Culture – Set of values, norms, guiding beliefs, and understandings that is shared by members of an organization and is
taught to new members. Represents the unwritten, feeling part of the organization.
Rites and Ceremonies – elaborate planned activities that make up a special event and are often conducted for the
benefit of an audience.
1) Rites of passage – facilitate the transition of employees into new social roles.
2) Rites of enhancement – create stronger social identities and increase the statues of employees
3) Rites of renewal – reflect training and development activities that improve organization functioning
4) Rites of integration – create common bonds and good feelings among employees and increase commitment to
Culture should reinforce strategy and design. Good fit amongst culture, strategy, and design can enhance effectiveness.
Dimensions of culture
1) Needs of the environment (flexibility vs. stability)
2) Strategy focus (internal vs. external)
Needs of the Environment
Strategic Focus Flexibility Stability
External Adaptability Culture Mission Culture
Internal Clan Culture Bureaucratic
Characterized by strategic focus on the external environment through flexibility and change to meet customer needs.
Entrepreneurial values, norms and beliefs that support the capacity of the organization to detect, interpret, and
translate signals from the environment into new behavior responses.
Reacts quickly to environment changes and actively creates change.
Innovation, creativity, risk are valued
Eg. Google. 3M all employees attend class on risk taking and pursuing ideas
Emphasis on clear vision of the organization’s purpose and on the achievement of goals, such as sales growth, to help
achieve the purpose.
Individual employees may be responsible for specified level of performance, with specified rewards in return
Managers communicate desired future state for organization to shape behavior
Because environment is stable, they can translate the vision into measureable goals and evaluate employee
performance for meeting them.
High level of competitiveness and profit-making orientation
Eg. J.C. Penny
Clan Culture Focus on involvement and participation of members and on rapidly changing expectations from the external
Focuses on needs of employees as route to high performance
Involvement and participation create sense of responsibility and ownership and hence greater commitment to
Eg. WestJet, Fashion and retail industries – releases creativity of employees to respond to rapidly changing tastes
Internal focus and a consistency orientation for a stable environment.
Supports methodical approach to doing business.
Symbols, heores and cereomonies support cooperation, tradition, and following established policies as ways to
Lower personal involvement, but high level of consistency, conformity, and collaboration.
Highly integrated and efficient.
Eg. Pacific Edge Software – all its projects are on time and on budget
Culture Strength – agreement about values
Subcultures – reflect common problems, goals and experiences
- Different departments may perform better with different subculture