9:36 . LTE 32 Q Aa . . . EXPLORING MANAGEMENT, 7TH EDITION 164 CHAPTER 9 Organizational Cultures, Innovation, and Change WileyPLUS See Author Video | Learning Objective 9.1 | Explain the Nature of Organizational Culture. Things to Remember Organizational culture is the personality of the organization. . Organizational culture shapes behavior and influences performance. . Not all organizational cultures are alike. . The observable culture is what you see and hear as an employee or customer. The core culture consists of the underlying values of the organization. . Value-based management supports a strong organizational culture. You probably hear the word "culture" a lot. In today's global economy, it's hard not to appreciate the cultural differences between people or nations. However, there's another type of culture that can be just as important-the cultures of organizations. Just as nations, ethnic groups, and fami- lies have cultures, so do organizations. These cultures help to distinguish organizations from one another and give their members a sense of collective identity. A culture-person fit should be good for both parties. And, how to find the right fit is a real career issue for you to consider. Organizational Culture Is the Personality of the Organization. Think of the stores where you shop, the restaurants where you eat, and the places where you work and enjoy leisure activities. What is the "atmosphere" like, and does it draw you in or hurry you out? Do you notice how major retailers such as Anthropologie and Williams-Sonoma have store climates that fit their brands and customer identities?' These aspects of the internal environments of organizations are important in management. They Organizational culture is a represent the organizational culture as a system of shared beliefs and values that devel- system of shared beliefs and ops in an organization and guides the behavior of its members. values guiding behavior. Whenever someone talks about "the way we do things here," he or she is talking about the organization's culture. Sometimes called the corporate culture, it communicates the person- ality of the organization. And it can have a strong impact on an organization's performance and the quality of work experiences of its members. For example, check out Zappos.com. Its CEO Tony Hsieh has built a fun, creative, and customer-centered organizational culture. He says that "the original idea was to add a little fun," and things moved to the point where the notion of an unhappy Zappos customer is almost unthinkable: "They may only call once in their life," says Hsieh, "but that is our chance to wow them. If we get the culture right most of the other stuff, like brand and the customer service, will just happen."3,4 Organizational Culture Shapes Behavior and Influences Performance. Although culture isn't the only driver of what happens in organizations, it's an important one. Organ- izational culture helps to set values, shape attitudes, reinforce beliefs, direct behavior, and establish Strong cultures are clear, well performance expectations and the motivation to fulfill them.In strong culture organizations, the defined, and widely shared culture is clear, well defined, and widely shared by members. Does this sound good to you? It can among organization members. be. But you also have to be careful. A strong culture can have both downsides and upsides. When the strong culture is positive, it supports high performance by forging a good fit between the nature of the business and employees' talents. It discourages dysfunctional behaviors and encourages helpful ones while keeping a clear performance vision front and cen- ter to focus employees' efforts. But when the strong culture is negative-look back to the "go along to get along" cultures highlighted in the chapter opening Career Readiness feature-it Ooo Page 164 of 495 . 38% Q Result 1 of 8 XLearning Objective 9.1 Explain the Nature of Organizational Culture 165 Choices "The phrase "OK Boomer" has gone global. It has become young generations' retort to ideas they consider outdated or off base." #OK Boomer Versus #OK Millennial But is this phrase just a fun way to say "Sure, whatever," or is it a step over the line into being a dismissive insult? In today's "just say it" and "woke" culture, there's a risk of IS WHAT I toppling teams and organizations into an unhealthy crossfire. Gene- STAND ON rational mixes on teams and workforces can become generational divides. Age differences bring value differences that can create faul- tines in working relationships. It's not easy to put yourself in the shoes of someone a lot older-or younger-than yourself. Kashti Khan, age 22, describes having mixed feelings when an older man told her, "You look good today." She says: "And I'm like, that's such a STOP weird thing to say." A consultant on age differences warns that, "Unless the older MAKING US generation really lets their ego down and allows the younger gener- ation to come onboard and challenge the way they do things, there's PAY YOUR gonna be this disconnect." But a vice president for AARP, a nonprofit membership group for the aging, worries that the use of labels like OK MISTAKES Boomer create discord. She says, "I have to tell you, I was a little sur- prised by it, because we have a lot of research that shows how much workers actually like to work together no matter the generation." What's Your Take? Are we too quick these days to toss phrases and labels around and not adept enough to just enjoy and benefit from cultural dif- ferences? The workplace is always going to be cross-generational, Shaun Jones/Alamy Stock Photo a microcosm of society at large. We spend lots of time working. The phrase "OK Boomer" went global as a younger generation retort Are exchanges of "OK Boomer" and "OK Millennial" really helpful? to ideas they consider outdated or off-base. When something or some- What responsibilities do each of us have to help build masterpieces one earns its own memes, you know it has arrived in social culture. out of generational puzzle pieces? becomes a performance inhibitor. Everyday behaviors reinforced and shared in the culture dis- advantage the organization. Strong and positive cultures don't happen by chance. They are created by leaders who set the tone and are reinforced through socialization." This is the process through which new Socialization is the process members learn the culture and values of the team or organization, as well as the behaviors and through which new members attitudes shared among its members. Each new Disney employee, for example, attends a care- learn the culture of a team or fully planned onboarding program called "traditions." It introduces the Disney culture by edu- organization. cating them on the company mission, history, language, lore, traditions, and expectations. This commitment to employees bound together in a strong culture began with the founder Walt Disney. He once said "You can dream, create, design and build the most wonderful place in the world, but it requires people to make the dream a reality." Not All Organizational Cultures Are Alike. It takes a keen eye to identify and understand an organization's culture. But this understanding can be a real asset to employees and job hunters alike. Who wants to end up in a situation with a bad person-culture fit? Management scholars offer ideas for reading organizational cultures by asking questions such as these:10 How tight or loose is the structure? Do most decisions reflect change or the status quo? What outcomes or results are most highly valued? . How widespread are empowerment and worker involvement? . What is the competitive style-internal and external? . What value is placed on people as customers and employees? . Is teamwork a way of life in this organization? Q Result 1 of 8 XLearning Objective 9.1 Explain the Nature of Organizational Culture 167 The observable culture is what you see in people's behaviors and hear in their convere sations. It is reflected in how people dress at work, arrange their offices, speak to and behave toward one another, and talk about and treat their customers. You'll notice it not only as an employee, but also as a customer or client. Test this out the next time you go into a store or restaurant. How do people look, act, and behave? How do they treat one another? How do they treat customers? What's in their conversations? Are they enjoying themselves? When you answer these questions, you are starting to describe observable culture. Observa ble culture is also found in the stories heroes, rituals, and symbols that are part of daily organizational life. In the university, it includes the pageantry ofgraduation and honors ceremonies; in sports teams, it's the pregame rally, sideline pep talk, and all the\"thumping and bumping" that take place after a good play. In workplaces, it can be spontaneous celebrations of a work accomplishment or personal milestone such as a coworker's birthday or wedding. And in organizations such as Apple, HewlettePackardngle, and Amazon, it's in the stories told about the founders and the firm's history. The presence or absence of these observable things and the ways they are practiced can say a lot about an organization's culture. They represent, communicate, and carry the culture over time, keeping it visible and clear in all members' eyes. New members learn the organization's culture through them, and all members keep the culture alive by sharing andjoining inthem. The Core Culture Contains the Underlying Values of the Organization. In the iceberg metaphor of organizational culture, what lies below the surface is called the core culture, consisting ofthe core values or underlying assumptions and beliefs that shape and guide people's behaviors. Positive examples include performance excellence, The observable culture is what you seeand hearwnen walking around an organization. The coreculture is found in the underlying ualues of the organization. Corevalues are beliefs and values shared by organization members. Issues Goodbye High Fives... Hello Elbow Bumps and Emojis martin-d m/E+/Getty images In pre-Covid-19 days, \"high fives\" and "handshakes" and \"bro hugs\" were common celebratory and bonding behaviors. And we generally liked them, But things changed with the advent of social distancing and more remote working. Re tie archers lmlr rituals with i'nt'i'e riseo' employee in L'olL-'e merit and ohigher :ieme ui'mnnecti'an nmong team members: When was the last time you shared even a fist bump with a coworker? Manyperhaps mostpeople are afraid to even try, given fears that range from virus contamination on the one hand to #Me'foo concerns on the other. How do you relate to \"thumbs up" and \"happy face\" emojis during online chats and video meetings? Do they really replace the face-to-face interactions you're used to, and help to create and reinforce an emotional bond? Most of us follow rituals. . ,leelgood, confidence-building, stressreducing rituals. Think of the softball player who tight- ens and retightens her batting gloves before each pitch. when ritu- als move into the office, they are linked With increased employee involvement and a higher sense of connection among team mem- bers. They are part olthe gluethat gives organization cultures per- sonalities and holds them together. All ofthis is changing under the influenceol the pandemic's new normal. How About It? Are celebratory rituals really that big a part of organizational cultures? Wilat are you comfortable with as bonding behaviors in an office environment? Suppose you get a \"shoulder bump\"is that okay, or is it a step too far into your personal space? What can team leaders and managers do now to encourage celebra- tion, camaraderie, and engagement? How can you make rituals part ofthe team culture under socialdistancing? How can they be transferred into virtual space and remote working situations? Result 3 of 8 >