Learning Outcomes Chapter 16 Organizational Culture 1 Identify the three levels of culture and the roles they play in an organization 2 Evaluate the four functions of culture within an organization 3 Explain the relationship between organizational culture and performance 4 Describe five ways leaders reinforce organizational culture 5 Describe the three stages of organizational socialization and the ways culture is communicated in each step 6 Discuss how managers assess their organization s culture 7 Explain actions managers can take to change organizational culture 8 Identify the challenges organizations face developing positive cohesive cultures 2011 Cengage Learning All rights reserved Organizational Corporate Culture a pattern of basic assumptions that are considered valid and that are taught to new members as the way to perceive think and feel in the organization 2011 Cengage Learning All rights reserved 1 Learning Objective Identify the three levels of culture and the roles they play in an organization 2011 Cengage Learning All rights reserved Artifacts symbols of s culture in the physical and social work environment Values Espoused what members of an organization say they value Enacted reflected in the way individuals actually behave Levels of Organizationa l Culture Assumptions deeply held beliefs that guide behavior and tell members of an organization how to perceive and think about things 2011 Cengage Learning All rights reserved Artifacts symbols of s culture in the physical and social work environment Organizational Culture Visible often not decipherable Values Espoused what members of an organization say they value Enacted reflected in the way individuals actually behave Greater level of awareness Assumptions deeply held Taken for granted Invisible Preconscious beliefs that guide behavior and tell members of an organization how to perceive and think about things 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 2011 Cengage Learning All rights reserved Types of Artifacts Personal Enactment Ceremonies and Rites Stories About About About About About About the boss getting fired relocating promotions crisis situations status considerations Rituals Symbols 2011 Cengage Learning All rights reserved Beyond the Book Identifying Norms This exercise asks you to identify campus norms at your university Every organization or group has a set of norms that help determine individuals behavior A norm is an unwritten rule for behavior in a group When a norm is not followed negative feedback is given It may include negative comments stares harassment and exclusion 1 As a group brainstorm all the norms you can think of in the following areas Dress Classroom behavior Studying Weekend activities Living arrangements Campus activities Dating Relationships with faculty Eating on campus versus off campus Transportation 2 How did you initially get this information 3 What happens to students who don t follow these norms 4 What values can be inferred from these norms 2011 Cengage Learning All rights reserved 2 Learning Objective Evaluate the four functions of culture within an organization 2011 Cengage Learning All rights reserved Functions of Organizational Culture Culture provides a sense of identity to members and increases their commitment to the organization Culture is a sense making device for organization members Culture reinforces the values of the organization Culture serves as a control mechanism for shaping behavior 2011 Cengage Learning All rights reserved Beyond the Book NetApp s Culture of Openness What is the key to success at NetApp According to top executives it s openness Everyone including the CEO works in an open cubicle Information is shared freely Every two weeks employees meet with the Vice President to share their perspectives In addition NetApp shows employees that they are valuable and cared for through flexible scheduling and sponsorship of volunteer activities NetApp s culture of openness and trust has made it one of Fortune magazine s Best Companies to Work For 2011 Cengage Learning All rights reserved 3 Learning Objective Explain the relationship between organizational culture and performance 2011 Cengage Learning All rights reserved Theories on the relationship between organizational culture and performance Strong Culture Perspective Fit Perspective Adaptive Perspective 2011 Cengage Learning All rights reserved Strong Culture an organizational culture with a consensus on the values that drive the company and with an intensity that is recognizable even to outsiders 2011 Cengage Learning All rights reserved Strong Cultures Facilitate Performance BECAUSE They are characterized by goal alignment They create a high level of motivation because of shared values by the members They provide control without the oppressive effects of bureaucracy 2011 Cengage Learning All rights reserved Fit Perspective a culture is good only if it fits the industry or the firm s strategy 2011 Cengage Learning All rights reserved Fit Perspective Three particular industry characteristics affect culture 1 Competitive environment 2 Customer requirements 3 Societal expectations 2011 Cengage Learning All rights reserved Adaptive Culture an organizational culture that encourages confidence and risk taking among employees has leadership that produces change and focuses on the changing needs of customers 2011 Cengage Learning All rights reserved Adaptive vs Nonadaptive Cultures 2011 Cengage Learning All rights reserved 4 Learning Objective Describe five ways leaders reinforce organizational culture 2011 Cengage Learning All rights reserved Most Important Elements in Managing Culture What leaders pay attention to How leaders react to crises How leaders behave How leaders allocate rewards How leaders hire and fire individuals 2011 Cengage Learning All rights reserved 5 Learning Objective Describe the three stages of organizational socialization and the way culture is communicated in each step 2011 Cengage Learning All rights reserved Organizational Socialization the process by which newcomers are transformed from outsiders to participating effective members of the organization 2011 Cengage Learning All rights reserved Organizational Socialization Process Socialization Process 1 Anticipatory Socialization all of the learning that takes place prior to the newcomer s first day on the job 2