Organisational Culture

What is culture
1. The way we do things around here
  1. Jacques 1952:251
    1. The "customary and traditional way of thinking and doing things which is shared to a greater or lesser degree by all members and which new members must learn...in order to be accepted into the services of the firm"
2. Culture as a shared meaning
  1. Shared understandings of meanings about the organization, its purpose, its members and how they should behave
  2. Relates to values, beliefs and assumptions
  3. Which are reflected in patterns in physical artifacts, language use, symbols, rituals, practices that have evolved over time
3. The "pattern of basic assumptions that a given group has invented, discovered or developed in learning to cope with its problems of external adaptation and internal integration, and that has worked well enough to be considered valid and...taught to new members as the way to perceive. think and feel in relation to problems" (Schein quoted in textbook)
Where can it be found
1. Most visible
2. Observable symbols; Physical layout and appearance
  1. Logos
  2. Uniforms
  3. Rituals and ceremonies (performances with beginning and endings, clear roles)
  4. How do we find them?
    1. Deliberate; meant to be observed and meaning usually clear
    2. Can be 'hijacked' or 'subverted'
  5. Place: Decor, furniture, offices, architecture
  6. People: Physical appearance and attire
  7. How do we find them?
    1. Easy to observe by walking around but their meaning can be difficult to interpret
3. Communication: jargon, patterns, stories
  1. jargon. acronyms, metaphors, nicknames, etc
  2. Patterns (like use of titles vs first names, etc)
  3. Stories, legends, myths, jokes, often drawn from the organizaton's past
  4. How do we find them?
    1. Can listen to the way people talk although may need some interpretation
4. Practices and behaviours
  1. How does the organization regularly do the things it has to do?
  2. Can be formal or informal
  3. How do we find them?
    1. Have to 'hang around' (conduct ethnographic studies) but the meaning may not be immediately obvious
5. Values, assumptions, feelings, and beliefs
  1. Only by observing all previous aspects of culture that we can derive this
    1. Layout: assembly lines
      1. Practices: people working mechanically
        Communication: if a person isn't functioning well, they are replaced
        Core belief: Machine Metaphor
    2. Layout: slides, video games, dogs, balls
      1. Practices: people take breaks by playing ping pong, getting a massage
        Communication: "you can be serious without a suit"
        Core belief: Playground Metaphor
  2. May be deeply held, but people are unaware of how they affect behaviour
  3. May be 'espoused' rather than 'in use'; stated but not enacted
  4. How do we find them?
    1. Ask questions but may not get useful answers because people
      1. Are unaware
      2. Say what they think you want to hear
      3. Keep them private
  5. Culture is self reinforcing
    1. Beliefs and assumptions form our concept of 'reality'
    2. Influences how we perceive events and how we interpret them
    3. We take beliefs and assumptions for granted -- often only noticing them when we move to a different culture
6. Least visible
How can it be managed, if at all
1. Critical
  1. Both integrationist and differentiationist theories are functional, i.e. look at culture from management's point of view
    1. Critical theory take a different approach -- looks at how employees are affected
      1. Focuses on the way in which power is embedded in culture
        Especially interested in how strong culture is a way to control employees
2. Functionalist
  1. Integrationist
    1. Using integrationist theory
      1. Look for a dominant culture
        Widely shared understandings
        Consensus throughout the organization
        Individuals with strong organizational commitment
        Clear organizational boundaries between who's inside and what's outside
        Top down control of culture by leaders
        The culture is seen as helping the organization to function and to be profitable
    2. Managing an integrationist culture
      1. Managers "engineer" the right type of culture via
        Founders
        Selection
        Leadership
        Socialization
        Rewards and punishments
        To improve organizational effectiveness
    3. Disadvantages
      1. No theoretical basis or empirical evidence for a relationship between culture and performance
      2. Failure of many 'excellent' companies especially when market conditions change -- strong cultures may not change easily
      3. When strong integrationist cultures are found, they can be dysfunctional
      4. Successful companies do not always have strong, integrationist cultures
    4. Advantages
      1. A single, uniform strong culture is better
      2. Allows people to work together: a common set of values, less need for rules
      3. Makes organization stable; more culture is reproduced
      4. Makes the organization more effective (functionalist)
        Allows it to survive or thrive in the larger environment
        External adaptation
        Consensus on:
        How organization operates in its environment
        Specific goals
        Means to accomplish those goals
        Criteria for measuring results i.e. whether goals are achieved
        Repair strategies -- what to do when things go wrong
        "Holds" its members together (culture acting like a social glue)
        Internal integration
        Consensus on:
        Common language
        Core values
        Boundaries -- who's inside vs outside
        Criteria for the allocation of status, power and authority
        Criteria for friendships and relationships
        Criteria for allocation of resources
  2. Differentiationist
    1. Organization is a cluster of sub-cultures related to a particular challenge, task, responsibility of a unit or group
      1. Consensus is found not at organizational level but in sub cultures
        Relations among sub cultures can be complementary, conflicting or independent
        Boundary between "inside" or "outside" is permeable
    2. Managing differentiationist sub-cultures
      1. Middle managers should manage sub-culture
      2. Still sees management of culture as possible and desirable; still functionalist
Comparing Theories
1. Integrationist
  1. There is one unified culture, which should be managed centrally
    1. Strengths
      1. Patterns are easy to look for
        Convergence may lead to committment
        Some successful companies have strong cultures
        Can be managed top down
    2. Weaknesses
      1. Patterns may not tell the whole story
        Convergence may be dysfunctional
        A strong culture may not bring success
        Not all organizations are appropriate for a single uniform culture
2. Differentiationist
  1. We can expect multiple sub-cultures, each of which should be managed differently
    1. Strengths
      1. Emphasizes commitment to the work group
        It may be more meaningful for individual experience
        It allows for adaptation (because boundary for inside/outside is permeable)
        Allow more scope for middle managers to manage culture
    2. Weaknesses
      1. Not clear how different sub-culture are going to fit together
        There may be conflicts among sub-cultures
        Movement between sub-cultures may become difficult
        Balkanization; sub-cultures work for self interest rather than common interest
3. Critical theory
  1. Culture is a way of exercising control over employees; it should be resisted
    1. Strengths
      1. Considers negative effects
        Shows the hidden ways in which culture affects individuals
        Not having a culture or sub-culture is not necessarily "bad"
    2. Weaknesses
      1. Not everyone perceives culture negatively
        Some control is inevitable
        Cultural controls may be less oppressive than other controls

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Organisational Culture

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	Created by Junyan Chubbs Le almost 11 years ago