L 6 - Organisational Culture
L 6 - Organisational Culture
L 6 - Organisational Culture
Lecture 6
Dr. P. David Jawahar
Organizational (Corporate) Culture
that are considered valid and that are taught to new members as the
Values
Espoused: what members of
Greater level
an organization say they value
of awareness
Enacted: reflected in the way
individuals actually behave
• Personal enactment
• Ceremonies and rites (rites of passage, enhancement, renewal,
integration, conflict reduction, degradation)
• Stories (about the boss, getting fired, company handling of
relocating employees, whether lower-level employees can rise to
the top, how the company deals with crises, how status
considerations work when rules are broken)
• Ritual
• Symbols
• Testable in the
Values physical
Espoused: what members of environment
an organization say they value
Enacted: reflected in the way
individuals actually behave • Testable only by
social consensus
Assumptions - Deeply held
beliefs that guide behavior and tell
members of an organization how
to perceive and think about things
• Relationship to environment
• Nature of reality, time, and space
• Nature of human nature
• Nature of human activity
• Nature of human relationships
Functions of Organizational Culture
• Culture provides a sense of identity to members and increases their
commitment to the organization
• Culture is a sense-making device
for organization members
• Culture reinforces the values
in the organization
• Culture serves as a control mechanism for shaping behavior
Theories about the
relationship between Strong Culture
organizational culture Perspective
and performance
Fit
Perspective
Adaptive
Perspective
An organizational culture
with a consensus on the
values that drive the company Strong Culture
and with an intensity that is Perspective
recognizable even to outsiders
• Competitive environment
• Customer requirements
• Societal expectations
An organizational culture
that encourages confidence Adaptive
and risk taking among employees, Perspective
has leadership that produces change,
and focuses on the changing needs of customers
Adaptive Nonadaptive
Most managers care Most managers care
Core Values about customers, about themselves,
stockholders, and their work group, or
employees an associated product
Managers pay close Managers tend to
Common attention to all behave somewhat
Behavior their constituencies, insularly, politically,
esp. customers and bureaucratically
Reprinted with the permission of The Free Press, a Division of Simon & Schuster, Inc. from Corporate Culture and Performance by
John P. Kotter and James L Heskett. Copyright © 1992 by Kotter Associates, Inc. and James L. Heskett.
Five Most Important Elements
in Managing Culture
• What leaders pay attention to
• How leaders react to crises
• How leaders behave
• How leaders allocate rewards
• How leaders hire and fire individuals
Organizational Socialization
organization
1. Anticipatory Realism Congruence
Socialization
Job demands
•Task
2. Encounter
•Role
•Interpersonal
3. Change and
Mastery
Acquisition
Stages of
Socialization
1. Anticipatory Realism Congruence
Socialization
Job demands
•Task
2. Encounter
•Role
•Interpersonal
3. Change and
Mastery
Acquisition
2. Encounter
the second socialization stage-- the
newcomer learns the tasks associated with
the job, clarifies roles, and establishes new
relationships at work
3. Change & Acquisition
• Merger or acquisition
• Employment of people from different countries
Cultural Changing
1
3 communication behavior
Examining
Interventions for justifications
Changing for changed
Organizational behavior
Culture 2
Reprinted with permission from Vijay Sathe “How to Decipher & Change
Corporate Culture,” Copyright © 1985 Jossey-Bass Inc, Publishers, 350 Sansome
Street, San Francisco, CA 94104 (800) 956-7739.
Cultural Modifications in the
Current Business Environment