McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Organizational
Culture
Chapter 16
16-2
Class Agenda
• Organizational culture defined
• Culture components
• Culture types
• Culture strength
• Maintaining and changing a culture
• Best practices
16-3
Learning Objectives
BA 352
1. Have assessed how their personal values, attitudes, perceptions and behaviors impact their interpersonal effectiveness and
professionalism.
2. Have developed and enhanced the essential interpersonal skills for being an effective team leader and member of a variety of
organizations with a diverse membership.
3. Have used appropriate conceptual frameworks to diagnose and improve individual performance and group dynamics.
4. Have developed an awareness of the role of effective management in organizations.
5. Have a framework for assessing the ethical implications of the decisions they make and the actions they take so that they work more
effectively with persons
• with disabilities,
• from diverse ethnic, cultural, gender backgrounds,
• across various hierarchical and social strata.
16-4
16-5
Why Do Some Organizations Have
Different Cultures than Others?
16-6
Why Do Some Organizations Have
Different Cultures than Others?
Change Factors
Maintenance Factors
Espoused Values
Observable Artifacts
Basic Assumptions
Change Factors
Maintenance Factors
Espoused Values
Observable Artifacts
Basic Assumptions
16-7
Organizational Culture
• The shared social knowledge within an organization regarding the rules, norms,
and values that shape the attitudes and
behaviors of its employees
16-8
16-9
Organizational Culture
16-10
Observable Artifacts
• The manifestations of an organization’s culture that employees can easily see or talk about
๏ Symbols
๏ Physical structures
๏ Language
๏ Stories
๏ Rituals
๏ Ceremonies
16-11
Espoused Values
• The beliefs, philosophies, and norms
that a company explicitly
states
16-12
Basic Underlying
Assumptions
• Taken-for-granted beliefs and philosophies that are so ingrained that
employees simply act on them rather than
questioning the validity of their behavior
in a given situation
16-13
General Culture Types
16-14
Specific Culture Types
• Customer service culture
• Safety culture
• Diversity culture
• Creativity culture
16-15
Creativity Culture
Innovation
Formalization
>22
<22
16-16
Culture Strength
• Exists when employees definitively agree about the way things are supposed to
happen within the organization (high
consensus) and when their subsequent
behaviors are consistent with those
expectations (high intensity)
16-17
Culture
Strength
16-18
Maintaining a Culture
• Attraction-Selection-Attrition (ASA)
• Socialization
๏ Anticipatory stage
๏ Encounter stage
๏ Understanding and adaptation
16-19
Changing a Culture
• Changes in leadership
• Mergers and acquisitions
16-20
Why Do Some Organizations Have
Different Cultures than Others?
16-21
Why Do Some Organizations Have
Different Cultures than Others?
Change Factors
Maintenance Factors
Espoused Values
Observable Artifacts
Basic Assumptions
Change Factors
Maintenance Factors
Espoused Values
Observable Artifacts
Basic Assumptions
16-22
16-23
How Important is Culture?
• Person–organization fit is the degree to which a
person’s personality and
values match the culture
of an organization
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Best Practices: Mayo Clinic
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Best Practices: Mayo Clinic
Considered the best
healthcare system,
with 42,000
employees
Doctors work in
teams; “more thinking, less
testing”
“Put the patient first.”
Voluntary turnover
rate is 2.5% for
physicians
Orientation for new
hires focuses on
values, history, and
culture