Managing Organizational Culture

• The set of values, norms, and beliefs that control the way people and groups in an organization interact with each other and with people outside the organization.

DEFINITION

•In every organizations there are patterns of beliefs, symbols, myths and practices that have evolved over time. These in turn create common understanding among members as to what the organizations is and how its members should behave.

What are Organizational Values?

Guiding principles people used to determine which types of behaviors, events, situations, and outcomes are desirable or undesirable

Terminal Instrumental

Terminal and Instrumental Values

Terminal Quality Responsibility Innovativeness Excellence Economy Morality Profitability

Instrumental Working hard Respecting traditions Respecting authority Being conservative Being economical Being creative Being honest

Building Blocks of Organizational Culture

Characteristics of people within the organization

Organizational ethics Employment relationship Organizational structure National culture

characteristics Individual initiatives-the degree of freedom, responsibility, and

independence that individuals have Risk tolerance-the degree to which employees are encouraged

to be aggressive, innovative, and risk seeking. Directions- the degree to which the organizations creates clear

objectives and performance expectations Integrations-the degree to which units within organizations are

encouraged to operate in a coordinated manner. Management support-the degree to which managers provide

clear communication, assistance, and support to their peers. Control-the number of rules and regulation and the amount of

direct supervision used to control employee behaviour.

Identity-the degree to which members identify with the organizations as a whole rather than with their particular work group or field of professional expertise.

Reward system-the degree to which reward allocations are based on employee performance criteria rather than to seniority, favoritism, and so on.

Conflict tolerance-the degree to which employees are encouraged air conflicts and criticism openly

Communication pattern-the degree to which organizational communications are restricted to the formal hierarchy of authority.

Sources of cultures The founder of the organization and his

or her personal values and beliefs have a substantial influence on an organization’s culture and the norms, stories, myths, and legends that develop in a company.

Ethical values are the moral values and norms that establish the appropriate way for an organization and its members to deal with each other and with those outside the organization.

Levels of Corporate Culture

Observable SymbolsCeremonies, Stories, Slogans,

Behaviors, Dress, Physical Settings

Underlying Values,

Assumptions,Beliefs, Attitudes,

Feelings

Figure Ways of Transmitting Organizational Culture

Ceremonial Ritesand

Ceremonies

Employees learn

through:

Formal socialization practices

The organizational

language

Signs, symbols, stories

SOCIALIZATION

An organization’s culture is transmitted to itsmembers through socialization processes.

Socialization is the process by which memberslearn and internalize the values and normsof an organization’s culture.

Van Mannen and Schein’s socialization model explains how people can be guided to the values desired by the organization.

Role Orientation

The V-S model of socialization explains howpeople are guided towards particularrole orientations.

Role orientation is the characteristic way in which newcomers respond to a situation.

There are two basic types of role orientation.

Role Orientation

An institutionalized role orientation results when individuals are taught to respond to a new context in the same way that existing members respond to it.

An individualized role orientation results when individuals are allowed and encouraged to be creative and experimental when responding to a new situation.

Role Orientation

There are various tactics that can be used to socialize newcomers to a particular role orientation, depending on what the organization desires from its members.

How these tactics shape employee’s role orientation is summarized in Table 5.1.

Socialization

TABLE 5.1 How Socialization Tactics Shape Employees’ Role Orientation

Tactics that lead to an Tactics that lead to aninstitutionalized orientation individualized orientation

Collective Individual

Formal Informal

Sequential Random

Fixed Variable

Serial Disjunctive

Divestiture Investiture

Socialization Tactics

Collective tactics provide newcomers with common learning experiences.

Individual tactics involve unique and new learning experiences for newcomers.

Socialization Tactics

Formal tactics segregate newcomers from existing members during the learning process.

Informal tactics involve learning on the job as members of a team.

Socialization Tactics

Sequential tactics provide newcomers with information about the sequence of newactivities.

Random tactics involve training that is basedon the individual needs and interests of newcomers—there is no set sequence.

Socialization Tactics

Fixed tactics give newcomers precise knowledge abut the timetable of completingeach stage in the learning process.

Random tactics provide no information aboutwhen newcomers will reach a certainstage in the learning process.

Socialization Tactics

Serial tactics use existing members as role models and mentors for newcomers.

Disjunctive tactics require newcomers to figure out and develop their own way of behaving.

Socialization Tactics

Divestiture tactics involve using negativesocial support (ignored or taunted) until newcomers conform to established norms.

Investiture tactics offer immediate positivesocial support for newcomers (quicklywelcomed into the fold).

These specific socialization tactics are not the only paths that allow organizational culture to be transmitted to members.

Organizations also use stories, ceremonies, and language to convey cultural values.

TABLE 5.2 Organizational Rites

Type of rite Example of rite Purpose of rite

Rite of passage Induction and Learn and internalize basic training norms and values

Rite of integration Office Christmas party Build common norms and values

Rite of enhancement Presentation of annual Motivate commitment to award norms and values

Rite of degradation Firing of top executive Change or reaffirm normsand values

Organizational stories and language are important media for communicating

culture.

Stories provide important clues about the kinds of behaviors that the organization values and frowns on.

Organizational culture develops from the interaction of four factors:

Organizational culture

Characteristics of people within the organization

Organizational structure

Property rights system

Organizational ethics

FIGURE

Where an Organization’s Culture Comes From