259. Prepared by Michael K. McCuddy Valparaiso University
Presentation Slides to Accompany Organizational Behavior 10th Edition Don Hellriegel and John W. Slocum, Jr.
Chapter 15—Cultivating Organizational Culture
Prepared by
Michael K. McCuddy
Valparaiso University

260. Slide 15.1 Learning Objectives for Cultivating Organizational Culture
Explain how organizational cultures are formed, sustained, and changed
Describe four types of organizational culture
Discuss how organizational culture can influence ethical behaviors of managers and employees
Explain why fostering cultural diversity is important
Describe the process of organizational socialization and its affect on culture
Chapter 15: Cultivating Organizational Culture

261. Slide 15.2 Components of Organizational Culture
Routine ways of communicating
Norms shared by individuals and teams
Dominant values held by an organization
Guiding philosophy for management’s policies and decision making
Rules of the game for getting along in the organization
Climate of the organization
Chapter 15: Cultivating Organizational Culture

262. Slide 15.3 Layers of Organizational Culture
Cultural Symbols
Shared Behaviors
Cultural Values
Shared Assumptions
Chapter 15: Cultivating Organizational Culture

263. Slide 15.4 Issues Associated with External Adaptation and Survival
Identifying the organization's primary mission and selecting strategies to pursue it
Setting specific targets
Determining how to pursue the goals, including selecting an organizational structure and reward system
Establishing criteria to measure how well individuals, teams, and departments are accomplishing their goals
Chapter 15: Cultivating Organizational Culture

264. Slide 15.5 Issues Associated with Internal Integration
Identifying methods of communication and developing a shared meaning for important concepts
Establishing criteria for membership in groups and teams
Determining rules for acquiring, maintaining, and losing power and status
Developing systems for encouraging desirable behaviors and discouraging undesirable behaviors
Chapter 15: Cultivating Organizational Culture

265. Slide 15.6 How Cultures Emerge
Top Management
Agrees on shared assumptions of human behavior
Develops a shared vision of cultural values
Culture
Strong culture emerges
Traditions are maintained
Socialization practices for new employees
Behaviors
Employees behave in ways that are consistent with shared values and assumptions
Results
Financial performance
Market share
Employee commitment
Chapter 15: Cultivating Organizational Culture

266. Slide 15.7 Methods of Maintaining Organizational Culture
What managers and teams pay attention to
Reactions to organizational crises
Managerial role modeling
Criteria for rewards
Criteria for selection and promotion
Organizational rites, ceremonies, stories
Removal of
employees who
deviate from
the culture
Recruitment of
employees who
fit the culture
Organizational
Culture
Chapter 15: Cultivating Organizational Culture

267. Slide 15.8 Organizational Rites and Ceremonies
POSSIBLE
CONSEQUENCES
TYPE
EXAMPLE
Rites of passage
Basic training, U.S. Army
Facilitate transition into new
roles; minimize differences in
way roles are carried out
Rites of degradation
Firing a manager
Reduce power and identity;
reaffirm proper behavior
Enhance power and identity;
emphasize value of proper
behavior
Rites of enhancement
Mary Kay Cosmetics
Company ceremonies
Encourage common feelings
that bind members together
Rites of integration
Office party
Source: Adapted from Trice, H. M., and Beyer, J. M. The Cultures of Work Organizations.
Englewood Cliffs, N.J.: Prentice-Hall, 1993, 111.
Chapter 15: Cultivating Organizational Culture

268. Chapter 15: Cultivating Organizational Culture
Slide 15.9 Requirements for Successfully Changing Organizational Culture
Understand the old culture first
Support employees and teams who have ideas for a better culture and are willing to act on those ideas
Find the most effective subculture in the organization and use it as a model
Help employees and teams do their jobs more effectively
Use the vision of a new culture as a guide for change
Recognize that significant cultural change takes time
Live the new culture
Chapter 15: Cultivating Organizational Culture

269. Slide 15.10 Framework of Types of Cultures
Flexible
Clan
Culture
Entrepreneurial
Culture
Formal
Control
Orientation
Bureaucratic
Culture
Market
Culture
Stable
Internal
External
Forms of Attention
Source: Adapted from Hooijberg, R., and Petrock, F. On cultural change: Using the competing values framework to help
leaders execute a transformational strategy. Human Resource Management, 1993, 32, 29-50; Quinn, R. E. Beyond Rational
Management: Mastering the Paradoxes and Competing Demands of High Performance. San Francisco: Jossey-Bass, 1988.
Chapter 15: Cultivating Organizational Culture

270. Slide 15.11 Attributes of a Bureaucratic Culture
Long-term concerns are predictability, efficiency, and stability
Members value standardized goods and services
Managers view their roles as being good coordinators, organizers, and enforcers of written rules and standards
Tasks, responsibilities, authority, rules, and processes are clearly defined
Chapter 15: Cultivating Organizational Culture

271. Slide 15.12 Attributes of a Clan Culture
Members understand that contributions to the organization exceed any contractual agreements
A clan culture achieves unity with a long and thorough socialization process
Members share feelings of pride in membership, as well as feelings of personal ownership of a business, a product, or an idea
Chapter 15: Cultivating Organizational Culture

272. Slide 15.12 (continued) Attributes of a Clan Culture
Peer pressure to adhere to important norms is strong
Success is assumed to depend substantially on sensitivity to customers and concern for people
Teamwork, participation, and consensus decision making are believed to lead to success
Chapter 15: Cultivating Organizational Culture

273. Slide 15.13 Attributes of an Entrepreneurial Culture
There is a commitment to experimentation, innovation, and being on the leading edge
This culture does not just quickly react to changes in the environment—it creates change
Effectiveness depends on providing new and unique products and rapid growth
Individual initiative, flexibility, and freedom foster growth and are encouraged and well rewarded
Chapter 15: Cultivating Organizational Culture

274. Slide 15.14 Attributes of a Market Culture
Contractual relationship between individual and organization
Independence and individuality are valued and members are encouraged to pursue their own financial goals
Does not exert much social pressure on an organization’s members, but when it does, members are expected to conform
Chapter 15: Cultivating Organizational Culture

275. Slide 15.14 (continued) Attributes of a Market Culture
Superiors’ interactions with subordinates largely consist of negotiating performance–reward agreements and/or evaluating requests for resource allocations
Has a weak socialization process
Few economic incentives are tied directly to cooperating with peers
Often tied to monthly, quarterly, and annual performance goals based on profits
Chapter 15: Cultivating Organizational Culture

276. Slide 15.15 Organizational Uses of Culture
Organizational culture has the potential to enhance organizational performance, individual satisfaction, and a variety of expectations, attitudes, and behaviors in organizations
If an organization’s culture is not aligned with the changing expectations of internal and/or external stakeholders, the organization’s effectiveness can decline
Chapter 15: Cultivating Organizational Culture

277. Slide 15.15 (continued) Organizational Uses of Culture
Organizational culture and performance are related, although the evidence regarding the exact nature of this relationship is mixed
Organizational culture affects employee behavior and performance
Assessing which attributes of an organization’s culture need to be preserved and which ones need to be modified is a constant organization need
Chapter 15: Cultivating Organizational Culture

278. Slide 15.16 Relationship Between Culture and Performance
Organizational culture can have a significant impact on a firm’s long-term economic performance
Organizational culture will probably be an even more important factor in determining success or failure of firms during the next decade
Chapter 15: Cultivating Organizational Culture

279. Slide 15.16 (continued) Relationship Between Culture and Performance
Organizational cultures that inhibit strong long-term financial performance are not rare; they develop easily, even in firms that are filled with reasonable and intelligent people
Although tough to change, organizational cultures can be made more performance enhancing if managers understand what sustains a culture
Chapter 15: Cultivating Organizational Culture

280. Chapter 15: Cultivating Organizational Culture
Slide Effects of Organizational Culture on Employee Behavior and Performance
Allows employees to understand the firm’s history and current methods of operation
Fosters commitment to corporate philosophy and values
Serves as a control mechanism for employee behaviors
Certain cultural types may produce greater effectiveness and productivity
Chapter 15: Cultivating Organizational Culture

281. Slide 15.18 Effects of Organizational Culture on Ethical Behavior
A culture emphasizing ethical norms provides support for ethical behavior
Top managers play a key role in fostering ethical behavior by exhibiting correct behavior
The presence or absence of ethical behavior in managerial actions both influences and reflects the culture
Chapter 15: Cultivating Organizational Culture

282. Slide 15.19 How Employees Can Change Unethical Behavior
Secretly or publicly reporting unethical actions to a higher level within the organization
Secretly or publicly reporting unethical actions to someone outside the organization
Secretly or publicly threatening an offender or responsible manager with reporting unethical actions
Quietly or publicly refusing to implement an unethical order or policy
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283. Chapter 15: Cultivating Organizational Culture
Slide Actions for Creating a Culture that Encourages Ethical behavior
Be realistic in setting values and goals regarding employee relationships
Encourage input from organization members regarding appropriate values and practices for implementing the culture
Opt for a “strong” culture that encourages and rewards diversity and principled dissent
Provide training on adopting and implementing the organization’s values
Chapter 15: Cultivating Organizational Culture

284. Slide 15.21 Guidelines for Managing Cultural Diversity
Organization members must:
Understand the nature of diversity and value a variety of opinions and insights
Recognize the learning opportunities and challenges presented by the expression of different perspectives
The organizational culture must:
Foster expectations for high standards of performance and ethics for everyone
Stimulate personal development
Encourage openness
Make workers feel valued
The organization must have a well-articulated and widely understood mission
Chapter 15: Cultivating Organizational Culture

285. Slide 15.22 Steps in Socialization
7. Role model to sustain culture
6. Rituals, taboos, rites, and stories to reinforce culture
5. Adoption of cultural value policies
Removal of employees who deviate from culture
4. Rewards that sustain the culture
3. Training to develop capabilities consistent with culture
2. Challenging early work assignments
Removal of candidates who do not “fit” culture
1. Careful selection
Chapter 15: Cultivating Organizational Culture

286. Slide 15.23 Possible Outcomes of the Socialization Process
Successful socialization is
reflected in:
Unsuccessful socialization is
reflected in:
Job satisfaction
Role clarity
High work motivation
Understanding of culture, perceived control
High job involvement
Commitment to organization
Tenure
High performance
Internalized values
Job dissatisfaction
Role ambiguity and conflict
Low work motivation
Misunderstanding, tension, perceived lack of control
Low job involvement
Lack of commitment to organization
Absenteeism, turnover
Low performance
Rejection of values
Chapter 15: Cultivating Organizational Culture