Management 2030E: Organizational Behavior

Chapter 9 Notes
Organizational Culture
Organizational Culture:
Definition: The pattern of shared values, beliefs, and assumptions considered to be the
appropriate way to think and act within an organization.
Features of culture:
Sharing of culture between members of the organization
Culture helps members of the organization solve/understand problems internally
and externally
Beliefs and expectations that have worked over time are taught to and believed by
members who join the organization
The assumptions and beliefs of the culture strongly influence how people
perceive, think, and behave within the organization
Note:
Not every group develops culture, but a group that has existed for a while and has
had shared learnings will have evidence of culture.
When we talk about a organizations culture, we are referring to its dominant
culture. This is the macro view that gives culture its distinct personality.
Levels of Culture
1) Visible
On the surface, or visible level of a culture there are artifacts. Artifacts are things
that an individual can see, hear, and feel such as dress policies. Artifacts also
include stories, rituals, material symbols, and language.
2) Invisible
Invisible culture deals with the beliefs, values, and assumptions that make up
the underlying, invisible culture of an organization.
Characteristics of Culture:
1) Innovation and Risk-Taking.
The degree to which employees are encouraged to be innovative and take
risks.
2) Attention to Detail.
The level of precision, analysis, and attention to detail that the employees
are expected to work at.
3) Outcome Orientation.
How important results and outcomes are compared to the techniques and
processes used to achieve these outcomes.
4) People Orientation.
The degree to which managements decisions take into consideration the
effect of outcomes on people within the organization.
5) Team Orientation.

 Arranging Activities involving teamwork rather than individual work.

6) Aggressiveness.
The level of aggression and competition that exists amongst members.
7) Stability.
The degree to which organizational activities emphasize maintaining the
status quo in contrast to the organizations level of growth.
Creating and Sustaining Culture
How is a culture established?
A culture begins with the ideas of the organizations founder. This sets the precedent for
the basic philosophies of the workplaces culture. The management must strive to find
employees that agree with the established beliefs of the organization in order for the
organization to thrive.

How a Culture Begins

The founders of an organization have a general idea of what they would like the culture
of the organization to be like. They strive to communicate their ideas to their employees
to create their ideal culture. There are three ways that culture is created:
The founders only hire and retain people who reflect their ideals.
They then make sure their employees are familiar with their ideals through
socialization and indoctrination.
The founders act as role models for the other employees in the organization.
Keeping a Culture Alive
Organizations utilize their human resources to help sustain the organizations culture. By
keeping experiences between employees similar, punishing deviations from the culture,
and rewarding behavior that supports it the culture is maintained. The three main forces
that keep a culture alive are selection, top management, and socialization.

Selection helps maintain culture because it allows managers to choose employees who
will work well within the culture and not counter to it. Through selection managers can
seek out ideal employees and pinpoint positive and negative traits without having to hire
them first. This allows managers to weed out potential troublemakers.
Top management provides the role model for other employees. The behavior of top
management helps employees to see what traits are desirable within the organization.
Also top managements definition of the workplaces culture can change the behavior of
the organizations employees.
Socialization
Definition: The process that adapts employees to the organizations culture.
Socialization Model
The three stages in the Socialization Model are as follows:
Stage #1: Pre-arrival
Definition: This is the period of learning in the socialization process that occurs before
a new employee joins the organization.
Stage #2: Encounter Stage
Definition: The Stage in the socialization process in which a new employee sees what
the organizations is really like and confronts the possibility that expectations and
reality may diverge.
Stage #3: Metamorphosis Stage
Definition: The stage in the socialization process in which a new employee adjusts to
the work groups values and norms.
This may be done through 5 different methods:
1) Formal vs. Informal
Formal Socialization occurs when the new employee is segregated from
the group and placed in training programs and orientation groups.
Informal Socialization occurs when the new employee is placed directly
into their jobs and expected to learn from those around them.
2) Individual vs. Collective
Individual Socialization occurs when an individual is socialized
individually.
Collective Socialization occurs when a group of people are socialized
together.
3) Fixed vs. Variable
Fixed Socialization refers to the fixed schedule given to employees that
outlines specific points in their career that will allow them to advance in
their job.
Variable Socialization refers to the flexible time period that employees
have to advance through in the job.
4) Serial vs. Random

 Serial Socialization is when a figure head or role model trains and guides
the new employees.
Random Socialization occurs when a new employees is left on his or her
own to figure things out.
5) Investiture vs. Divestiture
Investiture Socialization occurs when assumes that employees previous
qualities and qualifications are necessary for success in the job.
Divestiture Socialization assumes that employees previous qualifications
and qualities are not adequate for the job and need to be modified and or
changed.
Culture Typology
1) Networked Culture
High on sociability, low on solidarity
Members are viewed as friends and family and individuals willingly give
assistance to others
2) Mercenary Culture
Low on sociability, high on solidarity.
Organizations are fiercely goal-orientated and individuals are intense and
determined to meet goals.
3) Fragmented Culture
Low on sociability, low on solidarity.
Individuals do not identify with the organization and all individuals are judged
individually based on their productivity and quality of work.
4) Communal Culture
High on sociability, high on solidarity
People in an organization value both friendship and performance. Individuals
have a sense of belonging but there is still a ruthless focus on achieving a goal.
What does Culture Do?
Cultures Functions
It has a boundary defining role, creates distinctions between organizations
Creates a sense of identity for organization members
Creates commitment to something larger than individual self interest
Enhances stability Is social glue that holds the organization together by
providing appropriate employee standards
Control mechanism that guides and shapes the attitudes and behavior of
employees
Note:
As organizations widen spans of control, flatten structures, introduce teams,
reduce formalization, and empower employees, the shared meaning provided by a
strong culture insures that everyone is pointed in the right direction.

Culture as a Barrier to Change

Culture is a liability when the shared values are not in agreement with those that
will further the organizations effectiveness
When an organizations environment undergoes rapid change, the organizations
entrenched culture may no longer be appropriate
Must be able to adapt culture to the current environment
Culture as a Barrier to Diversity
Strong cultures put considerable pressure on employees to conform
Strong cultures can eliminate the unique strengths that people of different
backgrounds bring to the organization
Strong cultures can be a liability when they support institutional bias or become
insensitive to people who are different
Culture as a Barrier to Mergers and Acquisitions
Cultural compatibility is a large concern
Changing Organizational Culture
Very hard to accomplish
To accomplish a change in culture requires changing everyday policies, practices,
procedures and routines
Usually occurs when there is a crisis that undermines the status quo and calls into
question the relevance of current culture

Case Study
Case Study Questions.
1. Why was David Bowen hired? What kind of culture does he add to the
organization?

2. How does splitting the company help to maintain its family-type culture?

3. What are some of the characteristics of the culture of G.A.P.? How do they
change over time?

Rate Your Classroom Culture

(P. 360 in text)
Listed here are 10 statements. Score each statement by indicating the
degree to which you agree with it.
If you strongly agree, give it a 5. If you strongly disagree give it a 1.
1) My classmates are friendly and supportive.
2) My instructor is friendly and supportive.
3) My instructor encourages me to question and challenge her as well
as other classmates.
4) My instructor clearly expresses her expectations to the class.
5) I think the grading system used by my instructor is base on clear
standards of performance.
6) My instructors behavior during examinations demonstrates her belief
that students are honest and trustworthy.
7) My

instructor

provides

regular

and

rapid

feedback

on

my

performance.
8) My instructor uses a strict bell curve to allocate grades.
9) My instructor is open to suggestions on how the course might be
improved.
10)

My Instructor makes me want to learn.

Add up your score for all the statements except number 8. For number 8,
reverse the score (strongly agree=1, strongly disagree=5) and add it up to
your total. Your score will fall between 10 and50.
A high score, >36, describes an open, warm, human, trusting, and supportive
culture.
A low score, <26, describes a closed, cold, task orientated, autocratic, and
tense culture.