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					ORGANIZATIONAL CULTURE

           Chapter 7
           Lecture 4



                         1
     CULTURE REVIEWED

• Organizations also have a learned,
  shared, interrelated set of symbols and
  patterns of basic assumptions
• The culture help the organizations cope
  with problems it faces
   – external adaptation
   – internal integration

                                            2
CULTURE HELPS ORGANIZATIONS INTEGRATE
     INTERNALLY (PPS) AND ADAPT/SHAPE
, EXTERNALITIES (6 GLOBAL ENVIRONMENTS)
               TO SURVIVE

 • Culture permeates the organization
   – Through knowledge acquisition
   – Organizational symbols
   – Organizational stories
   – Organizational rites




                                        3
ORGANIZATIONAL KNOWLEDGE

 • Explicit—formalized and widely
   distributed
 • Implicit—norms or ―how we do things
   around here‖




                                         4
EXAMINE ORGANIZATIONAL
       SYMBOLS
• What language is in use and where?
• Who is pictured on annual reports, web
  pages, or brochures?
• What colors represent the company;
  where are they used?
• What logos are in use?


                                           5
 ORGANIZATIONAL STORIES
        TELL US
• what the employee is supposed to do
  when in doubt
• what to do when a high-status person
  breaks the rules
• how the little person advances within
  the organization


                                          6
    ORGANIZATIONAL RITES
      REINFORM NORMS
• Rites of degradation dissolve a person’s
  organizational identity
• Rites of enhancement recognize
  accomplishments or enhance power
• Rites of renewal lubricate social relations
• Rites of conflict reduction reduces conflict by
  partitioning it
• Rites of integration revive common feeling

                                                    7
NATIONS TRADITIONALLY
SHAPE ORGANIZATIONS

        HOW DOES CULTURE
          AFFECT FIRMS?
   Traditionally: national culture shapes business
               Business culture
               BUSINESS ACTIVITIES


                    INDIVIDUALS
                      FAMILIES
                 NATIONAL CULTURE




                                                     8
  BUT INFLUENCES COME
 FROM MULTIPLE SOURCES
• Professional training/groups
• Family
• Subgroups, e.g., R&D or accounting




                                       9
INCREASINGLY WE ALSO SEE

• business influences come not only from
  domestic influences but also from
  international and global business
  activities, e.g.,
  – subsidiaries
  – joint ventures and other strategic alliances



                                                   10
 OFTEN CREATING CULTURE
         CLASH
• between parent and subsidiary
• among managers




                                  11
  THUS IN A GLOBAL WORLD,
BUSINESSES BECOME CULTURAL
          CONDUITS

See page 207 of Introduction to Globalization
and Business by Barbara Parker



                                                12
 BUSINESS INFLUENCES
  CULTURE THROUGH
– Global entertainment and electronic media
– Global travel
– Global language
– Global demographic groups
  • Global elite
  • Global teens
– Business behaviors


                                          13
   GLOBAL INFLUENCES OF
   BUSINESS ON CULTURE
• Make global businesses more central to
  – Cultural change
  – Cultural concerns
  – And cause them to interact more with
    social actors such as NGOs and
    governments




                                           14

				
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