CHAPTER 8.5, 15.1-15.3: Organizational Cultural and Change

Question 1

What Is Organizational Culture?

Answer 1

• Organizational culture consists of the shared beliefs, values, and assumptions that exist in an organization.
• Culture provides social identity and uniqueness to organizations.

Question 2

Characteristics of Culture

Answer 2

• Represents a “way of life” for members.
• Tends to be stable over time.
• Can involve internal values (e.g., innovation) or external values (e.g., customer service).
• Can have a strong impact on performance and satisfaction.

Question 3

Subcultures

Answer 3

Smaller cultures that develop within a larger organizational culture, often based on departmental or occupational differences.

Question 4

The “Strong Culture” Concept

Answer 4

A strong culture has intense and pervasive beliefs, values, and assumptions.
* Strong cultures provide clear direction for employees.

Question 5

Assets of Strong Cultures

Answer 5

1. Coordination: Helps different parts of an organization communicate and work together.
2. Conflict Resolution: Shared core values provide a basis for resolving disputes.
3. Financial Success: Strong cultures support an organization’s mission, strategy, and goals.

Question 6

Liabilities of Strong Cultures

Answer 6

1. Resistance to Change: A strong culture that once led to success can become a barrier to innovation.
2. Culture Clash: Mergers and acquisitions can cause conflicts between different cultures.
3. Pathological Cultures: Some strong cultures are toxic and detrimental to business.

Question 7

The Founder’s Role in Culture

Answer 7

• Many strong cultures reflect the values of their founders.
• Top management influences culture by emphasizing specific values.

Question 8

Steps of Socialization in Strong Cultures

Answer 8

1. Selecting Employees: Hiring based on culture fit.
2. Debasement: Humility-inducing experiences to open employees to new norms.
3. Training “in the Trenches”: Learning through real work experience.
4. Reward and Promotion: Reinforcing desired behaviors.
5. Exposure to Core Culture: Repeatedly emphasizing core beliefs.
6. Organizational Folklore: Stories reinforcing culture.
7. Role Models: Identifying “fast trackers” as culture examples.

Question 9

Diagnosing a Culture

Answer 9

Culture can be understood through symbols, rituals, and stories.
Symbols: Carl Reichardt (Wells Fargo) used a tattered chair to symbolize fiscal austerity.

Rituals: Disney’s employee picnics and social events reinforce its youth-oriented culture.

Stories:
* Organizations communicate their culture through stories.
* Common themes in organizational stories:
o Is the big boss human?
o Can the little person rise to the top?
o How does the organization handle mistakes?