Chapter 14: Organizational Culture Creating Effective Organizations

Definition of Organizational Culture Socially acquired and shared rules of conduct that are manifested in the organization’s artifacts, perspectives, values, and assumptions. Socially acquired and shared rules of conduct that are manifested in the organization’s artifacts, perspectives, values, and assumptions.

Levels of Organizational Culture Norms Situation specific rules of conduct Values Generalizable goals, ideals, standards Assumptions Taken for granted beliefs concerning: Human Nature, Relationships, Truth, etc. ArtifactsVerbalPhysicalBehavioral Low High Level of Awareness

Categories of Cultural Assumptions 1. The Nature of Relationships: Are relationships between members of the organization assumed to be primarily lineal (i.e. hierarchical), collateral (i.e. group oriented), or individualistic in nature? 2. Human Nature: Are humans considered to be basically good, basically evil, or neither good nor evil? 3. The Nature of Truth: Is “truth” (i.e. correct decisions) discovered from external authority figures, or is it determined by a process of personal investigation and testing? 4. The Environment: Is there a basic belief that humans can master the environment; or must be subjugated by the environment; or should attempt to harmonize with the environment?

Managing Culture Change 1. Conduct a culture audit 2. Cultural assessment and need for change 3. Unfreeze the cultural pattern 4. Elicit support from cultural elite –In most cases, senior management 5. Choose an intervention strategy 6. Monitor and evaluate

Maintaining Cultural Values 1)Identify the Core Values of the Organization 2)Describe the behaviors that reflect those values 3)Teach the values and behaviors to members of the organization 4)Reward those who behave consistently with the values 5)Identify and Discipline those who violate core values—Hot Stove Rule 6) Hire those with similar values