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Unformatted text preview: Chapter 15: Cultivating Organizational Culture | 247 Chapter 15 Cultivating Organizational Culture CHAPTER OVERVIEW The competencies and values of employees and managers play a large role in determining the effectiveness and success of an organization. Fully understanding the soul of an organization requires plunging below the charts, financial numbers, machines, and buildings into the world of organizational culture. In this chapter, we examine the concept of organizational culture and how cultures are formed, sustained, and changed. We also explore some possible relationships between organizational culture and performance; the relationship between organizational culture and ethical behavior; the challenge of managing a culturally diverse workforce; and, finally, how organizations socialize individuals into their particular cultures. Chapter 15 begins by defining organizational culture, discussing six components of organizational culture, and identifying four different layers of organizational culture. Next, issues associated with external adaptation and survival and internal integration are examined in the context of forming, sustaining, and changing an organizational culture. Several methods of maintaining and changing organizational cultures are explored. The chapter then describes four types of organizational culture: the bureaucratic culture, the clan culture, the entrepreneurial culture, and the market culture. Additional segments of the chapter address the relationship between culture and performance as well as culture and ethics. The issue of managing cultural diversity is discussed. Finally, the chapter examines organizational socialization as a systematic process for bringing new employees into the organizations culture. Emphasis is placed on a typical seven-step socialization process. LEARNING GOALS Upon completion of this chapter, the students should be able to: Explain how an organizations culture is formed, sustained, and changed. Describe four types of organizational culture. Discuss how organizational culture can influence ethical behaviors of managers and employees. Explain why fostering cultural diversity is important. Describe the process of organizational socialization and its effect on culture. CHAPTER OUTLINE 248 | Chapter 15: Cultivating Organizational Culture I. Learning from Experience : TDIndustries II. The Dynamics of Organizational Culture A. Forming a Culture B. Across Cultures CompetencyMercedes-Benzs Multicultural Plant C. Sustaining a Culture: Managerial Guidelines D. Changing a Culture: Managerial Guidelines E. Change CompetencyHarley-Davidson III. Types of Organizational Culture A. Bureaucratic Culture B. Clan Culture C. Entrepreneurial Culture D. Teams Competency37signals E. Market Culture F. Culture-Performance Relationships IV. Ethical Behavior and Organizational Culture A. Impact of Culture B. Whistle-Blowing C. Ethics CompetencyWhat Would You Do?...
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- Winter '10