1. 1 Organizational Culture OS 386 Nov 21, 2002 Fisher

2. 2 Agenda What is culture? Review culture examples Conduct exercise on desired organizational culture

3. 3 What is culture? Shared assumptions, values, beliefs – Correct way of behaving – Defines what is important, unimportant Can be specific to many different entities – Countries – Organizations – Occupations Subcultures often exist

4. 4 Dimensions of culture Level of control Performance orientation Value of relationships Responsiveness Can also look at values such as individualism, power distance, etc.

5. 5 Org culture examples IBM – Rigid – White dress shirts, ties Apple – Creative – Focus on marketing, meeting needs of educational and graphic design markets Accenture (formerly Andersen Consulting) – High profile – High work standards, high expectations – Tangible rewards Source: Rothenberger, C. (Nov. 2000). Consulting culture: Two companies uncovered. Fast Company [online version], retrieved 11/12/2002.

6. 6 How do we know what the culture is? We can look at – Artifacts, physical structures – Rituals and ceremonies We can listen to – Language – Stories and legends We can directly ask people, but must consider – Social desirability – Espoused values vs. enacted values – Various perceptual errors

7. 7 Socialization Process of learning the culture, reducing uncertainty Many ways to conduct socialization – Collective vs. individual – Formal vs. informal Outcomes of socialization include – Higher motivation, loyalty – Lower stress, turnover

8. 8 Meaning of cultural characteristics What does the cultural descriptor “ like a family ” mean to you?

9. 9 Outcomes of culture Clarifies expectations – Decision making – Ethics Facilitates formation of social identity, organizational commitment Can limit flexibility – “ That ’ s not the _______ way ”

10. 10 Industry culture Can often describe common aspects of multiple companies within an industry Example: dotcom culture – Informal, casual dress – Autonomy, self-management – Creativity, fun – Work defining self Source: Canabou, C. (August, 2001). The sun sets on the bohemian workplace. Fast Company [online version], retrieved 11/12/2002.

11. 11 Culture evolves over time Natural evolution vs. guided change New leaders Rise in power of subculture or counterculture Corporate scandals Changes in environment

12. 12 Merging multiple cultures Common issue with mergers and acquisitions Possible outcomes include – Assimilation – Deculturation – Integration – Separation Examples: – Daimler Benz and Chrysler – IBM and PwC Consulting

13. 13 Person/Organization Fit How well do individuals fit with the organizational culture? Compatibility with environment leads to – Higher satisfaction – Lower turnover Attraction-selection-attrition (ASA) model – People are attracted to, and stay with, organizations that fit their values and personality (Schneider, 1987) – Results in fairly homogeneous organization Socialization can increase P/O fit (Cable & Parsons, 2001)

14. 14 Assessing Fit: GE Japan Self-assessment tool on website (www.gejapan.com/cgi-bin/quiz.cgi) Allows potential applicants to assess fit with GE Japan culture and values Receive feedback report, detailed description of the culture – GE does not track the data

15. 15 Desired org culture Important to consider as you search for a job Complete assessment on page 471 of your textbook – Scoring guidelines on page 594 What other cultural characteristics are important to you?

16. 16 Key learning points Every organization has at least one culture Affects behavior in many ways Culture must be learned (socialization) Culture can change, must be re-learned Important to consider person- organization fit

17. 17 For next class Nov. 26 will be a team work day – Bring questions, concerns, issues regarding your team research report – I ’ ll work with teams individually – Criteria are posted on my website Nov. 28 – Happy Thanksgiving! Dec. 3 topic is organizational change – Read chapter 16