ORGANIZATIONAL CULTURE : ORGANIZATIONAL CULTURE Chapter 7 Lecture 4


CULTURE REVIEWED : 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


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


ORGANIZATIONAL KNOWLEDGE: ORGANIZATIONAL KNOWLEDGE Explicit—formalized and widely distributed Implicit—norms or “how we do things around here”


EXAMINE ORGANIZATIONAL SYMBOLS: 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?


ORGANIZATIONAL STORIES TELL US: 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


ORGANIZATIONAL RITES REINFORM NORMS: 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


NATIONS TRADITIONALLY SHAPE ORGANIZATIONS: NATIONS TRADITIONALLY SHAPE ORGANIZATIONS Business culture


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


INCREASINGLY WE ALSO SEE: 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


OFTEN CREATING CULTURE CLASH: OFTEN CREATING CULTURE CLASH between parent and subsidiary among managers


THUS IN A GLOBAL WORLD, BUSINESSES BECOME CULTURAL CONDUITS: THUS IN A GLOBAL WORLD, BUSINESSES BECOME CULTURAL CONDUITS See page 207 of Introduction to Globalization and Business by Barbara Parker


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


GLOBAL INFLUENCES OF BUSINESS ON CULTURE: 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