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18* 2012 South-Western, a part of Cengage LearningAfter studying
this chapter you should be able to:Define organization culture,
explain how it affects employee behavior, and understand its
historical roots.Describe how to create organization
culture.Describe two different approaches to culture in
organizations.Identify emerging issues in organization
culture.Discuss the important elements of managing the
organizational culture.Chapter Learning Objectives
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18* 2012 South-Western, a part of Cengage LearningThe Nature of
Organization CultureWhy Study Culture?It is assumed that
organizations with a strong culture perform at higher levels than
those without a strong cultureOrganizational Culture A set of
values held by individuals in a firm that help employees understand
acceptability of actionsCulture ValuesAre often taken for granted
(implicit)May not be made explicit (i.e., not written down)Are
communicated through symbolic means
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18* 2012 South-Western, a part of Cengage
Learning18.1Definitions of Organization Culture
Definition Source A belief system shared by an organizations
members J. C. Spender, Myths, Recipes and Knowledge-Bases in
Organizational Analysis (Unpublished manuscript, Graduate School of
Management, University of California at Los Angeles, 1983), p. 2.
Strong, widely shared core values C. OReilly, Corporations, Cults,
and Organizational Culture: Lessons from Silicon Valley Firms
(Paper presented at the Annual Meeting of the Academy of
Management, Dallas, Texas, 1983), p. 1. The way we do things around
here T. E. Deal and A. A. Kennedy, Corporate Cultures: The Rites
and Rituals of Corporate Life (Reading, MA: Addison-Wesley, 1982),
p. 4. The collective programming of the mind G. Hofstede, Cultures
Consequences: International Differences in Work-Related Values
(Beverly Hills, CA: Sage, 1980), p. 25. Collective understandings
J. Van Maanen and S. R. Barley, Cultural Organization: Fragments of
a Theory (Paper presented at the Annual Meeting of the Academy of
Management, Dallas, Texas, 1983), p. 7. A set of shared, enduring
beliefs communicated through a variety of symbolic media, creating
meaning in peoples work lives J. M. Kouzes, D. F. Caldwell, and B.
Z. Posner, Organizational Culture: How It Is Created, Maintained,
and Changed (Presentation at OD Network National Conference, Los
Angeles, October 9, 1983). A set of symbols, ceremonies, and myths
that communicates the underlying values and beliefs of that
organization to its employees W. G. Ouchi, Theory Z: How American
Business Can Meet the Japanese Challenge (Reading, MA:
Addison-Wesley, 1981), p. 41.A dominant and coherent set of shared
values conveyed by such symbolic means as stories, myths, legends,
slogans, anecdotes, and fairy tales T. J. Peters and R. H. Waterman
Jr., In Search of Excellence: Lessons from Americas Best-Run
Companies (New York: Harper & Row, 1982), p. 103. The pattern
of basic assumptions that a given group has invented, discovered,
or developed in learning to cope with its problems of external
adaptation and internal integration E. H. Schein, The Role of the
Founder in Creating Organizational Culture, Organizational
Dynamics, Summer 1985, p. 14.
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18* 2012 South-Western, a part of Cengage LearningThe Nature of
Organization Culture (contd)
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18* 2012 South-Western, a part of Cengage LearningOrganization
Culture Versus ClimateOrganization CultureThe historical context
within which a situation occurs and the impact of this context on
the behaviors of employeesDifficult to alter in the short-runMeans
through which people in the organization learn and communicate
organization acceptability (values and norms)Organization
ClimateThe current situations in an organization and the linkages
among work groups, employees, and work performanceEasier for
management to manipulate in order to directly affect the behavior
of employees
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18* 2012 South-Western, a part of Cengage Learning18.2Creating
Organization CultureCreating Organization CultureStep 1Formulate
Strategic ValuesStep 2Develop Cultural ValuesStep 3Create
VisionStep 4Initiate Implementation StrategiesStep 5Reinforce
Cultural Behaviors
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18* 2012 South-Western, a part of Cengage LearningCreating the
Organization CultureEstablish ValuesStrategic valuesThe basic
beliefs about an organizations environment that shape its
strategy.Cultural valuesThe values that employees need to have and
act on for the organization to act on the strategic values.Create
VisionCreate a picture of the organization that portrays how the
strategic and cultural values will combine to create the
future.
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18* 2012 South-Western, a part of Cengage LearningCreating the
Organization Culture (contd)Initiate Implementation StrategiesTake
actions founded on the strategic and cultural values to accomplish
the vision.Reinforce Cultural BehaviorsUse formal reward systems to
encourage desired employee behaviorsTell stories that epitomizing
cultural valuesConduct ceremonies and rituals that emphasize right
actions by employees
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18* 2012 South-Western, a part of Cengage LearningApproaches to
Describing Organization Culture: The Ouchi Framework
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18* 2012 South-Western, a part of Cengage Learning18.3The Ouchi
Framework
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18* 2012 South-Western, a part of Cengage Learning18.4The Peters
and Waterman FrameworkAttributes of an Excellent FirmBias for
actionStay close to the customerAutonomy and
entrepreneurshipProductivity through peopleHands-on managementStick
to the knittingSimple form, lean staffSimultaneously loose and
tight organization
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18* 2012 South-Western, a part of Cengage LearningEmerging
Issues in Organization Culture: InnovationInnovationThe process of
creating and doing new things that are introduced into the
marketplace as products, processes, or services
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18* 2012 South-Western, a part of Cengage LearningEmerging
Issues in Organization Culture: Innovation (contd)New
VenturesRequire entrepreneurship and good
managementIntrapreneurshipEntrepreneurial activity that takes place
within the context of a large organizationEntrepreneurs profileNeed
for achievementDesire to assume responsibilityWilling to take
risksFocus on concrete results
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18* 2012 South-Western, a part of Cengage LearningEmerging
Issues in Organization Culture: Innovation (contd)Corporate
ResearchSupports existing businesses to provide incremental
innovations and to explore potential new technology basesIs
responsible for keeping the companys products and processes
technologically advancedCorporate culture can be instrumental in
fostering environment for creativity and innovation
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18* 2012 South-Western, a part of Cengage LearningEmerging
Issues in Organization Culture (contd)EmpowermentIs enabling
workers to set their own work goals, make decisions, solve problems
within their sphere of responsibility and authorityAppropriate
Cultures (Goffee and Jones)Factors that may determine the
appropriate type of culture appropriate for an organization:The
nature of the value chainThe dynamism of the environment
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18* 2012 South-Western, a part of Cengage LearningManaging
Organization Culture
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18* 2012 South-Western, a part of Cengage LearningManaging
Organization Culture (contd)Taking Advantage of the Existing
CultureEasier and faster to alter employee behaviors within the
existing culture than it is to change existing history, traditions,
and valuesManagers must be aware and understand the organizations
valuesManagers can communicate their understanding to lower-level
individuals
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18* 2012 South-Western, a part of Cengage LearningManaging
Organization Culture (contd)Teaching Organization
CultureOrganizational socializationIs the process through which
employees learn about the firms culture and pass their knowledge
and understanding on to othersOrganizational mechanismsAre examples
of organization culture that employees see in more experienced
employees behaviorsCorporate pamphlets and formal training
sessions
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18* 2012 South-Western, a part of Cengage LearningManaging
Organization Culture (contd)Changing the Organization
CultureManaging symbolsSubstituting stories and myths that support
the new cultural values for those that support old onesCulture can
be difficult to change when upper management inadvertently reverts
to old behaviorsThe Stability of ChangeNew values and beliefs must
be seen as stable and influential as old onesChanging value systems
requires enormous effort because value systems tend to be
self-reinforcing
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18* 2012 South-Western, a part of Cengage LearningOrganizational
Behavior in ActionAfter reading the chapter:Why do organizations
lose the innovative aspects of their organizational culture?What
should managers do to turn climate into culture in new
organizations?What are the effects of technology on culture in
organizations?
2012 South-Western, a part of Cengage Learning