Culture Lecture

7/27/2019 Culture Lecture

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Organizational Culture

In any organization, there are the ropes

to skip and the ropes to know.-- R. Ritti and

G. Funkhouser


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Environment and Corporate Culture

GENERAL

ENVIRONMENT

OPERATING

ENVIRONMENT

INTERNAL

ENVIRONMENT

SOCIALECONOMIC

POLITICAL

LEGAL

TECHNOLOGY

NEW ENTRANTS

SUPPLIER

SUBSTITUTES

CUSTOMER

COMPETITION

PRODUCTION

TECHNOLOGY

STRUCTURE

INPUTS

CULTURE


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What is Organizational Culture?

A system of meaning shared by the

organizations members

Cultural valuesare collective beliefs,assumptions, and feelings about what things are

good, normal, rational, valuable, etc.


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Examples of Organizational Culture

Innovation and risk taking (3M)

Outcome orientation (Bausch & Lomb)

Aggressiveness (Microsoft)Continuous learning and innovation (Nokia)


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Characteristics of Organizational Culture

Organizational

Culture

Observed

behavioral

regularities

Norms

Philosophy

on treatment

of employees/

customers

Rules of

employee

behavior

Organizational

climate

Dominant

values


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Physical Structures

Rituals/ Ceremonies

Stories

Language

Beliefs

Values

Assumptions

Artifacts of

Organizational

Culture

Organizational

Culture

Elements of Organizational Culture


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Artifacts: Organizational Stories

Social prescriptions of desired behavior

Demonstrate that organizational objectives

are attainable

Most effective stories:Describe real people

Assumed to be true

Known throughout the organizationAre prescriptive


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Artifacts: Rituals and Ceremonies

Rituals

programmed routines

e.g., conducting meetings, employee forums, x-mas parties

Ceremoniesplanned activities for an audience

e.g., award ceremonies

Heroes

Figure who exemplifies character and deedE.g. founders as Tom Watson of IBM, Bill Gates of Microsoft


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Artifacts: Organizational Language

Words used to address people, describe clients,etc.

e.g. sir/maam, first name calling

Leaders use phrases and metaphors as culturalsymbols

e.g.. General Electrics grocery store

Language also found in subcultures

e.g.. Whirlpools PowerPoint culture

SlogansE.g. Nokia Connecting People


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Organizational Subcultures

Located throughout theorganization

Can support or oppose

(countercultures) firmsdominant culture

Two functions ofcountercultures:

provide surveillance and evaluationsource of emerging values

E. M. Samelson/Orlando Sentinel


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Courtesy of Oakley, Inc.

Artifacts: Physical Structures/Space

Oakley, Inc.s protective and competitive

corporate culture is apparent in its building

design and workspace. The building looks

like a vault to protect its cherished product

designs (eyewear, footwear, apparel and

watches).

Courtesy of Oakley, Inc.


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Artifacts - Industry

Information technology Advertising and Media Call Centers


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How Organizational Cultures Form

Philosophy

of the

OrganizationsFounders:

Bill Hewlett &

Dave Packard

John GokongweiBill Gates

Organizational

CultureSelection

Top

Management

Socialization


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Do Organizations Have Uniform

Cultures?

CoreValues

SubculturesDominantCulture


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How EmployeesLearn Culture/

How it is reinforced

Material

SymbolsLanguage

Stories Rituals


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Benefits of Strong Corporate Cultures

StrongOrganizational

Culture

Social

Control

AidsSense-Making

Social

Glue


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Controlling behavior

Defining boundaries

Conveying identity

Promoting commitment

Blocking mergers

Inhibiting diversity

Inhibiting change

Blocking acquisitions

Functions Liabilities

Organizational Culture


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Managing, Changing, and

Merging Cultures

Managing through stories, heroes, symbols and

ceremonies

Culture often need to be changed to ensure

organizational success

Merging cultures through symbolic leaders


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Adaptive Organizational Cultures

External focus -- firms

success depends on

continuous change

Focus on processes morethan goals

Strong sense of ownership

Proactive --seek outopportunities

AP/Wide World


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Bicultural 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


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Merging Organizational Cultures

Assimilation

Deculturation

Acquired company embracesacquiring firms culture

Acquiring firm imposes its culture on

unwilling acquired firm

IntegrationBoth cultures combined into a newcomposite culture

SeparationMerging companies remainseparate with their own culture


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StrengtheningOrganizational

Culture

Foundersand leaders

Culturallyconsistentrewards

Stableworkforce

Selectionandsocialization

Managing theculturalnetwork

Strengthening Organizational Culture


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Low EmployeeTurnover

High BehavioralControl

Strong VersusWeak Cultures

Commitment toCore Values

(widely shared)

Intensity of

Core Values


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Studies show that culture is closely

related to the effectiveness of

organizations.


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Effectiveness depends on . . .

the core values and beliefs of the members of

the organization.

the policies and practices used by the

organization.

the success in translating the core values and

beliefs into policies and practices.

the match between values, beliefs, policies,practices, and the organizations environment.


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Effectiveness is related to . . .

involvement = participation.

consistency = shared beliefs and values.

adaptability = ability to recognize the need for

change and the willingness to change

mission = shared purpose.


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Model of Organizational Culture Types


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Four Culture Types


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Studies on Culture Types

Deshpande, Farley, and Webster (1993) found

that competing values of the market culture

outperform those of the clan culture.

Those of the adhocracy culture outperformedthose of the diagonally opposing hierarchy

culture.

The speed of response to environmentalchanges which determine a higher performance

is thus culturally dependent.


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EXERCISE-

Organizational Culture Assessment

Instrument (OCAI)


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Clan

Adhocracy

Hierarchy

Market

1

2

3

4

5

5

4

3

2

1

AB

C

D


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Case Study: Organizational Culture and

Performance

Clan Adhocracy

Hierarchy Market

1

2

34

5

5

43

2

1

Clan Adhocracy

Hierarchy Market

1

2

34

5

5

43

2

1
http://localhost/var/www/apps/conversion/tmp/scratch_8/


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Cultural Change

Conduct a cultural analysis to identify cultural elementsneeding change

Make it clear to employees that the organizationssurvival is legitimately threatened if change is not

forthcomingAppoint new leadership with new vision

Introduce new stories and rituals to convey new vision

Change the selection and socialization process and

reward systems to support new values

Recognizing the

need for change

Diagnosing and

planning change

Managing the

transition

Measuring results

Maintaining change

From Management by Robbins and Coulter


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Motivation and

Organizational Culture Types


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The Learning Organization:

Management Approach in New Millenium

The learning organization approach to managementis the management approach based on an

organization anticipating change faster than its

counterparts to have an advantage in the market

over its competitors.

Environmentin the milleniumInformation and electronic age

Information and knowledge is going to be readily

available to us all

Information speed through Internet

The future is going to be dominated by our need to

understand systems.


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Learning Organization Culture

Has a culture that values sharing knowledge to

adapt to the changing environment and

continuously improve From Management Fundamentals by Lussier

Clan Adhocracy

Hierarchy Market

1

23

4

5

5

43

2

1

EXTERNALINTERNAL


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When Companies Seek to Foster Certain

Culture Types

Clan culture needs the five leadership practices

Adhocrarcy culture needs enabling others to act and

encouraging the heart

Hierarchy culture should not use enabling others to actand encouraging the heart;

Market culture should consider alternatives to leadership

practices.


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Culture and

Organization Growth Stages

INVENT

REINVENT

ORGANIZATIONAL

CHANGES

ORGANIZATIONAL

CHANGES


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Case Study: Culture and

Organization Growth Stages

0

2

4

6

8

10

12

14

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Year

MSubs

NTT Docom

of Japan

Invests in

Smart

PLDT

Acquires

Smart

Expand

geographic

coverage

Continuous

innovation

Clan Adhocracy

Hierarchy Market

1

2

3

4

5

5

4

3

2

1

Clan Adhocracy

Hierarchy Market

1

2

3

4

5

5

4

3

2

1


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Culture and Motivation

The need for achievement(nAch)

the desire to do something

better or more efficiently than it has ever been done before.

The need for power(nPower) the desire to control, influence,

or be responsible for others.

The need for affiliation(nAff)

the desire to maintain close,friendly, personal relationship.

10


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What is the Organizational Culture in

the Philippines?


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Philippine Organizational Culture

Espouses a reorientation in the organization to three

values, namely:

kaugnayan (identity),

karangalan (pride)

katapatan (commitment).

To accentuate these core values,

corporate leaders emphasize

paternalism (pagbabahala and pananagutan),

personalism or pakikipagkapwa (treating a person as a fellow

human being),

familism (giving importance to the family as a social unit).

Clan Adhocracy

Hierarchy Market

12

34

5

54

32

1


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End

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Culture Lecture