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
© 2011 Cengage Learning. All rights reserved.

2. Organizational (Corporate) Culture
LO1
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
© 2011 Cengage Learning. All rights reserved. 2

3. Levels of Organizational Culture
Artifacts – symbols of
culture in the physical
and social work environment
LO1
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.
© 2011 Cengage Learning.
All rights reserved.

4. Functions of Organizational Culture
LO2
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
© 2011 Cengage Learning. All rights reserved.

5. Organizational culture and Performance
LO3
Organizational culture and Performance
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
Fit Culture - a culture is good only if it fits the industry or the firm’s strategy
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
© 2011 Cengage Learning. All rights reserved.

6. Most Important Elements in Managing Culture
LO4
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
© 2011 Cengage Learning. All rights reserved.

7. Organizational Socialization
LO5
the process by which newcomers are transformed from
outsiders to participating, effective members of the organization

8. Organizational Culture Inventory
LO6
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
© 2011 Cengage Learning. All rights reserved.

9. Kilmann-Saxton Culture-Gap Survey
LO6
Focuses on what actually happens in the organization and the expectations of others
Two underlying dimensions – technical/human and time.
© 2011 Cengage Learning. All rights reserved.

10. Interventions for Changing Organizational Culture
LO7
Interventions for Changing
Organizational Culture

11. 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
© 2011 Cengage Learning. All rights reserved.