MGMT 371:Organizational Culture “A pattern of basic assumptions that the

group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think and feel in relation to those problems.”Edgar Schein, 1992

Layers of Org. Culture Observable artifacts

Physical manifestationsShared behaviors, talk

ValuesEspousedEnacted

Basic assumptions

Understanding Organizational Culture

Antecedents

• Founder’s values• Industry & business environment• National culture• Senior leaders’ vision and behavior

Organizational Structure &

Practices• Reward systems• Organizational design

Organizational Culture

• Observable artifacts

• Espoused values

• Basic assumptions

Group & Social

Processes• Socialization• Mentoring• Decision making• Group dynamics• Communication• Influence & empowerment• LeadershipOrganizationa

l Outcomes• Effectiveness• Innovation & stress

Collective Attitudes &

Behavior• Work attitudes• Job satisfaction• Motivation

Functions of Culture

Members identifyCollective commitmentSocial system stabilityShape behavior

Types of Cultures Constructive

Valuing members, self-actualizing, affiliative, and humanistic/encouraging normative beliefs (expected behavior or conduct)

Passive-defensive Approval-oriented, traditional and bureaucratic, dependent and

nonparticipative, punish mistakes but ignore success Aggressive-defensive

Confrontation and negativism are rewarded, nonparticipative, positional power, winning valued, competitiveness rewarded, perfectionistic

Constructive Culture

High priority on constructive interpersonal relationships, and focus on work group satisfaction

Affiliative

Participative, employeecentered, and supportiveHumanistic-

encouraging

Value self-development and creativity

Self-actualizing

Goal and achievement orientedAchievement

Organizational Characteristics

Normative Beliefs

Passive Defensive Culture

Negative reward system and Defensive avoid accountability

Avoidance

Nonparticipative, centralized decision making, and employees do what they are told

Dependent

Conservative, bureaucratic, and people follow the rules

Conventional

Avoid conflict, strive to be liked by others, and approval oriented

Approval

Organizational Characteristics

Normative Beliefs

Aggressive-Defensive Culture

Perfectionistic, persistent, and hard workingPerfectionistic

Winning is values and a win-lose approach is usedCompetitive

Nonparticipative, take charge of Defensive subordinates, and responsive to superiors

Power

Confrontation and negativism rewardedOppositional

Organizational Characteristics

Normative Beliefs

Organizational Culture Research Suggests:1) Organizational culture correlated with

employee attitudes and behavior2) Congruence between an individual’s values

and the organization’s values associated with organizational commitment, job satisfaction, intentions to quit, and turnover

3) Organizational culture did not predict a company’s financial performance

4) Mergers frequently failed due to incompatible cultures

Organizational Socialization

Phase 1: Anticipatory

Phase 2: Encounter

Phase 3: Change and acquisition

Organizational SocializationPhases Perceptual and

Social Processes

1) Anticipatory socialization learning that occurs prior to joining the organization

Anticipating realities about the organization and the new job

Anticipating organization’s needs for one’s skills and abilities

Anticipating organization’s sensitivity to one’s needs and values

Organizational SocializationPhases Perceptual and

Social Processes

2) Encounter values, skills, and attitudes start to shift as new recruit discovers what the organization is truly like

Managing lifestyle-versus-work conflicts

Managing intergroup role conflicts

Seeking role definition and clarity

Becoming familiar with task and group dynamics

Organizational SocializationPhases Perceptual and

Social Processes

3) Change and acquisition recruit masters skills and roles and adjusts to work group’s values and norms

Competing role demands are resolved

Critical tasks are mastered

Group norms and values are internalized

How cultures are embedded in organizations Formal/public statements Physical Layout Slogans, co. lingo Mentoring, modeling Explicit rewards, promotion criteria Stories, legends, myths Processes and outcomes, measurement Workflow and systems

Mentoring Outcomes for Mentees Outcomes for Mentors Outcomes for Organizations Maintaining the Culture

Functions of Mentoring Career Functions

Sponsorship Exposure-and-Visibility Coaching Protection Challenging Assignments

Psychological Functions Role Modeling Acceptance-and-

Confirmation Counseling Friendship

Questions on Culture Can the organizational culture change?

How? Where does the culture come from?

1.2.3.

Does the culture look the same from the top and from the bottom?