1. Chapter 16 Organizational Culture

2. Learning Outcomes
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

3. Learning Outcomes
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

4. Learning Outcome
Identify the three levels of culture and evaluate the roles they play in an organization
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

5. Organizational (Corporate) Culture
Pattern of basic assumptions that are considered valid
Taught to new members as the way to perceive, think, and feel in the organization
Levels
Artifacts
Values
Assumptions

6. Figure 16.1 - Levels of Organizational Culture

7. Table 16.1 - Six Rites in Organizations

8. Beyond the Book: Identifying Norms
This exercise asks you to identify campus norms at your university. Every organization or group has a set of norms that help determine individuals’ behavior. A norm is an unwritten rule for behavior in a group. When a norm is not followed, negative feedback is given. It may include negative comments, stares, harassment, and exclusion
As a group, brainstorm all the norms you can think of in the following areas: Dress Classroom behavior; Studying; Weekend activities; Living arrangements; Campus activities; Dating; Relationships with faculty; Eating on campus versus off campus; Transportation
How did you initially get this information?
What happens to students who don’t follow these norms?
What values can be inferred from these norms?
SOURCE: Dorothy Marcic, “Identifying Behavioral Norms.” Organizational Behavior: Experiences and Cases (St. Paul, MN: West Publishing, 1989). Reprinted by permission.

9. Evaluate the four functions of culture within an organization
Learning Outcome
Evaluate the four functions of culture within an organization
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

10. Functions of Organizational Culture
Provides a sense of identity to members and increases their commitment to the organization
Serves as a sense-making device for organization members
Reinforces the values of the organization
Serves as a control mechanism for shaping behavior

11. Beyond the Book: NetApp’s Culture of Openness
What is the key to success at NetApp? According to top executives, it’s openness
Everyone, including the CEO, works in an open cubicle. Information is shared freely. Every two weeks, employees meet with the Vice President to share their perspectives
In addition, NetApp shows employees that they are valuable and cared for through flexible scheduling, and sponsorship of volunteer activities
NetApp’s culture of openness and trust has made it one of Fortune magazine’s “Best Companies to Work For.”
The data storage and management company NetApp has survived the dot-com crash and has enjoyed tremendous success under long-time CEO Dan Warmenhoven. Top executives at NetApp are quick to credit the open, trusting culture for the company’s success—and employees agree, catapulting NetApp to the top of Fortune’s “Best Companies to Work For” list.
A culture of trust and openness gives NetApp a distinct competitive advantage. The office design supports these values. Everyone, including the CEO, works in an open air cubicle. Information is shared fully and openly. A Vice President’s Forum is held every two weeks in which information about the company and the economy is shared, but its main purpose is for the VP to hear what’s on the mind of NetApp employees. Key to the culture is the commitment to simplicity and common sense. Bureaucracy is at a minimum, and products are designed in order to do the job as simply as possible for customers. A twelve-page travel policy was canned in favor of a simple statement asking employees to use their common sense.
Recruiting is done to attract brilliant people to the organization, and care is taken to let employees know how brilliant and appreciated they are. NetApp provides exciting work, provides flexible scheduling for work–life balance, and encourages volunteer efforts in the community. Five paid days off are given to each employee for volunteer work. Unique benefits are provided, too, like adoption aid and autism coverage. NetApp’s culture of trust, openness, simplicity, and common sense has garnered not only recognition, but highly performing employees and loyal customers, both keys to competitive advantage.
SOURCES: R. Levering and M. Moskowitz, “And the Winners Are….” Fortune, February 2, 2009, 67–78;

12. Learning Outcome
Explain the relationship between organizational culture and performance
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

13. Theories on the Relationship between Organizational Culture and Performance
Strong culture perspective: Organizational culture with a consensus on the values that drive the company
Strong culture facilitate performance because it is:
Characterized by goal alignment
Create a high level of motivation
Provide control without oppressive effects of a bureaucracy

14. Theories on the Relationship between Organizational Culture and Performance
Fit perspective - Culture is good only if it fits the industry or the firm’s strategy
Industry characteristics that affect culture
Competitive environment
Customer requirements
Societal expectations

15. Theories on the Relationship between Organizational Culture and Performance
Adaptation perspective - Organizational culture that:
Encourages confidence and risk taking among employees
Has leadership that produces change
Focuses on the changing needs of customers

16. Table 16.2 - Adaptive versus Nonadaptive Organizational Cultures

17. Describe five ways leaders reinforce organizational culture
Learning Outcome
Describe five ways leaders reinforce organizational culture
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

18. 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

19. Learning Outcome
Describe the three stages of organizational socialization and the way culture is communicated in each step
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

20. Organizational Socialization
Transformation of newcomers from outsiders to participating, effective members of the organization 2

21. Figure 16.2 - The Organizational Socialization Process: Stages and Outcomes

22. Discuss how managers assess their organization’s culture
Learning Outcome
Discuss how managers assess their organization’s culture
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

23. 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 cultural styles
Four satisfaction cultural styles
Eight security cultural styles

24. Kilmann-Saxton Culture-Gap Survey
Focuses on what happens in the organization and the expectations of others
Underlying dimensions - Technical/human orientation and short-term versus long-term time
Areas in which operating and ideal norms are assessed
Task support
Task innovation
Social relationships
Personal freedom

25. Triangulation
Use of multiple methods to measure organizational culture
Some methods used to triangulate on the culture
Obtrusive observations by trained observers, which provides an outsider perspective
Self-administered questionnaires, which provides quantitative insider information
Personal interviews with the center’s staff, which provides qualitative contextual information

26. Explain actions managers can take to change organizational culture
Learning Outcome
Explain actions managers can take to change organizational culture
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

27. Figure 16.3 - Interventions for Changing Organizational Culture

28. Learning Outcome
Identify the challenges organizations face developing positive, cohesive cultures
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

29. Challenges to Developing Positive, Cohesive Culture
Merger or Acquisition
Global organizational culture
Ethical organizational culture
Culture of empowerment and quality

30. Beyond the Book: Six Guidelines to Creating a Global Culture
Create a clear and simple mission statement
Create systems that ensure an effective flow of information
Broaden managers’ minds to allow them to think globally
Develop global career paths
Use cultural differences as a major asset
Implement worldwide management education and team development programs
**Following are six specific guidelines for managers who want to create a global culture:
1. Create a clear and simple mission statement. A shared mission can unite individuals from diverse cultural backgrounds.
2. Create systems that ensure an effective flow of information. Coordination councils and global task forces can be used to ensure that information flows throughout the geographically dispersed organization are consistent.
3. Create “matrix minds” among managers; that is, broaden managers’ minds to allow them to think globally. IBM does this through temporary overseas assignments. Managers with international experience share that experience when they return to the home organization.
4. Develop global career paths. This means ensuring not only that home country executives go overseas but also that executives from other countries rotate into service in the home office.
5. Use cultural differences as a major asset. The former Digital Equipment Corporation (now part of Hewlett-Packard), for example, transferred its research and development functions to Italy to take advantage of the free-flowing Italian management style that encouraged creativity. Its manufacturing operations went to Germany, which offered a more systematic management style.
6. Implement worldwide management education and team development programs. Unified training efforts that emphasize corporate values can help establish a shared identity among employees.
These guidelines are specifically aimed at multinational organizations that want to create a global corporate culture, but other organizations can also benefit from. Companies that want to broaden employees’ views or to use the diversity of their workforce as a resource will find several of these recommendations advantageous.

31. Charlie Wilson’s War
Artifacts are at the first level of organizational culture and are the easiest to see. Which artifacts did you observe in this sequence?
Values appear at the next level of organizational culture. You can infer a culture’s values from the behavior of organizational members. Which values appear in this sequence?
Organizational members will unconsciously behave according to an organization culture’s assumptions. You also can infer these from observed behavior. Which assumptions appear in this sequence?
Democratic Congressman Charlie Wilson (Tom Hanks) from East Texas lives a reckless life that includes heavy drinking and chasing attractive women. The film focuses on the Afghanistan rebellion against the Soviet troop invasion in the 1980s. Wilson becomes the unlikely champion of the Afghan cause through his role in two major congressional committees that deal with foreign policy and covert operations. Houston socialite Joanne Herring (Julia Roberts) strongly urges the intervention. CIA agent Gust Avrakotos (Philip Seymour Hoffman) helps with some details.
This sequence appears early in the film after the scene showing Charlie Wilson, Paul Brown (Brian Markinson), Crystal Lee (Jud Tyler), and two strippers drinking and partying in a hot tub. It opens with a shot of the Capitol building. Congressman Charlie Wilson talks to his assistant Bonnie Bach (Amy Adams) while walking to chambers for a vote. The sequence ends after Wilson enters the chambers.

32. Camp Bow Wow
What aspects of Camp Bow Wow’s corporate culture are visible and conscious? What aspects are invisible and unconscious?
Why did Camp Bow Wow have to change its culture when it became a national franchise?
What impact does Heidi Ganahl’s story have on employees at Camp Bow Wow?
According to Heidi Ganahl, Camp Bow Wow’s top dog, corporate culture has many elements: it can mean logos and branded material, a presence on the Internet, or even the relationships developed with customers and employees. But a key element of Camp Bow Wow’s culture that doesn’t exist in other franchises is the staff’s deep emotional connection with animals. The connection is immediately apparent at Camp Bow Wow’s corporate headquarters, where offices are bustling with employees and pets alike. “It’s all about the pets,” Ganahl says. “If we keep that focus and that commitment, I think our culture will be alive and well for a long time.”
Ask your students:
What aspects of Camp Bow Wow’s corporate culture are visible and conscious? What aspects are invisible and unconscious?
Why did Camp Bow Wow have to change its culture when it became a national franchise?
What impact does Heidi Ganahl’s story have on employees at Camp Bow Wow?