Topic Summary: Culture Topic summary learning goals 1. Recognize the three dimensions of culture. 2.

Describe the iceberg approach to organizational culture, notion of subcultures, and the competing values framework of organizational cultures. 3. Differentiate between organizational and national culture 4. Describe the process of socialization and the transmission of culture. 5. Evaluate an organizations culture and organizational strategy. Key terms adaptation artifacts, espoused values, and basic assumptions competing values framework culture dominant culture iceberg metaphor of culture national culture organizational culture hierarchical culture market culture clan culture adhocracy culture executive culture operator culture professional culture socialization subculture Introduction to Culture Organizational culture describes underlying values, beliefs, and assumptions that are shared by people within an organization. Organizational culture is important because it determines the behavior that occurs and doesnt occur in organizations. This topic summary describes four important aspects of culture: 1) dimensions of organizational

Contemporary OB in Action: Topic Summary: Culture

culture, 2) organizational and national culture, 3) the purpose of culture, and 4) how organizations build culture. Figure 1: Four aspects of organizational culture

Three dimensions of culture

Organizational and national culture

Purpose of culture

Building, sustaining, and indoctrining into organizational culture

Three dimensions of culture Our understanding of culture is informed by many disciplines, including anthropology, social science, and psychology among others. Scheins model, for example, emerged from the intersection of anthropology and psychology. Scheins model describes three dimensions of culture: artifacts, espoused values, and basic assumptions.2 Culture reveals itself most clearly in artifacts. Artifacts represent the objects that can be readily observed in organizations. Physical artifacts are easy to identify. Physical artifacts include art, buildings, dcor, dress, and other material objects. Day to day behaviors are also artifacts. Behavioral artifacts include ceremonies, rituals, traditions, and customs. Verbal artifacts include jargon, nicknames, stories, myths, villains, and metaphors.3

Contemporary OB in Action: Topic Summary: Culture

Espoused values are the second dimension of culture. Espoused values describe what the members of the culture say they believe. Notice these values are only espoused. This means that the values are expressed, but because they are only espoused, the values are not always practiced in reality. Basic assumptions, the third dimension, are the foundation of culture. Basic assumptions are the most revealing dimension of culture. Basic assumptions are the accepted, taken for granted, unquestioned beliefs and assumptions shared by the members of the culture. Identifying basic assumptions is central to understanding culture because basic assumptions shape decisions and beliefs. Table: Assumptions Assumptions: Reality Time Space Human nature Interpersonal relationships 1. 2. 1. 2. 1. 2. 1. 2. 1. 2. Example of choices rational and fair random or unpredictable short-term long-term the world is vast and diverse the world is small and similar people are naturally motivated people need incentives to work hard fellow employees can be friends fellow employees should be held at a distance

Assumptions often include beliefs about: 1) reality, such as events can be rational and fair or random and unpredictable; 2) the nature of time, the focus of attention is on short term events or long timeframe; 3) space, the world is vast and diverse or small and similar; 4) human nature, people are naturally motivated or need incentives to work hard; and 5) interpersonal relationships, fellow employees can be friends or should be professional, distant relationships.4 Organizational culture

Contemporary OB in Action: Topic Summary: Culture

Organizational cultures emerge over time and can often be traced to the organizations founding or attributed to the organizations founders. Organizational culture is the patterns of shared beliefs, values, and behaviors within an organization and cannot be accounted for by traditional organizational factors such as organizational reporting systems, structures, and policies. Culture shapes how individuals perceive, think and feel. Cultures create the rituals, myths, and stories of the organization and provide a means for individuals and organizations to identify with and interpret symbols and events.5 The concept of culture helps us understand underlying or often hidden elements of organizations. The iceberg metaphor helps illustrate the nature of culture in organizations. Above the waterline, an iceberg appears to be a small piece of ice, perhaps so small that it even floats on top of the water. Perceptions are deceiving, underneath what is visible, lies a large body of ice, many times larger than meets the eye. The metaphor brings into focus an obvious part of organization, like their policies, formal structures, espoused values, work procedures and the like. However, as the cultural iceberg metaphor illustrates, other important things are going on as well, but they appear below the water line. What occurs below the waterline, often hidden from view is organizational culture. -------------------------insert iceberg figure about here --------------------------

Contemporary OB in Action: Topic Summary: Culture

Competing values framework: A model of organizational culture The competing values framework of culture provides a framework for understanding different types of organizational culture.6 It is one of many cultural typologies. The competing values framework involves two dimensions. The control dimension involves the degree to which a culture values flexibility versus rigidity. An organization that measures high on the control dimension values unclear and constantly evolving work roles, shared beliefs, and work procedures. An organization that measures high on rigidity would be represented by clear and rigid shared beliefs that leave little discretion to employees. On the second dimension, an organization varies to the degree it values internal affairs versus external affairs. An internally focused organization turns to its internal workings, history, and is characterized by phrases like this is the way we do things here. An externally focused culture is characterized by a concern with activities outside the organization and might be characterized by a phrase such as thats not how they do things at company x. The competing values framework identifies four types of organizational cultures. ---------------------------insert competing values framework of culture here --------------------------A hierarchical culture is when organizations place a strong value on stability and control and on internal matters. Hierarchical organizations are found in government, well-established industries such as oil and gas production, utilities, and highly regulated industries such as banks. Hierarchical organizational cultures allow organizations to apply and enforce controls on people and processes while engaging in complex and

Contemporary OB in Action: Topic Summary: Culture

sometimes risky activities. Banks for example must monitor employee behavior for compliance with rules, but must also engage in risky activities such as investments. It is important to monitor behavior of individuals for compliance while at the same time the employees must engage in risky activities. Market culture is when organizations place a strong value on stability and control but focus on external matters. Market cultures tend to flourish in consumer and industrial products areas where markets shift and new markets emerge. Market cultures help organizations maintain internal controls, for example, to maintain product quality during manufacturing processes, but to respond to environmental changes at the same time. The clan culture is when an organization has internal focus while maintaining flexibility and discretion. Typically, in a clan culture, values are shared among individuals and behavior that threatens these values is sanctioned. Research shows that employees in a clan culture report high degrees of employee satisfaction with their organization. Clan cultures often develop loyal employees. The downside of the clan culture is that it is often slow to respond to market changes and may lack controls for overseeing or monitoring certain types of behavior. Professional cultures such as law firms and hospitals are often described as a clan culture. The adhocracy culture is when an organization values flexibility and discretion while at the same time has an external focus. Adhocracies often lack the controls and consistent norms of other organizations, they also lack the bureaucracy and hierarchy that stifles many organizations. Adhocracies shift and change with the marketplace and organizations of this sort are often short-lived because they change so quickly.

Contemporary OB in Action: Topic Summary: Culture

Subcultures The artifacts, espoused values, and basic assumption shared by most or all the individuals in an organization constitute a dominant culture; however, within an organization, many subcultures also exist. A subculture is a culture within a culture. Subcultures are just as important as dominant cultures in understanding behavior in the workplace. A subculture is composed of a subset of members within the organization who share similar values and who define their work in similar ways. Edgar Schein identified three primary subcultures associated with the contemporary business organizations.7 The operator subculture values local knowledge and skills of those doing the work. The operator culture emphasizes the capacity of the individual to deal with problems within the organization. A second subculture is the professional culture, which is defined by a group of individuals within the organization who share a set of practices within a particular occupation and exercise control over how work is done or how to interpret situations based on this allegiance. In contrast to the operator culture, where peoples focus is a specific organization, the professional culture values technical knowledge that is transferable and general so that it can apply across different organizations. Those members of the organization that belong to a professional culture are often trained or certified outside the organization itself. This includes attorneys, Certified Public Accounts, physicians, or engineers whose credentials are certified by external organizations such as the American Bar Association (in the case of attorneys), or the American Medical Association (in the case of physicians). People who belong to a strong professional culture value autonomy and share similar values with others who belong to their profession outside the organization.8

Contemporary OB in Action: Topic Summary: Culture

The third type of subculture is the executive culture. Executives, often those at the top of the companys hierarchy, share a concern over the organizations measurable financial success. The executive subculture values control and accountability for those in the organization and work to see that others in the organization share the same goals. National culture National culture effects behavior in the workplace as national culture is another lens to understand how people identify with culture. National culture describes the shared values, beliefs, and behaviors within a country or culture. Employees bring these values, beliefs, and behaviors into the workplace. Geert Hofstede, a researcher on international culture, offers a model that classifies different cultures along five fundamental dimensions.9 -------------------------insert figure here: Hofstedes dimensions of culture ------------------------- Power distance describes differences in power between individuals. This explains how much power the culture places in one group at the expense of another. A culture high in power distance means the culture accepts large differences in power between the most powerful and the least powerful. Individualism and collectivism explain values that support and reward efforts. Cultures high on individualism tend to focus on individual contribution where high collectivism cultures value close relationships, reward group effort, and hold strong loyalties to groups such as family, organization, or referent group.

Contemporary OB in Action: Topic Summary: Culture

Masculinity describes how cultures differ in regards to gender roles. For example, male gender roles involve assertiveness and competitiveness and female gender roles involve caring, modesty, and nurturing. The masculinity dimensions measures the degree of difference between these roles in the culture. A low masculinity dimension means that there is not a lot of different in male and female gender roles.

Uncertainty avoidance is the cultures value of novelty, and structure. In a high uncertainty avoidance culture ambiguity and lack of clear rules, roles, and appropriate behaviors are not easily tolerated. Cultures that favor low uncertainty avoidance reflect values where rules are largely unwritten and individuals can explore new ways of doing things, including the creation of new cultural norms.

Time orientation is the degree to which a culture focuses on long term time orientation versus a short-term time orientation. Long term oriented cultures value perseverance, future orientation, and frugality while short term oriented cultures values face saving behavior and conforming to expectations. Fons Trompenaars and Charles Hampden-Turner offer seven dimensions of culture.10 They bring a socio-political angle on understanding culture and describe a set of dilemmas that each culture must resolve.

Contemporary OB in Action: Topic Summary: Culture

Table: Seven dimensions of national culture Dimension Universalism versus particularism Definition In a universal culture, people value rules, regulations and general principles of behavior. In particularistic cultures, people value relationships such as friendship and closeness. In individualistic cultures, people value individual effort. In communitarian cultures, collective work and teamwork are valued. A specific culture values looking at individual parts, each element is scrutinized while diffuse cultures value looking at the big picture. Affective cultures are likely to openly display emotions, while neutral cultures are likely to hide or keep feelings secret. In achieved status cultures, people in the culture value accomplishments that are proven by through effort, work, and creativity. Ascribed status cultures favor birth, longevity, gender, or other hierarchy. Cultures that believe in sequential time focus on time as a linear and value either the future or the past. Synchronic time focuses on the immediate present and may even see time as revolving. Inner-directed cultures believe that control over the environment, nature can be controlled, and that ultimately people shape events. Outer directed cultures believe the environment and natural forces shape events.

1. Individualism versus communitarianism

2. Specific versus diffuse

3. Affective versus neutral

4. Achievement versus ascription status

5. Sequential time versus synchronic time

6. Inner versus outer directed

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Purpose and goals of culture Cultures, both national and organizational, serve a number of important social, psychological, and social functions. Cultures establish limits of acceptable behavior and define what is legitimate and illegitimate behavior. Culture also sets the ground rules for what constitutes appropriate punishment when rules are broken and what kinds of rewards are given when people follow the rules. From an organizational perspective, culture helps guide the selection and training of employees that will be a good organizational fit. Cultures motivate people by providing a shared identity among organizational members. This fulfills a human need for belonging and identity. In some case, cultures can support organizational strategy and effectiveness. Culture helps an organization understand what goals to set, which behaviors are important, what standards are acceptable, and how to allocated resources.11 Transmitting culture Once a culture has been created, it must be maintained. Socialization is the process by which new members become indoctrinated into the culture. Socialization can occur in all types of organizations. Effectively socializing members can result in committed employees, but there are also downsides of socialization. When members are socialized into a culture, they share common assumptions and similar beliefs that may not be productive or helpful. Socialization involves several actions: 1. Defining what is important An organization carefully selects new members by looking for new members that possess traits or characteristics valued by the organization. 2. Reframing what is important

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The organization will force the newcomer into experiences that cause newcomers to question their previous behavior or choices.

The organization will create and tell stories about the organization that reinforces its values. These might involve tales of the founder, stories of how the organization overcame trying periods, or tales that reinforce the quality of its employees. 3. Rewarding and Punishing what is important

The organization will put the new member into a situation where the new member experiences anxiety, ambiguity, and lacks clear guidelines for action. However, the organization will expect the new member to choose the right action. Then the organization will reward the new member when act in the proper way.

By rewarding good behavior (and perhaps punishing poor behavior), the organization will reinforce its core values. 4. Showing the way

Organizations will identify role models and use them as a model of the companies values12 Adapting to a new culture When a person has been socialized, they have adapted to the new culture. Living and working in a new culture often creates uncertainty, stress, and anxiety. Over time, individuals will adapt to the new culture, choose to leave the culture, or continue to experience the stresses associated with the new culture. The process of adaptation occurs as a person accepts the new culture. Accepting the new culture is demonstrated as the person learns to successfully work in the new culture. A person can adapt in many different ways.

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OB Feature: Linking organizational culture and strategy Culture emerged as an important concept in understanding organizations in the 1980s. The book In Search of Excellence by Tom Peters and Watermans argued that organizational culture was directly linked to the organizations strategy and that cultural could lead to organizational effectiveness.13 The book touted several examples of excellent organizational culture including General Motors. The book became popular, in part, because it responded to a growing concern among US managers that Japanese management practices were superior to US management practices. Japanese business culture valued loyalty, hard work, sacrifice, and quality. Peters and Watermens book showed how US business cultures could also be successful by focusing on customers, innovation, and technological developments. In Search of Excellence went on to be one of the best selling business books of all times. The importance of culture continues to be trumpeted in popular management books like Good to Great by Jim Collins who argues makes the same link between organizational culture, strategy, and success.14 Henry Mintzberg, a well-known management professor and consultant, developed a model that links an organizations culture to strategy. He describes that an organization struggles to balance seven distinct organizational sub-cultures.15 When a single subculture comes to predominate, it influences the organizations overall strategy. 1. The entrepreneurial culture predominates in start-ups, turnarounds, new ventures and other situations where strong vision and strong direction is needed. The dominant cultural force is direction where the organization is going. 2. The machine culture predominates in production plants, manufacturing, and service organizations such as banks, which require clear procedures to maximize efficiency. The

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dominant value is efficiency How the organization achieves its direction, which focuses on controlling costs and benefits, creating economies of scale, building in standardized practices, and other formal procedures that contain costs. 3. The proficiency culture relies on the knowledge, skills, and training of its the organization members and is likely to flourish in hospitals, accounting firms, and other professional service firms. The dominant value is professionalism, which covets autonomy so that individual professionals must exercise independent judgments. 4. The concentration culture values the ability to serve particular markets, customers or constituencies. The primary value is diversification so that specific markets such as consumer products develop specific products for hair care, soaps, can be served. 5. The innovation culture values the ability to discover new ways of doing things, adapt to change and discover better ways of achieving goals. The primary value in the innovation culture is adhocracy or a culture that values temporary groups that get together for short term projects as seen in high tech development, pharmaceuticals, anything that requires short term, but new solution. 6. The cooperation culture values the pulling together of ideology building strong cultures, norms, and beliefs and sharing common values. The main value is ideology as demonstrated by religious group, an ideological or political campaign, not for profit organizations. 7. The competition culture describes a culture that is coming apart because informal power and authority is distributed throughout the organization rather than centralized. Politics, or the fight for power, is the predominant value since there is no central direction and little agreement among members of the organization or desire to compromise.

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OB at work: A Taiwanese student learns to adapt As a native of Taiwan, first studying in the United Kingdom and then later in the United States, knowledge of Organizational Behavior concepts helped Crystal adapt to new cultures. Crystal was 23 when she arrived in London. Despite her lifelong fascination with European cultures, she had not anticipated some of the challenges she was about to face. Differences in how professors manage their classroom became clear early on. In Crystals native Taiwan, professors spend the entire class lecturing. As a student, she spent her time listening to the professor and taking notes. She spent her time quietly absorbing the lecture and then reciting the material back during the exam. The transition to learning in a classroom in the UK, then in the US proved a challenge. In the UK, for example, I was astonished by the fact that so many European students actively discuss concepts and were not afraid to confront the professor in the classroom, she observed. In the US as well, she needed to be an active participant, ask questions, and engage during the class. Crystal began to see that the two cultures were different from what she was familiar with. She knew she needed to adapt to be successful. She wanted to be involved, but was unsure of how. At first, she simply observed the other students. What are good questions and what if the questions I asked were not good ones?, she thought. She listened to the class and it only reminded her of a Chinese saying she learned in Taiwan. "It's like a duck listening to a thunderstorm, you can hear it but you don't understand it. In Taiwanese they initially used this proverb " (a

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duck listens to thunders)" to describe that when it rains, ducks happily swim in the pond because they don't know the thunders are threatening and can be harmful, " she says. With this in mind, she set out to develop a better understanding of this new culture and improve her engagement as a student. She practiced the questions she wanted to ask or the points she wanted to make during class discussion. This both clarified her question and improved her spoken English. She turned to her dictionary to understand key concepts. She also joined a public speaking club where participants present speeches and conduct impromptu dialogues. In order to improve her understanding of the differences between Taiwanese and Western cultures she turned to concepts she learned in her course in her classes like Organizational Behavior, Psychology, and Sociology. She began to use comparative analysis used in anthropology and other fields to understand differences between cultures. She studied Hofsteades cultural dimensions and this helped her understand some of the differences between Western cultures and Taiwanese culture which in turn helped her understand some of the differences between her approach and the approaches of other students. For example, US citizens, British, and other Westerners appeared to be more confident than the Taiwanese she observed. She learned that one reason for the difference is that in the US in particular, children are taught to be optimistic and their achievements and talents are recognized early on in their childhood. In Taiwan, children are more focused on hard work than standing out from the crowd. Another difference is that Westerns are less afraid of conflict and confront each other on a regular basis. By contrast, in Taiwan, two people who share different opinions are more likely to find similarities in their viewpoints than they are to argue differences.

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Public speaking was also more important in her newly adopted culture than in Taiwan. In the United States, she noted, Communications skills matter a lot. The ability to make a great speech, communicate clearly, and make yourself valuable to an organization means that you will earn a high position. In Taiwan, the ability to pursue and communicate well is not emphasized. Understanding the culture, improving her language skills, and building confidence were only part of her plan. She also studied the challenges associated with adapting to a new culture and learned that adapting to a new culture is a complex psychological process. In addition to building her confidence, she found sources of social support, like friends and other students. She also learned that stress was a natural part of adapting to a new culture so she accepted that stress comes with uncertainty. Over time, Crystal built confidence in her ability to perform in the new culture. She even decided to pursue a doctoral degree in Organizational Behavior. Her topic of interest: how people adapt to new cultures.

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Spotlight on Research: Strong cultures do more than engage employees, they engage customers and the community as well. What do companies like Apple computer, Harley-Davidson motorcycle, and Google tell us about the importance of organizational culture? One team of researchers wanted to find out. Not only do these organizations have strong cultures within their organization, they have a strong following of loyal customers who also share in the culture. Companies that have a strong culture offer a compelling message and use their organization culture to build loyalty to all their stakeholders. Companies rely on many different techniques to communicate their culture. Owners of the Volkswagen bug are know to wave to each other when they pass on the street. Followers of Apple computer eagerly watch and wait for the next bit of innovation from the company. Harley-Davidson riders wear distinctive clothing, often labeled with the name of the company. Each of these is part of an organizations cultural toolkit, used to build a sense of connection between the companys culture and outside enthusiasts. The researchers studied a company that designs, manufactures, and sells mountain climbing gear. The researchers dont name the company directly, they refer to the company simply as Alpinista. The researchers used interviews with company members and customers and observed the company employees. They also relied on archival data, which included reviewing nearly 10 years of the companys mail order catalogs, their websites, and product displays. Alpinista, the researchers observed, has a strong customer following due to the unique culture of the company. Like many companies with a strong culture, the companys culture is strongly tied to its founders ideals. As a mountain climber himself,

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the company founder became concerned early in his career, when he noticed that many of his favorite climbing routes were becoming cluttered with climbing gear. Climbers left unwanted gear or gear that was difficult to retrieve. The company founder began advocating a process of clean climbing where climbers rely mainly on the natural formations of the mountain and rocks. This would prevent the climbers from hammering in pins and other aids that left permanent damage to the mountain. The company culture can be seen in the way it hires employees. To be sure, candidate resumes are screened for job qualifications, but Alpinista also looks for passion for outdoor activities. In fact, passion for the outdoors and activities like skiing, hiking, and climbing may be just as important. One top-level skier felt he would be rejected for a job because he had worn a suit and tie for the interview and couldnt convince his interviewer, who was wearing khakis, that he was really an avid skier. The companys seasonal catalog featured pictures and short articles of customers, some of whom were well known outdoor enthusiasts. This showed the connection between the company culture and those who used the products too. The researchers noted that the company catalogs didnt simply promote the products. In fact, the researchers noted that Alpinista catalogs contained scores of articles that featured people engaging in fun activities and the articles never mentioned the companys products. The researchers used examples like this one to show the connection between the internal organizational culture and those outside the organization. It wasnt just enough to be qualified, you really had to live the values and lifestyle of the companys culture. The key point of the research: a strong organizational culture reaches beyond the boundaries of the company and engages stakeholders.

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Based on Spencer H. Harrison and Kevin G. Corley 2011. Clean climbing, carabiners, and cultural cultivation: Developing an open systems perspective of culture. Organization Science, March-April, 22, 2, 391-412.

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References
1

Edgar H. Schein. 1996. Culture: The missing concept in organization studies. Administrative Science Quarterly, 41, 2, 229. 240.

Mary Jo Hatch. 1993. The dynamics of organizational culture. Academy of Management Review, 18, 4, 657-693.

Kluckhohn, Florence R., & Fred L. Strodtbeck. (1961). Variations in Value Orientations. Evanston, IL: Row, Peterson.

H. M. Trice & J. M. Beyer. 1993. The cultures of work organizations. Englewood Cliffs, NY: Prentice Hall. T. E. Deal & A. A. Kennedy. 1982. Corporate cultures: The rites and rituals of corporate life. Reading, MA: Addison-Wesley. Linda Smircich. 1983. Concepts of Culture and Organizational analysis. Administrative Science Quarterly, 28, 3, 339-358

Kim S. Cameron, & Robert E. Quinn. 1999. Diagnosing and changing organizational culture: Based on the competing values framework. Reading, MA: AddisonWesley. See also Robert E. Quinn & J. Rohrbaugh, 1983. A spatial model of effectiveness criteria: Towards a competing values approach to organizational analysis. Management Science, 29, 363-377.

Edgar H. Schein. 1996. Three cultures of management: The key to organizational learning. Sloan Management Review, 38, 1, 9-20.

Andrew Abbot, 1988. The system of professions: An essay on the division of expert labor. Chicago: University of Chicago Press. Eliot Freidson. 2001. Professionalism: The third logic. Chicago: University of Chicago Press.

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Hofsteded, Geert and Hofstede, Gert-Jan. 2004. Cultures and organizations: Software of the Mind. New York: McGraw-Hill. Geert Hofstede. 2001. Cultures consequences: Comparing values, behaviors, institutions and organizations across nations. Thousand Oaks, CA: Sage Publications.

Fons Trompennars and Charles Hampden-Turner. 1998. Riding the waves of culture: Understanding diversity in global business. McGraw-Hill.

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Lee Roy Beach. 1993. Making the right decision: Organizational Culture, vision, and planning. Englewood Cliffs, NJ. Prentice Hall.

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Richard T. Pascale. 1985. The Paradox of corporate culture: Reconciling ourselves to socialization. California Management Review. Winter, 26-41.

12

Thomas J. Peters and Robert H. Waterman, Jr. 2004. In search of excellence. New York: Harper Paperbacks.

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Jim Collins. 2001. Good to Great. New York: Harper Collins. Henry Mintzberg. 1991. The effective organization: Forces and forms. Sloan Management Review, 32, 2, 54-67.

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