Henry Mintzberg on Culture Culture is the soul

Henry Mintzberg on Culture • “Culture is the soul of the organization — the beliefs and values, and how they are manifested. I think of the structure as the skeleton, and as the flesh and blood. And culture is the soul that holds the thing together and gives it life force. ”

Organizational Culture • The pattern of shared values, beliefs, and assumptions considered to be the appropriate way to think and act within an organization. – – Culture is shared. Culture helps members solve problems. Culture is taught to newcomers. Culture strongly influences behaviour.

Exhibit 10 -1 Layers of Culture

Levels of Culture • Artifacts – Aspects of an organization’s culture that you see, hear, and feel • Beliefs – The understandings of how objects and ideas relate to each other • Values – The stable, long-lasting beliefs about what is important • Assumptions – The taken-for-granted notions of how something should be in an organization

Characteristics of Organizational Culture • Innovation and risk-taking – The degree to which employees are encouraged to be innovative and take risks. • Attention to detail – The degree to which employees are expected to exhibit precision, analysis, and attention to detail. • Outcome orientation – The degree to which management focuses on results or outcomes rather than on technique and process. • People orientation – The degree to which management decisions take into consideration the effect of outcomes on people within the organization. Chapter 10, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition Copyright © 2007 Pearson Education Canada 10 -5

Characteristics of Organizational Culture • Team orientation – The degree to which work activities are organized around teams rather than individuals. • Aggressiveness – The degree to which people are aggressive and competitive rather than easygoing. • Stability – The degree to which organizational activities emphasize maintaining the status quo in contrast to growth. Chapter 10, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition Copyright © 2007 Pearson Education Canada 10 -6

Exhibit 10 -2 Contrasting Organizational Cultures Organization A • Managers must fully document all decisions. • Creative decisions, change, and risks are not encouraged. • Extensive rules and regulations exist for all employees. • Productivity is valued over employee morale. • Employees are encouraged to stay within their own department. • Individual effort is encouraged. Organization B • Management encourages and rewards risk-taking and change. • Employees are encouraged to “ run with ” ideas, and failures are treated as “ learning experiences. ” • Employees have few rules and regulations to follow. • Productivity is balanced with treating its people right. • Team members are encouraged to interact with people at all levels and functions. • Many rewards are team based. Chapter 10, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition Copyright © 2007 Pearson Education Canada 10 -7

Culture’s Functions • Boundary-defining • Conveys a sense of identity for organization members • Facilitates commitment to something larger than one’s individual self-interest • Social glue that helps hold an organization together – Provides appropriate standards for what employees should say or do Chapter 10, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition Copyright © 2007 Pearson Education Canada 10 -8

Culture’s Functions • Serves as a “sense-making” and control mechanism – Guides and shapes the attitudes and behaviour of employees Chapter 10, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition Copyright © 2007 Pearson Education Canada 10 -9

Do Organizations Have Uniform Cultures? • Organizational culture represents a common perception held by the organization members. • Core values or dominant (primary) values are accepted throughout the organization. – Dominant culture • Expresses the core values that are shared by a majority of the organization’s members. – Subcultures • Tend to develop in large organizations to reflect common problems, situations, or experiences.

Exhibit 10 -3 How Organizational Culture Forms Philosophy of organization's founders Top management Organization's culture Selection criteria Socialization

Creating and Sustaining Culture: Keeping a Culture Alive • Selection – Identify and hire individuals who will fit in with the culture. • Top Management – Senior executives establish and communicate the norms of the organization. • Socialization – Organizations need to teach the culture to new employees.

A Socialization Model Socialization Process Outcomes Productivity Prearrival Encounter Metamorphosis Commitment Turnover

The Liabilities of Culture • Culture can have dysfunctional aspects in some instances. – Culture as a Barrier to Change • When organization is undergoing change, culture may impede change. – Culture as a Barrier to Diversity • Strong cultures put considerable pressure on employees to conform. – Culture as a Barrier to Mergers and Acquisitions • Merging the cultures of two organizations can be difficult, if not impossible.

Strategies For Merging Cultures • Assimilation • Separation • Integration