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McKee Chapter 13:
CULTURE: IT’S POWERFUL
CHAPTER OBJECTIVES
13.1 Define culture.
13.2 Understand the importance of culture at work.
13.3 Describe the dimensions of national and organizational culture.
CHAPTER SUMMARY
In Chapter 13, we will study those aspects of culture that affect people at work and in
other relationships. We’ll start with values as ideas that a person or a group believes to be
right or wrong, good or bad, attractive or undesirable. The focus will be on both personal
and organizational values. From there we will explore attitudes and norms. Next, we will
explore why culture is important at work. We will also learn about models of culture in
In the next section, we turn our attention to how scholars have begun to classify
types of organizational cultures. First, we’ll explore one popular categorization scheme
called the competing values model. This will include looking at the four different types of
some practical methods for researching culture that managers can use.
The next few sections explore several types of organizational cultures that are
currently capturing a great deal of attention for their efforts in this area. As you’ll see,
these cultures focus in turn on innovation, customer service, diversity, ethics,
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sustainability, and supporting employees in becoming the best they can be by focusing on
mind, body, heart, and spirit.
CHAPTER OUTLINE
Teaching Objective: To increase awareness of the importance of culture in how it
shapes and defines an organization.
I. What Is Culture?
1. Culture – everything that the people in a society have learned and share
through traditions, pass on to children, and teach new members
C. Norms – internalized standards for behavior that support agreed-upon ways of
II. Why is Culture Important at Work
1. Culture is important at work because it guides people’s behavior.
III. What Are the Dimensions of Organizational Culture?
A. Hofstede’s Dimensions of Culture — Hofstede studied the attitudes and values of
over 70,000 IBM employees working in 40 countries and identified five
dimensions:
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unpredictable, ambiguous, or uncertain situations
3. Individualism/collectivism – different orientations toward self-interest
versus group interest
4. Masculinity/femininity – the extent to which society values achieving
(masculine) versus nurturing (feminine)
5. Long/short term orientation – people’s concerns for the future versus
immediate gratification.
a. Long-term orientation – a greater concern for the future and for
B. GLOBE Project Value Dimensions – using data from 18,000 managers in 62
countries, the research team behind the GLOBE project proposed nine dimensions
of culture:
1. Power Distance: The strength of social norms regarding inequality in the
distribution of power
2. Uncertainty Avoidance: The degree of importance members of a society
place on social norms, rules, and procedures to diminish unpredictability.
6. Gender Differentiation: The degree to which a society differentiates
“masculine” and “feminine” qualities, and how much status and decision
making responsibilities are given to women.
7. In-Group Collectivism: The importance societies place on close-knit social
behavior, empathetic concern for others, and generosity.
C. Culture: It’s Complicated!
1. Subcultures – Different values, attitudes, and norms exist in each of these
different subcultures
2. Subcultures are tied to such things as ethnicities, social classes,
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IV. How Can We Link Organizational Cultures with Business Issues?
A. Competing values framework- A model that shows how cultures can be
measured along two axes: structure (stability versus flexibility) and focus (internal
versus external).
1. Clan culture- A culture that has an internal focus and encourages
flexibility.
2. Hierarchy culture– A culture that has an internal focus and encourages
B. Strong and Weak Cultures
1. Strong culture-A culture in which central values and norms are shared
and strongly upheld by most members of the organization.
V. How Can We Study Organizational Culture?
A. Edgar Shein’s Levels of Culture – some aspects of culture can be observed:
“observable artifacts,” Other aspects of culture are not as easy to see, and are
what Schein calls “basic assumptions”
1. Observable artifacts – Top level – dress code, language and jargon,
interpersonal relationships, technology, workspace, and behavioral norms
B. Myths, Heroes, Taboos, Sacred Symbols and Language
1. Socialization – the process of teaching new members about a culture.
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2. Myths – untrue or exaggerated stories that are shared by the members of a
group
7. Ethnography – the systematic study of human cultures. It includes
observation and co-inquiry.
a. Co-inquiry process – people observe and collaborate with one
another to truly understand what is happening within their group or
organization, sometimes called participant observation.
VI. Organizational Culture: What’s Important Today?
A. Customer Service Cultures- Superior service to customers
B. Diversity and Inclusion Cultures- Companies becoming more diverse in terms of
ethnics and race
VII. How Can HR Support the Development of Positive Organizational Cultures?
• The human resource function can have a profound effect on an organization’s
culture, commonly employing two different strategies
A. “Push strategy” – compels people to comply with rules and regulations that
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VIII. What Can We All Do To Create Positive and Powerful Organizational Cultures?
A. Develop Cultural Intelligence — a set of behaviors that are related to emotional
intelligence that focus specifically on a person’s ability to interpret values and
behavior. Important aspects of cultural intelligence include:
1. Cognitive cultural intelligence: a person’s observational and learning
skills. It’s the ability to pick up factual information about important values
patterns, expressions, and body language to those of another culture.
B. Leading Cultural Change
1. Respect Values
DISCUSSION QUESTIONS
Discussion Questions for Objective 13.1:
1. What are your core values—those values that define who you are as a person and guide
you in some of the most important areas of your life, including family, relationships, and
work?
Suggested Answer:
2. Have you ever experienced a new and different culture? If so, how did you learn about
the norms of that culture?
Suggested Answer:
Student responses will vary. We usually learn about another culture’s norms by first
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Discussion Questions for Objective 13.2:
1. Have you ever experienced a misunderstanding as the result of a cultural difference
between you and someone else? If so, describe that experience.
Suggested Answer:
2. In what ways do you think you may have benefited from being in a culturally diverse
workplace, school, or group? How has the experience affected your people skills, your
adaptability to new environments, and your understanding of other ways of doing things?
Suggested Answer:
Discussion Questions for Objective 13.3:
1. Use the Hofstede and GLOBE models to describe your national culture and one other
culture you know well. How do the two cultures compare? What implications do the
similarities and differences between these cultures have for work relationships?
Suggested Answer:
Student responses will vary. Students should focus on the following dimensions from
each model:
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2. Generate a list of values and norms in your primary culture that have changed or are in
the process of changing. Why do you think they are changing?
Suggested Answer:
Student responses will vary. For example, in Indian culture, the traditions of joint family
Discussion Questions for Objective 13.4:
1. Using the competing values framework, discuss McKinsey. Is the company’s culture
likely to be more flexible or more stable? Is it likely more internally or more externally
focused? Of the four types of culture, which do you think McKinsey practices, and why?
Suggested Answer:
Student responses will vary. Although it can be argued that from an effectiveness
2. Is the culture of your school or workplace strong or weak? What evidence do you have
to support your opinion? How does the strength of the culture impact students? Faculty?
Staff?
Suggested Answer:
Student responses will vary.
Discussion Questions for Objective 13.5:
1. How do things like dress, language, spatial arrangement, technology, relationships, and
rituals reflect the cultural values of your school or place of work?
Suggested Answer:
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Student responses will vary. Culture is a powerful force in our lives because it guides our
beliefs, our values, and almost everything we do at home, in our communities, and at
2. Articulate several core values for a group to which you belong. Now, try to determine
the underlying basic assumptions that drive these values. Think about some taboos in
your family, workplace, or at school. How do these taboos affect how people interact
and/or how effective the group is?
Suggested Answer:
Discussion Questions for Objective 13.6:
1. Of the types of cultures discussed in this section which is the most appealing to you?
Why?
Suggested Answer:
Student responses will vary.
2. Consider a team with which you have worked in recent months. Examine the cultures
and backgrounds of each team member. What was the nature of the diversity on this
team? How did the team deal with diversity?
Suggested Answer:
Discussion Questions for Objective 13.7:
1. Have you ever attended diversity training or sexual harassment awareness and
education programs? What was the impact of the training on you? What do you think the
impact of such training was on the culture of the organization to which you belonged
during the training?
Suggested Answer:
2. How does your university or workplace create and promote an inclusive culture? Try
to come up with five examples.
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Discussion Questions for Objective 13.8:
1. Do you think you use cultural intelligence in your interactions with people at school or
at work? If so, how and where?
Suggested Answer:
2. Consider a group or an organization you belong to that would benefit from examining
its culture. Choose one of the guidelines from the “Leading Culture Change” sections and
describe how you would use this advice to help the group or organization.
Suggested Answer:
END OF CHAPTER ACTIVITIES: EXPERIENCING LEADERSHIP
Leading in a Global World: Walking the Diversity Talk
In a global economy, diversity is a fact in businesses. People from diverse backgrounds,
ethnicities, races, religions, sexual orientations, ages, physical abilities, and of course
1. Research some of the largest multinational companies in the United States. Pick one
and, using the information on its Web site, assemble a report card for the company’s
diversity efforts using the Johnson & Johnson example in your text as a model.
2. Draw a map of the countries where the company has offices and/or where it does a
majority of its business. Does the company seem U.S. focused from its Web site, or does
it appear inclusive and multicultural? Try to determine if the company offshores any of
its work. If yes, to what countries?
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Suggested Answer:
Student responses will vary. Apple is one of the largest multinational companies in the
United States. After the passing of Steve Jobs, Timothy Cook took over as CEO of
Leading with Emotional Intelligence: Firms of Endearment
A culture that focuses on heart and spirit is one that values productive relationships,
positive and effective communication, respect, compassion, and a sense of
meaningfulness in the workplace. Organizational cultures that support their workers’
spiritual and emotional well-being can see dramatic improvement in employee
performance.
1. In a group or on your own, research the companies that made the Firms of Endearment
cut.
2. Choose three and identify what they are doing, how they are doing it, and what the
results have been in regards to building a “whole person” culture. Be sure to investigate
the following:
A. What is unique about the cultures of these companies?
B. What are the companies doing to make employees’ work meaningful and significant?
C. How do the cultures affect customer relations?
D. If you have patronized some of these companies, what was your experience with the
culture?
E. Has anything changed since the authors wrote this book? If so, what and why?
Suggested Answer:
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Leading with Critical Thinking Skills: Zappos: Heart and Sole
In Edgar Shein’s Levels of Culture model, observable artifacts are at the top of the
pyramid, values and attitudes are in the middle, and basic assumptions are at the bottom.
You can tell a lot about an organization’s culture by paying attention to how these three
levels are expressed in the organization’s day–to-day activity. Some companies are fairly
1. In a group or on your own, research Zappos’s culture. Create a culture profile of the
company. Be sure to include the following:
A. Observable artifacts, values, and basic assumptions. For example, what are the dress
and cubicle codes for Zappos? What drives interpersonal relationships between
2. After you have created a culture profile, call the company’s 800 number and speak
very briefly to a Zappos employee about the culture. (Remember, it is a business, so keep
the call short.) They will be delighted to tell you how much they love their job.
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Suggested Answer:
Student responses will vary. Zappo’s culture is very much unique. They have a very
casual, friendly, fun atmosphere. Employees are actually required to goof off and
Ethical Leadership: Do Muppets Have Financial Portfolios
Today more than ever, social pressure for people and organizations to act in an ethical
manner is great. Employees at all levels in an organization are faced with numerous
dilemmas that require sound, values-based judgments. Therefore, all organizations should
encourage ethical behavior through their cultural values and norms. In March of 2012,
the executive director and head of Goldman Sachs United States equity derivatives
business in Europe, the Middle East, and Africa resigned in an open letter published in
The New York Times. Greg Smith’s letter, entitled “Why I Am Leaving Goldman
Sachs,” is frank and brutal in its portrayal of Goldman Sachs’ culture of the vulture doing
whatever it takes to make money for the firm, referring to customers as “muppets,” and
making references to “ripping customers’ eyeballs out” to make a buck.
1. Read Greg Smith’s letter (or his book on the subject) with a critical eye:
3. Write a response, your own open letter, to Smith’s letter for the fictional newspaper
The Ethical Times. Smith has been called a “hero,” “whistleblower,” and “traitor.” Ask
yourself why a relatively young, very successful person would resign so publically,
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knowing full well there would be repercussions? In your opinion, what does Smith stand
to gain by blowing the whistle on Goldman Sachs’ culture? What did—or does—he stand
to lose? Considering the meltdown of Wall Street in 2008 for unethical and potentially
illegal activities around mortgage lending, hedge funds, and derivatives, how objective
can you be in judging Goldman Sachs?
Suggested Answer:
Student responses will vary. The mission statement of Goldman Sachs states, “1. Our
clients” interests always come first. Our experience shows that if we serve our clients
ADDITIONAL SUPPORTING MATERIALS
VIDEOS
• Google
A brief look at the culture of Google through the eyes of its employees.
• Life at Google
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• Zappos.com on Nightline
A short profile on Zappos.com and its CEO, Tony Hsieh
• Weird or Just Different?
A brief look at Zappos culture and how it is driven by CEO, Tony Hsieh.
INDIVIDUAL EXERCISES
1. Have your class research your university’s mission and vision on the university’s
website. Have them make a list of the values that are evident on campus that help make
2. Enron is a good example of a corporate culture based on greed and deceit. Show your
class this brief (5mins) video by Enron of its vision and values as a company:
http://www.youtube.com/watch?v=CFk4ivlvvrw
3. Ask students to work in pairs. Tell them to select one of their core values. Next, they should
define a behavior that is the consequence of that value. Finally, each student should identify a
4. Several years ago, anthropologists discovered a tribe in New Guinea that practices a form of
cannibalism. In 2008, Brazilian government officials discovered a remote tribe that had never had
contact with the outside world:
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TEAM EXERCISE
Fortune magazine publishes a yearly list of the best 100 companies to work for. The top
10 for 2012 are:
1. Google,
2. Boston Consulting Group,
3. SAS Institute,
Divide the class into 10 research teams. Assign each team a company to research. Have
teams make a list of the “perks” of their assigned company and the practices that make
the organizational culture one in which employees can thrive. Have each team report to
the class their findings.
ADDITIONAL RESEARCH
Cultural Intelligence
There are two complementary types of cultural intelligence, according to Brislin,
Worthley and Mcnab.[i] The first, which can be understood as cultural-internal, refers to
the mastery of behaviors that are considered to be intelligent by individuals within a
particular culture; it can be thought of as cultural savvy, and it varies from culture to
culture. Cultural-external intelligence, or cross-cultural intelligence, refers to the ability
to adjust quickly and with little stress to the mores of cultures other than one’s own when
and where needed. Many, if not all, of the skills of emotional intelligence are bound up
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Powell Flute Company culture change
Any change in an organizational culture must be considered from the perspective of
identity and values. For example, in the early 1990s, Powell Flute Company of New