Organizational Organizational Organizational Organizational

C H A P T E RC H A P T E R 1515

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e

Organizational Organizational CultureCultureOrganizational Organizational CultureCulture

Reinventing HewlettReinventing Hewlett--Packard’s CulturePackard’s Culture

Carly Fiorina wants to reinvent

Hewlett-Packard’s legendary

culture, known as ‘The H-P

Way’. She documented a new

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e

Way’. She documented a new

set of values, called “The

Rules of the Garage” and is

merging H-P with Compaq to

create a more performance-

oriented culture.

© Reuters/New media, Inc./ CORBIS

Organizational Culture DefinedOrganizational Culture Defined

The basic pattern of shared

assumptions, values, and

beliefs considered to be the

correct way of thinking about

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e

and acting on problems and

opportunities facing the

organization.© Reuters/New media, Inc./ CORBIS

Physical Structures

Rituals/ Ceremonies

Stories

Language

Artifacts of

Organizational

Culture

Elements of Organizational CultureElements of Organizational Culture

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e

BeliefsBeliefs

ValuesValues

AssumptionsAssumptions

OrganizationalOrganizational

CultureCulture

Brown & Brown’s Cultural Content Brown & Brown’s Cultural Content

Brown & Brown, Inc. in Daytona

Beach has an aggressive culture

that helps it succeed in the highly

competitive insurance business. At

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e

its annual sales meeting,

managers of poorly performing

divisions are led to the podium by

medieval executioners while a

funeral dirge plays.E. M. Samelson/Orlando Sentinel

Meaning of Cultural Content Meaning of Cultural Content

Cultural content refers to the

relative ordering of beliefs,

values, and assumptions.

Example: Brown & Brown

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e

Example: Brown & Brown

values aggressiveness; SAS

Institute values work-life

balance

An organization emphasizes

only a handful of the

hundreds of cultural values.

E. M. Samelson/Orlando Sentinel

Organizational Subcultures Organizational Subcultures

Located throughout the organization

Can support or oppose (countercultures) firm’s dominant culture

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e

dominant culture

Two functions of countercultures:� provide surveillance and

evaluation

� source of emerging valuesE. M. Samelson/Orlando Sentinel

Artifacts: Organizational StoriesArtifacts: Organizational Stories

Social prescriptions of desired behavior

Demonstrate that organizational objectives

are attainable

Most effective stories:

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e

Most effective stories:� Describe real people

� Assumed to be true

� Known throughout the organization

� Are prescriptive

Artifacts: Rituals and CeremoniesArtifacts: Rituals and Ceremonies

Rituals

�programmed routines

�e.g., conducting meetings

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e

Ceremonies

�planned activities for an audience

�e.g., award ceremonies

Artifacts: Organizational LanguageArtifacts: Organizational Language

Words used to address people, describe

clients, etc.

Leaders use phrases and metaphors as

cultural symbols

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e

cultural symbols � e.g.. General Electric’s “grocery store”

Language also found in subcultures� e.g.. Whirlpool’s “PowerPoint culture”

Artifacts: Physical Structures/SpaceArtifacts: Physical Structures/Space

Oakley, Inc.’s protective and competitive

corporate culture is apparent in its building

design and workspace. The building looks

like a vault to protect its cherished product

designs (eyewear, footwear, apparel and

watches).

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e

Courtesy of Oakley, Inc.

watches).

Courtesy of Oakley, Inc.

Benefits of Strong Corporate CulturesBenefits of Strong Corporate Cultures

StrongOrganizational

SocialSocialControlControl

SocialSocial

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e

OrganizationalCulture

AidsAidsSenseSense--MakingMaking

SocialSocialGlueGlue

Problems with Strong CulturesProblems with Strong Cultures

Culture content might be incompatible with the organization’s environment.

Strong cultures focus attention on one mental model.

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e

model.

Strong cultures suppress dissenting values from subcultures.

Adaptive Organizational CulturesAdaptive Organizational Cultures

External focus -- firm’s

success depends on

continuous change

Focus on processes more

than goals

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e

than goals

Strong sense of ownership

Proactive --seek out

opportunities

AP/Wide World

Bicultural AuditBicultural Audit

Part of “due diligence” in merger

Minimizes risk of cultural collision by

diagnosing companies before merger

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e

Three steps in bicultural audit:1. Collect artifacts

2. Analyze data for cultural conflict/compatibility

3. Recommend solutions

Merging Organizational CulturesMerging Organizational Cultures

AssimilationAssimilation

DeculturationDeculturation

Acquired company embraces acquiring firm’s culture

Acquiring firm imposes its culture on unwilling acquired firm

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e

unwilling acquired firm

IntegrationIntegrationBoth cultures combined into a new composite culture

SeparationSeparationMerging companies remain separate with their own culture

StrengtheningStrengthening

FoundersFoundersand leadersand leaders

CulturallyCulturallyconsistentconsistent

SelectionSelectionandand

Strengthening Organizational CultureStrengthening Organizational Culture

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e

StrengtheningStrengthening

OrganizationalOrganizational

CultureCulture

consistentconsistentrewardsrewards

StableStableworkforceworkforce

andandsocializationsocialization

Managing theManaging theculturalculturalnetworknetwork

Organizational Organizational Organizational Organizational

C H A P T E RC H A P T E R 1515

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e

Organizational Organizational CultureCultureOrganizational Organizational CultureCulture