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Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
Organizational Organizational CultureCultureOrganizational Organizational CultureCulture
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
Defining organizational culture…a collective understanding, a shared and integrated set or perceptions, memories, values and attitudes that have been learned over time and which determine the expectations of behavior that are taught to new members in their socialization into the organization.
Impact of culture Culture gives identity, provides collective
commitment, builds social system stability and allows people to make sense of the organization (Sannwald, 2000)
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
Culture is…Culture is…
Concrete We can observe cultural practices
that define human experience.
Abstract It is a way of thinking, feeling,
believing, and behaving.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
Reinventing Hewlett-Packard’s CultureReinventing Hewlett-Packard’s Culture
Carly Fiorina wants to reinvent
Hewlett-Packard’s legendary
culture, known as ‘The H-P
Way’. She documented a new
set of values, called “The
Rules of the Garage” and is
merging H-P with Compaq to
create a more performance-
oriented culture.
© Reuters/New media, Inc./ CORBIS
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
Organizational Culture DefinedOrganizational Culture Defined
The basic pattern of shared
assumptions, values, and
beliefs considered to be the
correct way of thinking about
and acting on problems and
opportunities facing the
organization.© Reuters/New media, Inc./ CORBIS
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
Physical Structures
Rituals/ Ceremonies
Stories
Language
BeliefsBeliefs
ValuesValues
AssumptionsAssumptions
Artifacts ofOrganizationalCulture
OrganizationalOrganizationalCultureCulture
Elements of Organizational CultureElements of Organizational Culture
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
Brown & Brown’s Cultural Content Brown & Brown’s Cultural Content
Brown & Brown, Inc. in Daytona
Beach has an aggressive culture
that helps it succeed in the highly
competitive insurance business. At
its annual sales meeting,
managers of poorly performing
divisions are led to the podium by
medieval executioners while a
funeral dirge plays.E. M. Samelson/Orlando Sentinel
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
Meaning of Cultural Content Meaning of Cultural Content
Cultural content refers to the relative ordering of beliefs, values, and assumptions.
Example: Brown & Brown values aggressiveness; SAS Institute values work-life balance
An organization emphasizes only a handful of the hundreds of cultural values.
E. M. Samelson/Orlando Sentinel
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
Organizational Subcultures Organizational Subcultures
Located throughout the organization
Can support or oppose (countercultures) firm’s dominant culture
Two functions of countercultures: provide surveillance and
evaluation source of emerging values
E. M. Samelson/Orlando Sentinel
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
Dominant CultureDominant Culture
The dominant culture is the most powerful group in society.
It receives the most support from major institutions and constitutes the major belief system.
Social institutions in the society perpetuate the dominant culture and give it a degree of legitimacy that is not shared by other cultures.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
SubculturesSubcultures
The cultures of groups whose values and norms of behavior differ from the dominant culture.
Members of subcultures interact frequently and share a common world view.
Subcultures share some elements of the dominant culture and coexist within it.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
CounterculturesCountercultures
Subcultures created as a reaction against the values of the dominant culture.
Members of the counterculture reject the dominant cultural values and develop cultural practices that defy the norms and values of the dominant group.
Nonconformity to the dominant culture is often the mark of a counterculture.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
Popular CulturePopular Culture
The beliefs, practices, and objects that are part of everyday traditions.
It is mass-produced and mass-consumed.
Has enormous significance in the formation of public attitudes and values, and plays a significant role in shaping the patterns of consumption in contemporary society.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
Benefits of Strong Corporate CulturesBenefits of Strong Corporate Cultures
StrongOrganizational
Culture
SocialSocialControlControl
AidsAidsSense-MakingSense-Making
SocialSocialGlueGlue
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
Problems with Strong CulturesProblems with Strong Cultures
Culture content might be incompatible with the organization’s environment.
Strong cultures focus attention on one mental model.
Strong cultures suppress dissenting values from subcultures.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
Adaptive Organizational CulturesAdaptive Organizational Cultures
External focus -- firm’s success depends on continuous change
Focus on processes more than goals
Strong sense of ownership
Proactive --seek out opportunities
AP/Wide World
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
Bicultural AuditBicultural Audit
Part of “due diligence” in merger
Minimizes risk of cultural collision by diagnosing companies before merger
Three steps in bicultural audit:1. Collect artifacts
2. Analyze data for cultural conflict/compatibility
3. Recommend solutions
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
Merging Organizational CulturesMerging Organizational Cultures
AssimilationAssimilation
DeculturationDeculturation
Acquired company embraces acquiring firm’s culture
Acquiring firm imposes its culture on unwilling acquired firm
IntegrationIntegrationBoth cultures combined into a new composite culture
SeparationSeparationMerging companies remain separate with their own culture
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
StrengtheningStrengtheningOrganizationalOrganizational
CultureCulture
FoundersFoundersand leadersand leaders
CulturallyCulturallyconsistentconsistentrewardsrewards
StableStableworkforceworkforce
SelectionSelectionandand
socializationsocialization
Managing theManaging theculturalculturalnetworknetwork
Strengthening Organizational CultureStrengthening Organizational Culture
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
STRONG CULTURESTRONG CULTURE
A strong organizational culture could be one were the majority of the the participants hold the same basic beliefs and values as applies to the organization. The people in this group may follow the perceived rules and ethical procedures that are basic to the organization, even if those values are not publicly stated by the organization.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e
WEAK CULTUREWEAK CULTURE
A weak organizational culture could be one that is loosely knit. It may encourage individual thought and contributions and in a company that needs to grow through innovation, it could be a valuable asset.