Organizational Culture
C H A P T E R
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Reinventing Hewlett-Packard’s Culture
Carly Fiorina wants to reinvent Hewlett-Packard’s legendary culture, known as ‘The H-P 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 Defined
The basic pattern of shared assumptions, values, and beliefs considered to be the correct way of thinking about and acting on problems and opportunities facing the organization.
© Reuters/New media, Inc./ CORBIS
Physical Structures
Rituals/ Ceremonies
Stories
Language
Beliefs
Values
Assumptions
Artifacts of
Organizational
Culture
Organizational
Culture
Elements of Organizational Culture
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 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
Cultural content refers to the relative ordering of beliefs, values, and assumptions.
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
Located throughout the organization
Can support or oppose (countercultures) firm’s dominant culture
Two functions of countercultures:
provide surveillance and evaluation
source of emerging values
E. M. Samelson/Orlando Sentinel
Artifacts: Organizational Stories
Social prescriptions of desired behavior
Demonstrate that organizational objectives are attainable
Most effective stories:
Describe real people
Assumed to be true
Known throughout the organization
Are prescriptive
Artifacts: Rituals and Ceremonies
Rituals
programmed routines
e.g., conducting meetings
Ceremonies
planned activities for an audience
e.g., award ceremonies
Artifacts: Organizational Language
Words used to address people, describe clients, etc.
Leaders use phrases and metaphors as cultural symbols
e.g.. General Electric’s “grocery store”
Language also found in subcultures
e.g.. Whirlpool’s “PowerPoint culture”
Courtesy of Oakley, Inc.
Artifacts: 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).
Courtesy of Oakley, Inc.
Benefits of Strong Corporate Cultures
Strong
Organizational
Culture
Social Control
Aids Sense-Making
Social Glue
Problems with Strong Cultures
Culture content might be incompatible with the organization’s environment.
Strong cultures focus attention on one mental model.
Strong cultures suppress dissenting values from subcultures.
Adaptive Organizational Cultures
External focus — firm’s success depends on continuous change
Focus on processes more than goals
Strong sense of ownership
Proactive –seek out opportunities
AP/Wide World
Bicultural Audit
Part of “due diligence” in merger
Minimizes risk of cultural collision by diagnosing companies before merger
Three steps in bicultural audit:
1. Collect artifacts
2. Analyze data for cultural conflict/compatibility
3. Recommend solutions
Merging Organizational Cultures
Assimilation
Deculturation
Acquired company embraces acquiring firm’s culture
Acquiring firm imposes its culture on unwilling acquired firm
Integration
Both cultures combined into a new composite culture
Separation
Merging companies remain separate with their own culture
Strengthening
Organizational
Culture
Founders and leaders
Culturally
consistent
rewards
Stable
workforce
Selection
and
socialization
Managing the
cultural
network
Strengthening Organizational Culture
Organizational Culture
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