slide 15.14 Attributes of a Market Culture
  • Contractual relationship between individual and
  • Independence and individuality are valued and
    members are encouraged to pursue their own
    financial goals
  • Does not exert much social pressure on an
    organizations members, but when it does, members
    are expected to conform

Slide 15.14 (continued) Attributes of a Market
  • Superiors interactions with subordinates largely
    consist of negotiating performancereward
    agreements and/or evaluating requests for
    resource allocations
  • Has a weak socialization process
  • Few economic incentives are tied directly to
    cooperating with peers
  • Often tied to monthly, quarterly, and annual
    performance goals based on profits

Slide 15.15 Organizational Uses of Culture
  • Organizational culture has the potential to
    enhance organizational performance, individual
    satisfaction, and a variety of expectations,
    attitudes, and behaviors in organizations
  • If an organizations culture is not aligned with
    the changing expectations of internal and/or
    external stakeholders, the organizations
    effectiveness can decline

Slide 15.15 (continued) Organizational Uses of
  • Organizational culture and performance are
    related, although the evidence regarding the
    exact nature of this relationship is mixed
  • Organizational culture affects employee behavior
    and performance
  • Assessing which attributes of an organizations
    culture need to be preserved and which ones need
    to be modified is a constant organization need

Slide 15.16 Relationship Between Culture and
  • Organizational culture can have a significant
    impact on a firms long-term economic performance
  • Organizational culture will probably be an even
    more important factor in determining success or
    failure of firms during the next decade

Slide 15.16 (continued) Relationship Between
Culture and Performance
  • Organizational cultures that inhibit strong
    long-term financial performance are not rare
    they develop easily, even in firms that are
    filled with reasonable and intelligent people
  • Although tough to change, organizational cultures
    can be made more performance enhancing if
    managers understand what sustains a culture

Slide 15.17 Effects of Organizational Culture
on Employee Behavior and Performance
  • Allows employees to understand the firms history
    and current methods of operation
  • Fosters commitment to corporate philosophy and
  • Serves as a control mechanism for employee
  • Certain cultural types may produce greater
    effectiveness and productivity

Slide 15.18 Effects of Organizational Culture on
Ethical Behavior
  • A culture emphasizing ethical norms provides
    support for ethical behavior
  • Top managers play a key role in fostering ethical
    behavior by exhibiting correct behavior
  • The presence or absence of ethical behavior in
    managerial actions both influences and reflects
    the culture

Slide 15.19 How Employees Can Change Unethical
  • Secretly or publicly reporting unethical actions
    to a higher level within the organization
  • Secretly or publicly reporting unethical actions
    to someone outside the organization
  • Secretly or publicly threatening an offender or
    responsible manager with reporting unethical
  • Quietly or publicly refusing to implement an
    unethical order or policy

Slide 15.20 Actions for Creating a Culture that
Encourages Ethical behavior
  • Be realistic in setting values and goals
    regarding employee relationships
  • Encourage input from organization members
    regarding appropriate values and practices for
    implementing the culture
  • Opt for a strong culture that encourages and
    rewards diversity and principled dissent
  • Provide training on adopting and implementing the
    organizations values

Slide 15.21 Guidelines for Managing Cultural
  • Organization members must
  • Understand the nature of diversity and value a
    variety of opinions and insights
  • Recognize the learning opportunities and
    challenges presented by the expression of
    different perspectives
  • The organizational culture must
  • Foster expectations for high standards of
    performance and ethics for everyone
  • Stimulate personal development
  • Encourage openness
  • Make workers feel valued
  • The organization must have a well-articulated and
    widely understood mission

Slide 15.22 Steps in Socialization
7. Role model to sustain culture
6. Rituals, taboos, rites, and stories to
reinforce culture
5. Adoption of cultural value policies
Removal of employees who deviate from culture
4. Rewards that sustain the culture
3. Training to develop capabilities consistent
with culture
2. Challenging early work assignments
Removal of candidates who do not fit culture
1. Careful selection
Slide 15.23 Possible Outcomes of the
Socialization Process
Successful socialization is reflected in
Unsuccessful socialization is reflected in
  • Job satisfaction
  • Role clarity
  • High work motivation
  • Understanding of culture, perceived control
  • High job involvement
  • Commitment to organization
  • Tenure
  • High performance
  • Internalized values
  • Job dissatisfaction
  • Role ambiguity and conflict
  • Low work motivation
  • Misunderstanding, tension, perceived lack of
  • Low job involvement
  • Lack of commitment to organization
  • Absenteeism, turnover
  • Low performance
  • Rejection of values