Organizational Culture Analysis

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2Organizational Culture and Diversity

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Learning Objectives

After reading this chapter and studying the materials, you should be able to:

Explain the nature of organizational culture. Identify ways to integrate new employees into an organization's culture. Discuss methods for building a more ethical culture and effectively adapting or modifying a culture when necessary. Evaluate the effects of the increasing level of diversity in today's business environment.

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Honest Tea was founded in 1998. ManuHK/iStock/Thinkstock

2.1 Understanding Organizational Culture In the 1980s, many Japanese companies began making serious inroads into U.S. markets, especially in the automotive and electronics industries. A variety of factors helped explain the change, including historical events, economic conditions, the legal environment, competitive circumstances, and the quality of the products sold by �irms such as Honda, Toyota, and Sony. Additional speculation began to emerge, suggesting that somehow the Japanese culture was part of the picture. The Japanese culture included elements of loyalty and shared commitment between companies and employees. Lifelong employment contracts were common. Many workers experienced a sense of "honor" from being true to the organization, regardless of status in the organizational hierarchy or the actual tasks performed. This common bond created a competitive advantage in terms of product quality and worker productivity.

Consequently, in the United States, organizational behavior and management researchers started studying the role that culture plays in the business community. The investigation led to some confusion. Some believed that the national culture of Japan was the driving force behind the competitive successes of businesses in that country. To others, however, it was the cultures of speci�ic companies that created the advantage.

The �irst distinction to be made when studying culture is the level of analysis—in a nation versus within a speci�ic company. This chapter examines culture at the company level. Organizational culture consists of a set of shared meanings and values held by a set of members in an organization that distinguish it from others. An organization's culture determines how members perceive and react to the larger environment (Becker, 1982; Schein, 1996). Culture determines the nature of an individual's experience in for-pro�it companies, nonpro�it, and governmental entities.

An organization's culture normally develops over a long period of time. Many times, it begins with what has been termed a "founder story" regarding the individual who created or started the organization. Examples include J.C. Penney, Sam Walton (Walmart), or more recently, Steve Jobs (Apple Computer). A founder espouses certain values and expresses the way he or she wishes to operate. Members follow, and the culture begins to develop (see OB in Action: Honest Tea for another example).

Over time, a culture may evolve as organizational leaders respond to the need for external adaptation and survival methods while at the same time coping with problems associated with internal integration (Schein, 1996). Patterns of behavior develop within the organization including what to wear, the type of language (formal, informal) used when addressing those of higher rank, the conduct of performing the actual task or job, and numerous other facets of organizational life that re�lect and express the values of the founder and those who follow.

Culture becomes a relatively �ixed organizational element re�lecting the organization's history. Top managers who understand the importance of a culture enjoy a major competitive advantage. Airbnb's co-founder and CEO Brian Chesky stated,

The thing that will endure for 100 years, the way it has for most 100 year companies, is the culture. The culture is what creates the foundation for all future innovation. If you break the culture, you break the machine that creates your products. (ReferralCandy, 2016, para. 5)

OB in Action: Honest Tea—A Strong Culture from the Beginning

Honest Tea began as a collaboration between co-founders Seth Goldman and Barry Nalebuff. Both had an interest in refreshment products that were less sweet than traditional drinks such as Coke or Pepsi. Tea provided a natural alternative. Nalebuff visited India, where he learned that the major teas sold for bottling by American companies were often brewed using the dust and fannings left after the quality tea leaves were used. Nalebuff and Goldman concluded that tea brewed with actual tea leaves would taste better and enjoy a natural advantage in the marketplace. The name Honest Tea resulted from the idea that bottled teas brewed with real tea leaves had a better, more genuine (or honest) taste (Honest Tea, 2016).

From the beginning, the company based operations on a passion both cofounders held regarding social responsibility. The company's mission statement is "Honest Tea creates and promotes delicious, truly healthy, organic beverages. We strive to grow with the same honesty we use to craft our products, with sustainability and great taste for all." The concept drives every company activity, from the manufacturing process to marketing programs, biodegradable tea bags, organic ingredients, and community partnerships. Efforts to become more sustainable led to the development of plastic bottles that are 22% lighter than most versions, saving tons in waste.

Honest Tea's partnership programs seek out circumstances in which an entrepreneur in a struggling region can produce new �lavors and additives. Contracts have been developed with Native American groups in the United States and farmers in Thailand who grow mangosteen, an antioxidant ingredient. Goldman and Nalebuff believe in helping others through commerce.

The result, in terms of an organizational culture, is a company �illed with employees who are proud of what they do and how the organization operates. Company involvements include "plant a tree" efforts and support of the Susan G. Komen cancer foundation. The strong emphasis on sustainability, responsibility, and high-quality products has taken this

small operation to a thriving and successful business across the United States (Honest Tea, 2016).

In 2011, Honest Tea was acquired by Coca Cola. Conscious Company Magazine (2016) noted that the organization stayed true to its mission and values. Further, Honest Tea has been left to operate largely as an independent unit within the bigger corporation, thereby supporting the company's original mission and value statements, and maintaining the organization's internal culture.

Re�lection and Application Questions

1. Can most companies develop a similar mindset regarding social responsibility and succeed at the same high level? 2. What kinds of employees would naturally �it in the Honest Tea organization? 3. Can you think of situations that might threaten the culture of Honest Tea? If so, what are they?

Culture consists of the symbols, rituals, language, and social dramas that highlight organizational life, including myths, stories, and jargon (Smircich, 1984). Symbols include the golden arches at McDonald's, the Intel tune played in commercials, a Star of David in a synagogue, or the Republican elephant. Rituals include joining ceremonies and commencement activities, such as the Doctorate of Hamburgerology granted to graduates of the McDonald's manager training

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Organizations that have strong cultures tend to have employees who identify with the organization's mission and with each other, potentially leading to higher productivity.

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program, Hamburger University. Language includes company-speci�ic acronyms and terms: In the world of Disney, a crowd at a theme park is an "audience" and a work shift is a "performance." Social dramas emerge from promotion decisions, termination decisions, and disciplinary actions.

Culture also consists of shared meanings associated with these elements. For instance, the term "no rules" has a shared meaning among employees at Outback Steakhouse. The organization emphasizes having fun and creating a positive and pleasant environment in which customer needs come �irst (no rules about altering the menu choices, for example). Further, shared meaning arises from consistently mentioned themes of inclusivity, diversity, team trust, and communication (Bloominbrands.com, 2016; Sullivan, 2005). Culture combines the philosophy of the founder of the �irm with beliefs, expectations, and values shared by members.

Organizational culture has several dimensions. These include dominant cultures and subcultures, strong (and weak) cultures, along with other functions and layers.

Dominant Cultures and Subcultures

In nearly every society, a dominant culture guides the daily activities of citizens. The same holds true for individual companies. The dominant culture articulates the core values shared by a majority of an organization's members. When the company interacts with the public, the dominant culture is often readily noticeable. As an example, the dominant culture at Southwest Airlines leads employees to cooperate with one another and to have fun while doing so. The Outback Steakhouse chain tried to instill the same type of shared values using the "No Rules" motto for many years. In essence, the dominant culture becomes the organization's personality.

As a company grows in size, subcultures often emerge. A subculture (a culture that differentiates a subgroup from the larger group to which it belongs), in an organizational context, arises from the common problems, situations, and experiences that a set of members face. In a freethinking and fun-loving company such as Nintendo, which develops handheld games, the dominant culture extends to every member. One department in the company, quality control, still must adhere to carefully managed production techniques or the games will have defects and will not work. It would not be surprising to �ind that members of the quality control department have an additional set of values that differ somewhat from the overall organization.

Many times, subcultural values mesh with or contribute to those of the dominant culture. A subculture should not automatically be considered as a negative force, or counter-position to the dominant culture. In the case of Nintendo, for example, stricter adherence to safety and quality protocols supports the delivery of the fun-loving games others create.

At the other extreme, there may be times when an "us versus them" mentality emerges as the subculture becomes more established and some values con�lict with those professed in the dominant culture. Such may be the case when a subculture emerges around a new technology that may change the entire organization but cost some members in terms of position and power, leading to resistance from some and support from others. Managers are advised to monitor the relationships between the dominant culture and any subculture that arises over time.

Strong Cultures

Some dominant cultures are more pervasive than others. A company with a strong culture features members who intensely hold and readily share the organization's core values. Strong cultures are readily evident in military and religious organizations with rich histories and traditions.

Strong, dominant cultures may even be found in Internet companies. The rapidly growing Internet company Zappos.com provides training focused on the �irm's 10 core values, which include "Deliver WOW," "Pursue growth," "A little weirdness," "Be passionate," and "Be humble." Founder and former CEO Tony Hsieh would seek out individuals with a passion to provide quality customer service. To create and maintain that culture, the workplace includes free food, substantial interactions between employees, and constant encouragement to have fun. New employees begin their training in the call center serving customers, even when the worker will eventually play a different role, such as order ful�illment, inventory control, or �inance and accounting. During the training sessions, Hsieh offered to "buy out" anyone who did not believe he or she would �it with the company. Payments, which were rarely accepted, ranged up to $2,000 (Durst, 2006).

In organizations such as Zappos.com and Honest Tea, a strong dominant culture generates several bene�its. Members of these companies often express high levels of agreement with and commitment to the organization's mission. Employees and employee groups are often tightly knit and cohesive and remain loyal to the organization. In practical terms, companies with strong cultures often exhibit lower levels of turnover (few people quit or are �ired); the employees offer statements of loyalty to other employees and to people outside of the company. The net results can be improved productivity and a positive, social work atmosphere, which in turn may entice quality individuals to seek employment with the company.

By inference, other organizations would have what might be characterized as "weak" cultures. Employees or members may not be made aware of key organizational values or may simply not buy into those values. Some researchers conclude that a weak culture may be associated with a lack of employee focus and lower organizational performance (Gordon & DiTomaso, 1992); however, others suggest an overly dominant culture can make an organization less democratic and more inclined to mind guarding against dissenting opinions or approaches (Parker, 2000).

Managers should be aware of the potential negative effects of a culture that has become too strong as to be overwhelming, or one that is too weak to generate some of the potential bene�its a culture can offer.

Functions of Culture

Organizational culture can play a key role in an organization's well-being. It can improve the organization's functioning as well as enhance the employment experiences of individual workers. Several potentially positive functions may be played by an organization's culture.

Culture Makes the Organization Distinct Culture creates distinctions between organizations. These unique features attract some people to join a company and encourage others to go elsewhere. They extend to customers, other organizations, and even the government. In the insurance industry, A�lac developed a highly visible reputation for being family friendly and welcoming to members of minority groups. The company's culture sets it apart from other insurers.

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Company Values: Zappos

Zappos CEO Tony Hsieh discusses the company's top values and how the leadership ensures that those values are represented in the company's workforce.

Critical Thinking Questions

1. Should new employees be given time to adjust to company culture, or do you agree that those who do not embody the culture ought to be eliminated early on?

2. Do Hsieh's methods/values differ from your current or past workplace cultures? If so, how?

Culture Creates a Sense of Identity If you speak to a person in uniform and refer to him or her as a "soldier," there will be instances in which you will be quickly corrected with, "I'm a Marine." Marines view themselves as different from "ordinary" soldiers. The same sense of identity can be found in a variety of organizations. Stronger cultures lead people to incorporate the organization's core values into their own personal value systems.

Culture Builds a Strong Social System Culture has been compared to social glue holding an organization together. When people join companies, they learn how to promote themselves and become more fully aware of how an organization operates. The social system explains the "rules of the game," including what are acceptable and unacceptable behaviors.

Social dramas occur when norms and rules have been violated. Norms are the rules of behavior that guide members of an organization. Norms apply to levels of effort given on the job, to the willingness to share information and help others, to manner of dress, and even to language. Rewards and promotions accumulate to those who follow the rules and play the game as expected (O'Reilly & Chatman, 1996).

Culture Helps Employees "Fit In" By comprehending how a culture operates, an employee who wishes to remain will seek to �it in. The person will learn company lingo and, over time, more strongly accept the organization's core values. Culture plays a major role in guiding the behaviors of members of a company. Understanding and adapting to a culture can assist in building a successful career.

Layers of Culture

Just as people have layers in their personalities, layers may be found in the culture of an organization. Some of the characteristics of an organization's culture can be readily observed, while others remain subtle or hidden. Three levels of culture interact with one another and in�luence behaviors in organizations: observable artifacts, espoused values, and enacted values.

Observable Artifacts Artifacts include the physical signs of an organization's dominant culture. A company such as Walmart that refers to employees as "associates" on name tags states a value. Other expressions of observable culture include displays of awards such as "employee of the month," specially designated parking spaces, the manner of dress exhibited by employees, and company ceremonies. A color associated with a company (IBM as "big blue") is an observable artifact, as are items such as the mouse ears found in Disney operations.

The University of Hawaii football team under former head coach June Jones exhibited traditional elements of culture and a unique set of observable artifacts. Traditional cultural elements included trophies on display for individuals and teams in the training facility, signs on display stressing the importance of teamwork, and practice rituals that are the same for football teams across the country. The team's observable artifacts are found in its inclusion of Hawaiian culture. The coaches wear Hawaiian shirts during games to re�lect the local culture.

Espoused Values Most organizations have guideposts that express the primary beliefs of the leadership group. Espoused values are the explicitly stated values and norms that are found in organizations. The espoused values of Honest Tea include an emphasis on sustainability and a commitment to helping communities. Espoused values are aspirations rather than outcomes. At times, the ambitions are not achieved. When a company's leadership team expresses the desire to hire, train, and promote a more diverse workforce, an espoused value exists. When the same company does not follow through with hiring decisions dedicated to that value, it remains simply an aspiration.

Enacted Values The values and norms exhibited as employee and managerial behaviors are enacted values, or readily observable acts that re�lect the organization's culture. As an example, customer service phone representatives at Zappos.com receive constant reminders about the value of a quality interaction with the company. As a result, when a customer calls looking for a speci�ic pair of shoes, and Zappos.com does not have the item in stock, the service representative provides the names of other companies that might have a pair. CEO Tony Hsieh (2010) believed that, even though a sale has been lost by not trying to entice the customer to switch to a different pair of shoes, the long-term loyalty will be worth far more. Employees that enact that value achieve access to greater rewards in the Zappos.com system.

The combination of observable artifacts, espoused values, and enacted values can create role clarity for an employee. Role clarity exists when a person has a clear understanding of his or her function in the organization and how to complete all assigned tasks. Role clarity means, "I know what I'm supposed to be doing." The reminders that come from seeing observable artifacts, hearing espoused values, and carrying out enacted values generates a greater sense of clarity.

Bene�its of Positive Cultures

Company leaders enjoy distinct advantages when an organization exhibits a positive culture. Positive cultures are democratic and progressive. They nurture and value the contributions of members. Positive cultures tend to be more �lexible and adaptable, making the organization better able to meet the challenges of a dynamic world (Benn, 2011). Organizational leaders have vested interests in trying to build positive cultures over time. This is especially true in dynamic industries, such as high-tech, entertainment, services, and others.

Some studies suggest that culture can play a larger role in employee motivation than pay (Gifford, Zammuto, Goodman, & Hill, 2002). Organizational culture can help managers reach their goals while helping employees adapt to company life. The bene�its of a positive culture include stability, employee self-management,

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A positive work culture provides employees with a sense of comfort and security that promotes stability and successful working relationships.

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and assistance in integrating new employees into the workplace.

Stability In a positive culture, certain elements remain constant and reliable even in an ever-changing world. Sprint and Verizon operate in a rapidly changing and evolving industry. A positive culture within these corporations, which emphasizes interdependence of various locations along with a sense of belonging, might be helpful in such a turbulent environment.

Employee Self-Management In a positive culture, members may be willing to set aside personal interests to help the organization succeed. Self-management originates at two levels. First, strong, positive cultures create certain norms. Failure to follow these norms results in social pressure to conform; those who do are accepted and those who do not might encounter caustic comments or ostracism from peers. If the norm imposes a ban on profanity, for example, someone who constantly violates the rule faces rejection by peers.

The second level of self-management comes from within the person. Most people have a natural desire to be accepted by coworkers. Many go a step further and wish to please others. Abiding by cultural constraints can help achieve these goals.

The bene�its to managers include less time enforcing the company's discipline system. It becomes easier to complete performance appraisals in a positive fashion, by concentrating on work-related behaviors rather than social activities. A positive environment in which employees exhibit self-management also invites better relationships between supervisors and subordinates.

Integrating New Employees Positive cultures often mean that workers feel comfortable and secure. The "new guy" is not threatening; thus, incoming employees are more readily accepted and trust can be built more quickly. The bene�it to management will be less time training and socializing new workers. The bene�it to the worker will be a much more comfortable and pleasant transition into the new workplace role. This bene�it receives greater attention in the next section of this chapter.

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With leadership that places employees �irst, customers second, and shareholders third, Southwest is a primary example of an organization that is team oriented.

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2.2 Transmitting Culture Culture is transmitted in a variety of ways. Meetings, mailings, and other communications express cultural values, such as the statement "Quality is Job 1," a pervasive phrase repeated in Ford Motor Company paperwork. Role modeling and coaching processes instruct employees about the �irm's core values. One viewpoint of culture suggests that seven characteristics, as a group, express the essence of an organization's culture (O'Reilly, Chatman, & Campbell, 1991):

1. Degree of encouragement of innovation and risk-taking. 2. Attention to detail and precision. 3. Outcome orientation. 4. People orientation. 5. Team orientation. 6. Level of aggressiveness and competitiveness. 7. Emphasis on stability and the status quo.

The degree of encouragement of innovation and risk-taking identi�ies an organization's leadership philosophy regarding such activities. In companies where risk- taking is punished or ignored, the culture takes on a different hue from one in which innovative successes are hailed and even failed attempts receive reassurance and recognition. Consequently, the roles played by members of an organization that does not embolden innovation will be different from the roles played by members of an organization that encourages original thinking and actions. The organization's reward system normally re�lects which approach �its with its culture.

Attention to detail and precision is re�lected by management's attitudes toward methods used to complete tasks. As a simple example, the degree of tolerance for defects and returned goods in�luences supervisory processes and worker attitudes as items are made or services are rendered. A company that provides painting and other interior work might emphasize low-prices in bids and the buyer might expect lesser quality as a result. This in turn would affect how employees perform their jobs and feel about company expectations.

Outcome orientation refers to a focus on results rather than methods. For example, salespeople may be encouraged to "aggressively" attract new customers; however, the actual methods individuals chose to achieve that goal may differ. In essence, attention is given to the outcome rather than any speci�ic process or technique.

People orientation appears when organizational leaders make it clear that valuing employees is a key part of the company's culture. Employees quickly pick up on situations in which management's appreciation of them is genuine and those in which they and their work are only paid lip service. In �irms where management truly places value on employees, those seeking to move up in the ranks quickly learn that such an orientation is necessary and will be noticed.

A team orientation will also be transmitted by those in charge and at higher ranks. Firms such as Zappos.com, Southwest Airlines, and Costco make it clear that not only are individual people respected, but also that teamwork is expected and rewarded. Consequently, cultural norms regarding team-oriented behaviors emerge, such as "pitching in" and helping in dif�icult situations and �inding ways to place the good of the group above one's own interests. Further, doing so will be noticed and rewarded by higher level managers.

Aggressiveness and competitiveness dominate the cultures of some organizations. Many legal �irms, for example, have been shown to favor the most aggressive and competitive lawyers when offering partnership and other bene�its. A competitive culture does not necessarily mean that managers will always fail to recognize and appreciate employees and team-related efforts. An individual can be competitive and a team player at the same time. Conversely, an overly-aggressive individual who hurts the team and the overall organization will also be noted by management and often counseled that such behaviors do not �it with the company's goals.

A cultural emphasis on stability and the status quo may favor some organizations and work against the interests of others. For many years, the banking industry was typi�ied by a strong emphasis on the appearance and maintenance of the status quo, with impressive buildings and well-dressed employees inside. When pressures from competitive forces through products such as online banking and other sources emerged, the priority of maintaining the status quo may have slowed the ability of some banks to effectively respond.

In all these instances, cultural transmission takes place as part of the socialization process when an employee or person joins and learns about a company or organization. Organizational stories and other activities help transmit and reinforce culture to members over time. Managers reinforce cultural values through public statements, through advice and counsel to individual workers, via performance appraisal ratings, and through the formal and informal organizational reward systems.

Socialization Phases

Within the �ield of organizational behavior, socialization is the process of learning, internalizing, and assimilating an organization's values. Part of socialization includes learning the organization's culture. Socialization programs range from simple interactions between employees to highly developed systems. For example, Sanyo's orientation program places new employees into circumstances in which they live and eat together for 5 months at a company-sponsored resort. Among the items new workers learn are how to dress, speak, and even groom themselves. The company intends to develop kaisha senshi, or corporate warriors, through these efforts (Frujstuck, 2007).

The organizational socialization process includes three phases (Feldman, 1984), which are displayed in Table 2.1. The �irst, anticipatory socialization, involves the learning that takes place prior to joining an organization. The �irst stage may also be referred to as pre-arrival. Potential applicants may learn about a company from members of their families, from encounters at school, from social media, or from visits with members of a profession. After receiving negative publicity following the sale of tainted food items, the leadership of the Chipotle restaurant chain responded by enacting an active program to emphasize careful purchasing programs for food items and cleanliness by all employees and managers (Vinjamuri, 2015). This emphasis takes place during recruiting and selection processes for new employees, or during the pre-arrival stage.

The second stage of organizational socialization, the encounter, takes place as the individual learns more about the company. The worker begins to compare his or her expectations about the �irm's culture with reality. Employee training programs are available to emphasize new aspects of a culture as workers learn their jobs. Training extends to the supervisor in charge as well as the human resource department.

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The third stage, change and acquisition, also called the metamorphosis stage, occurs as the employee masters the skills and role performance needed to succeed in the organization. The change may include moving personal values and working methods closer to those imposed by the organization. At that time, observance of role models and coaches becomes a powerful in�luence. Zappos.com CEO Tony Hsieh had his of�ice cubicle strategically placed at the center of the work zone. The message was clear: He valued his peers and wished to be accessible. Top managers can seek to change a culture by providing visible messages about what must be done.

Table 2.1: Stages of organizational socialization Stage New employee action or evaluation

Anticipatory socialization Anticipating new employer expectations Anticipating employer needs for skills and abilities Anticipating employer's sensitivity to one's needs and values

Encounter Seeking role clarity Managing group interactions Balancing life and work

Change and acquisition Completing role demands as required Mastering tasks Internalizing cultural norms and values

Forms of Socialization

Individual companies have personalities, and each responds to its environment in different ways. Internal functions are managed in various ways as well. Company leaders can proactively create and �ine-tune the socialization process. Doing so involves a series of decisions about how to engage with new employees (Van Maanen, 1978; Schein, 1990).

Formal Versus Informal Socialization Formal socialization involves a new employee engaging in a clearly designated, separate socialization program. Normally formal socialization and learning take place somewhere away from the job; as part of orientation or new employee training systems. Informal socialization and learning occur as the employee receives attention from coworkers and supervisors. Questions are answered and suggestions are given as to how the new employee can effectively �it in. Formal and informal socialization and learning do not present an either–or scenario. Both can occur as the person enters the organization.

Individual Versus Collective Socialization Individual socialization takes place as a person receives private instruction or training. Collective socialization occurs in groups. The bene�it of individual attention will be personalized instruction tailored to the person's unique needs. The advantage of collective socialization can be that new employees reinforce each other as the program proceeds.

Fixed- Versus Variable-Advancement Socialization Fixed-advancement socialization involves all employees spending the same amount of time on each stage of training. Promotions or advancements to additional new stages occur on a �ixed timetable. Variable-advancement socialization tends to be goal- or objective-based. After an employee completes a stage of training and adjustment to the company, the individual moves on to the next goal. Variable-advancement socialization works well when training individuals who require additional or special attention. Fixed-advancement systems are used in circumstances in which all employees are expected to learn and adjust in comparable time frames.

Serial Versus Random Socialization Serial socialization places employees with various staff members for speci�ic training programs. That way, the new workers learn from experts. Random socialization occurs when new employees are not paired with speci�ic staff members. Instead, individuals seek advice and training as they see �it. Serial socialization will be used when speci�ic skill sets or knowledge bases are required. In that way, the company has greater assurance that new employees have received proper training. Random socialization matches employees with generalists who perform numerous tasks or carry out a variety of activities.

Divestiture Versus Investiture Socialization Divestiture socialization requires "unlearning" of personal characteristics and habits to �it in with others in the organization. Military training involves the classic divestiture approach. Investiture socialization assumes the individual possesses unique traits and characteristics that may be of value to the organization. One can inject his or her own personality into the job.

Some of the aforementioned forms of socialization do not represent mutually exclusive approaches. Formal and informal socialization can both take place. Employees can be socialized individually at times and collectively at others. Socialization can occur serially and randomly.

Two of the methods listed above involve choices. Employees can receive either �ixed or variable socialization programs. Employees will be socialized either through divestiture or investiture.

As most human resources managers will attest, �irst impressions matter. New employees will quickly discover whether they have made appropriate work choices. Some will discover the �it cannot and will not exist. They can then move on to more favorable working situations.

Mentoring and Socialization A mentor is an individual who assists a less-seasoned employee. Mentoring involves several activities, including listening to and reviewing ideas, introducing the mentee or protégé to key individuals who might offer help, showing the person how to act and perform the job, and providing emotional support. Mentoring systems can be formal or informal. Formal systems assign mentors to individuals. Informal approaches allow the relationships to form naturally.

A portion of mentoring involves interpreting the organization's culture to the protégé. Other activities include providing exposure and visibility to the mentee, protecting the individual from internal threats and competitors, helping with assignments, and providing friendship.

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Learning a company's stories can help employees become familiar with aspects of the company's culture, such as dualities, equalities and inequalities, and events.

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Individuals with mentors have an important career advantage. Some sources suggest developing sets of mentors, or mentor networks. To do so involves taking the time to develop close relationships with diverse organizational members who can offer assistance and guidance. Showing appreciation for the counseling and support given helps continue a strong mentor– protégé relationship.

The socialization process represents a key opportunity to develop quality employees. It can also be used to support organizational change and a more ethical culture, as will be discussed later in this chapter. Effective managers pay attention to all aspects of the socialization process.

The Role of Stories

One important way members (especially managers) transmit culture is through stories and organizational myths. As noted earlier, culture often begins with and relies on stories and myths about the company's founder and its current leading �igures—the �irm's heroes and heroines (Gordon, 1993; Schein, 1985). As part of the recruiting process, prospective employees are often told about the organization's philosophy, which—as is the case with Honest Tea, Walmart, Southwest Airlines, and other companies—can include the organization's origin story.

Stories can also take shape in the answers employees hear to their questions. As one begins working in a company, asking questions about the organization is common. Many of the questions will be about cultural issues, including what is important and why. Some of the more common questions new employees ask include the following:

Which rules are important? What will get me �ired? Will the company help me if I must move? How does the company view risk taking? Can the little person rise to the top? Is the big boss human?

Obviously, the questions will probably not be stated in these exact words, but in general, employees want to know if top management is approachable. They want to understand the discipline system and where the "line" is regarding termination. They ask about the amount of support they will receive and whether the company regards fairness and equality as important values. The answers they receive take the form of stories, which serve several purposes.

Stories Explain Dualities Stories present the most positive and negative versions of answers to questions about culture. When questioning whether the leaders at the top are approachable (Is the big boss human?), a new employee might receive two answers at either end of the spectrum:

One person's account: "I saw this guy say 'hello' to the CEO, and he bit his head off !"

Another person's account: "I saw this guy in the parking lot with a �lat tire, and the CEO stopped, took off his suit coat, and helped him put on the spare."

Both stories may be true. In the �irst instance, the CEO was in a bad mood and in a hurry. The storyteller may not know that the CEO later found the same employee and apologized profusely.

Stories Explain Equality and Inequality Stories also explain perceived issues of equality and inequality. When new employees ask whether there is room for growth in the organization, they may again receive two entirely different responses, depending on whom they ask:

"Sheila has been our best accountant for the past 10 years. Three different times she applied for the accounting manager job and got passed over. Some guy always ended up getting the job."

"Jose Morales is such a cool dude. Everyone likes him. No one was surprised when he got promoted, even though he had only been here a couple of years."

Stories are used to explain when employees have been treated fairly and when they have not.

Stories Explain Company Events and the Past Stories explain social dramas, such as why someone was terminated. A story has been told about the president of a small university in the Midwest, who, despite warnings by several people, including a weather expert, decided to hold graduation ceremonies outdoors. As the commencement program began, a massive rainfall, complete with powerful lightning, interrupted the proceedings and drenched the entire audience. The next day the Board of Regents terminated the president. As the story goes, "He was �ired for holding graduation in a thunderstorm." In truth, the story provides a portrayal of an authoritarian leader who wouldn't listen to good advice.

Stories Create and Emphasize Heroes and Heroines Founding stories create mythologies about the entrepreneur that began the company. An organizational hero or heroine provides the ultimate role model for employees to follow. A common hero story told about Walmart founder Sam Walton focuses on his "everyman" characteristics. Walton was famous for driving to stores in an old pickup truck and pitching in to help associates unload delivery trucks and stock shelves. As the years unfold, undoubtedly hero stories will be told about Mark Zuckerberg's Facebook founding adventure as well as Twitter's Biz Stone, Jack Dorsey, Evan Williams, and Noah Glass.

Stories Help Identify Cultural Forms Studies of organizational culture suggest that four categories may exist. Each one dictates differing behaviors to members. The four forms are displayed in Table 2.2. Stories told within the organization help transmit these characteristics to new members. Outside observers may also be able to somewhat understand the culture present in the organization, which might in turn in�luence the decision to apply for a position with the company.

Table 2.2: Forms of culture Name Characteristics

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Clan Internally focused, family-type, high levels of collaboration, emphasis on involvement, commitment, consensus, decentralized management

Hierarchy Internally focused, driven by strong control mechanisms, standardized rules, formal procedures, centralized management, stable, in�lexible

Adhocracy Externally focused, values �lexibility, emphasis on innovation, encourages risk taking, decentralized management

Market Strong external focus, driven by competition, values stability and control, customer-centered, centralized management Source: Adapted from K. S. Cameron, R. E. Quinn, J. Degraff, & V. Thakor (2006). Competing values leadership. Northampton, MA: Edward Elgar.

Employees in a clan culture, such as Southwest Airlines, enjoy positive relationships with peers. Employees in a hierarchy culture, such as a police force, quickly learn that rules and procedures are important. In an adhocracy culture, trying something that doesn't work out will have different consequences than it would in other companies. Many Silicon Valley companies exhibit adhocracy cultures. In a market culture, such as automobile or insurance sales, pay raises, promotions, and rewards are likely to be based on visible performance measures related to sales and customer service.

Over time, employees learn about their company's culture based on what is rewarded, and what is punished. Questions, answers, myths, stories, and jargon all become part of the organizational experience. When the person matches the organizational type, the �it produces the best chances for individual success.

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Despite many public scandals, academic institutions across the country struggle to adequately address sexual harassment and assault claims.

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2.3 Changing an Organization's Culture "We need to change the culture around here." This type of statement is often made when a new CEO or president arrives. Declarations such as these are more common during a transition in which a crisis has occurred or is taking place. Classic stories of cultural change include the efforts of Lee Iacocca at Chrysler in the 1980s and Jack Rowe at Aetna in the early 2000s. Iacocca had to convince an entire corporation to overhaul all of its product lines by eliminating nearly 500 Chrysler products while designing new types of cars featuring front-wheel drive and a smaller chassis to meet the needs of a changing automotive environment. Rowe had to make peace with a series of frustrated health care providers and restore morale in a company that was losing money every day. Both succeeded by changing the cultures of their organizations.

Two sets of circumstances typically demand cultural change. The �irst is when an organization has engaged in irresponsible or illegal activities and a more ethical culture must be built. The second type of pressure for cultural change results when a crisis of some sort, including a dynamic marketplace, a major error, or damage caused by an uncontrollable force, such as an economic crisis, takes place.

The following OB in Action box describes how an unethical culture creates signi�icant problems for individual employees, the overall institution, and even the larger society in which the organization operates.

OB in Action: Sexual Harassment in Academia

Unethical cultures may be found in areas other than a for-pro�it workplace. A CNN report (Ganim, 2016) examined instances of sexual harassment in the academic world, particularly in the �ield of astronomy. Alessondra Springmann, a rocket scientist at the University of Arizona, noted that sexual harassment extended beyond her own �ield:

We see it in anthropology, we see it in philosophy, we see it in physics, we see it in the humanities, we see it in the social sciences. We see it in engineering in particular. Astronomy just happened to be, sort of, the �irst to get attention. (para. 5)

Apparently, the problem remains pervasive. A survey indicates that 71% of respondents reported they had been sexually harassed while engaged in �ield work, and 25% said they had been sexually assaulted. U.S. Rep. Jackie Speier of California sponsored legislation that would force institutions receiving federal grant money to report harassment investigations. She argued that such a move is necessary because university leaders continue to fail to report the actions of their faculties.

These cultures create extra hardships for female students and faculty. A woman who accuses a male faculty member of such an unethical act would likely have to abandon her research and years of hard work. As one person noted in the report, doing so can derail a career before it even starts.

Unfortunately, the cultures of many institutions tend to protect older, tenured male faculty members, even when younger, brilliant females report incidents. Over time, this can drive women away from careers in STEM (science, technology, engineering, and mathematics). This cultural problem can be made worse by institutional factors, such as tenure, which make it dif�icult to terminate a predator, especially one who has received substantial funding for research grants. Without an institutional response, this tragic problem may continue to remain unresolved.

Re�lection and Application Questions

1. How might this institutional cultural problem be transmitted to new male and female students and faculty? 2. What potential long-term effects might result if such a hostile environment culture continues to persist at a university? 3. How could university governance (president, regents, faculty senate) work to change this cultural �law?

Building a More Ethical Culture

The past two decades have witnessed numerous dramatic episodes of unethical individual and corporate activities. The 2008 Bernie Madoff Ponzi scheme scandal, the unethical activities in �inancial markets, the car safety concerns from unexpected acceleration in Toyota automobiles, and the 2016 Wells Fargo scandal regarding employees creating false accounts serve as examples of the devastating impact of short-sighted, unethical actions.

Many company leaders have concluded that an ethical culture provides guidance to employees and managers that will keep a company on a better course. Socially responsible and ethical companies minimize negative actions such as cheating on taxes, selling defective products, discriminating against various employee groups, and breaking other laws. Socially responsible and ethical companies engage in positive actions including fair treatment of workers, community relations efforts, and other altruistic activities.

The bene�its of ethical cultures include employee loyalty and commitment, a better standing in the community, and greater compassion from customers and the government. For these reasons, organizational change dedicated to building an ethical culture and environment is a worthwhile managerial goal. Many of the methods to change a culture overlap with tactics used to build an ethical culture.

Visible Statements of Commitment To build a more ethical culture, leaders must put the goal in writing. Many organizations have updated company mission statements to include clauses about the importance of social responsibility, ethical behaviors, and closely associated goals such as sustainability. Such pronouncements deserve highly visible platforms, so that employees and outside publics are made well aware of the intention to change or improve the company's ethical culture. Two examples include the following:

"We are committed to offering high-quality, ethically purchased and responsibility produced products." — Starbucks

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"We envision a community of responsible and educated citizens who are environmentally conscious, practice social responsibility in their daily lives and inspire others to do the same." — Shangri-La Hotels and Resorts

Establish Ethical Expectations An organizational code of ethics provides one venue for clearly communicating ethical guidelines. The standards can be based on those established in professional ethical codes, such as those followed by physicians, accountants, and academics. Company codes should spell out key values and ethical rules speci�ic to the type of organization. The AT&T code of ethics contains the following elements, which are common to many such documents:

Values statement prioritizing honest and ethical conduct Con�licts of interest statement Disclosure requirements Compliance requirements Reporting and accountability statement Corporate opportunities statement Fair dealing commitment Guidelines outlining the protection and proper use of corporate assets

Provide a Positive Role Model Company executives are closely watched by members of the organization. Those who cut corners and become involved in questionable actions set a standard of behavior that will be detrimental to the organization. Open lines of communication and transparent management practices communicate the importance of ethical actions.

Cultural role modeling takes place when leaders address both internal and external publics. These individuals overtly or subtly indicate the values of the organization to which they subscribe. As an example, consider the public persona of Indra Nooyi, CEO of PepsiCo. She has achieved substantial recognition for her caring attitude, her insistence on diversity in the organization, and her willingness to innovate. All the while, she occasionally wears traditional Indian attire to work and encourages employees to participate in "bring your child to work"-type company events. Her new interests in sustainability as well as turning a "snack food" company into one offering healthy alternatives for snacking has continued to resonate with a wide audience (Useem, 2008; Snyder, 2015).

Reward Ethical Acts and Punish Unethical Acts Ethical and unethical actions take place at the individual and group levels. At the individual level, the performance appraisal process provides the opportunity to offer feedback about a person's conduct. Rewards including pay raises and bonuses for meeting ethical standards encourage continued positive behavior. Punishments, which can range from sanctions such as �ines to being sent home without pay, or termination in extreme cases, send a powerful message.

Groups engage in unethical activities such as collaboration on padding expense accounts and mileage vouchers, harassing or hazing targeted employees, and "time theft," where goo�ing off or sur�ing the Internet are viewed as acceptable activities. To combat such problems, groups may be sanctioned as a whole, with each member receiving a punishment commensurate with the person's involvement. Groups that continue to violate ethical codes should be broken up, or their leaders may need to be terminated.

Provide Help Many organizations provide ethical counselors to handle inquiries. Employees must not fear retribution for approaching these individuals. Smaller companies can offer access to what are essentially ethics hotlines, where employees can present ethical dilemmas and seek advice. Lighthouse Services, The CorporateCounsel.Net, and NAVEX Global, among others, provide ethics hotlines.

As with any other aspect of culture, breaking down what was presented and building in something new will take time. Top-level managers that truly want an ethical company must remain committed to these actions to create cultural change.

The Role of Human Resources As has been shown already in this chapter, the socialization process begins prior to a person joining an organization. Consequently, the role of the human resource (HR) department becomes a key element in maintaining the culture and attracting the best individuals to join. The transmission of culture takes place in recruiting programs, job descriptions, and other informational programs (public relations efforts, for example) that can and should transmit what an individual might expect when seeking employment with or joining a company or organization. It continues as the person goes through the selection process, where effective HR managers once again signal what to expect from the culture of the organization. Then, as the individual receives on- and off-the-job training for a job or role, socialization moves into a more prominent position. Consequently, the top-level management team receives bene�its when it clearly and consistently establishes cultural expectations to the HR department, which in turn passes those values along to applicants and new employees.

Tactics for Changing a Culture

Changing a culture takes time and a great deal of deliberate effort. Top managers can utilize a series of tactics in the attempt to alter a culture. Each can be designed to "upset the applecart," or change the status quo. Note that changing a culture will be extremely dif�icult and cannot be accomplished overnight. It will take time and persistent managerial efforts to succeed.

Top Management Pronouncements Cultural change often begins with a major announcement. Company leaders can express a new organizational philosophy, revise the �irm's mission statement, or incorporate new values. Walmart's leadership had always emphasized the belief that employees or associates represented the most important constituency. For many years, the organization enjoyed an untarnished image and was featured in a variety of textbooks as a quality model to follow. In the 2000s, circumstances changed as the company was charged with discrimination against female employees and other unfair management practices. To combat the allegations, Walmart's leadership stressed positive examples of employment experiences and undertook other projects designed to emphasize that the company sought to be a good citizen in the community, including scholarship programs and neighborhood cleanup events.

Heidi Roizen, CEO of software company Broderbund (formerly T/Maker), recently stated,

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Though culture changes can happen organically, pronouncements can also be triggered by public scandals.

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How you act—and how you reward or punish the actions of others—will determine how everyone else in the company will act. And that in turn will set the culture—honest or cheating, respectful or disrespectful, friendly or mean, trusting or mistrustful. (ReferralCandy, 2016, para. 39)

Therefore, words, while important, are not the entire story. Managerial behaviors are what employees see. They will have a strong impact on any attempt at modifying or changing a culture.

Company Language Company language can be an effective method for changing corporate culture. Many years ago, in the 1980s, Ford's executive team needed to respond to declining sales and foreign competition in the U.S. automobile market. They decided it was important to demonstrate a renewed emphasis on quality. Thus, Ford adopted the motto "Quality is Job 1." When a manager can discover the right phrase or acronym, it can serve as a beacon guiding cultural change. Part of language change will be to defuse negative commentary about the company and its future.

Workplace Redesign In the 1990s, many of the "dot-com" companies began moving to open of�ice designs featuring employee spaces that could be personalized. While not every original Internet company succeeded, it became clear that the design of the work space can be altered to change the culture of an organization. Removal of walls and other barriers encourages collaboration but decreases privacy. The highly successful Google organization continues to take advantage of an open work space and features a variety of bene�its, including exercise rooms, free food, and even a massage program. These perks provide tangible evidence of the value placed on innovation and employee loyalty that meshes with the design of the of�ice. A hierarchical organization seeking to encourage greater innovation might follow suit.

Reward System Changes Altering the reward system can provide the most immediate incentives for changing

behaviors. Companies often change performance standards to re�lect new circumstances. When a company offers a new product, typical sales goals include identifying and capturing accounts; and pioneering selling techniques (making contacts, creating new accounts) receive the greatest rewards (commissions and pay raises). Should a company's new product succeed and become established in the marketplace, the culture might shift to greater expectations regarding relationship maintenance, such as tending to returned merchandise, answering customer complaints, and keeping in personal contact with key people in customer companies.

The HR department, working in conjunction with the marketing/sales department, will often modify indicators of successful performance and reward those people who meet new requirements. The same will be true in many international expansions. Salespeople must recognize that foreign partners want to establish trust prior to any business transaction. Therefore, the reward system will require adjustment to this new reality.

Managers are advised to remember that shifting performance criteria and the rewards that follow may be met with resistance. High performers receiving the biggest rewards under the prior system will be among the �irst to become upset. It takes time and training to effectively install a revised reward system.

Training Programs To effect change through training programs, goals should be aligned with the desired cultural shift. Many company executives have pushed for a renewed emphasis on customer service. Firms including Enterprise Rent-A-Car, Whole Foods, L.L. Bean, Olive Garden, and Nordstrom enjoy reputations as being customer-friendly and consistently outperform competitors as a result. A �irm known for indifferent service could repair its reputation by emphasizing the importance of customers in the initial stages of employee training, thereby changing perceptions of customers in the company's culture.

Role modeling and coaching can then reinforce training messages. When successful and higher-ranking employees display the behaviors that match the new cultural feature, others will follow. By connecting the reward system to such behaviors, the impact increases.

Systems and Procedures Cultural change can be encouraged by altering work systems. A hierarchical company seeking to become more �lexible can introduce �lextime work schedules to allow employees freedom to come and go as needed. The Zehnder advertising agency in New Orleans has installed a policy called VAN, which stands for "vacation as needed." Owner Jeff Zehnder explains that his idea of a strong culture is one in which people are treated as adults. So long as the work is completed on time, he trusts that his employees know how to best use their talents and energies (J. Zehnder, personal communication, February 17, 2010).

Goal-Setting Goals direct activities. The automobile companies Subaru and Mazda recently shifted goals toward a greater emphasis on quality dealerships, and employees were at the forefront of the changes. Company leaders believed that a more pleasant shopping environment would boost sales. The organizations spent a great deal of money improving showrooms and other elements of the dealerships (Greenberg, 2004) to assist salespeople in providing quality purchasing experiences. Toyota shifted its goals toward better serving the needs of women visiting dealerships. Children's play areas were added, restrooms were upgraded, and the company established coffee bar areas (Voight, 2006). The sales force was retrained to provide improved service to female customers. Company leaders changed the culture to recognize that both men and women buy cars. Subaru, Mazda, and Toyota all enjoyed increases in sales and customer loyalty.

In summary, changing a culture or creating a more ethical culture takes time. Managers must be committed to the change. Employees that respond positively should be rewarded and serve as role models.

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As workplaces become progressively more diverse, managers must utilize strategies to accommodate an array of people and experiences.

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2.4 Diversity and Diversity Management Diversity describes a wide spectrum of differences between people and that applies to individuals, groups, and organizations. At the individual level, for example, a disability sets a person apart in one sense from others, as does sexual orientation. Groups and categories include those associated with age, race, and gender, as well as political af�iliation, religion, and occupation (Gomez-Mejia, Balkin, & Cardy, 2005).

In the study of diversity, care must be taken to avoid assuming that group averages or characteristics apply to every individual or group. Differences between groups are normally smaller than differences within groups. Stereotyping occurs when all persons with one common characteristic, such as Hispanic origin or Jewish religious af�iliation, are incorrectly assumed to have a set of common characteristics. When leaders, managers, or coworkers make these false and racist generalizations, the workplace becomes divisive and unpleasant. In the world of business, typical groupings used to describe diversity include gender, age, racial identity, nationality, religion, sexual orientation, and physical disabilities.

Gender

Women compose more than half the workforce in the United States. In addition to single working women, over 50% of the U.S. workforce consists of employees from two-income families in which both spouses work (United States Department of Labor, 2011). Issues of marriage, child raising, career development, and work–life balance persist for both men and women.

In the United States, many women postpone marriage to begin careers. Numerous careers are interrupted by either having children or deferring to a spouse's career path. Some companies have responded to these challenges by offering on-site day care, job sharing, and other programs; however, most companies do not.

One of the more commonly noted problems, the glass ceiling, continues in many companies and industries. The glass ceiling refers to a barrier that prevents women from advancing to top level executive positions. In some circles the glass ceiling is often referred to as the cement ceiling—especially for non-white women. This issue arises when men dominate the agenda of an organization, including promotion decisions. The social network systematically excludes women from moving up. Mentoring programs and other systems have been designed to reduce the problem; however, evidence suggests that perceptions play a key role in maintaining the glass ceiling, especially when top executives view the barriers to advancement in ways that are different from the women seeking to break through to higher levels (Ragira, Townsend, & Mattis, 1999).

Age

By 2015, the average age of the United States workforce had reached 42 (U.S. Bureau of Labor Statistics, 2015). The trend toward an increasingly older work population will begin to decline in this decade, as members of the Baby Boomer generation retire. In 2011, 13% of the U.S. population was over the age of 65. By 2030, the �igure will be 18%. The 2008 economic downturn combined with better health and increased life expectancy has slowed the number of older workers who wish to stop working, further complicating the workplace environment (Stibich, 2011).

Age differences can complicate the manager's role. Senior workers hold the greatest level of experience and can teach and mentor younger employees. The U.S. economy is driven by a large services sector, where physical strength and endurance are not required. Senior workers in these occupations are able to remain on the job for longer periods of time. Some company executives have concluded that lower-level managers should receive training in methods to assist new workers and younger employees and help integrate them into the organization through socialization processes. Many companies now include senior employees in formal mentoring programs and strategy sessions (Cadrain, 2008).

Age may not be respected equally in every company or in every country. While age may be revered in many parts of the world, the traditional view that employees become more valuable as they continue their careers faces skepticism in many countries, including the United States. This conclusion, called ageism, dominates cultures in many companies.

Commentaries suggest that companies employing large numbers of senior workers will experience rising health insurance costs. The same workers may have accumulated longer vacation packages and sick leave days. Longer vacations and days set aside for a lengthy recovery from a medical issue remove the employee from the workplace, requiring others to pick up the slack. Some managers might notice resentment toward those who are away for longer periods of time.

Age diversity also affects younger workers. Some may become frustrated by the inability to move up the chain of command, because senior managers stay on the job past the traditional retirement age. Younger employees might express frustration that their newer, more cuttingedge skills are not fully utilized. Managers should monitor and respond to these potential rivalries.

Race and Ethnicity

Immigration into the United States has created both con�lict and growth in the economy. Each generation of Americans has experienced the in�lux of groups of individuals from other countries. Diversity issues associated with race have long existed.

Three of the largest non-white population segments in the United States are Hispanics, African Americans, and Asian Americans. In the United States, however, statistical racial composition pro�iles are skewed, because neither Hispanic nor Latino is considered to be a race. With that caveat in mind, Figure 2.1 identi�ies the overall composition of various groups in the United States.

Note that these three major racial/ethnic distinctions do not constitute all categories of nonwhite employees. In many organizations, persons of other backgrounds, such as individuals from the Middle East and Africa, are part of the work force. Many of the problems these larger ethnic groups encounter are also faced by those from other races or ethnic groups.

Figure 2.1: Composition of identi�iable groups in the United States

According to the latest census, three of the largest population segments in the United States are classi�ied as Hispanics, African Americans, or Asian Americans.

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Source: U.S. Quick Facts from the Census Bureau, https://www.census.gov/quickfacts/table/PST045216/00 (https://www.census.gov/quickfacts/table/PST045216/00)

The future of the �ields of management and organizational behavior undoubtedly will include great investigation into the issues such individuals confront, as well as managerial strategies designed to help fully integrate them into an organization and take advantage of the unique contributions they can make.

Hispanic Populations The terms "Hispanic" and "Latino" do not represent speci�ic racial groups. Instead, they apply to sets of individuals with common characteristics, including Spanish as a primary language (at least in the country of origin), belonging to the Catholic religion, and ancestry in former colonies of Spain. Spanish surnames and customs are found in Spain, Mexico, Cuba, Central America, and South America.

The Hispanic subset of U.S. citizens represents business opportunities and speci�ic management needs. Approximately 770,000 Hispanic-owned �irms were projected to exist by the year 2005 (Mendosa, 1996). The 2008 recession reduced that number; however, the majority of these organizations remain. Companies that conduct business with Hispanic-owned �irms enjoy a large marketplace that can be reached through Spanish-language media such as radio, newspapers, and magazines. Many U.S. companies are starting to recognize the potential purchasing power held by Hispanic and Latino people. In more recent years, Latino- owned companies, in particular, have been on the rise. CNBC notes,

The State of Latino Entrepreneurship 2015 report revealed that between 2007 and 2012, the number of [Latino-owned businesses] grew by 46.9 percent compared to just 0.7 percent for non-Latino owned businesses, an extraordinary level of entrepreneurship that suggests Latinos play a substantial role in local job creation and economic development. (Porras, 2016)

Managers are challenged by certain issues related to the Hispanic population as members of the workforce. One challenge is language. An individual whose primary language is Spanish often copes with misunderstandings and other problems associated with English, even when the individual speaks some English. Supervisors who do not speak Spanish encounter a similar dif�iculty. Bilingual managers are a valued resource in companies in regions with signi�icant Hispanic or Latino populations.

African Americans Approximately 13% of the U.S. population is African American, with ancestry of at least one parent originating in Africa. Discrimination and stereotyping continue to haunt this minority group. The election of President Obama, while viewed as a positive step, has not solved the problems associated with bigotry and systematic exclusion of African Americans in many organizations. The 2008–09 recession dramatically impacted employment statistics of African Americans, who suffered disproportionate job losses relative to the entire population. Some view this as evidence that discrimination and an unfair playing �ield still exist.

At the same time, African Americans are viewed by marketers as a potentially valuable segment that can be reached via speci�ic media, such as the BET cable channel and magazines including Essence and Black Enterprise.

In the business community, managers should be aware of racial incidents. Progressive companies develop programs to recruit, train, and promote minority members, including African Americans. Working toward equality and fair treatment of all remains an important ethical objective for African Americans as well as other minority groups.

Asian Americans Asian Americans also originate from numerous countries. As a group, Asian Americans constitute about 4% of the U.S. population. These individuals encounter different kinds of stereotypes and discriminatory practices than do Hispanics and African Americans. One recent research report suggests that nearly one-third of Asian-American employees have been subject to workplace discrimination (Montero, 2011), including unequal pay and promotion decisions, favoritism toward others by management, and incidents of stereotyping. Promotion issues have led to the term "bamboo ceiling," and "sticky �loors," which suggest Asian Americans are often held to lower ranks in the organizational hierarchy and cannot break through to top management (Fisher, 2005).

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Managers must take strides to promote a workplace culture that is safe and comfortable for all.

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Managers are advised to break down these perceptions and deal with members of this group in the same ways as other American minorities. The Equal Employment Opportunity Commission (EEOC) recommended the following steps to improve the employment circumstances of Asian Americans in 2010:

Strengthen leadership and personal commitment to diversity from top management in the private sector. Strengthen commitment to diversity in U.S. employment agencies. Make certain the EEOC is fully accessible to Asian Americans. Collaborate with Asian American community organizations. Support Asian American employee groups. Improve Asian American documentation and support for promotions.

Religion

Matters of religion have affected interactions among citizens for centuries. In the 1960s, concerns were expressed because President John F. Kennedy was Roman Catholic. The events of September 11, 2001, changed the American perspective regarding religion. Speci�ically, members of the Islamic faith became targets of hostility in the media, in local communities, and in the workplace. As time passes, the hope is that greater cultural integration will include a reduction in animosity toward some religions.

As a matter of law, employment discrimination based on a person's religion is prohibited, as is discrimination based on race, sex, age, or national origin. In practical terms, a hostile workplace based on religion creates similar discomfort to intolerance based on race and gender. Ethical managers seek to reduce these tensions and create understanding among employees with diverse religious beliefs.

Sexual Orientation and Gender Identity

In 2010, the repeal of the "don't ask, don't tell" policy regarding members of the military took place in the context of a continuing national debate regarding the rights of gays, lesbians, and other groups. Contested issues included the right to marry and live with the same civil rights as heterosexual couples, including hospital visitation, access to health insurance coverage, and inheritance rights.

The 2015 Supreme Court decision regarding what has been termed marriage equality has dramatically shifted the landscape, as have the majority national views of the issue. By 2016, 60% of U.S. respondents reported they support same-sex marriage, which has implications for a vast variety of companies, including insurance, health care, and advertising (how ads are prepared), and extending to HR departments, managers, and co-workers across the country (McCarthy, 2015).

Recently, legislation regarding transgender individuals has resulted in controversy and disagreement. In both Texas and North Carolina, state legislators passed laws insisting persons use bathrooms based on the gender they were assigned at birth. The North Carolina law resulted in responses by several major corporations, including PayPal, Dow Chemical, the NBA, the NCAA, and Google. The reactions included economic sanctions and condemnation of

the statute itself.

In the workplace, intolerance of gay, lesbian, and transgender coworkers persists, despite laws that make discrimination based on sexual orientation illegal. Gay slurs continue to make headlines in the worlds of entertainment and sports. Debates then move to other places, including the of�ice. Managers are expected to defend employees from defamatory statements and to try to instill respect toward others regardless of differences.

Disabilities

A disability represents diversity in the sense that it is a distinguishing characteristic. The Americans with Disabilities Act covers the basic rights of individuals with disabilities. The EEOC takes further steps to help those with special needs in the workplace. Many business organizations have taken dramatic steps to help accommodate those with disabilities. Approximately 15 million disabled U.S. citizens are employed.

Statistics indicate that disabled workers are less prone to absenteeism and turnover than other employees (Workforce Strategies, 1993). Managers are aware that disabled workers can make others feel uncomfortable and that they may feel isolated or patronized in many working situations. Therefore, increasing sensitivities toward disabled workers remains an important goal. This includes education of coworkers and peers to help both the disabled employee and others to feel more comfortable with each other. Reducing patronizing statements and isolation of those with disabilities creates a proactive response to improve the workplace for those with special needs.

One response to assisting disabled workers who have dif�iculty traveling has been the implementation of telecommuting positions. This and other innovative approaches can become part of an overall diversity management strategy.

Diversity Management Strategies

Companies that embrace diversity often reach wider audiences with their products and services, bene�it from innovative ideas from untapped members of society, and perform a social good. As described in the sections that follow, seven key activities are part of a quality diversity management system (Cox, 1993, pp. 225–241; Harvey & Allard, 2002). These are implemented by management in individual departments, as well as throughout the entire organization. As previously noted, the HR department plays a key role in recruiting and selection; other aspects are more oriented to the general organization.

Recruit From New Sources One element of the human resource management process involves planning for future personnel needs. Human resource planning programs can be designed to emphasize �inding recruits from diverse backgrounds. Doing so involves publicizing efforts to attract minority applicants. Internship programs and job fairs can be established to create pipelines of minority member applicants. The power of word of mouth and social media should not be ignored. Part of recruiting involves getting the word out that a company has a true interest in a more diverse workforce.

Use Unbiased Selection Processes

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Diversity and Sensitivity

This video demonstrates two workplace interactions which illustrate the importance of sensitivity to the differences of others in the workplace.

Critical Thinking Questions

1. What was the difference between the �irst and second interactions between the two men in the break room?

2. What can you do differently to be more accommodating to coworkers who may differ from you?

Many major orchestras across the United States employ a unique selection process. When a �inalist plays for the judging committee, the musician plays behind a screen. Only the music matters. The judges cannot see the person's physical appearance. This technique cannot be applied to many situations; however, the concept can. Selecting candidates solely for their potential to succeed, without any other biases involved, encourages true diversity. Many organizations use multiple raters to examine an employee's application or resume, with the goal of making sure the applicant receives unbiased treatment during the selection process.

Provide Training and Orientation for Minority Group Members Many times, someone from an unusual or different background will experience a sense of discomfort with a new, unfamiliar organization coupled with the potential lack of familiarity with various company procedures. Training methods establish an environment in which a person can remain con�ident while knowing his or her background may be different, but at the same time feeling assured the adjustment to the new situation will take place. Diversity strategies include making sure minority trainers are part of the process. Trainees should receive continual, positive feedback regarding their progress and possibly additional attention away from the training group (during break periods or other down times) if they ask for help.

Encourage Sensitivity From All Employees Many larger organizations now provide diversity training. The goals of such programs are to encourage employees to embrace the idea that diversity creates an advantage for a company and to enjoy cultural and individual differences. The process can begin at an earlier stage, in the recruiting and selection processes. Applicants can be noti�ied that the company intends to build a diverse workforce. The selection criteria can include an acceptance of or excitement about working in such an environment.

Display Flexibility in Responding to Worker Requests An effective diversity program recognizes that employee needs vary. Parents need time to tend to matters such as doctor's of�ice visits and parent-teacher conferences at school. Individual workers may take time off to celebrate various holidays throughout the year. Senior workers may request time off to help out their children or grandchildren in some way. Listening constitutes a key element in �lexibility. Managers who pay attention to employee needs are often rewarded with loyalty and extra effort.

As an example of �lexibility in the workplace, one newer method of helping maintain work– life balance, telecommuting, involves working at home and utilizing technologies such as the Internet and the phone system to transmit �inished projects to an of�ice. In 2008 nearly 3 million jobs, or about 14% of workforce positions contained elements of telecommuting (Telework Research Network, 2011). A parent with children in school can work at home and then tend to family needs during other parts of the day. Telecommuting allows new parents to work when the child sleeps and during times when the other spouse is at home. Telecommuting has been noted as a method for reducing wife/mother/employee role con�licts as well as husband/father/employee role con�licts (Madsen, 2003).

Tailor Motivation Programs to Individuals Motives vary by personal circumstance. A single parent will have motives that are different from someone approaching retirement age with an empty nest, and issues such as the cost of health insurance and the viability of a company's retirement program will have varying degrees of signi�icance to each employee. Extrinsic motives are tangible and visible. They include pay raises, promotions, prizes in contests, positive performance appraisals, and pension plans provided by companies. These motives can be adapted to �it the needs of various organizational members.

Intrinsic motives are internal. Intrinsic satisfaction results from performing at a high level, helping others, and taking advantage of one's own talents and abilities. Employees may derive additional satisfaction and motivation from winning a sales contest, receiving promotion to a certain rank, or being chosen to lead a task force or committee. A complete diversity program accounts for both extrinsic and intrinsic motives.

Reinforce Differences in Positive Ways Numerous sources cite the importance of embracing diversity. In essence, the idea is to accept the principle of multiculturalism for its own sake. Doing so can take forms as simple as themed of�ice parties or celebrations, such as Cinco de Mayo or Eid ul-Fitr (the end of Ramadan), or as complex as diversity and cultural sensitivity training sessions. Allowing workers to decorate their work spaces with personal items that re�lect cultural diversity also expresses the objective of embracing diversity. Managers that take the time to learn a few key phrases that apply to another culture establish a higher level of rapport with employees. In essence, diversity can be celebrated in a variety of ways. Anything that enhances cultural understanding or knowledge about others can be rewarded and emphasized by management.

The Four-Layer Diversity Model Managers can employ the principles of the four-layer diversity model to help employees understand diversity issues (see Figure 2.2). The model suggests that the innermost level is personality, which includes likes, dislikes, attitudes, and beliefs that are unique to each individual. The second layer, internal dimensions, consists of the features noted in this section, including gender, sexual orientation, race, and age. The third layer, external appearance, includes other characteristics, including religion, income, geographic location, personal and recreational habits, educational background, and appearance. The fourth layer, the organizational dimension, includes work location, work type, seniority, managerial status, and other features of the company.

Figure 2.2: The four-layer diversity model

The four-layer diversity model helps break down evaluations of others into several categories, which can lead to a better understanding of individual differences.

Workplace Diversity From Title: Diversity in the Workplace: Playing Your Part

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The model can be used to understand how we think about and evaluate others based on our biases. It also can help an individual explore his or her own career choices. Team exercises designed to build trust and acceptance can be based on the personal perceptions and views of others (Gardenswartz & Rowe, 1998).

Barriers to Diversity Management Strategies

"Everything communicates" is a key phrase in marketing. The same is true of a diversity management program. Company leaders dedicated to diversity understand that a variety of incidents and decisions can detract from a strong program. Encouraging diversity links closely with seeking to shape or rede�ine a company's culture. The program may take time, and obstacles can appear along the way. The primary forces that can detract from a company's diversity management agenda include the following:

Lack of inclusiveness and stereotyping Expectations of reverse discrimination Failure to include diversity efforts in performance appraisals Resistance to change Inadequate management training techniques

Continual stereotyping represents a major obstacle to the creation of an accepting and diverse workforce. Overcoming it requires managers to pay attention to any slurs and generalizations, correcting them as they occur. Lack of inclusiveness is often more dif�icult to address, as socialization takes place on-the-job but also away from the workplace. In essence, cliques still exist and are harder to break down.

Fears of reverse discrimination often are directed at programs such as af�irmative action. Opponents of af�irmative-action programs use terms such as "quota systems" (which they are not) to urge resistance to the implementation of diversity efforts. Management communication processes at all levels can help reduce these concerns.

Employees are quick to notice when diversity management is a low priority to an organization. Staff members follow what leaders stress as important. For a diversity program to succeed, top management must buy in and keep the company on course. For example, poor management training programs that fail to incorporate diversity management in the process may indicate that diversity is a low priority, and as a result managers will not know how to effectively respond to employee needs or discriminatory incidents. In addition, when the system rarely receives mention and does not appear in any internal company documents, it becomes easier to assume top management has assigned a low priority to the idea of increasing diversity in the organization.

Organizational inertia, the term used to describe resistance to change, can be found in practically any organization. Diversity programs represent change and may encounter resistance as a consequence. The resistance can take the form of stalling, trying to turn attention to other issues, or even something resembling a rebellion.

As noted, each of the potential barriers to diversity management can be overcome. True diversity often signi�ies a cultural shift in the organization. All of the tactics designed to change a culture can play a role in instituting a truly multicultural environment.

In summary, diversity describes a wide spectrum of differences between people. Companies seeking to encourage and embrace diversity employ various strategies and tactics. Still, many barriers to diversity management programs remain. Managers who adapt to and take advantage of diversity create major advantages for their companies. Managers who fail to embrace diversity risk falling behind in the new competitive, multicultural world of business.

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Summary and Resources

Chapter Summary

Culture consists of the shared meanings associated with the symbols, rituals, language, and social dramas that highlight organizational life, including myths, stories, and jargon. Culture combines the philosophy of the �irm with beliefs, expectations, and values shared by members. It contains the stories and myths about the company's founder and its current leading �igures, who are the �irm's heroes and heroines.

Organizational culture provides several key functions, including making the organization distinct, creating a sense of identity for organizational members, building a strong social system, and helping members �it in. The three layers of culture that employees encounter include observable artifacts, espoused values, and enacted values.

Culture is transmitted and learned in a variety of ways, beginning with the recruiting process. Socialization is the process of internalizing or assimilating an organization's values. Typically, socialization takes place in three stages: anticipatory socialization or pre-arrival, an encounter, and change and acquisition, or metamorphosis. Each of the stages helps the new employee understand the company's culture in relation to his or her own value set and then eventually helps the employee to align the two to create a positive working situation.

Companies can engage in socialization programs that range from informal to formal. Employees can be trained and socialized individually or collectively. Advancement can take place on a �ixed or variable schedule. Socialization programs offered in serial or sequential form vary from those presented randomly. A mentor can help in the socialization process.

Organizational stories further transmit culture by explaining dualities, equalities and inequalities, and events in the past. Stories maintain organizational heroes and heroines. Cultures take several forms including clan, hierarchy, adhocracy, and market versions. Members of a positive culture enjoy the bene�its of stability, employee self-management, and smoother integration of new members.

When cultural change becomes necessary, management can work toward a new version through top-level pronouncements, company language, workplace redesign, reward system changes, training programs, role modeling, coaching, organizational systems and procedures, and goal-setting programs. Ethical cultures are built and maintained by visible statements of commitment, establishing ethical expectations, providing positive role models, rewarding ethical acts, punishing unethical acts, and providing help in the form of ethical counseling.

Diversity concepts apply to individuals, groups, and organizations. In the world of business, typical groups used to describe diversity include gender, age, race, nationality, religion, sexual orientation, and physical disabilities.

Problems associated with diversity issues can be addressed by recruiting from new sources, seeking to use unbiased selection techniques, providing quality training and orientation programs for minority members, encouraging sensitivity by all employees, maintaining �lexibility in responding to employee requests, tailoring motivational programs to individual employees, and reinforcing differences in positive ways. Diversity management programs often require a cultural shift or change in order to succeed.

CASE STUDY: GM's Cultural Challenge

Many catalysts to change exist. It often takes a dramatic turn of events to make major alterations to a culture possible. General Motors (GM) may be viewed as a classic example of the �ixed nature of culture. For years the organization has been characterized as being led by a more authoritarian style of leadership that was highly resistant to change.

When Mary Barra assumed the position of CEO of GM in 2014, it was clear that more than a change of climate, or the prevailing atmosphere in the company, needed to take place. At the time, GM faced criminal charges related to wire fraud and withholding information from regulators about a defective ignition switch that had been blamed for over 100 deaths (Colvin, 2015). The "traditional" approach to incidents involving a defect or problem that leads to the loss of life (which does occur from time to time in the automobile industry) had been to stall, delay, and minimize the importance of the event. Then the company would quietly settle any lawsuits or other legal issues while maintaining a posture of innocence or at least one indicating that there was no concrete evidence signifying that the situation was caused by the company.

Instead, Barry chose to publicly and openly acknowledge the problem, including setting up a compensation fund for victim families, and meeting with those families in person. "I never want to put this behind us," she told employees at a town hall meeting that stunned many of them. "I want to put this painful experience permanently in our collective memories." A retired executive commented that her remarks "were unlike anything any previous GM CEO has ever said" (Colvin, 2015). GM settled the case with the U.S. Justice Department for $900 million.

Not content to stop there, Barra noted in 2016, "We have more work to do. We've got to get to every single employee. We do this external survey with Aon Hewitt so that we can benchmark ourselves to other industries, and we've seen tremendous improvement in the engagement of our employees" (Reingold, 2016). She was, in part, referring to what she termed the "frozen middle" layer of management that had been most resistant to change. Barra meets with them, and with newly promoted or hired managers two to three times per year to make sure they understand how the new culture must operate.

"Another core thing we are driving toward is understanding that when we �irst know (or think) we might have an issue, that's the easiest time to solve it. Raise the issues and solve them early," she notes (Reingold, 2016). Such was the approach used in the defective ignition-switch case.

As the future unfolds, many eyes will undoubtedly be focused on Mary Barra's efforts to change a longstanding culture and the problems resulting from the lack of adaptation to a changing world.

Case Questions

1. What was the major cultural challenge facing General Motors prior to Barry's involvement? Would paternalism and a male-dominated leadership team be part of the problem?

2. What methods of cultural change could Mary Barra implement in the recruiting and training stage for entry level employees? 3. In the past refusing to accept responsibility for the accidents and deaths associated with the automobile defects may have been the best legal

approach, in terms of lawsuits and governmental responses. Was it the most ethical response?

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Review Questions

Click on each question to see the answer.

De�ine dominant culture and subculture. (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

The dominant culture articulates the core values shared by a majority of an organization's members. A subculture, in an organizational context, arises from the common problems, situations, and experiences that a set of members faces.

What is meant by the term "strong culture"? (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

A company with a strong culture employs members who intensely hold and readily share the organization's core values.

Name the functions performed by culture. (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

Culture makes an organization distinct, creates a sense of identity, builds a strong social system, and helps employees "�it in."

Name and brie�ly describe the three stages of employee socialization. (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

Anticipatory socialization involves the learning that takes place prior to joining an organization. The encounter takes place as the individual learns more about the company and begins to compare his or her expectations about the �irm's culture with reality. The change and acquisition (or metamorphosis) stage occurs as the employee masters the skills and role performance needed to succeed in the organization.

Identify the choices to be made by managers when creating socialization programs. (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

The �ive potential methods for socializing new workers include (1) informal or formal, (2) individual or collective, (3) �ixed or variable advancement schedule, (4) serial or sequential format, and (5) divestiture versus investiture.

What activities and functions are provided by mentors? (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

Mentoring involves several activities, including listening to and reviewing ideas, introducing the mentee or protégé to key individuals who might offer help, showing the person how to act and perform the job, and providing emotional support.

What activities are involved in attempting to change a culture? (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

Activities include top management pronouncements, changes in company language, workplace redesign, reward system changes, training programs, systems and procedures, and goal setting.

Name the groups that are typically used to describe diversity in the world of business. (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

In the world of business, typical groupings used to describe diversity include gender, age, racial identity, nationality, religion, sexual orientation, and employees with physical disabilities.

What activities are involved in diversity management programs? (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

Diversity management strategies include recruiting from new sources, unbiased selection processes, training and orientation for minority members, encouraging sensitivity by all organizational members, �lexibility in responding to worker requests, motivation programs tailored to individuals, and reinforcing differences in positive ways.

What are the potential barriers to diversity management programs? (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

Barriers include continual stereotyping, fears of reverse discrimination, having a low priority as an organizational activity, the failure to include diversity efforts into performance appraisal, resistance to change, and poor management training techniques.

Analytical Exercises

1. Based on your knowledge of U.S. businesses, name three companies you believe have strong cultures. Write down the reasons why you think these companies exhibit strong cultures. Then, name three domestic companies you believe have weak cultures and explain your reasoning.

2. Assume you have been chosen to consult with a company that has recently faced both legal problems and bad publicity due to ethics violations. Prepare a report spelling out how the culture must change along with ways to build a more ethical culture. Then explain to management why making these changes will be the key to the �irm's long-term survival. Tailor your report to one of the following industries, including the kinds of legal troubles �irms in that industry have faced, ethical problems that these companies have encountered, and speci�ic remedies for a company in that industry.

Financial/stock market Retail grocery chain Real estate sales

3. Using the tactics a manager can use to change the culture of an organization, explain how you can build a stronger diversity management system by incorporating those ideas. Also explain why building a diversity management program might be more dif�icult in a strong (as opposed to a weak) culture. Include espoused and enacted values in your answer.

4. Explain the dif�iculties you would expect to encounter in creating a diversity management program in the following types of organizations. Explain your reasoning, including the factors that create diversity challenges in these organizations.

All-white, all-male country club

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Hooters™ restaurant chain Roman Catholic Church Financial investment company College football Professional hockey U.S. military

5. Using the �ive potential methods for socializing new workers—(1) informal or formal, (2) individual or collective, (3) �ixed- or variable-schedule advancement, (4) serial or sequential format, and (5) divestiture versus investiture—develop programs for workers in the following types of organizations. Explain your reasoning for each choice.

Police of�icer trainee Manager trainee, retail chain store such as Target or Costco Insurance salesperson, of�ice with 20 sales reps Information technology specialist

Key Terms

Click on each key term to see the de�inition.

anticipatory socialization (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

Also called the pre-arrival stage; the �irst stage of organizational socialization that involves the learning that takes place prior to joining an organization.

artifacts (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

The physical signs of an organization's dominant culture.

change and acquisition (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

Also called the metamorphosis stage, this third stage of organizational socialization occurs as the employee masters the skills and role performance needed to succeed in the organization.

diversity (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

The term used to describe a wide spectrum of differences between people.

dominant culture (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

In an organizational context, the core values shared by a majority of an organization's members.

enacted values (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

An organization's values and norms exhibited as employee and managerial behaviors.

encounter (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

The second stage of organizational socialization, in which the individual learns more about the company and its culture.

espoused values (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

An organization's explicitly stated values and norms.

extrinsic motive (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

Rewards given by others, such as pay raises, promotions, prizes in contests, positive performance appraisals, and pension plans that are delivered by the company.

glass ceiling (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

The metaphorical barrier that prevents women from advancing to top level executive positions.

intrinsic motives (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

Personal internal rewards that result from performing at a high level, helping others, and taking advantage of one's own talents and abilities.

norms (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

The rules of behavior that guide members of a group or organization.

organizational culture (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

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A set of shared meanings and values held by a set of members in an organization that distinguish this organization from others.

positive cultures (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

Cultures that are democratic and progressive, nurture and value the contributions of members, and tend to be more �lexible and adaptable.

role clarity (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

What exists when a person has a clear understanding of his or her function in the organization and how to complete all assigned tasks.

socialization (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

The process of learning, internalizing, and assimilating an organization's values.

stereotyping (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

What occurs when all persons with one characteristic are incorrectly assumed to have a set of common characteristics.

strong culture (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

An organizational culture in which members intensely hold and readily share the organization's core values.

subculture (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

In an organizational context, refers to the common problems, situations, and experiences that a set of members faces.

telecommuting (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

Working at home and utilizing technologies such as the Internet and the phone system to transmit �inished projects to a central of�ice.

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