1. Managing Organization Culture18

2. A definition of organization culture
An understanding of the importance of organization culture in building organizational success
Insights regarding functions of organization culture

3. An appreciation for various types of cultures that can exist in organizations
Thoughts about how to build a high-performance organization culture
Tactics for keeping an organization culture alive and well

4. Fundamentals of Organization Culture
Defining Organization Culture
Importance of Organization Culture
Organization culture is a set of shared values that organization members have regarding the functioning and existence of their organization. Organization subculture is a mini-culture within an organization that can reflect the values and beliefs of a specific segment of an organization formed along lines such as established departments or geographic regions. A dominant organization culture includes the shared values about organizational functioning held by the majority of organization members.
Organization culture is very important and should be a part of the organizational strategy.

5. Functions of Organization Culture
Code of Conduct
The functions of organization culture include:
It can enhance productivity
It can serve as a component of organizational strategy
It provides a rationale for staffing
It can act as a guideline for making operational decisions
A code of conduct is a document that reflects the core values of an organization and suggests how organization members should act in relation to them.

6. Types of Organization Culture
Clan Culture
Adhocracy Culture
Hierarchy Culture
Market Culture
The types of organization culture can be shown in the Competing Values Framework (see next slide). It is composed of four quadrants: clan, adhocracy, hierarchy, and market cultures (each is explained on the next slide).

7. Types of Organization Culture
This figure illustrates the Competing Values Framework model. Cultures differ with respect to two sets of opposite values. The first set of is organizational flexibility and discretion versus organizational stability, order, and control. The second set is an internal organizational focus versus an external organizational focus. Depending on how a culture contains various combinations of the competing values represented by these two dimensions, cultures are divided into four types.
A clan culture is one characterized by a strong internal focus with a high degree of flexibility and discretion.
An adhocracy culture is one characterized by flexibility and discretion along with an external focus.
A hierarchy culture is one characterized by an internal focus along with an emphasis on stability and control.
A market culture is one that reflects values that emphasize stability and control along with an external focus.

8. Types of Organization Culture
This figure lists each type of culture depicted in the Competing Values Framework model and shows corresponding activities that competent managers within each of these cultures tend to emphasize. It shows how managers operating in each culture might act to increase the effectiveness of that culture.

9. Building a High-Performance Organization Culture
Lead as a Champion
Link Work to Organizational Mission
Track and Talk About Performance
Build a Hierarchy of Objectives
In building a high-performance organization culture, eight steps are suggested for managers. The first four are:
Lead as a Champion: The leader must champion the organization climate.
Link Work to Organizational Mission: Help employees understand how their work contributes to the organization’s mission.
Track and Talk About Performance: All organization members should be thinking about their individual performance.
Build a Hierarchy of Objectives: Provide a set of objectives wherein the overall objectives of the organization are divided into subobjectives for all sections and levels of the organization.

10. Building a High-Performance Organization Culture
Invest in Talent
Recognize and Reward
Hold Managers Accountable
Build Organizational Commitment
The next four steps are:
Invest in Talent: Though talented employees are often more expensive to hire, such employees often mean better organizational performance.
Recognize and Reward: Reinforcement and rewards help employees learn to be high performers.
Hold Managers Accountable: The performance of managers should be tracked and progress communicated to them.
Build Organizational Commitment: Build dedication to upholding the values of the organization and to make worthwhile contributions to fulfilling organizational purpose.

11. Building a High-Performance Organization Culture
This figure graphically illustrates the eight steps presented in the previous two slides. It shows that all 8 steps are important and each equally contributes to a high-performance organization culture.

12. Keeping Organization Culture Alive and Well
Establishing a Vision of Organization Culture
Quality Dimension
Ethics Dimension
Innovation Dimension
Managers must decide which dimension(s) will best help organizational success and then take steps to include that dimension as a major feature of organization culture. There are six such dimensions. The first three are:
Quality Dimension: Focuses on making sure a product does what it is supposed to do.
Ethics Dimension: Focuses on making sure an organization emphasizes not only what is good for the organization, but what is good for other human beings.
Innovation Dimension: Encourages the application of new ideas to the improvement of organizational processes, products, or services.

13. Keeping Organization Culture Alive and Well
Establishing a Vision of Organization Culture (continued)
Spirituality Dimension
Diversity Dimension
Customer Dimension
Spirituality Dimension: Encourages employees to integrate spiritual life and work life.
Diversity Dimension: Encourages the existence of basic human differences among employees.
Customer Dimension: Focuses on catering to the needs of those individuals who buy goods or services produced.

14. Keeping Organization Culture Alive and Well
Building & Maintaining Organization Culture Through Artifacts
Values
Organizational Myths
Organizational Sagas
Organizational Language
A cultural artifact is a dimension of an organization that helps to describe and reinforce the culture, or beliefs, values, and norms, in which an artifact exists.
A value is a belief of a person or social group in which they have an emotional investment. A values statement reflects the organization’s values (see next slide).
An organizational myth is a popular belief or story that has become associated with a person or institution that is considered to illustrate an organization culture ideal.
An organizational saga is a narrative describing the adventures of a heroic individual or family significantly linked to an organization’s past or present.
Organizational language is the words to reflect the organization’s shared values (see two slides hence).

15. Keeping Organization Culture Alive and Well
This is an example of a values statement; in this case, Microsoft. A values statement gives managers the opportunity to communicate effectively and efficiently the values that drive an organization and thereby help increase the probability that appropriate values will influence organization member behavior.

16. Keeping Organization Culture Alive and Well
This figure contains several well-known slogans and the companies that use them to convey important organizational values. This is reflective of organizational language.

17. Keeping Organization Culture Alive and Well
Building & Maintaining Organization Culture Through Artifacts (cont.)
Organizational Symbols
Organizational Ceremonies
Organizational Rewards
An organizational symbol is an object that has meaning beyond its intrinsic content, such as flags, buildings, characters, etc.
An organizational ceremony is a formal activity conducted on important organizational occasions, such as opening a new store, employee promotions, celebrating sales goals, etc.
An organizational reward is simply a reward for an accomplishment.

18. Keeping Organization Culture Alive and Well
Integrating New Employees into the Organization Culture
Organizational Socialization
Organizational Socialization Steps
Organizational socialization is the process by which management can appropriately integrate new employees within an organization’s culture.
The steps in the socialization process are depicted and explained on the next slide.

19. Keeping Organization Culture Alive and Well
This figure illustrates the steps in the socialization process. It begins with recruiting employees new to the culture. Then, step 2 is providing the initial work experiences. Third, the new employee is introduced to role models who embody the culture. In step 4, the informal organization is defined. Finally, an evaluation of cultural fit takes place.

20. Keeping Organization Culture Alive and Well
Maintaining the Health of Organization Culture
Healthy Organization Culture
Unhealthy Organization Culture
A healthy organization culture is one that facilitates the achievement of the organization’s mission and objectives.
An unhealthy organization culture is one that does not facilitate the accomplishment of the organization’s mission and objectives.

21. Keeping Organization Culture Alive and Well
Managers must continually analyze symptoms or signs related to the health of an organization and take action to build and maintain a healthy organization culture. This figure presents eight characteristics of a healthy organization culture.