1 Organizational Culture February 14, 2012 MGMT-4000 Harvard University

Organizational culture   A pattern of basic assumptions – invented, discovered, or developed by a given group as it learns to cope with its problems of external adaptation and internal integration – that has worked well enough to be considered valid and, therefore to be taught to new members as the correct way to perceive, think, and feel in relation to those problems. Edgar Schein   How big a role do you think culture plays in performance and employee satisfaction?   What does strong organizational culture look like?

3 Understanding an Organization’s Culture  Understanding the de facto rules for inclusion  Study the power structure  Examine the reward and punishment system  Understand problems the organization has successfully addressed Source: What is an Organization’s Culture? Clayton M. Christensen, Harvard Business Review, 2006

Organization Culture Artifacts Artifacts Espoused Values Espoused Values Underlying Assumptions Underlying Assumptions Symbols; stories; ceremonies; rituals; rites; personal enactments Strategies; goals; philosophies; espoused justifications Beliefs; perceptions; thoughts; ultimate source of values and actions (sometimes unconscious) - From the work of Edgar Schein

 Subculture. A group of individuals with a unique pattern of values and philosophy that are not inconsistent with the organization’s dominant values and philosophy. A group of individuals with a unique pattern of values and philosophy that are not inconsistent with the organization’s dominant values and philosophy.  Counterculture. A group of individuals with a pattern of values and philosophy that outwardly reject the surrounding culture. A group of individuals with a pattern of values and philosophy that outwardly reject the surrounding culture. ( Schermerhorn, Hunt, and Osborn)

National cultural influences Widely held common assumptions may be traced to the larger culture of the host society. Widely held common assumptions may be traced to the larger culture of the host society. National cultural values may become embedded in expectations of organization members. National cultural values may become embedded in expectations of organization members.

StructuralHuman Resource PoliticalSymbolic Metaphor for organization Factory or machine FamilyJungleTemple or theatre Central concepts Rules, roles, goals, policies Needs, skills, relationships Power, conflict, competition Culture, ritual, ceremony, stories, heroes Image of leadership Social architecture EmpowermentAdvocacyInspiration Basic leadership challenge Attune structure to task, environment Align organization and human needs Develop agenda and power base Create faith, beauty, meaning Overview of the Four Frame Model Lee Bolman and Terrence Deal, Reframing Organizations: Artistry, Choice, and Leadership (San Francisco: Jossey-Bass, 2003), 16.

Case Questions  Which frame is invoked most clearly in the interpretation of this organization’s culture? Why? What language do you see?  How do other frames advance your understanding of this organization’s culture?  Would you describe this organization’s culture as strong? Why or why not? 8

9 References   “What’s an Organization’s Culture?” Christensen, Clayton M., Harvard Business Review 2006   “What’s Your Company’s Culture?” Krattenmaker, Tom, Harvard Management Communication Letter, 2000   Organizational Behavior. Schermerhorn, John R., Hunt, James G., Osborn, Richard N., 2008, Wiley.   Reframing Organizations: Artistry, Choice, and Leadership. Bolman, Lee G. and Deal, Terrence E., 2008, Jossey-Bass.