1. Chapter 16 Organizational Culture
Identify the three levels of culture and the roles they play in an organization.
Evaluate the four functions of culture within an organization.
Explain the relationship between organizational culture and performance.
Describe five ways leaders reinforce organizational culture.
Describe the three stages of organizational socialization and the ways culture is communicated in each step.
Discuss how managers assess their organization’s culture.
Explain actions managers can take to change organizational culture.
Identify the challenges organizations face developing positive, cohesive cultures.
Learning Outcomes
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2. Organizational (Corporate) Culture
a pattern of basic assumptions that are considered valid and that are taught to new members as the way to perceive, think, and feel in the organization
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Learning Objective 1
Identify the three levels of culture and the roles they play in an organization.
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4. Levels of Organizational Culture
Artifacts – symbols of
culture in the physical
and social work environment
Values
Espoused: what members of
an organization say they value
Enacted: reflected in the way
individuals actually behave
Levels of Organizational Culture
Assumptions – deeply held
beliefs that guide behavior and tell
members of an organization how
to perceive and think about things
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5. Organizational Culture
Artifacts – symbols of
culture in the physical
and social work environment
Visible, often not
decipherable
Values
Espoused: what members of
an organization say they value
Enacted: reflected in the way
individuals actually behave
Greater level
of awareness
Assumptions – deeply held
beliefs that guide behavior and tell
members of an organization how
to perceive and think about things
Taken for granted,
Invisible, Preconscious
Reprinted with permission from Edgar H. Schein,
Organizational Culture and Leadership: A Dynamic View.
Copyright © 1985 Jossey-Bass
Inc, a subsidiary of John Wiley & Sons, Inc.
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Types of Artifacts
Personal Enactment
Ceremonies and Rites
Stories
About the boss
About getting fired
About relocating
About promotions
About crisis situations
About status considerations
Rituals
Symbols
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Learning Objective 2
Evaluate the four functions of culture within an organization.
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8. Functions of Organizational Culture
Culture provides a sense of identity to members and increases their commitment to the organization
Culture is a sense-making device for organization members
Culture reinforces the values of the organization
Culture serves as a control mechanism for shaping behavior
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Theories on the relationship between organizational culture and performance
Strong Culture Perspective
Fit Perspective
Adaptive Perspective
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Strong Culture
an organizational culture with a consensus on the values that drive the company and with an intensity that is recognizable even to outsiders
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11. Strong Cultures Facilitate Performance
BECAUSE
They are characterized by goal
alignment
They create a high level of motivation
because of shared values by the members
They provide control without the
oppressive effects of bureaucracy
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Fit Perspective
a culture is good only if it fits the industry or the firm’s strategy
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Fit Perspective
Three particular industry characteristics affect culture:
Competitive environment
Customer requirements
Societal expectations
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Adaptive Culture
an organizational culture that encourages confidence and risk taking among employees, has leadership that produces change, and focuses on the changing needs of customers
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15. Adaptive vs. Nonadaptive Cultures
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16. Most Important Elements in Managing Culture
What leaders pay attention to
How leaders react to crises
How leaders behave
How leaders allocate rewards
How leaders hire and fire individuals
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17. Organizational Socialization
the process by which newcomers are transformed from outsiders to participating, effective members of the organization
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18. Organizational Socialization Process

19. [Socialization Process]
1. [Anticipatory Socialization] – all of the learning that takes place prior to the newcomer’s first day on the job
2. [Encounter] – newcomer learns the tasks associated with the job, clarifies roles, and establishes new relationships at work
3. [Change and Acquisition] – newcomer begins to master the demands of the job
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20. Outcomes of Socialization
Newcomers who are successfully socialized should exhibit:
Good performance
High job satisfaction
Intention to stay with organization
Low levels of distress symptoms
High level of orgnaizational commitment
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21. Organizational Culture Inventory
Focuses on behaviors that help employees fit into the organization and meet coworker expectations
Uses Maslow’s hierarchy of needs to measure twelve cultural styles
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22. Kilmann-Saxton Culture-Gap Survey
Focuses on what actually happens in the organization and the expectations of others
Two underlying dimensions – technical/human and time.
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Triangulation
the use of multiple methods to measure organizational culture
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Cultural Changes
With rapid environmental changes such as globalization, workforce diversity and technological innovation, the fundamental assumptions and basic values that drive the organization may need to be altered.
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25. Why is Change Difficult?
Assumptions are often unconscious
Culture is deeply ingrained and behavioral norms and rewards are well learned
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26. Interventions for Changing Organizational Culture

27. Challenges to Developing Positive, Cohesive Culture
Merger or Acquisition
Developing a global organizational culture
Developing an ethical organizational culture
Developing a culture of empowerment and quality
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