Chapter 16

Organizational
Culture

ORGANIZATIONAL BEHAVIOR
S T E P H E N P. R O B B I N S
E L E V E N T H E D I T I O N
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Institutionalization:
Institutionalization: AA Forerunner
Forerunner of
of Culture
Culture

Institutionalization
When an organization takes on a life of its own,
apart from any of its members, becomes valued for
itself, and acquires immortality.

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What
What Is
Is Organizational
Organizational Culture?
Culture?

Organizational Culture
Characteristics:
Characteristics:
A common perception
held by the organization’s 1.1. Innovation
Innovationand
andrisk
risk
taking
taking
members; a system of
shared meaning. 2.2. Attention
Attentionto
todetail
detail
3.3. Outcome
Outcomeorientation
orientation
4.4. People
Peopleorientation
orientation
5.5. Team
Teamorientation
orientation
6.6. Aggressiveness
Aggressiveness
7.7. Stability
Stability

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Do
Do Organizations
Organizations Have
Have Uniform
Uniform Cultures?
Cultures?

Dominant Culture
Expresses the core values that are shared by a
majority of the organization’s members.

Subcultures
Minicultures within an organization, typically defined
by department designations and geographical
separation.

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Do
Do Organizations
Organizations Have
Have Uniform
Uniform Cultures?
Cultures?
(cont’d)
(cont’d)

Core Values
The primary or dominant values that are accepted
throughout the organization.

Strong Culture
A culture in which the core values are intensely held
and widely shared.

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What
What Is
Is Organizational
Organizational Culture?
Culture? (cont’d)
(cont’d)
 Culture Versus Formalization
– A strong culture increases behavioral consistency and
can act as a substitute for formalization.
 Organizational Culture Versus National Culture
– National culture has a greater impact on employees
than does their organization’s culture.
– Nationals selected to work for foreign companies may
be atypical of the local/native population.

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What
What Do
Do Cultures
Cultures Do?
Do?

Culture’s
Culture’sFunctions:
Functions:
1.1. Defines
Definesthe
theboundary
boundarybetween
betweenone
oneorganization
organization
and
andothers.
others.
2.2. Conveys
Conveysaasense
senseof
ofidentity
identityfor
forits
itsmembers.
members.
3.3. Facilitates
Facilitatesthe
thegeneration
generationofofcommitment
commitmentto
to
something
somethinglarger
largerthan
thanself-interest.
self-interest.
4.4. Enhances
Enhancesthe
thestability
stabilityof
ofthe
thesocial
socialsystem.
system.
5.5. Serves
Servesas asaasense-making
sense-makingand
andcontrol
controlmechanism
mechanism
for
forfitting
fittingemployees
employeesininthe
theorganization.
organization.
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What
What Do
Do Cultures
Cultures Do?
Do?

Culture
Cultureas
asaaLiability:
Liability:
1.1. Barrier
Barrierto
tochange.
change.
2.2. Barrier
Barrierto
todiversity
diversity
3.3. Barrier
Barrierto
toacquisitions
acquisitionsand
andmergers
mergers

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How
How Culture
Culture Begins
Begins

 Founders hire and keep only employees who

think and feel the same way they do.
 Founders indoctrinate and socialize these
employees to their way of thinking and feeling.
 The founders’ own behavior acts as a role model
that encourages employees to identify with them
and thereby internalize their beliefs, values, and
assumptions.

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Keeping
Keeping Culture
Culture Alive
Alive
 Selection
– Concern with how well the candidates will fit into the
organization.
– Provides information to candidates about the
organization.
 Top Management
– Senior executives help establish behavioral norms that
are adopted by the organization.
 Socialization
– The process that helps new employees adapt to the
organization’s culture.

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Stages
Stages in
in the
the Socialization
Socialization Process
Process

Prearrival Stage
The period of learning in the socialization process that occurs
before a new employee joins the organization.

Encounter Stage
The stage in the socialization process in which a new employee
sees what the organization is really like and confronts the
possibility that expectations and reality may diverge.

Metamorphosis Stage
The stage in the socialization process in which a new employee
changes and adjusts to the work, work group, and organization.

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How
How Employees
Employees Learn
Learn Culture
Culture

•• Stories
Stories
•• Rituals
Rituals
•• Material
MaterialSymbols
Symbols
•• Language
Language

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Creating
Creating An
An Ethical
Ethical Organizational
Organizational Culture
Culture
 Characteristics of Organizations that Develop
High Ethical Standards
– High tolerance for risk
– Low to moderate in aggressiveness
– Focus on means as well as outcomes
 Managerial Practices Promoting an Ethical
Culture
– Being a visible role model.
– Communicating ethical expectations.
– Providing ethical training.
– Rewarding ethical acts and punishing unethical ones.
– Providing protective mechanisms.
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Creating
Creating aa Customer-Responsive
Customer-Responsive Culture
Culture
 Key Variables Shaping Customer-Responsive
Cultures
1. The types of employees hired by the organization.
2. Low formalization: the freedom to meet customer
service requirements.
3. Empowering employees with decision-making
discretion to please the customer.
4. Good listening skills to understand customer
messages.
5. Role clarity that allows service employees to act as
“boundary spanners.”
6. Employees who engage in organizational citizenship
behaviors.
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Creating
CreatingaaCustomer-Responsive
Customer-ResponsiveCulture
Culture(cont’d)
(cont’d)

Managerial
ManagerialActions
Actions::
•• Select
Selectnew
newemployees
employeeswith
withpersonality
personalityand
and
attitudes
attitudesconsistent
consistentwith
withhigh
highservice
service
orientation.
orientation.
•• Train
Trainand
andsocialize
socializecurrent
currentemployees
employeestotobe
be
more
morecustomer
customerfocused.
focused.
•• Change
Changeorganizational
organizationalstructure
structureto
togive
give
employees
employeesmoremorecontrol.
control.
•• Empower
Empoweremployees
employeestotomake
makedecision
decisionabout
about
their
theirjobs.
jobs.
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Creating
CreatingaaCustomer-Responsive
Customer-ResponsiveCulture
Culture(cont’d)
(cont’d)

Managerial
ManagerialActions
Actions(cont’d)
(cont’d)::
•• Lead
Leadby
byconveying
conveyingaacustomer-focused
customer-focusedvision
vision
and
anddemonstrating
demonstratingcommitment
commitmenttotocustomers.
customers.
•• Conduct
Conductperformance
performanceappraisals
appraisalsbased
basedon
on
customer-focused
customer-focusedemployee
employeebehaviors.
behaviors.
•• Provide
Provideongoing
ongoingrecognition
recognitionfor
foremployees
employeeswho
who
make
makespecial
specialefforts
effortsto
toplease
pleasecustomers.
customers.

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Spirituality
Spirituality and
and Organizational
Organizational Culture
Culture

Workplace Spirituality
The recognition that people have an inner life that
nourishes and is nourished by meaningful work that
takes place in the context of the community.

Characteristics:
Characteristics:
• • Strong
Strongsense
senseof
ofpurpose
purpose
• • Focus
Focuson
onindividual
individualdevelopment
development
• • Trust
Trustand
andopenness
openness
• • Employee
Employeeempowerment
empowerment
• • Toleration
Tolerationof
ofemployee
employeeexpression
expression
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Characteristics of a Spiritual Organization

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 Criticisms of Spirituality of Spirituality

Critics of the spirituality movement in organizations have focused on two issues. First is the question of legitimacy.
Specially, do organizations have the right to impose spiritual values on their employees? Second is the question of
economics. Are spirituality and profits compatible?

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