Designing Culture

8/13/2019 Designing Culture

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Organizational Culture


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Outline

What is organizational culture?

Elements of culture: stories, symbols,

myths, rites, values & more

Dimensions of organizational culture

Organizational culture & climate


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Do you really know your

Organizations Culture ?

* What 10 words would you use to describeyour company?

* Around here what is really important?

* Around here who gets promoted?

* Around here what behaviours get rewarded?

* Around here who fits and who does not?


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Why Do We Need to Understand

Culture? Cultural analysis illuminates sub cultural

dynamics within organizations.

Cultural analysis is necessary if we are tounderstand how new technologies influenced by

organizations. Cultural analysis is necessary for management

across national and ethnic boundaries.

Organizational learning, development and

planned change cannot be understood withoutconsidering culture as a primary source ofresistance to change.


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Functions of Organizational Culture

Culture provides a sense of identity to members

and increases their commitment to the

organization

Culture is a sense-making devicefor organization members

Culture reinforces the values

in the organization

Culture serves as a controlmechanism for shaping

behavior


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Defining Culture

A pattern of shared basic assumptionsthatthe group learnedas it solved its problemsof external adaptation and internal

integration, that has worked well enoughto be considered valid and, therefore, tobe taught to new membersas the correctway to perceive, think, and feel in relation

to those problems.

- Schein (1992)


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Copyright 2007 Prentice Hall

Terminal and Instrumental Values in an

Organizations Culture


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Adaptive

Perspective

Theories about the relationship between

organizational culture and performance

Strong

Culture

Perspective

Fit

Perspective


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Characteristics of Culture

Culture

Learned

Shared

Transgenerational

Symbolic

Patterned

Adaptive


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Some of the factors contribute to

Beh (Fontaine & Richardson, 2003)

CULTURE

Indiv Personality

Pressure from Peers

Self-Efficacy

Trust

Envt Stimuli

GOALSBEHAVIOUR


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Vision

Mission

Goals & Objectives

Strategies

Structure

Culture

Behaviour

Performance


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Levels of

Organizational

Culture

Artifactssymbols of

culture in the physical

and social work environment

ValuesEspoused: what members of

an organization say they valueEnacted: reflected in the way

individuals actually behave

Assumptionsdeeply heldbeliefs that guide behavior and tell

members of an organization how

to perceive and think about things


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Organizational

Culture LevelsVisible, often not

decipherable

Greater level

of awareness

Taken for granted,Invisible, Preconscious

Reprinted with permission from Edgar H. Schein,

Organizational Culture and Leadership: A Dynamic View.

Copyright 1985 Jossey-Bass

Inc, a subsidiary of John Wiley & Sons, Inc.

Artifacts

Personal enactment

Ceremonies and rites

Stories

Ritual

Symbols

Values

Testable in the physicalenvironment

Testable only by social consensus

Basic Assumptions Relationship to environment

Nature of reality, time, and space

Nature of human nature

Nature of human activity

Nature of human relationships


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Examples

IBMmeans service

GE: Progress is our most impt product

DuPont: Better things for better living thruchemistry (Super ordinate Goal)

The Tandem Corporation: Top mgt spend halfof its time in trg & comm. the mgt philosophy &essence of the company

PWC: Strive for techl perfection

Dana Corporation: Productivity thru people Caterpillar: 24 hrs parts services anywhere in

the world


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Examples

P&G

- The consumer is impt

- Things dont happen, u have to make themhappen

- We want to make employee interests our

own


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Elements of Culture

Business Envt( Each company faces a difftreality in the mkt place depending on its product,competitors, customers, technologies, govtinfluence & so on.)

Values(Basic concepts & beliefs of an org;heart of the corporate culture; standard ofachievement inside the org)

Stories( of success & failures)

Rites & Rituals(systematic & programmedroutines in day-to-day life in company; expectedbehv; what the company stand for)


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Examples Tandem & IBMprovide play on company time thru

workshops, exercise facilities, beer busts, retreatsetc (corporate life releases tension & encouragesinnovations)

Behind every ritual is a myth which symbolizes a

belief central to that culture (IBM, Dana, Mary KayCosmetics, Holiday inn & P&Gritual is seriousaffair)

Cultural extravaganza: Mary Kays convention;Polaroid's Annual Meetings)

Comm. & Social rituals: (IBM- Mr/ Miss/ Mrs.; MITgraduate joined GE asked to sweep the floor &Hazing) Dee Hock of Visa Intl gave cufflinksinscribed The will to succeed & The Grace of

Compromise reinforced the values of Visa culture.


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Elements of Culture

Symbols (Prudential Life Insurance)

Heroes(these people personify thecultures values; provide role models. Jim

Treybig at Tandem) The Cultural Network( Primary but

informal means of communication within

the org; carrier of corporate values &heroic mythology)

Myths


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Drawbacks of OC

Culture can be equally dysfunctional (trice,1985)

Making employee vulnerable to burnout from

working too hard Making people unwilling to change what they do

Colouring the interpretation of info & events

Encouraging beh that few people do well

Encouraging ego involvement that heighten the

emotionality of events


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Issues

Structural Stability

Striving towards patterning & integration

Group with stable membership/ sharedassumption/ history

The Problem of Socialization

The Problem of Behaviour Can the large organization have one

culture


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Dimensions of OC

Managing External Adaptationspecify

the coping cycle that any sys must be able

to maintain in relation to its changing Envt

- Mission & strategy

- Goals

- Means

- Measurement

- Correction


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Dimensions of OC

Managing Internal integrationallow agroup to internally integrate by

- Creating Common language & conceptualcategories

- Defining Group Boundaries

- Distributing power & status

- Developing norms of intimacy, friendship & Love

- Defining & allocating rewards & punishments

- Explaining the unexplainableideology &

religion


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Dimensions of OC

Strength or amount of OC (Schein,

1984)

- The strength & amount of culture can bedefined in terms of

The homogeneity & stability of the group

membership & The length & intensity of the shared

experiences of the group


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Dimensions of OC

Direction & Intensity(Cooke & Rousseau,1983b)

- Direction refers to the actual content/ substanceof the culture, exemplified by the values, norms

& thinking style.- Intensity is the strength of this emphasis and is

function of

* The degree of consensus among unit members

regarding what the culture emphasizes, &* The strength of connection among expectations,

rewards & behaviours


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Dimensions of OC

Internal & External Fits( Arogyaswamy

& Byles, 1987)

- Extent of internal fit obtained by

The cohesion of the culture

The cultural consistency

- Extent of external fit depends on thesynergy between Vision, mission, goals,

objectives, Strategy, processes & results


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Dimensions of OC

Robbins (1987) Individual Initiative

Risk tolerance

Direction

Management Contact

Integration

Control

Identity Reward System

Conflict Tolerance

Communication Patterns


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Organizational Culture

Based on enduring values embodied in

organizational norms, rules, standard

operating procedures, and goals

People draw on these cultural values

to guide their actions and decisions

when faced with uncertainty and

ambiguity

Important influence on members

behavior and response to situations


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Strong Cultures

Can be disastrous when managers or

owners behave unethically

Can also be a source of competitive

advantage

Facilitators of mutual adjustment in the

organization

Is also a form of informal organization thatfacilitates working of the organizational

structure


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How is an Organizations Culture

Transmitted to its Members?

Socialization: the process by which

members learn and internalize the

values and norms of an

organizations culture


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Stages of

Socialization

Realism Congruence1. Anticipatory

Socialization

2. EncounterJob demands Task

Role

Interpersonal

3. Change and

Acquisition Mastery

PerformanceSatisfaction

Mutual influence

Low levels of distress

Intent to remain

From An Ethical Weather Repart: Assessing the Organization's Ethical Climate by John B. Cullen, et

al. In Organizational Dynamics,Autumn 1989. Copyright 1989 American Management AssociationInternational. Reprinted by permission of American Management Association Internat ional, New York, N.Y.

All rights reserved. Http://www.amanet . Org.

Outcomes of Socialization


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Transmitted to its Members? (cont.)

Role orientation: the characteristicway in which newcomers respond toa situation

Institutionalized role orientation: resultswhen individuals are taught to respond to anew context in the same way that existingorganizational members respond to it

Individualized role orientations: results whenindividuals are allowed and encouraged to becreative and to experiment with changingnorms and values


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How Socialization Tactics Shape

Employees Role Orientation


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Collective vs. individual

Collective tactics:provide newcomers with

common learning experiences designed to

produce a standardized response to asituation

Individual tactics:each newcomers

learning experiences are unique, and

newcomers can learn new, appropriate

responses for each situation


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Formal vs. informal

Formal tactics:segregate newcomers from

existing organizational members during the

learning process Informal tactics:newcomers learn on the

job, as members of a team


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Sequential vs. random Sequential tactics:provide newcomers

with explicit information about the sequence

in which they will perform new activities oroccupy new roles as they advance in an

organization

Random tactics:training is based on the

interests and needs of individualnewcomers because there is no set

sequence to the newcomers progress in

the organization


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Fixed vs. variable

Fixed tactics:give newcomers precise

knowledge of the timetable associated

with completing each stage in thelearning process

Variable tactics:provide no information

about when newcomers will reach a

certain stage in the learning process


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Divestiture vs. investiture

Divestiture:newcomers receive

negative social support and existing

organizational members withholdsupport until newcomers learn the ropes

and conform to established norms

Investiture:newcomers immediately

receive positive social support from other

organizational members and are

encouraged to be themselves

Stories Ceremonies and


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Stories, Ceremonies, and

Organizational Language Organization rites

Rites of passage:mark an individuals

entry to, promotion in, and departure from

the organization

Rites of integration:shared

announcements of organizational

success, office parties and cookouts

Rites of enhancement:publicrecognition and reward for employee

contributions


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Organizational Rites


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Where Does Organizational Culture

Come From?

Comes from interaction of four

factors:

The personal and professionalcharacteristics of people within the

organization

Organizational ethics The property rights that the organization

gives to employees

The structure of the organization


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Where an Organizations Culture

Comes From

F t I fl i th D l t


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Factors Influencing the Development

of Organizational Ethics


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Where Does Organizational Culture

Come From? (cont.)

Property rights: rights that an

organization gives to members to

receive and use organizationalresources

The distribution of property rights to

different stakeholders determines:

How effective an organization is

The culture that emerges in the

organization


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Where Does Organizational


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Where Does Organizational

Culture Come From? (cont.)

Organizational structure Mechanistic vs. Organic

Mechanistic - predictability and stability are

desired goals Organicinnovation and flexibility are desired

end states

Centralized vs. Decentralized

Decentralized - encourages and rewardscreativity and innovation

Centralizedreinforces obedience and

accountability


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Cultural Changes

Merger or acquisition

Employment of people from different countries

Is it really easy to change?

Assumptions are often unconscious

Culture is deeply ingrained and behavioral norms and

rewards are well learned

Situations That May Require Cultural Change


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C O i ti l C lt b


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Can Organizational Culture be

Managed?

Changing a culture can be very difficult Hard to understand how the previous four

factors interact

Major alterations are sometimes needed Some ways culture can be changed:

Redesign structure

Revise property rights used to motivate people

Change the peopleespecially topmanagement


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Types of OC

Handy (1976)

Power CulturePowerful & dominant leaders,few rules & procedures, decision making fast,

few committees, growth is problem b/c withincreased size integration is difficult by centre

Role CultureSteady state org, problem ofintegration to achieve the org goals, take minimrisks, decisions by committees, procedures welldeveloped, slow to perceive & react to newchange

T f OC


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Types of OC Handy (1976)

Task Cultureemphasis is on getting thingsdone, bring together the right resources & rightpeople & let them get on with it, team culture

with minim hierarchy & people are evaluated ontheir ability to contribute to teams output, flexible& sensitive, not effective where routine &stability is needed, fun to work in

Person cultureacademic org, members dotheir own things, structure & control are minim,exist for the benefit of the member first


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Types of OC

Interpersonal Interaction Model

# Power Culture: Strong leaders are needed to

distribute resources; leaders are firm, but fair &

generous to loyal followers; if badly managed

there is rule by fear, abuse of power for

personal gain & political intrigue

# Ach Culture: Rewards results not unproductiveefforts; work teams are self directed; rules &

structure serve the sys; sustaining energy &

enthusiasm over time is challenge


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Types of OC

Interpersonal Interaction Model

# Support Culture:Employee is valued as

person & worker; employee harmony impt

# Role Culture:Rule of law with clear

responsibility & reward sys; provides stability,justice & efficiency; weakness is impersonaloperating procedures & a stifling of creativity &innovation


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Understanding Culture

1. Whosets the style & pace? What kind ofRole Modelare they? Do as we do orDo as we say?

2. What behis rewarded, condemned orignored? Is feedbackconstant,intermittent, at job completion, or never?Are improper or unethical practices are

condoned through silence?3. What infois shared? (needed vs.

desired); Is upward info flow constrained (do u really know)


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Understanding Culture

4. How is superior perf encouraged? Whattype of perf appraisal is used? How arethe best qualified people recruited? Is T&D

is offered to everyone?5. Are values backed up by time & money?

6. What is the relative importance of

- Bottom line results?- Saving face?

- Power building?

Constituents of OC


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Constituents of OC

Determinants Dimensions

- Societal Culture -Visual Artifacts- Shared learning from - Values

shared history

- Leadership - Rituals

- Consistent Mgt. practices - Stories & Myths

- Structural Stability - Assumptions

Consequences- Performance

- Behaviour

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Designing Culture

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