Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Questions for Review
16-1. What is organizational culture, and what are its common characteristics?
Answer: Organizational culture is a common perception held by the
characteristics are:
a. Innovation and risk taking
b. Attention to detail
c. Outcome orientation
Learning Objective: Describe the common characteristics of organizational culture
Learning Outcome: Describe best practices for creating and sustaining organizational cultures
AACSB: Reflective thinking
16-2. What are the functional and dysfunctional effects of organizational culture?
Answer: Cultures define the boundary between one organization and others.
a. Conveys a sense of identity for its members.
b. Facilitates the generation of commitment to something larger than
c. Enhances the stability of the social system.
d. Serves as a sense-making and control mechanism for fitting employees in
e. The liability or dysfunctional effects of organizational culture:
i. Barrier to change – occurs when culture’s values are not aligned
ii. Barrier to diversity – strong cultures put considerable pressure on
iii. Barrier to acquisitions and mergers – incompatible cultures can
Learning Objective: Compare the functional and dysfunctional effects of organizational culture
on people and the organization
Learning Outcome: Describe best practices for creating and sustaining organizational cultures
AACSB: Reflective thinking
16-3. What factors create and sustain an organization’s culture?
Answer: Cultures begin with the thoughts and values of the founders. The
founders hire and keep only the employees who think and feel the same way they
alive are:
a. Selection: concerned with how well the candidates will fit into the
b. Top Management: senior executives help establish behavioral norms that are
c. Socialization: the process that helps new employees adapt to the
Learning Objective: Identify the factors that create and sustain an organization’s culture
Learning Outcome: Describe best practices for creating and sustaining organizational cultures
AACSB: Reflective thinking
16-4. How is culture transmitted to employees?
Answer: Employees learn the culture through the socialization process. The
a. Stories: anchor the present into the past and provide explanations and
b. Rituals: repetitive sequences of activities that express and reinforce the key
c. Material Symbols: acceptable attire, office size, opulence of the office
d. Language: jargon and special ways of expressing one’s self to indicate
Learning Objectives: Show how culture is transmitted to employees
Learning Outcome: Describe best practices for creating and sustaining organizational cultures
AACSB: Reflective thinking
16-5. What are the similarities and differences in creating an ethical culture, a positive
culture, and spiritual culture?
Answer: Managers can create an ethical culture by being visible role models,
In contrast, a positive organizational culture is one that:
Builds on employee strengths: focus is on discovering, sharing, and
Rewards more than it punishes: articulating praise and “catching
Emphasizes individual vitality and growth: helping employees learn and
Last, a spiritual culture is one that recognizes that people have an inner life that
the community. The four characteristics of a spiritual culture are:
Strong sense of purpose: people want to be inspired by a purpose.
Trust and respect: mutual trust, honesty, and openness.
Learning Objective: Describe the similarities and differences in creating an ethical culture, a
positive culture, and a spiritual culture.
Learning Outcome: Describe best practices for creating and sustaining organizational cultures
AACSB: Reflective thinking
16-6. How does national culture affect what happens when an organizational culture is
transported to another country?
Answer: National cultures differ and organizational cultures often reflect national
cultures. Organization cultures, while strong, can’t ignore local culture. Managers
Learning Objective: Show how national culture can affect the way organizational culture is
transported to another country
Learning Outcome: Describe best practices for creating and sustaining organizational cultures
AACSB: Diverse and multicultural work environments; Reflective thinking
Experiential Exercise
Greeting Newcomers
This exercise contributes to:
Learning Objective: Describe the common characteristics of organizational culture
Learning Outcome: Describe best practices for creating and sustaining organizational cultures
AASCB: Reflective thinking
Divide into groups of 3-4 students. Discuss these four primary issues:
• Describe your first impressions of the university when you applied. This is important
• Describe some of your early experiences in the new environment, and how they either
reinforced or changed your pre-entry expectations. Include activities officially
• Identify key issues you wish you had learned more about when you arrived. Think of
• Contrast your early experiences with your current knowledge of what the culture is
After describing your school’s culture as a whole, consider the same four issues as they
relate to your major field of study.
Design a program
Use the material from the chapter to develop an “ideal” program that could be used to
introduce new students to the culture. This might closely resemble what you’ve
experienced, or it may be very different. The goal should be to reduce student anxiety and
stress during the transition, and to promote a culture that helps newcomers meet their
goals as efficiently and effectively as possible. Your socialization program should include
pre-entry messages, like recruiting information, early orientation sessions, and long-term
follow-up. You’ll want to determine, at each phase, who should be sending these
messages so they have the most impact on newcomers.
16-7. Based on your observations and group discussion, what seem to be the most
important elements of the culture that newcomers need to adjust to?
16-8. Do you think your school doesn’t communicate some aspects of the culture to
newcomers? If so, why?
16-9. How is the introduction to a business organizational culture and department
similar to, or different from, introduction into a university and field of study?
Ethical Dilemma
Culture of Deceit
This exercise contributes to:
Learning Objective: Describe the similarities and differences in creating an ethical culture, a positive
culture, and a spiritual culture.
Learning Outcome: Describe best practices for creating and sustaining organizational cultures
AASCB: Ethical understanding and reasoning abilities; Reflective thinking
We have noted throughout this chapter, and the text overall, that honesty is generally the
best policy in managing OB. But that doesn’t mean honest dealing is always the rule in
business.
Studies have found, in fact, that whole industries may encourage dishonesty. In one
experiment, subjects were first asked either to think about their professional identities, or
to complete a generic survey. They were then asked to report on a series of coin flips;
they were told in advance that the more times the coin showed heads, the more money
they would make. The bankers who took the generic survey were about as honest in
reporting coin flips as people who worked in other fields. The bankers told to think about
their professional identities, however, exaggerated how often the coin turned up heads.
People in other professions didn’t do so—the tie between professional identity and
dishonesty was unique to those who worked in banking. These results are certainly not
limited to the banking industry. Many other ways of priming people to think about
financial transactions seem to generate more dishonesty. And studies have also found that
many individuals feel pressured to engage in dishonest behavior to meet the bottom line.
Whenever there is money under consideration, there are powerful motives.
Money motivations are strong in professional sports. For example, the number of top
leaders in FIFA (world soccer’s governing body) who were indicted in 2015 suggests that
behaving dishonestly has been accepted within FIFA, and covering up for the dishonesty
of others has been encouraged. Domenico Scala, FIFA’s audit and compliance committee
chair, noted, “To support the change we need a culture that censures inappropriate
behavior and enforces rules vigorously, fairly, and [is] responsive.” There is general
consensus that to overcome corruption, those in positions of authority must demonstrate
commitment to an ethical culture. As Scala noted, “It is the leaders’ tone that ensures it is
embedded at all levels of the organization. This must be honest and communicated with
sincerity in both words and actions.” There may well be a tendency to become dishonest
when there’s money to be made, so leaders may need to be especially vigilant and
communicate clear expectations for ethical behavior.
Fortunately, evidence shows that asking people to focus on relationships and the way they
spend their time can actually make them behave more honestly and helpfully. This
suggests that a focus on the social consequences of our actions can indeed help to
overcome corruption.
Sources: F. Gino, “Banking Culture Encourages Dishonesty,” Scientific American, December 30, 2014,
http://www.scientificamerican.com/article/banking-culture-encourages-dishonesty/; A. Cohn, Alain, E. Fehr, and M. A. Maréchal,
“Business Culture and Dishonesty in the Banking Industry,” Nature, 014, doi: 10.1038/nature13977; L. Geggel, “FIFA Scandal: The
Complicated Science of Corruption,” Scientific American, May 31, 2015,
http://www.scientificamerican.com/article/fifa-scandal-thecomplicated-science-of-corruption/; and K. Radnedge, “Culture Change
Required If FIFA Is to Eliminate Wrongdoing,” World Soccer, May 29, 2015,
http://www.worldsoccer.com/columnists/keir-radnedge/culture-change-required-if-fifa-is-to-eliminate-wrongdoing-362278.
Questions
16-10. What are the negative effects of a culture that encourages dishonesty and
corruption on its reputation and employees?
Answer: Responses to this question will vary by student, however most will
probably suggest that a culture that encourages dishonesty and corruption will be
16-11. Why might some organizations push employees to behave in a dishonest or
corrupt manner? Are there personal benefits to corruption that culture can
counteract?
Answer: The answer to this question will depend on the student’s ethics and will
16-12. What actions can you take as a new employee if you are pressured to violate your
own ethical standards at work? How might mid-level employees’ responses to this
question differ from those of more senior managers?
Answer: Again, responses to this question will vary by student. Most students
though will suggest that a new employee may feel powerless in this situation.
Case Incident 1
The Place Makes the People
This exercise contributes to:
Learning Objectives: Identify the factors that create and sustain an organization’s culture; Compare the
functional and dysfunctional effects of organizational culture on people and the organization
Learning Outcome: Describe best practices for creating and sustaining organizational cultures
AASCB: Reflective thinking
At Gerson Lehrman Group, you won’t find an employee working in a cubicle day after
day. You also won’t find an employee working in a free-form open office area
consistently either. The reason is that Gerson Lehrman is invested in “activity based
working.” In this system, employees have access to cubicle spaces for privacy,
conference rooms for group meetings, café seating for working with a laptop, and full
open-office environments. Where you work on a particular day is entirely up to you.
It may be hard to remember, but office allocations were a uniform signal of hierarchical
status and part of organizational culture until fairly recently. As organizations have
become flatter and the need for creativity and flexibility has increased, the “open office”
plan has become a mainstay of the business world. The goal is to encourage free-flowing
conversation and discussion, enhance creativity, and minimize hierarchy—in other words,
to foster a creative and collaborative culture and remove office space from its status
position.
Research on open offices, however, shows there is a downside. Open offices decrease the
sense of privacy, reduce the feeling of owning your own space, and create a distracting
level of background stimulation. As psychology writer Maria Konnikova noted, “When
we’re exposed to too many inputs at once—a computer screen, music, a colleague’s
conversation, the ping of an instant message—our senses become overloaded, and it
requires more work to achieve a given result.”
So is the activity-based hybrid described earlier a potential solution? With its constantly
shifting workspace and lack of consistent locations, this may be an even less controlled
environment than an open office. However, it does signal a culture that values the
autonomy of individual workers to choose their own best environment at a particular
time. The lack of consistency creates other problems, though. Workers cannot achieve
even the modest level of personal control over any specific space that they had with the
open design. Design expert Louis Lhoest notes that managers in an activity-based office
“have to learn to cope with not having people within their line of sight.” This is a difficult
transition for many managers to make, especially if they are used to a
command-and-control culture.
Whether a traditional, open, or activity-based design is best overall is obviously hard to
say. Perhaps the better question is, which type will be appropriate for each organization?
Sources: B. Lanks, “Don’t Get Too Cozy,” Bloomberg Businessweek, October 30, 2014,
http://www.businessweekme.com/Bloomberg/newsmid/190/newsid/271; M. Konnikova, “The Open-Office Trap,” New Yorker,
January 7, 2014, http://www.newyorker.com/business/currency/the-open-officetrap; N. Ashkanasy, O. B. Ayoko, and K. A. Jehn,
“Understanding the Physical Environment of Work and Employee Behavior: An Affective Events Perspective,” Journal of
Organizational Behavior 35 (2014): 1169–84.
Questions
16-13. How might different types of office design influence employee social interaction,
collaboration, and creativity? Should these be encouraged even in organizations
without an innovative culture?
Answer: Many students will probably suggest that a closed-door office design is
likely to stifle creativity social interaction among employees and make
collaboration difficult. In contrast, a more open design encourages social
16-14. Can the effects of a new office design be assessed objectively? How could you go
about measuring whether new office designs are improving the organizational
culture?
Answer: Responses to this question will vary by student, but most will probably
agree that it would be difficult to accurately assess the effects of a new office
16-15. What types of jobs do you think might benefit most from the various forms of
office design described above?
Answer: This item can be assigned as a Discussion Question in
Case Incident 2
Active Cultures
This exercise contributes to:
Learning Objectives: Identify the factors that create and sustain an organization’s culture; Compare the
functional and dysfunctional effects of organizational culture on people and the organization
Learning Outcome: Describe best practices for creating and sustaining organizational cultures
AASCB: Reflective thinking
Employees at many successful companies start the day by checking the economic
forecast. Patagonia’s Ventura, California, employees start the day by checking the surf
forecast. The outdoor clothing company encourages its workforce to take time from the
work day to get outside and get active. For Patagonia, linking employees with the natural
environment is a major part of the culture.
New hires are introduced to this mindset very quickly. Soon after starting at Patagonia,
marketing executive Joy Howard was immediately encouraged to go fly fishing, surfing,
and rock climbing all around the world. She notes that all this vacationing is not just
playing around—it’s an important part of her job. “I needed to be familiar with the
products we market,” she said. Other practices support this outdoors-oriented, healthy
culture. The company has an on-site organic café featuring locally grown produce.
Employees at all levels are encouraged through an employee discount program to try out
activewear in the field. And highly flexible hours ensure that employees feel free to take
the occasional afternoon off to catch the waves or get out of town for a weekend hiking
trip.
Are there bottom-line benefits to this organizational culture? Some corporate leaders
think so. As Neil Blumenthal, one of the founders of Warby Parker eyewear, observes,
“they’ve shown that you can build a profitable business while thinking about the
environment and thinking about your team and community.” As Patagonia CEO Rose
Marcario says, “People recognize Patagonia as a company that’s . . . looking at business
through a more holistic lens other than profit.” However, she is quick to add, “Profit is
important; if it wasn’t you wouldn’t be talking to me.”
Patagonia’s culture obviously makes for an ideal workplace for some people—but not for
others who don’t share its values. People who are just not outdoor types would likely feel
excluded. While the unique mission and values of Patagonia may not be for everyone, for
its specific niche in the product and employment market, the culture fits like a glove.
Sources: J. Murphy, “At Patagonia, Trying New Outdoor Adventures Is a Job Requirement,” Wall Street Journal, March 10, 2015,
http://www.wsj.com/articles/at-patagonia-trying-new-outdoor-adventuresis-a-job-requirement-1425918931; B. Schulte, “A Company
That Profits as It Pampers Workers,” Washington Post, October 25, 2014,
http://www.washingtonpost.com/business/a-company-thatprofits-as-it-pampers-workers/2014/10/22/d3321b34-4818-11e4-b72e-d60a9
229cc10_story.html; and D. Baer, “Patagonia CEO: ‘There’s No Way I Should Make One Decision Based on Quarterly Results,’”
Business Insider, November 19, 2014, http://www.businessinsider.com/patagonia-ceointerview-2014-11
Questions
16-16. What do you think are the key dimensions of culture that make Patagonia
successful? How does the organization help to foster this culture?
Answer: This item can be assigned as a Discussion Question in
16-17. Does Patagonia use strategies to build its culture that you think could work for
other companies? Is the company a useful model for others that aren’t so tied to a
lifestyle? Why or why not?
Answer: This answer will depend on the student’s opinion. They will likely say
16-18. What are the drawbacks of Patagonia’s culture? Might it sometimes be a liability,
and if so, in what situations?
Answer: This answer will depend on the student’s opinion. Some students may
suggest that actually working could be difficult in an organization where people
My Management Lab
Go to mymanagementlab.com for Auto-graded writing questions as well as the
following Assisted-graded writing questions:
16-19. From your reading of Case Incident 1, in what ways can office design shape
culture?
16-20. In regard to Case Incident 2, what might Patagonia do to further reinforce its
culture?
16-21. MyManagementLab Only – comprehensive writing assignment for this chapter.
Instructor’s Choice
Applying the Concepts
This exercise contributes to:
Learning Objective: Describe the common characteristics of organizational culture
Learning Outcome: Describe best practices for creating and sustaining organizational cultures
AASCB: Reflective thinking
In the land of tech gadgets, it is literally a “here today, gone tomorrow” philosophy that
drives the market space. Such was almost the case for TiVo. TiVo allows a viewer to
capture a digital recording and replay it at a later time. It was a great invention for a
while. However, technology seemed to pass TiVo while it was on slow play. Today, TiVo
seems old hat with more modern advances brought about by Apple Computers (iPod) and
others. To its credit, the management at TiVo has not given up. Instead, TiVo guru Arthur
van Hoff developed Dr. Strangeberry software that allows the TiVo user to grade digital
content from the Internet and transfer it to a TV or an array of other devices. Today, TiVo
devices can only do their recording and time-shifting on programs piped in from standard
cable or satellite feeds. Dr. Strangeberry will change all this and in the process will give
TiVo time to get its digital act together.
Using a search engine of your own choosing, visit the TiVo website at
www.tivo.com. Based on what you find at the website, what can you tell about
new developments at TiVo? What can you learn about Dr. Strangeberry?
Based on what you found on the TiVo website or through some other
investigation, what does TiVo need to do organizationally to keep its company
from reaching obsolescence?
If you were the CEO of TiVo, what cultural changes would you attempt to
encourage? Explain and comment on why you would make the changes.
Instructor Discussion
Many of the students will know about TiVo but most will not own one; therein lies some
of TiVo’s problem. For additional information on TiVo and its challenges read “Saving
TiVo” by Kim Girard in Business2.0, September 2004, pp. 92–100. Students will discover
that TiVo needs to do a refit on their organizational structure and culture. The company
had a great idea, pursued the idea, and stopped innovating in the process. Soon other
companies passed them by. Without the advent of the Dr. Strangeberry software, most
experts believe TiVo would already be gone. If many in the class have not heard of TiVo,
it might be easiest to explain via brochures that can be obtained in any electronics retailer
such as Best Buy. Have students discuss alternative cultures that might spur innovation
and adaptation at TiVo.
Exploring OB Topics on the Web
This exercise contributes to:
Learning Objective: Describe the common characteristics of organizational culture
Learning Outcome: Describe best practices for creating and sustaining organizational cultures
AASCB: Reflective thinking
Exploring OB Topics on the World Wide Web
1. What do you think it would be like working for the “Happiest Place on Earth?” Of
course, it’s Disneyland! Disney is huge—so much more than theme parks. Go to
http://disney.go.com/disneycareers/index.html to get a flavor of what their corporate
culture might be like. Click on the links found at the bottom of the page. One even
references culture—but it is not necessarily referring to corporate culture. Be prepared to
talk about what you learned about the Disney Corporation in class.
2. How does a change agent go about changing the corporate culture? The task, no
doubt, is never easy, but the following website offers a process to follow:
http://www.lynco.com/culchange.html. Read the article and try to think of a time when an
organization you were involved with underwent change. Take the steps outlined in the
article and apply them to your experience. Write a brief commentary on how each step
would apply to your situation. Bring it to class and be prepared to discuss your case.
3. How does one differentiate between a strong and a weak culture? The Denison
Organizational Culture Survey can be found at
http://www.denisonconsulting.com/products-surveys/denison-surveys/organizational-cult
ure. It is an internal tool used by organizations. The page provides information about the
survey and a model of strong versus weak organizational cultures. Write a paragraph or
two on how you think this information might be helpful to organizations.
4. Career Bliss? Really? Go to http://www.spiritualityofwork.com/organization.html
to learn more about Spirituality at Work. While there, take the “10 Steps to Career Bliss”
survey and see what results you obtain. Also on the page is a list of benefits to employers
who incorporate spirituality principles into the corporate culture. Write a short paper of
the concept of Spirituality at Work. What do you think managers have to gain?
Employees? Is there a downside? Use ideas from the website as a start for organizing
your paper. Bring it to class for further discussion.
5. Becoming a more customer-responsive organization can be a difficult culture
change. Learn how CRHC did it at
http://www.cio.com/article/30287/Project_Management_Helps_IT_Group_Grow_More_
User_Friendly. The organization featured in this article demonstrates how difficult the
process can be, but also how rewarding the changes eventually can be. Look at the model
of key variables to creating a more customer responsive corporate culture found in the
text. In the article, find examples of key variables in the story of CRHC’s change process.
Bring it to class for further discussion.
