Organizational Culture What is Organizational Culture? What is the difference between strong and weak cultures? What do cultures do? How are cultures created? How do employees learn about culture?

Rand Merchant Bank’s Culture When employees at Rand Merchant Bank received a booklet entitled The Complete Book of Rules, they discovered that the pages inside were blank. The book was a reminder that the South African financial institution’s culture encourages employees to make their own decisions. Courtesy of Rand Merchant Bank

What is Org. Culture? Culture is a term used to describe the basic pattern of shared beliefs, assumptions, and values of an organization.

Compare SAS Institute & Wal- Mart, Inc. SAS – 200 acre campus, free on-site medical care, unlimited sick days, ski trips, personal trainers, inexpensive gourmet cafeterias, encourages a 35 hour work week. Wal-Mart Inc. – visitors have a waiting room and pay for own pop and coffee, emphasize efficiency and lowest possible operating costs, inexpensive office furniture.

What Does Culture Do? Distinguishes one organization from another Creates a sense of identity for employees Serves as a sense-making and control mechanism that guides and shapes employees attitudes and behaviors

Dominant and Subcultures Dominant culture is really what we mean when we refer to Org. culture Subcultures can support the dominant culture or act as countercultures and oppose the core values of the organization Two functions of countercultures: provide surveillance and critique, ethics provide surveillance and critique, ethics source of emerging values source of emerging values

Strong vs. Weak Cultures Strong – exists when most employees believe in and accept the dominant values of the organization. Weak – dominant values are short lived and held mainly by upper management Adaptive cultures – employees focus on the needs of customer and various stakeholders and keep pace with change

Research Studies over the years testing the relationships of culture strength and organizational performance have found only a modest, positive relationship between the two.

How is Culture Created & Communicated? Early beliefs and values come from the company’s founders We infer cultural characteristics from stories, legends, rituals and ceremonies, language, structure, and symbols

Stories & Legends Have the most impact when they are presumed to be true, are known by most employees and can provide a lesson or advice as to what to do or not to do.

Rituals Rituals programmed routines programmed routines (eg., how visitors are greeted, how employees are recognized, how upper management communicates with employees, how meetings are conducted etc.) (eg., how visitors are greeted, how employees are recognized, how upper management communicates with employees, how meetings are conducted etc.)

Ceremonies More formal activities that benefits the employees of an organization. Examples: retirement banquets, years of service award ceremonies, special gathering to launch a new product, sales person(s) of the year ceremony etc.

Artifacts: Organizational Language Words used to address co-workers, customers, stakeholders and so on. Leaders use metaphors and special vocabulary as cultural symbols eg. Container Store’s “Being Gumby” being flexible and helpful etc. eg. Container Store’s “Being Gumby” being flexible and helpful etc.

Common Metaphors Organizational Culture, learning, life- cycles The bread of life, heated debate, a rainbow of flavors, life in the fast lane, grow your own potential, you’ve got the power

Artifacts: Physical Structures/Symbols Building structure -- may shape and reflect culture Oakley’s “Interplanetary Headquarters” in Foothill Ranch, California Oakley’s “Interplanetary Headquarters” in Foothill Ranch, California Office design conveys cultural meaning Furniture, office size, wall hangings Furniture, office size, wall hangings