Chapter Two: International and Organizational Culture
Chapter 2 begins with a definition of Organizational Culture and then describes how it affects
individuals, groups, and organizational processes, how organizational cultures come into being, and
how culture can be influenced. The chapter explores Hofstede‘s work on the value dimensions of a
society, defined in terms of power distance, uncertainty avoidance, individualism, and masculinity.
After completing this chapter, students should be able to:
1. Give examples of how culture and values influence workplace behavior
2. Describe the key components and lavels of organizational culture
Key Terms
national culture—The sum total of the beliefs, rituals, rules, customs, artifacts, and institutions that
characterize the population of the nation.
values—The guidelines and beliefs that a person uses when confronted with a situation in which a
choice must be made.
supportive organizational climate—The amount of perceived support employees receive from
their co-workers, supervisor, and other departments that helps them successfully perform their job
duties.
Chapter Synopsis
Learning Objectives
Lecture Outline
The Chapter outline is organized to correspond with the PowerPoint slides.
The chapter title slide may be used as a background to introduce the class.
Learning objectives
Review the chapter learning objectives. These will be reviewed on the last slide of the pack.
Introduction 1 of 2
National culture is learned, it is shared, and it defines the boundaries of different groups and
various aspects of national culture (e.g., aesthetics, religion, attitudes, legal factors,
language, and education) that are interrelated.
institutions that characterize the population of the nation.
Introduction 2 of 2
In order to succeed in an increasingly global economy, effective managers need to
understand that national and organizational cultures have a pronounced effect on behavior
within organizations.
Culture and Societal Values
In addition to national culture, the culture within an organization also exerts influence over
employee behavior. When a person moves from one firm to another or even from one
becoming a common occurrence and is likely to remain so well into the 21st century.
Although adaptation is difficult, it can be better understood by learning about organizational
culture.
Hofstede’s Cultural Dimensions
One useful framework for understanding the importance of values in organizational
behavior is provided by Hofstede. The result of his research on 116,000 people in 50
countries has been a four–value dimension framework. From this initial research, Hofstede
identified four value dimensions by which cultures can differ: (1) power distance, (2)
uncertainty avoidance, (3) individualism, and (4) masculinity. A fifth dimension, long-term
orientation, was added as a result of subsequent research.
Cultural Dimensions
A society’s values have an impact on organizational values because of the interactive nature
diverse, it will become extremely important for managers to learn about the value system
and orientations of the changing workforce.
Education.
Cultural Differences
The results of Hofstede’s research are shown in what he calls maps of the world. The maps
a low power distance, and moderate uncertainty avoidance.
Organizational Culture Defined
Despite being an important concept, organizational culture as a perspective to understand
the behavior of individuals and groups within organizations has its limitations. First, it is
not the only way to view organizations. We have already discussed the systems view
without even mentioning culture. Second, like so many concepts, organizational culture is
not defined the same way by any two popular theorists or researchers.
Schein’s Definition of Culture
worked well enough to be considered valid and, therefore, to be taught to new members as
the correct way to perceive, think, and feel in relation to those problems.
Organizational Culture and Its Effects
Despite being an important concept, organizational culture as a perspective to understand
the behavior of individuals and groups within organizations has its limitations. First, it is not
the only way to view organizations. We have already discussed the systems view without
even mentioning culture. Second, like so many concepts, organizational culture is not
defined the same way by any two popular theorists or researchers. Some of the definitions
of culture are as follows:
• Symbols, language, ideologies, rituals, and myths.
Exhibit 2.2 Three levels of Organizational Culture
Organizational culture is what the employees perceive and how this perception creates a
pattern of beliefs, values, and expectations. Edgar Schein defined organization culture as:
A pattern of basic assumptions—invented, discovered, or developed by a given group as it
learns to cope with the problems of external adaptation and internal integration—that has
definition points out that culture involves assumptions, adaptations, perceptions, and
learning. At layer two are values or the things that are important to people. Values are
conscious, affective desires or wants. In layer three are the basic assumptions people make
that guide their behavior. Included in this layer are assumptions that tell individuals how to
perceive, think about, and feel about work, performance goals, human relationships, and the
performance of colleagues. Exhibit 2.3 presents the Schein three-layer model of
organizational culture.
Organizational Culture and Its effects
Since organizational culture involves shared expectations, values, and attitudes, it exerts
the impact of culture on employees indicate that it provides and encourages a form of
stability.
Creating organizational Culture (1 of 2 )
Many leaders and founders of organizations believe they can create specific types of
organizational cultures, including those focusing on customer service, ethical, and diversity
cultures.
Creating Organizational Culture (2 of 2)
Culture has been defined in numerous ways including customer service, ethical and
Benefits of a positive culture are numerous including increased teamwork, information
sharing, and morale.
The text provides examples of these types of culture.
Influencing Culture change
Managers who are interested in producing cultural changes face a daunting challenge.
However, courageous managers can and do intervene and alter their organization’s culture.
Exhibit 2.3 Zappos’ Ten Core Values
hiring only those individuals who fit well with Zappos’ unique culture and by training all
new hires in a similar manner. As Exhibit 2-5 illustrates, Zappos’ culture is built on the
following ten core values.
Exhibit 2.4 A Mode of the Process of Organizational Socialization
A considerable body of knowledge suggests that one of the most effective ways of changing
people’s beliefs and values is to first change their behavior (intervention 1).
However, behavior change does not necessarily produce culture change unless supported by
justification. Managers must get employees to see the inherent worth in behaving in a new
Chapter 02 – International and Organizational Culture
way, that is, justify the new behavior (intervention 2).
these interventions must be done after performing careful diagnoses.
Sustaining the Culture
Socialization is the process by which organizations bring new employees into their culture.
There is a transmittal of values, assumptions, and attitudes from the older to the new
employees.
Exhibit 2.4 A model of the Process of Organizational Socialization.
employees benefit from a well-organized company-sponsored socialization program. There
are several ways in which organizations can structure the socialization.
Socialization: The Process Model
Two ways of analyzing how socialization works in organizations are the process and career
stage models. The process model of organizational socialization presented.
A new employee, through a combination of seeking information and experiencing
socialization tactics from the organization, can adjust to his or her role and gain social
acceptance. Once adjustment and acceptance are achieved, the new employee may
well-organized company-sponsored socialization program.
Career Stage Model of Socialization
There are several ways in which organizations can structure the socialization process for
new employees, including exposing them to a common set of experiences (e.g., luncheons,
orientations, speakers, facility tours, etc.); establishing a fixed sequence of steps or
timetable before the employee can begin the new job; and, assigning an experienced
employee to serve as a role model or mentor for the newcomer.
Exhibit 2.5 A Checklist of Effective Socialization Practices.
Mentoring
In work organizations, a mentor can provide coaching, friendship, sponsorship, and role
modeling to a younger, less-experienced protégé. In working with younger or new
employees, a mentor can satisfy his or her need to have an influence on another employee’s
career. Some organizations use mentoring as a means of developing leaders.
Mentoring Function
single individual must play all of these roles. New employees can obtain valuable career and
personal friends.
Exhibit 2.6 Phases of the Mentoring Relationship
Most mentor–mentee relationships develop over time. There appear to be several distinct
phases of mentor–mentee relationships. A four-phase model proposed by Kram. The
reasons that cause movement in the relationship are described as turning points. Initiation,
than five years.
Ways to Be a Great Mentor
Mentoring is a set of skills for a special relationship, sometimes more honest and more
intense than a marriage.
Spirituality and Culture
Over the past decade, theory and research in organizational behavior and ethics have begun
to pay more attention to workplace spirituality. Although spirituality has been described as
There is a long tradition in the United States of keeping religion and government separate.
From this traditional separation, it is a logical step to keeping religion and nongovernment
observers use the terms synonymously and loosely.
The Person and Spirituality
Research has found that:
Employees who are more spiritually involved achieve better results.
• There was near-unanimous agreement about the meaning of spirituality: “the desire to
Spirituality and Work Dimensions Research
Spirituality is believed to have a number of benefits.
In Review, Did We…
Review progress against objectives.
Summary of Key Points
• Organizational culture is a pattern of assumptions and values that are invented, discovered,
or developed to cope with organizational life. Socialization is the process by which
organizations bring new employees into the culture.
• Organizations can achieve effectiveness only when employees share values. The values of an
increasingly diverse workforce are shaped long before a person enters an organization. Thus,
it is important to recruit, select, and retain employees whose values best fit those of the firm.
• Spirituality in the workplace is beginning to be empirically studied and discussed. By
Review and Discussion Questions
1. Organizational culture is a difficult concept to grasp. How would you discribe the culture of
an office or a manufacturing plant?
Ans: Asking employees about their culture will probably reveal only a partial glimpse, because
many feelings and perceptions most pertinent to culture may be subconscious. What is called for in
both the manufacturing setting and the office setting is keen observation and active listening. The
basic assumptions that guide people’s behavior in the organization.
2. A growing number of Americans work for foreign-owned firms in the United States. Do you
think these American employees are being influenced by the approach to management and the
culture of the country that owns the firm? Explain.
Ans: The world is becoming increasingly globalized through markets, the Internet, media, travel, and
a host of other medium. Although not be one village, it is closer together than in the last century. We
all know more about each other than we used to. So, employees in this country who work for a
3. Identify the three socialization stages. Which of these stages is most important for
developing high-performing employees? Explain.
Ans: The three stages of socialization are (a) anticipatory socialization; (b) accommodation; and (c)
role management. Some students will suggest that anticipatory socialization is the most important
4. Do you believe diversity plays a significant role in an organization’s culture? Why or why
not?
Ans:While answers will vary, students should acknowledge that diversity will impact the
5. How can a leader or founder help create a strong culture in an organization? Can a leader
eliminate culture? Explain.
Ans: Student answers will vary. Sample answer: A leader or founder can help create a strong culture
6. Hofstede’s research indicates that national cultures exist. Do you believe that in a
heterogeneous nation, such as the United States, a national culture that is shared by society
does exist?
Ans: Student answers will vary, as this question asks only what they “believe.” Sample answer:
According to the text, most nations contain a dominant culture and multiple sub-cultures. As people
7. To what degree do you believe that workplace spirituality can enhance employee
performance?
8. Point out three assumptions about the culture of the last (or current) firm by which you
were employed.
Ans: Student answers will vary, but should touch on the aspects of individualism/collectivism,
9. What can a leader do to promote cultural change that helps improve the overall
effectiveness of an organization?
Ans: Researchers have thus far been unable to show that a specific culture contributes to positive
effectiveness. One study, however, did show that having company policies and behaviors that
10. As millions of baby boomers retire, to what extent will mentoring programs become more
popular in organizations?
Ans: The retirement of the baby boomers will create opportunities for newer workers to move into
EXERCISE 2.1: Assessing and Considering Organizational Culture
Purpose
To sensitize students to the complex nature of culture in general, and of organizational culture in
particular. The exercise gives them an opportunity to play anthropologist, while at the same time,
examining an organization with which they are familiar using a technique that will be new and
different for some students.
The Exercise in Class
The instructor can expect some students to be much quicker at getting into this exercise than other
students. The temptation for students will be to move quickly through list of manifestations of
EXERCISE 2.1: Determining Your Diversity Quotient (DQ)
The Diversity Questionnaire can be used by the instructor as a discussion starter in class. The more
true responses that students mark on their questionnaires, the more adaptable and open to diversity
those students will tend to be. For example, a student with five or more responses is more likely to
Case 2.1 – Organizational Culture Can Help Reduce Burnout in Hospitals
This case introduces the stress associated with organizational life in hospitals and three organizations
that have deployed successful socialization processes to introduce new and support current
employees.
1. Assume you are in charge of socializing the newly hired nurses at a local hospital. What steps
would you take to ensure that they understand the hospital’s organizational culture? How would you
help them understand how to manage stress on a daily basis so as to prevent burnout later in their
careers? Explain.
2. Hospital environments are more stressful in nature than the work environments found in many
other organizations. What are some of the unique challenges that hospitals face when attempting to
create a supportive organizational culture that helps employees reduce and manage their stress
levels?
Students may key on the life and death nature of the setting, how some people regardless of effort
3. Think about your university or an organization for which you have worked. Using the intervention
points in Exhibit 2.6, provide examples of how the university or organization attempted to create a
Chapter 02 – International and Organizational Culture
certain type of organizational culture. Was it successful (or unsuccessful) in creating the desired
culture? Explain.
Lecture Ideas
1. To enhance student understanding of the concept of socialization, ask them to describe the
process by which they were socialized into a new institution (e.g. college/university; living
group; sports team, etc.). Encourage students to describe in detail the three socialization stages
(anticipatory socialization, accommodation, and role management), how the socialization
process was managed, their reactions to each stage, and the level of congruence and realism
they experienced. How was the process they described similar or dissimilar to what one would
experience entering a new job?
2. To emphasize the links between much of the substantive material presented, remind students
about Maslow’s hierarchy of needs, in particular, those related to belongingness, esteem, and
self-actualization. Then invite students to speculate on how motivation and culture are linked.
For example, should one expect someone from Japan or China to experience self-actualization
3. Review a basic Marketing text, or better yet, a text designed for International Marketing, to get
ideas on how culture affects specific management decisions, e.g., how to market a product.
Most marketing texts have illustrations of embarrassing failures when corporations failed to
recognize the cultural preferences of their intended markets. But also seek examples of how
4. Poll the class in terms of 1) how many people have traveled, and to where and 2) how many
foreign students, immigrants, or naturalized citizens are in the class and university. Have a
class discussion about cultures and compare and contrast American culture to the experiences
5. Have students describe American culture from the West to the South, from the North to the
Project Ideas and Suggested Class Speakers
1. Invite a student who has recently returned from a study abroad experience to visit the class and
talk about what he/she learned through the experience. Try to focus on the cultural differences
2. Perhaps a foreign student in the class would be willing to tell the class about his or her home
country and answer questions about culture from the class at large.
3. Invite the director of human resources from a local company to lecture on their recruitment and
socialization process. How many of the socialization stages can the students identify? After the
4. Assign students to groups and give each group the same set of topics (listed below). Then, ask
each group to choose a different organization, which will be the subject of their research.
Students should interview three or four people from the organization, preferably from different
areas or levels, asking them to describe how they think their organization as a whole views
Term Paper Topics
1. An Anthropological Look at (selected organization): A Profile of Organizational Culture
2. Heroes, Myths, and Tradition: A Look at the Organizational Culture of (your university)
or organization you work for or have worked for
3. How to Choose a Mentor
4. How to be an Effective Mentoree