Organizational Culture

1. OrganizationalCulture

2. Cirque du Soleil’s Corporate Culture • Through its strong culture of risk-taking and creativity, Montreal-based Cirque du Soleil has become a leader in big top entertainment. CP/Paul Chaisson

3. Organizational Culture Defined • The basic pattern of shared assumptions, values, and beliefs considered to be the correct way of thinking about and acting on problems and opportunities facing the organization. CP/Paul Chaisson

4. Elements of Organizational Culture

5. Meaning of Cultural Content • Cultural content refers to the relative ordering of beliefs, values, and assumptions. • Example: Toronto Star’s “Atkinson Principles”: Canadian independence, social justice, and civic duties • An organization emphasizes only a handful of values out of dozens or hundreds of values that exist.

6. Organizational Subcultures • Located throughout the organization • Can enhance or oppose (countercultures) firm’s dominant culture • Two functions of countercultures: • provide surveillance and critique, ethics • source of emerging values

7. Mayo Clinic Deciphers its Culture • To decipher its culture and identify ways to reinforce it at the two newer sites, the Mayo Clinic retained an anthropologist who shadowed employees, joined physicians on patient visits, and posed as a patient to observe what happens in waiting rooms. Courtesy of the Mayo Clinic

8. Artifacts: Stories and Legends • Social prescriptions of desired (undesired) behavior • Provides a realistic human side to expectations • Most effective stories and legends: • Describe real people • Assumed to be true • Known throughout the organization • Are prescriptive

9. Artifacts: Rituals and Ceremonies • Rituals • programmed routines • (e.g., how visitors are greeted) • Ceremonies • planned activities for an audience • (e.g., award ceremonies)

10. Artifacts: Organizational Language • Words used to address people, describe customers, etc. • Leaders use phrases and special vocabulary as cultural symbols • e.g., Container Store’s “Being Gumby” • Language also found in subcultures • e.g., Whirlpool’s “PowerPoint culture”

11. Artifacts: Physical Structures/Symbols • Building structure -- may shape and reflect culture • Mountain Equipment Co-op’s retail outlets reflect and maintain an enviro-friendly culture • Office design conveys cultural meaning • Furniture, office size, wall hangings

12. Benefits of Strong Corporate Cultures SocialControl Strong Organizational Culture SocialGlue ImprovesSense-Making

13. Problems with Strong Cultures • Culture content might be misaligned with the organization’s environment. • Strong cultures may focus on mental models that could be limiting • Strong cultures suppress dissenting values from subcultures.

14. Adaptive Organizational Cultures • External focus: Firm’s success depends on continuous change • Focus on processes more than goals • Strong sense of ownership • Proactive: Seek out opportunities

15. Org Culture and Ethics • Executives view org culture is one of three main influences on business ethics • Organizational culture also an ethical problem when it is very strong --corporate cults

16. Bicultural Audit • Part of “due diligence” in merger • Minimizes risk of cultural collision by diagnosing companies before merger • Three steps in bicultural audit: 1. Examine artifacts 2. Analyze data for cultural conflict/compatibility 3. Identify strategies and action plans to bridge cultures

17. Merging Organizational Cultures Assimilation Acquired company embraces acquiring firm’s cultural values Deculturation Acquiring firm imposes its culture on unwilling acquired firm Integration Cultures combined into a new composite culture Separation Merging companies remain separate with their own culture

18. Strengthening Organizational Culture Foundersand leaders Strengthening Organizational Culture Selection and socialization Culturally consistent rewards Managing the cultural network Stable workforce

19. Organizational Socialization Defined • The process by which individuals learn the values, expected behaviours, and social knowledge necessary to assume their roles in the organization

20. Socialization: Learning & Adjustment • Learning Process • Newcomers make sense of the organization’s physical, social, and strategic/cultural dynamics • Adjustment Process • Newcomers need to adapt to their new work environment • New work roles • New team norms • New corporate cultural values

21. EncounterStage Role Management Stages of Socialization Pre-EmploymentStage • Outsider • Gathering information • Forming psychological contract • Newcomer • Testingexpectations • Insider • Changing roles and behaviour • Resolving conflicts

22. Conflict A Conflict C Conflict D Conflict B Pre-employment Socialization Conflicts Individual Attracts Organization Organization Attracts Individual Individual Selects Organization Organization Selects Individual

23. Realistic Job Previews • A balance of positive and negative information about the job and work context • Benefits of RJPs • Less turnover, higher job performance • Less reality shock • Vaccination effect • Builds loyalty

24. OrganizationalCulture