Understanding Organizational Culture-En

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This learning module is not meant to provide a comprehensive summaryof this topic. Rather, it aims to provide a useful introduction and weencourage you to use the links located throughout and at the end of themodule to explore points of interest.



Understanding Organizational Culture

Organizational culture is basically ‘the way

things are done’ in an organization… the

unwritten rules that influence individual andgroup behaviour and attitudes. Working

towards developing an understanding of the

culture of your organization will help you to

fit in and feel at home in your new work

environment.

You can use this tool to learn:

about organizational culture and the different types of organizations youmay encounter;

how national culture affects organizational culture; and,

how you can gauge the culture of your organization.

Sections

What is organizational culture?

Are there specific organizational types?

National vs. Organizational Culture

New kid on the block?

References and Resources

Understanding Organizational Culture Page 3 of 20Young Professionals International Virtual Campushttp://www.international.gc.ca/ypi-jpi/

http://www.international.gc.ca/ypi-jpi/




What is Organizational Culture?

Intangible, yet powerful

Behaviours

above the surface of the

culture; things we can see, hear or feel:

physical environment, hours of

work, mottos, language (e.g.,

acronyms, abbreviations, etc),

dress, stories, rituals and

ceremonies;

easy to observe, but not always

easy to interpret.

Culture is composed of the values, beliefs and basic assumptions that are

shared by members of an organization. It can be seen in everything from thehours worked and how people dress to attitudes towards risk and decision-

making. In order to have a deeper understanding of the culture of any

organization, you must examine the relationship of values, behaviours and

unwritten rules.

Basic Assumptions (Unwritten Rules)

further below - beliefs,

thoughts and assumptions; unconscious and strongly held;

hard to identify - taken-for-

granted;

difficult to uncover.

Values

just below the surface -

strategies, goals, practices,attitudes;

easy to uncover in interviews;

often explicitly stated (mission

statement, motto, etc.) Let’s take a closer look at these…

“Culture should be viewed as something an organization is, rather than somethingit has.”Gerald L. Pepper, 1995






First, let’s look at behaviours

In order to understand what is really

happening within an organization, it is

necessary to examine and identify the

observable behaviours.

Behaviours (symbols):

• dress (formal, informal)

• formality (social events)

• working hours (work-home balance)

• meetings (frequency, duration, purpose)• decision-making (who, how)

• communications (jargon, howinformation is conveyed)

• traditions (rituals, what always happensor never happens)

• rules (accepted or not)

• conflicts (how are they resolved)

• physical environment (furnishings,equipment, staff lunch room)

Behaviours are what you see, hear and

feel and are indicative of the

organization’s unwritten rules.

For example:

Behaviour - people dress very formally at work

Unwritten Rule - they believe that looking smart and professional at work is important

But what exactly are Unwritten Rules ?

When employees say, ‘it’s the way we do things around here,’ they arereferring to the unwritten rules which govern the way in which people

perform tasks, solve problems, resolve conflicts, and treat each other.

These unwritten rules are so-called because they:

are intangible, yet they have a powerful

influence on how people behave at work;

are rarely openly discussed in meetings;

are usually confined to coffee rooms and the

water cooler; are rarely questioned or challenged;

are usually shared by most, if not all, the people

who work in an organization; and,

provide a way for people to make sense of what is going on around them.






Reflect on some of the observable

behaviours in your organization. Jot

down a few in the Organizational

Culture Chart provided at the end of

this module and then see if you candetermine the underlying unwritten rule

for each behaviour listed.

Examples of Unwritten Rules:

• we know best

• the client knows best

• knowledge is power

• we’re not trained to do that

• meetings constitute activity• filling in a form makes it happen

• you have to do things cheaply

• the number of hours worked is equalto the value of the outcome

Source: Cullen, R., Nicholls, S., Halligan, A., “NHS Support Team:Reviewing a Service – discovering the unwritten rules,” British

Journal of Clinical Governance, 6.2, 2001. Available at:http://www.cgsupport.nhs.uk/Resources/CG_in_print.asp

So where do values come in?

Values give people a sense of focus,

purpose and direction. Indeed, the

values of an organization are often

explicitly stated in the official mission statement, organizational

publications, or perhaps on the Web site. However, these stated values may or may not have any bearing on what is

actually happening within the

organization. There may be discrepancies

between what people say they are doing -

the stated values , and what they are

actually doing - the behaviours .

It is the unwritten rule that causes the inconsistencies between the stated

values and behaviours. Whereas values provide a sense of what to aspire to,

unwritten rules are grounded in people’s experiences within the organization.

For example:

Stated Value - Our organization believes in a ‘work/home’ balance.

Behaviour - Meetings are often scheduled for late in the afternoon or early in themorning and employees are ‘expected’ to work late if the need arises.

Discrepancy - The family-friendly policy is at odds with the expectation that

employees stay late if ‘required’ and attend meetings late in the afternoon and earlyin the morning.

Unwritten Rule - You have to work as long as the person who works longest.


http://www.cgsupport.nhs.uk/Resources/CG_in_print.asp



http://www.cgsupport.nhs.uk/Resources/CG_in_print.asp



Are there Specific Organizational Types?

Organizational Types

Of course, each organization is uniquely different. However, the followingfour types may help provide some broad parameters to use when trying to

determine the culture of your organization.

The Clan Culture

friendly place to work

like an extended family

leaders considered to be mentors

loyalty and tradition prevail

high commitment great deal of importance is placed on morale

emphasis placed on employee development, teamwork and participation

The Hierarchy Culture

procedures must be followed

formal and structured

leaders pride themselves on being efficiency-minded

ensuring the organization runs smoothly is a top priority

formal rules and policies are the glue that holds the organizationtogether

success is defined in terms of dependable output, smooth scheduling and

low cost

management is concerned with secure employment and predictability

The Development Culture

dynamic, entrepreneurial and creative place to work

risk-taking is common

leaders are innovative

commitment to experimentation and innovation is the glue that holds the

organization together

emphasis is on being on the leading edge and on growth and development

success is all about developing unique and effective products or services

individual initiative is encouraged






The Market Culture

results-oriented place

major concern is getting the job done

competitive and goal-oriented atmosphere

leaders are hard drivers, tough and demanding

emphasis is on winning

hard-driving competitiveness

Source: Cameron, Kim S. & Robert E. Quinn, Diagnosing and Changing Organizational Culture, Reading, MA: Addison Wesley Longman, 1999.

“For the ‘lowdown’ on what really happens in the organization,look at the cartoons stuck on the walls of employees’ offices.They are often incisive satires of the official line and reveal whatthe dilemmas really are.”

Fons Trompenaars & Charles Hampden-Turner,Riding the Waves of Culture: Understanding Diversity in Global Business,

New York: McGraw-Hill, 1998.

Learning Activity: Norm’s Not Sure It’s Norm’s first day at his placement. As usual,

he’s in a bit of a muddle. He overslept, couldn’t find

the key to lock his door, and left a folder of

important papers on the bus. As a result, he’s

arrived at the office building where his hostorganization is, but he can’t remember the exact

floor they’re located on.

Follow Norm as he searches for his new office and

then try the quiz on the following page.






First Floor: Norm takes the elevator to the first floor of the office building. Theelevator door opens and he is deposited into a large, elegant reception area withdeep carpeting and dim lights. There are several dark leather chairs for waiting and aselection of the company’s annual reports on a sleek glass table. A young woman in a

dark suit sits at a large desk conversing over a headset in a quiet voice. Lookingaround, Norm spies a long hallway with many closed doors and notices severalprofessionally dressed people carrying files and speaking in hushed tones…

Second Floor: Norm takes the elevator to the next floor. The elevator door opens andhe finds himself in a large, sunlit reception area with shiny wooden floors. Severalwicker chairs surround a table displaying cooking and exercise magazines. A friendlyyoung man in a yellow golf shirt chats with someone at the reception desk. Normnotices a group of employees having an animated conversation by the water cooler.He wanders down a hallway and glances into offices where he sees people busilyworking. In one office, he spots a group of singing people celebrating a birthday. Onhis way back to the reception area, he stops to have a look at the staff bulletin board,where he examines photos from a recent staff golf tournament and brochuresadvertising in-house professional development courses…

Third Floor: Norm gets back in the elevator and goes up a floor. The door opens andhe finds himself in a large lobby with a large reception desk. Over the reception desk

is an enormous sign that reads: “We’re Number One!” Taking a peek down anearby hall, Norm notices a time clock alongside a set of employee timecards. Theemployee bulletin board is crammed full of notices, as well as a picture of theemployee of the month. As he heads back to the reception area, he notices that manyof the staff are attending a meeting in the conference room; others are hard at workand appear preoccupied.

Fourth Floor: Once again, Norm gets back in the elevator and proceeds to the finalfloor in the office building. When the door opens, Norm is in a large open area.

Casually-dressed people are milling about talking and there is a real buzz in the air.There’s a sense of fast-paced action. Most amazingly, the receptionist appears to be arobot of some sort, complete with a headpiece, and an on-line listserv replaces thestaff bulletin board.






Quiz:

Reflect on the four different organizations Norm wandered into while he

was searching for his placement. Using the observable behaviours and

symbols Norm encountered, decide which of the four organizational types

each establishment most closely resembles.

First Floor

The Clan Culture


The Market Culture


Second Floor

The Clan CultureThe Hierarchy Culture

The Market Culture


Third Floor

The Clan Culture


The Market Culture


Fourth Floor

The Clan Culture


The Market Culture


(Refer to page 18 for suggested answers.)






National vs. Organizational Culture

Culture or Culture ?

The organization of any culture is essentially ‘created’. People who are

establishing an organization will ‘typically borrow from models or ideas thatare familiar to them,’ for instance their own particular cultural programming.

The resulting organizational culture may be like a family, or more like a

missile homing in on strategic objectives. Consider the following four types

of organizational culture which vary considerably in how they think and learn,

change and motivate, reward and resolve conflict.

The Family Culture

Personal Culture (people before roles) Leader is regarded as caring ‘father’

Close relationships

General happiness and welfare of all members of organization is of

concern to this type of organization

Metaphor – ‘father’ or head of organization has more experience and

authority than ‘children’ or employees

Power-oriented organizational culture

More interested in intuitive knowledge, than rational knowledge; more

interested in development of members of organization, than utilizationof members

Power is generally not threatening, but rather, caring

Tend to be ‘high-context’ – great deal of cultural content taken for

granted by members

Motivated more by praise and appreciation, than by money

Criticisms are seldom voiced publicly

Negative feedback is indirect

Low priority to efficiency; high priority to effectiveness

Number of in-jokes, family stories, rituals and traditions, makes it moredifficult for outsiders to feel that they belong

Examples of countries in which you might encounter a Family Culture within a largeorganization: Japan, Brazil, Turkey, Pakistan, Spain, Italy, Philippines






The Eiffel Tower Culture

Role Culture (roles before people)

Organization with various roles and functions organized at top of

hierarchy

Supervisor to oversee completion of several tasks; manager to overseeseveral supervisors

Narrow at top and broad at bottom (like Eiffel Tower)

Hierarchy different from family

Each level has clear responsibility for levels below it

The boss is replaceable

Authority is attached to position, rather than person

Professional qualifications assist careers in this type of

organization

Rejects values of Family Culture. Eiffel Tower Culturebelieves that personal relationships likely to warp

judgements and create favouritism.

Each level of hierarchy is described, rated for complexity and

responsibility and has a salary attached to it.

Consider Family Culture to be arbitrary, irrational, cosy and corrupt.

Believe in having necessary skills to fill position and developing

necessary skills to move up.

Employees are precise and meticulous (ideally).

Complaints are dealt with through rules and fact-finding procedures.

Examples of countries in which you might encounter an Eiffel Tower Culture within alarge organization: Germany, France, Switzerland, Australia, Canada

The Guided Missile Culture

Egalitarian

Impersonal and task-oriented Examples of countries in which you mightencounter a Guided Missile Culture within a

large organization: USA, the UK, Norwayand Ireland

Members do jobs that are not

fixed in advance; must do

whatever it takes to accomplishtasks

Tasks often undertaken in teams or project groups

Groups may be temporary

Relationships as fleeting as projects being worked on






The Incubator

Based on idea that organizations are secondary to fulfilment of

individuals

Organizations serve as incubators for self-expression and self-

fulfilment Purpose is to free individuals (from routine tasks) for more creative

activity

Minimal structure; minimal hierarchy

Authority commanded by individuals is personal; vision and ideas inspires

others to work with them

Change is fast and spontaneous

Participants are on same wave-length, searching together for solution to

problem

Motivation is often intense

Competition to contribute to the emerging shape of something new

Trompenaars, Fons & Charles Hampden-Turner,

Riding the Waves of Culture: Understanding Diversity in Global Business,New York: McGraw-Hill, 1998.

Remember, these are ‘ideal types’ – in the real world, it is more likely you

would find elements of more than one cultural type in your organization, with

one culture dominating.

Shannon’s StoryShannon arrived on her placement at a bank in Manila

excited about the experience and eager to learn.

However, what started out as an exciting opportunity

soon deteriorated into an unpleasant experience.

“My supervisor was distrustful and suspicious and watched our every move. We had atime clock to ensure we were arriving on time, and he frequently strolled through theoffice stopping to look over shoulders to see what people were doing. No one elseseemed to mind, but I found that I resented his attitude and it began to interfere with

my work.”

What happened? Shannon didn’t understand the supervisor’s approach to

management. She felt that his behaviour indicated a total lack of trust.

Unfortunately, the more carefully he observed the employees, the more

Shannon felt this illustrated a lack of respect.






Why? In the Filipino culture, which is a family or hierarchical culture, this is

the way supervisors show caring and involvement for their subordinates. As

the supervisor explains, “Filipino employees who are not treated like this

might feel neglected and unimportant.”

Sources (adapted from): Adler, Nancy, International Dimensions of Organizational Behaviour,

Cincinnati, OH: South-Western College Publishing: 1997;Trompenaars, Fons & Charles Hampden-Turner,

Riding the Waves of Culture: Understanding Diversity in Global Business,

New York: McGraw-Hill, 1998.






New Kid on the Block?

What should I expect?

Work is more than a way to spend time; it’s a way of life. When you enter a

new organization, you will likely need to be taught (or socialized) the way lifeis conducted within this new environment. This socialization can take many

forms from a more formal orientation session to on-the-job training.

Whatever form it takes, the goal is to create a citizen who can function

within the confines and culture of the organization.Source: Pepper, Gerald L., Communicating in Organizations: A Cultural Approach, New York: McGraw-Hill, 1994.

Colm’s Story

“During the first week of my placement I was invited to the weekly staff meeting. Infact, I was told that it would be a great opportunity to meet everyone in the

organization at one time. On the appointed day, I arrived for the meeting five minutesearly. Nobody was there; not one person in the entire conference room. I sat patientlywaiting and watching the minutes pass by until five minutes after the scheduled start of the meeting. By then I was confused, embarrassed and a little worried that I had thedate or the time wrong. Ten minutes later people began to arrive.

After a few weeks in the organization and by observing the behaviour of my co-workers, I finally realized that the organizational norm was for meetings to begin late.

I wish I could say this was the only organizational norm I learned the hard way!”

What happened? No one thought to mention this common

practice in the organization because the ways of working

within an organization generally function at an unconscious

level and are therefore taken for granted by its members.

Why is it important for me to understand the culture?

The culture of an organization is intangible and can therefore be difficult to

pin down. However, it can be a critical factor in how you feel about your

work. For instance, does it match or adversely affect your vision of your

lifestyle; are there cultural adjustments you feel you must make to workthere; how do your values compare to the organization’s values?

These differences can be elusive and difficult to define, making assessment

of the organizational culture difficult. However, a newcomer with objective

perceptions can often observe things insiders take for granted.






How do I do this?

You can learn a great deal on your own if you:

Read -

Almost every organization produces at least one of the following: Mission Statement (where you will find the organization’s goals and

values explicitly stated)

Web site

Publications, reports, newsletters, etc (what sorts of things are

mentioned or emphasized; how does the organization present itself to

the world (recent social events or a recent increase in profits?)

Or, Google the organization to find out what the outside world thinks of

it!

Ask –

Ask your co-workers:

What do they think the image of the organization is?

What words might they use to describe it (e.g., friendly, experienced,

stable, secure)?

What sorts of behaviours are expected in the organization?

What happens when someone has a success or failure at work?

Is the message you get about the culture consistent across levels and

units within the organization?

Observe –

Look around at your surroundings:

Do the furnishings make a particular statement?

Do people dress differently depending on their position within the

organization?

Do people talk and socialize at work (or outside of work, for instance:

holiday parties, social events, company softball games)?

Are there particular rites and ceremonies in the organization?

This can be a challenging exercise. However, by trying to understand how

things work, you’ll get a peek at why they work the way they do.






Checklist

Organizations are both part of and apart from society.

They are communities of their own with distinct rules and

values. Nevertheless, working to develop a good

understanding of the dimensions of the culture in which you live will likely help you to have a better understanding

of the culture of your organization.

Use the following checklist throughout the first weeks of your placement to

help you develop an understanding of the organizational culture of your new

environment. Remember to look deeper – past the observable behaviours and

symbols – see if you can decipher the unwritten rules. Add your own

observations in the space provided!

Communication

How do staff communicate with one another (pop over to office/desk,

memo, phone, e-mail)?

Are there people who do not look at others in the eye? Whose glance do

they avoid?

If someone’s office door is closed, how do you approach it?

How do people address one other in the organization?

How do they address their superiors?

How do people greet one another in the morning?

If you are in conversation with someone and the telephone rings, do they

interrupt the conversation to answer it?

How do you interrupt someone politely?

How much time do they spend greeting one another?

How accessible/approachable are senior staff members?

How are organizational decisions communicated to the staff?

Is feedback (positive or negative) given regularly?

Time

What time do people come to work?

Do they arrive on time?

Do people take coffee or tea breaks?






Groups and Networks

Do people seem to prefer working in groups or individually?

Do people gather at lunch? If so, what do they talk about?

Do people get together after hours socially?

Dress

How do people dress? (formal, informal)

Are there dress-down days?

How do people dress for special appointments/meetings?

Meetings

Does everyone participate in meetings?

Who speaks at meetings?

What do people say if they arrive late for a meeting?

Are people encouraged to share ideas at meetings?

Boundaries

What types of positions do women hold in the organization?

Is saving face important to people?

What are the organization’s guiding

values?


Is there a sense of stability within

the organization, or is there

continuous change?

Does the organization have its own

‘language’ (jargon, acronyms, etc)?

What are the attitudes to past folkheroes and villains within the organization?

Suggested Answers from ‘Norm’s notsure… Learning Activity on page 10:

First Floor The Hierarchy CultureSecond Floor The Clan CultureThird Floor The Market CultureFourth Floor The Development Culture

How are new staff members assimilated?





Organizational Culture Chart

Behaviour Unwritten Rule






References & Resources

Useful Links

Coaching and Organizational Culture by Rick Fullerton, Ph.D., CoachingConnection, Government of Canada (B)http://coaching.gc.ca/documents/coaching_and_organizational_culture_e.asp

Strategic Leadership and Decision Making: Organizational Culture , National

Defence University (E)http://www.au.af.mil/au/awc/awcgate/ndu/strat-ldr-dm/pt4ch16.html

Organizational Culture by Carter McNamara, of Authenticity Consulting (E)http://www.managementhelp.org/org_thry/culture/culture.htm

Chapter 4 – Organizational Motivation by the International Development

Research Centre (IDRC), Government of Canada (B)http://www.idrc.ca/en/ev-28365-201-1-DO_TOPIC.html

Planifier une auto-évaluation organisationnelle : bilan d’une expérience , by

Adrien M.-H., Sliwinski, A., and Lusthaus, C., Universalia, 1998 (F)http://www.universalia.com/files/occas32.pdf

Professional Development Resources: Organizational Development theSouthern Group on Educational Affairs, Florida State University College of

Medicine (E)http://med.fsu.edu/sgealibrary/org.htm

Understanding Organizational Culture by Russell Consulting Inc. (E)http://www.russellconsultinginc.com/docs/white/culture.html

(B) = Bilingual Site (E) = English Site (F) = French Site

Understanding Organizational Culture Page 20 of 20Young Professionals International Virtual Campus

http://coaching.gc.ca/documents/coaching_and_organizational_culture_e.asp

http://www.au.af.mil/au/awc/awcgate/ndu/strat-ldr-dm/pt4ch16.html

http://www.managementhelp.org/org_thry/culture/culture.htm

http://www.idrc.ca/en/ev-28365-201-1-DO_TOPIC.html

http://www.universalia.com/files/occas32.pdf

http://med.fsu.edu/sgealibrary/org.htm

http://www.russellconsultinginc.com/docs/white/culture.html


http://www.russellconsultinginc.com/docs/white/culture.html

http://med.fsu.edu/sgealibrary/org.htm

http://www.universalia.com/files/occas32.pdf

http://www.idrc.ca/en/ev-28365-201-1-DO_TOPIC.html

http://www.managementhelp.org/org_thry/culture/culture.htm

http://www.au.af.mil/au/awc/awcgate/ndu/strat-ldr-dm/pt4ch16.html

http://coaching.gc.ca/documents/coaching_and_organizational_culture_e.asp

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Understanding Organizational Culture-En