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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

16-24

Best Practices: Mayo Clinic

16-25

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