1. Organization Culture

2. Schein’s (1996) definition
Organizational culture is “the set of shared, taken-for-granted, implicit assumptions that a group holds and that determines how it perceives, thinks about and reacts to its various environments.”
It’s shared
Property of the work unit (group, team or even organization as a whole)
Implicit assumptions
Not necessarily in awareness most of the time
Has consequences
Sum of values and rituals which serve as ‘glue’ to integrate the members of the organization.
Shapes how organizational employees act

3. A functional theory of organizational culture
Organizational culture is the pattern of basic assumptions that a given group has invented, discovered, or developed in learning to cope with its problems of external adaptation and internal integration, and that have 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.
Schein’s 1984

4. Content of Organizational Cultures
Artifacts
Shared beliefs & values
Basic assumptions

5. Where does organizational culture come from?

6. Organization culture often build on top of national culture
Culture = integrated system of learned behavior patterns which are characteristic of the members of a group (society, corporation, fraternity)  

7. Geert Hofstede Dutch social psychologist
Industrial psychologist at IBM from
Surveys from 116,000 IBM employees from 40 countries
Factor analysis to identify first 4 & then later 5 distinct dimensions of cultural values

8. Hofstede’s values

9. Hofstede’s Framework
Primarily descriptive taxonomy about how cultures differ
Individualistic vs Collectivist dimensions used most
Not a theory, with causal explanations for
Why the cultural differences came to be
What consequences they would have

10. Individualism vs Collectivism
Degree to which individuals are integrated into groups.
The fundamental issue addressed by this dimension is the degree of interdependence a society maintains among its members. It has to do with whether people´s self-image is defined in terms of “I” or “We”. In Individualist societies people are supposed to look after themselves and their direct family only. In Collectivist societies people belong to ‘in groups’ that take care of them in exchange for loyalty.

11. Measuring Individualism/Collectivism
How much do you agree with the following statements:
Individuals should sacrifice self-interest for the group.
Individuals should stick with the group even through difficulties.
Group welfare is more important than individual rewards.
Group success is more important than individual success.
Individuals should only pursue their goals after considering the welfare of the group.
Group loyalty should be encouraged even if individual goals suffer.

12. Individualism vs Collectivism
Ties between individuals are loose: everyone is expected to look after him/herself and his/her immediate family. 
Stress on personal achievements and individual rights
Everyone expected to fulfill their own needs
Everybody has the right to own opinion.
People are integrated into strong, cohesive in-groups, often extended families (with uncles, aunts and grandparents) which continue protecting them in exchange for unquestioning loyalty.
Stress on group pride & solidarity

13. Array yourself on the 7-point scale
Individualism vs Collectivism
You have a 14 year old brother. He has been taking piano lessons since he was seven. He now wants to quit, and start playing electric guitar in a band with some buddies, but your parents are opposed. They think the piano is a better instrument and that your brother will regret his decision when he gets older. Who do you support – brother or father?

14. Scores by country: Individualism

15. Where does organizational culture come from?
Shein (1984): Most cultural solutions in new groups and organizations originate from the founders and early leaders
Jobs: Perfectionism & design at Apple
Kelly: Culture of “wisdom” & combination at Ideo
Zuckerberg: Hacker culture at Facebook
Kalanick: Frat-like, sexist culture at Uber (e.g., see Maimi letter)
Advocate ways of doing things that are adopted or rejected, depending on how well they work.

16. Founders/Leaders as important source of organizational culture
The process of culture formation is the process of creating a small group:
single person (founder) has idea.
founder brings in one or more people and creates core group. They share vision and believe in the risk.
founding group acts in concert, raises money, work space...
Others are brought in and a history is begun.

17. Culture as a response to core external problems

18. Culture as a response to core internal problems of coordination

19. Amazon’s values & assumptions

20. Amazon 14 Leadership Principles
Customer Obsession
Ownership
Invent and Simplify
Hire and Develop The Best
Insist on the Highest Standards
Think Big
Dive Deep
Frugality
Learn and Be Curious
Earn Trust
Have Backbone; Disagree and Commit
Bias for Action
Are Right, A Lot
Deliver Results

21. Uber’s values and assumptions
External
Game changing: Disregard for established industries & municipal regulation
Arms length relationship with driver contractors
Internal
“Game-of-thrones political war raging within the ranks of upper management” with “every manager was fighting their peers and attempting to undermine their direct supervisor so that they could have their direct supervisor's job”
Sexist treatment of women

22. Ideo’s values & assumptions

23. Apple values & assumptions
Based on ideal that self-motivated individuals will work harder if they do not have a boss micromanaging every action
Brutal & unforgiving place where accountability is strictly enforce
Never any confusion as to who is responsible for what.
“DRI” = Directly Responsible Individual
Every meeting ends with an action list

26. Facebook
Facebook is defined by our hacker culture - an environment that rewards creative problem solving and rapid decision making. We encourage people to be bold. Our open culture keeps everyone informed and allows people to move around and solve the problems they care about most. We work in small teams and move fast to develop new products, constantly iterating and improving. The phrase “this journey is 1% finished” is posted on our walls, reminding us that we’ve only begun to fulfill our mission to bring the world closer together

27. Storyboard for CMU’s culture
Make a storyboard for a three minute video that would show someone from Mars what it means to be a member of the CMU culture overall or one of its subgroups.
Highlight the strengths of the culture and one flaw.

28. Abstracting Organization Culture
Flexibility & Discretion
Internal focus: Integration
External focus: Differentiation
Stability & Control
From Figure 3 in Cameron, K. S., Quinn, R. E., DeGraff, J., & Thakor, A. V. (2014). Competing values leadership: Edward Elgar Publishing.

29. Taxonomy of Organizational Cultures: Competing Values Framework
From Figure 3 in Cameron, K. S., Quinn, R. E., DeGraff, J., & Thakor, A. V. (2014). Competing values leadership: Edward Elgar Publishing.

30. Key assumptions
Table 13-1 in Quinn, R. E., & Kimberly, J. R. (1984). Paradox, planning, and perseverance: Guidelines for managerial practice. Managing organizational transitions (pp ).

31. Some measurement instruments
Sources
Clan Culture Descriptors
Hartnell, C. A., Ou, A. Y., & Kinicki, A. (2011). Organizational culture and organizational effectiveness: a meta-analytic investigation of the competing values framework's theoretical suppositions. Journal of Applied Psychology, 96(4), 677.

32. Some measurement instruments
Sources
Adhocracy Culture Descriptors
Hartnell, C. A., Ou, A. Y., & Kinicki, A. (2011). Organizational culture and organizational effectiveness: a meta-analytic investigation of the competing values framework's theoretical suppositions. Journal of Applied Psychology, 96(4), 677.

33. Some measurement instruments
Market Culture Descriptors
Hartnell, C. A., Ou, A. Y., & Kinicki, A. (2011). Organizational culture and organizational effectiveness: a meta-analytic investigation of the competing values framework's theoretical suppositions. Journal of Applied Psychology, 96(4), 677.

34. Some measurement instruments
Hierarchical Culture Descriptors
Hartnell, C. A., Ou, A. Y., & Kinicki, A. (2011). Organizational culture and organizational effectiveness: a meta-analytic investigation of the competing values framework's theoretical suppositions. Journal of Applied Psychology, 96(4), 677.

35. Where do the Amazon’s & Ideo’s cultures fit into this taxonomy?
Zappos

36. Relationship among types
These cultures are not mutually exclusive:
Hartnell, C. A., Ou, A. Y., & Kinicki, A. (2011). Organizational culture and organizational effectiveness: a meta-analytic investigation of the competing values framework's theoretical suppositions. Journal of Applied Psychology, 96(4), 677.

37. How do these influence organizational success?
Hartnell, C. A., Ou, A. Y., & Kinicki, A. (2011). Organizational culture and organizational effectiveness: a meta-analytic investigation of the competing values framework's theoretical suppositions. Journal of Applied Psychology, 96(4), 677.

38. Meta-analysis: Organizational culture & employee attitudes
Hartnell, C. A., Ou, A. Y., & Kinicki, A. (2011). Organizational culture and organizational effectiveness: a meta-analytic investigation of the competing values framework's theoretical suppositions. Journal of Applied Psychology, 96(4), 677.

39. Meta-analysis: Organizational culture & employee attitudes
Hartnell, C. A., Ou, A. Y., & Kinicki, A. (2011). Organizational culture and organizational effectiveness: a meta-analytic investigation of the competing values framework's theoretical suppositions. Journal of Applied Psychology, 96(4), 677.

40. Meta-analysis: Organizational culture & employee attitudes

41. Meta-analysis: Organizational culture & subjective financial effectiveness
Hartnell, C. A., Ou, A. Y., & Kinicki, A. (2011). Organizational culture and organizational effectiveness: a meta-analytic investigation of the competing values framework's theoretical suppositions. Journal of Applied Psychology, 96(4), 677.

42. Meta-analysis: Organizational culture & objective financial effectiveness
Hartnell, C. A., Ou, A. Y., & Kinicki, A. (2011). Organizational culture and organizational effectiveness: a meta-analytic investigation of the competing values framework's theoretical suppositions. Journal of Applied Psychology, 96(4), 677.

43. extra