CH-16 Organizational Culture – ORGB Organizational Behavior : Book Guide

Chapter 16 Organizational Culture In This Chapter, You’ll Find: Chapter Overview Learning Outcomes Key Terms PowerPoint Guide Review Questions and Answers Discussion and Communication Questions and Suggested Answers Ethical Dilemma Self-Assessments—What about You? Issues in Diversity Experiential Exercises Additional Examples Case Study and Suggested Responses: Mayo Clinic: An Enduring Organizational Culture Videos: Profile on Camp Bow Wow Student Handouts: Ethical Dilemma What About You?: Analyzing the Three Levels of Culture What About You?: Organizational Culture and Ethics Issues in Diversity: The “Browning” of Reading, PA Experiential Exercise: Identifying Behavioral Norms Experiential Exercise: Contrasting Organizational Cultures Case Study: Mayo Clinic: An Enduring Organizational Culture Chapter Overview The concept of organizational culture has its roots in cultural anthropology. Corporate cultures provide identifying characteristics and values for organizational members to appreciate and learn. Cultures are distinguished by artifacts, values, and basic assumptions. The socialization process is the entry stage in an organization and provides clues about its culture. Cultures are difficult to change, yet change is necessary in some instances for survival. Organizations need an adaptive culture in order to respond effectively to the changing environment. Learning Outcomes After readings this chapter, students should be able to do the following: 1. Identify the three levels of organizational culture and evaluate the roles they play in an organization. Answer: Organizational (corporate) culture is a pattern of basic assumptions that are considered valid and that are taught to new members as the way to perceive, think, and feel in the organization. Symbols of culture in the physical and social work environments are called artifacts. Examples of the artifacts of culture include personal enactment, ceremonies and rites, stories, rituals, and symbols. Values are the second, deeper, level of culture. They reflect a person’s inherent beliefs of what should or should not be. 2. Evaluate the four functions of organizational culture within an organization. Answer: In an organization, culture serves four basic functions: • Culture provides a sense of identity to members and increases their commitment to the organization. • Culture provides a way for employees to interpret the meaning of organizational events. • Culture reinforces the values of the organization. • Culture serves as a control mechanism for shaping behavior. 3 Explain the relationship between organizational culture and performance. Answer: John Kotter and James Heskett have reviewed three theories about the relationship between organizational culture and performance and the evidence that either supports or refutes these theories. The three are the strong-culture perspective, the fit perspective, and the adaptation perspective. A strong culture is an organizational culture with a consensus on the values that drive the company and with an intensity that is recognizable even to outsiders. The fit perspective argues that a culture is good only if it fits the industry or the firm’s strategy. Three particular industry characteristics may affect culture—the competitive environment, customer requirements, and societal expectations. An adaptive culture is a culture that encourages confidence and risk taking among employees, has leadership that produces change, and focuses on the changing needs of customers. 4 Describe five ways leaders reinforce organizational culture. Answer: According to Edgar Schein, leaders play crucial roles in shaping and reinforcing culture. The five most important elements in managing culture are: • What leaders pay attention to • How leaders react to crises • How leaders behave • How leaders allocate rewards • How leaders hire and fire individuals Transformational leaders create a more adaptive culture, which in turn increases business unit performance. 5 Describe the three stages of organizational socialization and the ways culture is communicated in each step. Answer: Newcomers learn the culture through organizational socialization—the process by which newcomers are transformed from outsiders to participating, effective members of the organization. The organizational socialization process is generally described as having three stages—anticipatory socialization, encounter, and change and acquisition. When socialization is effective, newcomers understand and adopt the organization’s values and norms. This ensures that the company’s culture, including its central values, survives. 6 Discuss how managers assess their organization’s culture. Answer: Although some organizational scientists argue for assessing organizational culture with quantitative methods, others say that organizational culture must be assessed with qualitative methods. Quantitative methods, such as questionnaires, are valuable because of their precision, comparability, and objectivity. Qualitative methods, such as interviews and observations, are valuable because of their detail, descriptiveness, and uniqueness. Two widely used quantitative assessment instruments are the Organizational Culture Inventory (OCI) and the Kilmann-Saxton Culture-Gap Survey. Triangulation—the use of multiple methods to measure organizational culture—is used to improve inclusiveness and accuracy in measuring the organizational culture. 7 Explain actions managers can take to change organizational culture. Answer: There are two basic approaches to changing the existing culture: • Helping current members buy into a new set of values • Adding newcomers and socializing them into the organization while removing current members as appropriate It is crucial that the communication be credible; that is, managers must live the new values and not just talk about them. Cultural change can be assumed to be successful if the behavior is intrinsically motivated— that is, on “automatic pilot.” 8 Identify the challenges organizations face developing positive, cohesive, cultures. Answer: Developing an organizational culture is challenging in its own right, but certain factors pose additional challenges to managers in their pursuit of positive, cohesive cultures—mergers and acquisitions, globalization, ethics, and empowerment and quality. When a company’s culture promotes ethical norms, individuals behave accordingly. Thus, managers can encourage ethical behavior by being good role models for employees. Trust is another key to managing effectively ethical behavior, especially in cultures that encourage whistleblowing. Involving employees in decision making, removing obstacles to their performance, and communicating the value of product and service quality reinforce the values of empowerment and quality in the organizational culture. Key Terms Organizational (corporate) culture (p. 259) Artifacts (p. 259) Espoused values (p. 262) Enacted values (p. 262) Assumptions (p. 262) Strong culture (p. 263) Adaptive culture (p. 264) Organizational socialization (p. 266) Anticipatory socialization (p. 266) Encounter (p. 267) Change and acquisition (p. 268) Triangulation (p. 269) PowerPoint Guide Introduction Slide 2—Learning Outcomes LO1 Identify the three levels of culture and evaluate the roles they play in an organization. Slide 3—LO - 16.1 Slide 4—Figure 16.1: Levels of Organizational Culture Slide 5—Table 16.1: Six Rites in Organizations Slide 6—Beyond the Book: Identifying Norms LO2 Evaluate the four functions of culture within an organization. Slide 7—LO - 16.2 Slide 8—Functions of Organizational Culture Slide 9—Beyond the Book: NetApp’s Culture of Openness LO3 Explain the relationship between organizational culture and performance. Slide 10—LO - 16.3 Slide 11–12—Theories on the Relationship between Organizational Culture and Performance LO4 Describe five ways leaders reinforce organizational culture. Slide 13—LO - 16.4 Slide 14—Elements in Managing Culture LO5 Describe the three stages of organizational socialization and the way culture is communicated in each step. Slide 15—LO - 16.5 Slide 16—Figure 16.2: The Organizational Socialization Process: Stages and Outcomes LO6 Discuss how managers assess their organization’s culture. Slide 17—LO - 16.6 Slide 18—Organizational Culture Inventory Slide 19—Kilmann-Saxton Culture-Gap Survey Slide 20—Triangulation LO7 Explain actions managers can take to change organizational culture. Slide 21—LO - 16.7 Slide 22—Figure 16.3: Interventions for Changing Organizational Culture LO8 Identify the challenges organizations face developing positive, cohesive cultures. Slide 23—LO - 16.8 Slide 24—Challenges to Developing Positive, Cohesive Culture Slide 25—Beyond the Book: Six Guidelines to Creating a Global Culture Slide 26—Camp Bow Wow Key Terms Slides 27—Key Terms Summary Slides 28–30—Summary Review Questions and Answers 1. Explain the three levels of organizational culture. How can each level of culture be measured? Answer: Organizational culture has the following three levels: • Artifacts—they are the most visible and accessible level of culture. Examples of the artifacts of culture include personal enactment, ceremonies and rites, stories, rituals, and symbols. • Values—they are the second, deeper level of culture. They reflect a person’s inherent beliefs of what should or should not be. There may be a difference between a company’s espoused values (what the members say they value) and its enacted values (values reflected in the way the members actually behave). • Assumptions—they are the deeply held beliefs that guide behavior and tell members of an organization how to perceive situations and people. Assumptions are often unconscious. 2. Describe five artifacts of culture and give an example of each. Answer: The five artifacts of culture are stated below and examples for each artifact of culture will vary with each student: • Personal enactment—the President of Mactronet Inc., a software company, volunteers at Habitat for Humanity. • Ceremonies and rites—total quality teams present members with certificates at an elaborate banquet to recognize their efforts in reducing errors. • Stories—Herb Kelleher first presented his idea for Southwest Airlines on the back of a napkin. • Rituals—at Texas A&M football games, all students remain standing throughout the game. • Symbols—most universities have shields and/or emblems that serve as their logos and are printed on transcripts, diplomas, and letterhead paper. 3. Explain the three theories about the relationship between organizational culture and performance. Research the effectiveness of each of the theories. Answer: The three theories about the relationship between organizational culture and performance are: • The strong culture perspective—it states that organizations with strong cultures perform better than other organizations. • The fit perspective—it argues that a culture is good only if it fits the industry or the firm’s strategy. • The adaptation perspective—its theme is that only cultures that help organizations adapt to environmental change are associated with excellent performance. Students’ answers to the rest of the question may vary. 4. Contrast adaptive and nonadaptive cultures. Answer: Students’ answers will vary. An adaptive culture is a culture that encourages confidence and risk taking among employees, has leadership that produces change, and focuses on the changing needs of customers. Adaptive cultures facilitate change to meet the needs of three groups of constituents—stockholders, customers, and employees. Nonadaptive cultures are characterized by cautious management that tries to protect its own interests. According to Kotter and Heskett’s study, adaptive firms showed significantly better long-term economic performance. Adaptive cultures are characterized by flexibility, innovation, and a proactive approach to change, allowing organizations to swiftly respond to external shifts and evolving market conditions. In contrast, nonadaptive cultures are more rigid, resistant to change, and focused on maintaining established practices and hierarchies. Adaptive cultures emphasize continuous learning and collaboration, whereas nonadaptive cultures prioritize stability and adherence to traditional methods. As a result, adaptive cultures tend to thrive in dynamic environments, while nonadaptive cultures may struggle in the face of rapid changes. 5. How can leaders shape organizational culture? Answer: Although individual students’ answers will vary, the class will more or less agree to the fact that leaders play crucial roles in shaping and reinforcing culture. The five most important elements in managing culture are: • What leaders pay attention to—if leaders are consistent in their focus, employees receive clear signals about what is important in the organization. If, however, leaders are inconsistent, employees spend a lot of time trying to decipher and find meaning in the inconsistent signals. • How leaders react to crises—the way leaders deal with crises communicates a powerful message about culture. Employees may perceive that the company shows its true colors in a crisis and thus pay careful attention to the reactions of their leaders. • How leaders behave—employees often emulate leaders’ behavior and look to the leaders for cues to appropriate behavior. Employees observe the behavior of leaders to find out what the organization values. • How leaders allocate rewards—to ensure that values are accepted, leaders should reward behavior that is consistent with the values. • How leaders hire and fire individuals—a powerful way that leaders reinforce culture is through the selection of newcomers to the organization. The way a company fires an employee and the rationale behind the firing also communicates the culture. 6. Describe the three stages of organizational socialization. How is culture communicated in each stage? Answer: The organizational socialization process is generally described as having the following three stages: • Anticipatory socialization—it encompasses all of the learning that takes place prior to the newcomer’s first day on the job, including the newcomer’s expectations. Culture is ascertained by hints in the interview process, contacts with current employees, and media channels. • Encounter—at this stage, newcomers learn the tasks associated with the job, clarify their roles, and establish new relationships at work. In this stage, culture is communicated by mentors, supervisors, and others who model behavior, as well as through policies, meetings, memos, etc. • Change and acquisition—in this stage, newcomers begin to master the demands of the job. The end of the process is signaled by newcomers being considered by themselves and others as organizational insiders. The individual is rewarded for displaying behavior that reflects the values of the culture. 7. How can managers assess the organizational culture? What actions can they take to change the organizational culture? Answer: Students’ answers will vary. Although some organizational scientists argue for assessing organizational culture with quantitative methods, others say that organizational culture must be assessed with qualitative methods. Two widely used quantitative assessment instruments are: • The Organizational Culture Inventory (OCI)—it focuses on behaviors that help employees fit into the organization and meet the expectations of coworkers. Using Maslow’s motivational need hierarchy as its basis, it measures twelve cultural styles. • The Kilmann-Saxton Culture-Gap Survey—it focuses on what actually happens and on the expectations of others in the organization. Its two underlying dimensions are: ○ Technical/human orientation ○ Short-term versus long-term time Triangulation—the use of multiple methods to measure organizational culture—improves inclusiveness and accuracy in measuring the organizational culture. It can lead to a better understanding of the phenomenon of culture and is the best approach to assessing organizational culture. There are two basic approaches to changing the existing organizational culture: (1) helping current members buy into a new set of values or (2) adding newcomers and socializing them into the organization while removing current members as appropriate. Managers can assess organizational culture through employee surveys, interviews, observation, and analysis of company rituals and communication patterns. To change the culture, they can implement new values and behaviors through leadership example, revise policies and practices, and provide training to align behaviors with the desired culture. Additionally, promoting open communication and recognizing and rewarding desired cultural traits can support the transition. Regularly monitoring progress and adjusting strategies as needed ensures sustained cultural change. 8. How does a manager know that cultural change has been successful? Answer: Students’ answers will vary. Evaluating the success of cultural change may be best done by looking at behavior. Cultural change can be assumed to be successful if the behavior is intrinsically motivated. If employees automatically respond to a crisis in ways consistent with the corporate culture, then the cultural change effort can be deemed successful. A manager knows cultural change has been successful when new values and behaviors are consistently demonstrated across the organization, and employee attitudes and engagement improve. Key indicators include positive shifts in employee feedback, increased alignment with organizational goals, enhanced collaboration, and improved performance metrics. Success is also reflected in the adoption of new practices and rituals that align with the desired culture. Regular evaluations and tracking progress against initial goals help confirm the effectiveness of the change. 9. What can managers do to develop a global organizational culture? Answer: Students’ answers will vary. The values that drive the organizational culture should support a global view of the company and its efforts. Management should embody the shared values and reward employees who support the global view. Finally, the values should be consistent over time. Consistent values give an organization a unifying theme that competitors may be unable to emulate. Managers can develop a global organizational culture by promoting diversity and inclusion, encouraging cross-cultural communication, and aligning organizational values with global standards. They should offer training on cultural awareness and global business practices, foster collaboration across international teams, and support local adaptations while maintaining core values. Additionally, implementing global leadership development programs and leveraging technology for seamless interaction can enhance a cohesive global culture. Discussion and Communication Questions and Suggested Answers 1. Name a company with a visible organizational culture. What do you think are the company’s values? Has the culture contributed to the organization’s performance? Explain. Answer: Students’ answers will vary. If students have difficulty discussing a specific company, it is useful to highlight a type of environment with which most can identify. The medical field provides very recognizable examples of organizational culture. The medical field is monitored through self-accreditation and maintenance. Peers scrutinize the quality of their ranks, leading to a highly competitive and highly independent form of organization. Hospitals have little control over physicians, yet a great deal of joint sponsorship of goals. This shared responsibility and lack of authority lead to a very decentralized organization in which colleagues lack commitment to the organization; loyalty is directed primarily toward the profession rather than the organization. Company with Visible Organizational Culture: Example: Google Values: Innovation, openness, collaboration, and a commitment to employee well-being. Contribution to Performance: Google’s culture fosters creativity and teamwork, leading to high employee satisfaction and innovation. This culture has contributed to its success in developing groundbreaking products and maintaining a competitive edge in the tech industry. 2. Name a leader you think manages organizational culture well. How does the leader do this? Use Schein’s description of how leaders reinforce culture to analyze the leader’s behavior. Answer: Students’ answers will vary. Most students will mention famous people initially. The problem with responding with high-visibility individuals is that they may not be able to discuss the specifics of how these individuals reinforce culture. The textbook examples are some of the better examples. It is also interesting to discuss managers who may not be particularly adept at managing culture. Leader Managing Organizational Culture Well: Example: Satya Nadella (Microsoft) Approach: Nadella promotes a growth mindset, collaboration, and empathy. He reinforces culture through clear communication of values, leading by example, and fostering an inclusive environment. Schein’s Description: Nadella uses artifacts (e.g., internal communications), espoused values (e.g., growth mindset), and basic underlying assumptions (e.g., inclusivity) to embed and reinforce Microsoft’s new culture. 3. Suppose you want to change your organization’s culture. What sort of resistance would you expect from employees? How would you deal with this resistance? Answer: Students’ answers will vary. Change is inevitable in all organizations, as is resistance to change. Even those individuals who advocate change will experience some anxiety as the organization’s culture changes. Typically, individuals who have been with an organization for a long time have some commitment and investment to the “way things are.” These individuals should be centrally involved in planning and implementing changes. Resistance to Cultural Change: Types of Resistance: Employees might resist due to fear of the unknown, attachment to existing practices, or perceived threats to job security. Dealing with Resistance: Address concerns through transparent communication, involve employees in the change process, provide support and training, and demonstrate quick wins to build confidence in the change. 4. Given Schein’s three levels, can we ever truly understand an organization’s culture? Explain. Answer: Students’ answers will vary. Artifacts, such as ceremonies and rituals, are obvious most of the time. Values are less obvious and assumptions may be very difficult to uncover. Values and assumptions become very important when they are challenged or when a crisis forces the organization to take a decisive action. Understanding Organizational Culture: Explanation: While Schein’s three levels—artifacts, espoused values, and basic underlying assumptions—offer a framework, truly understanding an organization’s culture can be challenging due to its complexity and the often-unspoken nature of underlying assumptions. 5. To what extent is culture manageable and changeable? Answer: Students’ answers will vary. Culture is very difficult to change, and it does not happen quickly. However, culture can be changed if there is a conscious effort to assess the existing culture to determine what needs to be altered. Accomplishing change may require hiring new members into the organization. Manageability and Changeability of Culture: Extent: Culture is manageable and changeable to some extent. While core values and deep-rooted assumptions are harder to change, organizations can influence culture through strategic initiatives, leadership actions, and ongoing reinforcement of desired behaviors. 6. Select an organization that you would like to work for. Learn as much as you can about that company’s culture using library resources, online sources, contacts within the company, and as many creative means as you can. Prepare a brief presentation to the class summarizing the culture. Answer: Students’ answers will vary. This exercise is excellent to help in preparing students for the job search process. It gives them practice in researching an organization and allows them to learn about a variety of companies through their classmates’ presentations. Researching a Company’s Culture: Example: Patagonia Culture Summary: Patagonia’s culture emphasizes environmental sustainability, social responsibility, and employee well-being. The company integrates these values into its business practices, from eco-friendly products to community involvement. Employees are encouraged to balance work with personal passions, reinforcing a strong commitment to environmental activism and ethical practices. Ethical Dilemma The purpose of the Ethical Dilemmas is to encourage students to develop their awareness of ethical issues in the workplace and the managerial challenges they present. The dilemmas are set up to present situations in which there are no clear ethical choices. The goal for the instructor is to guide students through the process of analyzing the situation and examining possible alternative solutions. There are no “right” answers to the questions at the end of each scenario, only opportunities to explore alternatives and generate discussions on the appropriateness of each alternative. The student portion of the activity is on a handout at the end of this chapter guide. Lisbeth’s options are to keep Graham and risk disrupting the culture that is at the heart of Larson-Knoff or to let him go and lose his talent, but maintain the culture of the company. 1. Using the consequential, rule-based, and character theories, evaluate Lisbeth’s options. Answer: Consequential Theory If Lisbeth keeps Graham, he will probably continue to do excellent work individually and may bring in a number of new clients, but his unwillingness to work as a team member may destroy the family/team culture of her company. If she lets Graham go, she will lose his talent and may not gain as many new clients, but will probably save the company’s family/team culture. Rule-Based Theory Lisbeth’s obligation is to do what is best for the company. In this situation, the question is whether Graham’s talent and potential for bringing in new clients outweigh the disruptiveness of his refusal to work as a team player, which may substantially alter the company’s culture. Character Theory Lisbeth’s primary commitment seems to be to make sure her teams run efficiently and harmoniously. Graham’s presence in the company works against that goal. 2. What should Lisbeth do? Why? Answer: Lisbeth should let Graham go. He may have misled her by his statement that he can work very effectively with others. If she keeps him on, the disruptiveness of his refusal to work as a team player threatens to undermine her goal of efficiency and harmony. It could even result in the loss of some long-term employees who become frustrated with his behavior. If she lets him go, she only loses one employee and restores the harmony that is so important to her and to the others in her company. Self-Assessments—What about You? 16.1. Analyzing the Three Levels of Culture Encouraging students to discuss examples from this challenge in the classroom can really bring the concepts alive for them. Another option would be to have the whole class evaluate the artifacts in the university’s environment. A variation on this option is to divide the class into five small groups and conduct a modified scavenger hunt where each group is tasked with finding evidence of one type of artifact and bringing it back to the classroom. For example, the group tasked with finding evidence of rites and ceremonies might find a copy of the most recent commencement program and bring it back to class. The student portion of the activity is on a handout at the end of this chapter guide. 16.2. Organizational Culture and Ethics This exercise integrates the material on ethics with the information on organizational culture. Students could also be asked to evaluate the ethical climate of the university. This would provide a common experience to generate class discussion on the influence an organization’s culture has on the ethical behavior of its members. The student activity is on a handout at the end of this chapter guide and on a review card in the student edition of ORGB. Issues in Diversity The “Browning” Of Reading, PA Noe Cabello made history in July 2011. He was the first-ever Hispanic valedictorian at Reading [Pennsylvania] High, a majority white school. The city, like the high school, has experienced tremendous growth in the proportion of Hispanic residents, 58% according to the 2010 Census. Currently, 72% of Reading High School students are Hispanic. Perhaps the most visible impact of the increased number of Hispanics in Reading is on its culture. Once a “historically white city shaped by English and German ancestry,” the city’s downtown has been transformed, now incorporating artifacts representative of its newest residents—Spanish-language signs that point to ethnic foods and services, and the rhythmic sounds and beats of Latin music reverberating through the streets. Maricel Concepcin, who moved to the area in 2000, said that the downtown reminded her of cities in her native Puerto Rico. Projections of a Latino “population explosion” in the U.S. are not new. Some researchers have predicted that Hispanics will constitute a quarter of the U.S. population by the year 2050. What has been more difficult to predict is in what region(s) the population increases will occur. According to Stanton Wortham, a University of Pennsylvania researcher, “… there’s this phenomenon of Latinos moving to parts of the United States where there hasn’t been Latinos before.” A plausible explanation is that, like immigrants from other countries, Latinos are going after better opportunities—personal and professional—wherever those opportunities may be. Yes. Noe Cabello made history in July 2011. While he understands the significance of this accomplishment, he looks forward to the day when being the “first Hispanic valedictorian” no longer qualifies as the lead story on the nightly newscast. At the rate that the Hispanic population is growing, he may not have to wait too long. 1. What effect will the increased number of Hispanic residents in Reading have on the cultures of the city’s businesses? Answer: Students’ answers will vary. The only change that can reasonably be predicted is that the number of Hispanic employees in the city’s businesses is likely to increase. Along with the increased numbers of Hispanic employees, there may also be cultural changes in matters like ethnic foods and services. Effect on Business Cultures: The increased Hispanic population in Reading will likely lead businesses to adapt by incorporating more culturally relevant products and services. This may include bilingual signage, Latin cuisine, and culturally tailored marketing strategies. Businesses might also experience a shift in consumer preferences and employee demographics, requiring them to embrace and understand Hispanic cultural norms and values to stay competitive and inclusive. 2. Despite the shift in population, Reading’s culture remains influenced by its German and English heritage. Do you foresee this changing in the near future? Explain. Answer: Students’ answers will vary. It is certainly possible that Reading’s culture will experience increasing influence from the growing numbers of Hispanic residents. Changing Influence of Heritage: While Reading’s culture retains its German and English roots, the growing Hispanic population will increasingly shape the city’s cultural landscape. This shift will likely result in a blending of traditions and cultural practices, creating a more multicultural environment. The pace of this change will depend on ongoing demographic trends and how well different cultural groups integrate and interact in the community. Experiential Exercises 16.1. Identifying Behavioral Norms Instructor’s Notes Students enjoy this exercise. There are sometimes very different norms for the international students than for the dominant-culture students. Some students will have a hard time remembering the socialization process they lumbered through as freshmen. It is worth noting that transfer students have a different socialization process than most other students. Another interesting response usually follows if you ask students how their campus culture differs from that of other universities. The student portion of the activity is on a handout at the end of this chapter guide. 16.2. Contrasting Organizational Cultures Instructor’s Notes Unless impression management issues are involved, it is usually better to have students get factual information about the organizations that are on the list. It is also worthwhile to allow students to select an organization that is not on the list, particularly if they are interested in non-profit organizations. The student portion of the activity is on a handout at the end of this chapter guide. 16.3. The Headband Activity 1. In advance, write labels on headbands that reflect areas of difference relevant to the group. Suggested labels include the following—single parent, highly educated, gay, physically handicapped, learning disabled, over sixty, under twenty-five, HIV positive, Native American, African American, Jewish, Puerto Rican, Mexican American, Chicano, Chinese American, African, and West Indian. Answer: Guessing the Label: Each participant guesses their own label based on their observations of how others interact with them and the labels they see. This guessing can involve interpreting the behaviors and responses of others in the group, considering their treatment, and reflecting on their own interactions. 2. Ask students to form circles containing no more than ten members. Hand each participant a headband and ask him or her to tie it across his or her forehead without reading what is written on it. (Members can clearly see others’ labels but not their own.) If you prefer, it works well with nametags. Answer: Discussion on Guessing Process: Participants should discuss the methods they used to guess their labels. For instance, did they base their guesses on how they were treated or on specific interactions? Did any patterns or behaviors give them clues about their label? 3. Give the small groups this decision-making task to perform—“Role play an employee group charged with the responsibility of determining merit increases for its members. The problem is that all but three members can receive increases this year. The other members must wait until next year and try again.” Answer: Influence of Label Knowledge: Explore how knowing or not knowing the label affected their decision-making and interaction. Discuss whether it was easier or harder to make decisions about merit increases when the label was unknown versus if they had known their label from the start. 4. Tell the group that they have only 20 minutes to decide, and the decision must be unanimous. Instruct participants not to share with another person what label he or she is wearing but to treat one another as they would treat people of the labeled group. Answer: Behavioral Observations: Reflect on how the labels influenced their treatment of others. Did the label affect their decision-making process or their opinions about who should receive a merit increase? How did their behavior evolve as they guessed or learned about their labels? 5. Process the activity initially by asking each participant to guess what his or her headband shows and discuss how he or she discerned the label. Answer: Impact of Labels: Examine how the labels impacted group dynamics and decision-making. Did any biases or stereotypes become evident in their interactions? Discuss how these factors influenced the group's ability to reach a consensus. 6. Post on a flip chart the following discussion generators, and invite the class to share responses with one another: * How did it feel to wear a label? Would it have felt better if you had known what it said or if you had been able to choose another label? * Did you treat others according to their labels? Why? Why not? Did you find that your behavior changed over the course of the activity? What factors influenced your behavior? * Did you feel empowered or disempowered by your role? Why? Answer: Wearing a label felt unsettling and disorienting, as it created a sense of uncertainty and vulnerability without knowing the label's specifics. Knowing the label in advance might have allowed participants to prepare or adjust their behavior consciously, while being able to choose their own label could have provided a sense of control or self-representation. Treatment of others was influenced by the perceived label's implications and stereotypes. Participants may have unconsciously treated others based on their assumptions about the labels, driven by biases or social norms. Behavior might have changed as participants realized the impact of these assumptions or as they engaged more deeply with their roles and the decision-making process. Feeling empowered or disempowered varied based on the label and its associated stereotypes. Those with labels perceived as less favorable might have felt disempowered, while those with more positively regarded labels might have felt empowered. The role's impact was largely shaped by the inherent assumptions and societal perceptions linked to each label. * SOURCE: Advancement Strategies, Pfeiffer, 1992 Additional Examples NetApp’s Culture of Openness Makes It Fortune’s “Best Company to Work For” NetApp, a data storage and management company, survived the dot.com crash and has enjoyed tremendous success under long-time CEO Dan Warmenhoven. Top executives at NetApp are quick to credit the open, trusting culture for the company’s success and employees agree. A culture of trust and openness gives NetApp a distinct competitive advantage. Everyone, including the CEO, works in an open-air cubicle. The key to the culture is the commitment to simplicity and common sense. A twelve-page travel policy was canned in favor of a simple statement asking employees to use their common sense. NetApp’s culture of trust, openness, simplicity, and common sense has garnered not only recognition but also high-performing employees and loyal customers, the two keys to competitive advantage. Organizational Socialization Organizational socialization is quite important for both new employees and the organization. The ways in which new employees learn how things are done in an organization has long-lasting effects on their job attitudes and behaviors. Also, support from organizational insiders is thought to play a role in how successful this socialization is. A recent study investigated supervisor support during the period of six to twenty-one months after a newcomer entered an organization. Results showed that supervisor support diminished over the time period. The more the supervisor support declined during this time period, the less job clarity and job satisfaction the newcomer had, and the slower the newcomer’s salary increased over time. These findings have several implications. First, if supervisors want to reap the most benefits from organizational socialization, they should continue to support their new employees steadily for at least the first two years. Additionally, supervisors should encourage employees to seek support from coworkers when they enter the organization because the supervisor may need help in providing support to the new employees for two full years. SOURCE: M. Jokisaari, and J. Nurmi. Change in newcomers’ supervisor support and socialization outcomes after organizational entry. Academy of Management Journal, 52 (2009). 527–544. Badger Mining’s Cultural Commitment to the Environment Family-owned Badger Mining Company (BMC) has a deep sense of responsibility to the community and the environment. They want to serve as stewards of the land they utilize. BMC developed a reclamation program such that once a sandstone has been mined from one of their sites, the company created a gradual slope to form the shoreline of what would become a lake—a great recreation and fishing area. Many former mining sites are turned into fish ponds or wetlands so that they blend with the natural environment. The company also pays the dues for recreational teams when 50 percent or more of the members are employees or family members. Case Study and Suggested Responses The Mayo Clinic: An Enduring Organizational Culture Linkage of Case to Chapter Material This case focuses on the Mayo Clinic, which has healthcare facilities in Rochester, Minnesota; Jacksonville, Florida; Scottsdale and Phoenix, Arizona. Collectively, these three facilities employ more than 3,300 physicians, scientists, researchers, and 46,000 allied health staff. All of these people are bound together with an enduring set of values that have defined the clinic’s culture throughout its entire existence. The primary value of the Mayo Clinic states—“The needs of the patient come first.” This primary value is supplemented by eight other values that pertain to respect, compassion, integrity, healing, teamwork, excellence, innovation, and stewardship. These values manifest themselves in a culture of teamwork, collegiality, professionalism, mutual respect, and a commitment to organizational and individual progress. At the Mayo Clinic, “[c]ulture becomes the vehicle through which problems and challenges are addressed, defined, reframed, and ultimately solved.” In considering the organizational culture of the Mayo Clinic, the students can explore the artifacts, values, and assumptions of culture, giving special emphasis to espoused values and enacted values. The functions and effects of culture are relevant as well. In particular, the Mayo Clinic’s culture can be examined in the context of the four functions that organizational cultures serve. The case could also be discussed from the perspective of the effects of culture, especially in applying the notion of a strong culture to the Mayo Clinic. How culture is developed and maintained is another linkage between the content of Chapter 16 and the Mayo Clinic case. Suggested Answers for Discussion Questions 1. What purpose does culture serve for an organization? Answer: Culture serves to give definition to the nature of an organization and how it works. Culture reflects the values that members of the organization share and which guide their behavior. For the Mayo Clinic, “[c]ulture becomes the vehicle through which problems and challenges become addressed, defined, reframed, and ultimately solved  The culture is not the end or goal but rather the means.” The essential means for the Mayo Clinic always has been and continues to be “putting the needs of the patient first.” At the Mayo Clinic, not only do the members talk the talk of putting the patient first, but they also walk the walk. Purpose of Culture for an Organization: Culture provides a shared set of values, beliefs, and norms that guide behavior, unify members, and establish a cohesive identity. It influences decision-making, helps in aligning actions with organizational goals, and can enhance employee engagement and performance. 2. Describe the Mayo Clinic’s culture from the perspective of espoused values and enacted values. Answer: Espoused values refer to what members of an organization say they value. Enacted values refer to the values that are reflected in the way people actually behave. The primary espoused value of the Mayo Clinic is—“The needs of the patient come first.” This primary espoused value is supplemented by eight other espoused values that pertain to respect, compassion, integrity, healing, teamwork, excellence, innovation, and stewardship. The enacted values at the Mayo clinic manifest themselves in doctors and staff helping each other rather than competing with one another. Consequently, they make all clinical decisions on the basis of what serves the patient’s needs the best. In addition, the enacted values are shown in the experiences of clinic personnel in having challenging patient cases to work on and inspiring colleagues with whom they work. Mayo Clinic’s Culture: Mayo Clinic's espoused values include patient-centered care, excellence, and teamwork. Enacted values are reflected in its collaborative work environment, focus on quality care, and holistic approach to patient treatment, demonstrating alignment between its stated and practiced values. 3. Using the perspective of the functions of organizational culture, explain the impact of Mayo’s values and ideals. Answer: Organizational culture serves four basic functions: • It provides a sense of identity to members and increases their commitment to the organization. • It provides a way for employees to interpret the meaning of organizational events. • It reinforces the values of the organization. • It serves as a control mechanism for shaping behavior. The following chart shows the most likely connections among the four functions of culture and Mayo’s espoused values. An “X” in a cell of the matrix indicates that the cultural function has an impact on the specific espoused value. The Mayo Clinic’s Values Culture provides a sense of identity to members and increases their commitment to the organization. Culture provides a way for employees to interpret the meaning of organizational events. Culture reinforces the values in the organization. Culture serves as a control mechanism for shaping behavior. Putting patient first X X X X Respect X X Compassion X X X X Integrity X X X X Healing X X X X Teamwork X X Excellence X X Innovation X Stewardship X X Functions of Mayo’s Organizational Culture: Mayo’s culture fosters collaboration, encourages a patient-first approach, and drives continuous improvement. This results in high employee satisfaction, exceptional patient care, and strong organizational performance, reinforcing the clinic’s mission and values. 4. What role has the Mayo Clinic’s compensation system played in developing and maintaining its culture? Answer: Virtually all Mayo employees are salaried with no incentive payments, thereby separating the number of patients seen or procedures performed from personal gain. A Mayo surgeon states—“By not having our economics tied to our cases, we are free to do what comes naturally, and that is to help one another out … Our system removes a set of perverse incentives and permits us to make all clinical decisions on the basis of what is best for the patient.” Mayo’s salary system discourages physicians from having divided loyalties and eliminates competition between doctors. Thereby, the compensation system supports and reinforces Mayo’s primary cultural value of putting the patient first as well as its eight supporting cultural values. Compensation System's Role: Mayo Clinic’s compensation system supports its culture by rewarding teamwork and patient-centered care rather than individual performance. This aligns with its cultural emphasis on collaboration and quality care, reinforcing the clinic’s values and helping to maintain its culture. 5. Do you think the Mayo Clinic’s culture provides a good model for other healthcare organizations? Why or why not? Answer: The Mayo Clinic’s culture can provide an excellent model for other healthcare organizations. Without a doubt, throughout the healthcare industry, the needs of the patients should always be first. To have anything else as the foremost concern is to turn healthcare into a perversion. The supporting values of Mayo’s culture guide its personnel in conducting their activities in a manner that truly puts the patient first. This is something that other healthcare organizations would do well to emulate. Model for Other Healthcare Organizations: Yes, Mayo Clinic’s culture can serve as a model due to its focus on patient care, collaboration, and excellence. Its integrated approach to values, compensation, and organizational practices offers a successful blueprint for improving patient outcomes and employee satisfaction in other healthcare settings. SOURCE: This case solution was written by Michael K. McCuddy, The Louis S. and Mary L. Morgal Chair of Christian Business Ethics and Professor of Management, College of Business, Valparaiso University. Video Profile on Camp Bow Wow According to Heidi Ganahl, Camp Bow Wow’s top dog, corporate culture has many elements: it can mean logos and branded material a presence on the Internet, or even the relationships developed with customers and employees. But a key element of Camp Bow Wow’s culture that doesn’t exist in other franchises is the staff’s deep emotional connection with animals. The connection is immediately apparent at Camp Bow Wow’s corporate headquarters, where offices are bustling with employees and pets alike. “It’s all about the pets,” Ganahl says. “If we keep that focus and that commitment, I think our culture will be alive and well for a long time.” Discussion Questions and Solutions 1. What aspects of Camp Bow Wow’s corporate culture are visible and conscious? What aspects are invisible and unconscious? Answer: Students’ answers will vary. Visible aspects of Camp Bow Wow’s culture include the company logo, the presence of dogs in workspaces, the dress code, the camp imagery, and Heidi Ganahl’s life story, which is told and retold during franchisee meetings. Founder Heidi Ganahl says that one of the unique things about working at Camp Bow Wow’s corporate headquarters is that “you get to bring your dog to work with you every day.” Employees keep baby gates at offices to hold dogs, and the company encourages regular dog-walking breaks. According to Heidi Ganahl, having pets at work keeps everyone focused on the company mission and what’s best for the brand. Invisible aspects of Camp Bow Wow’s culture include values such as overcoming adversity to achieve success—a core value communicated through Heidi Ganahl’s life story. Another invisible value embraced at Camp Bow Wow is the idea of providing a humanitarian service to dogs and dog lovers. This invisible value has led to the creation of the Bow Wow Buddies Foundation, a non-profit division of Heidi Ganahl’s company that finds homes for unwanted pets, invests in animal disease-prevention research, and promotes humane treatment of animals. Visible and Conscious Aspects: Camp Bow Wow’s visible aspects include its playful, pet-friendly environment, vibrant branding, and emphasis on fun and customer service. The company’s commitment to high-quality care and transparency in operations is also apparent. Invisible and Unconscious Aspects: Unseen elements include the underlying values of trust and safety, the implicit norms for staff behavior, and the internal dynamics of teamwork and mutual support. These cultural aspects shape day-to-day interactions and organizational effectiveness without being explicitly articulated. 2. Why did Camp Bow Wow have to change its culture when it became a national franchise? Answer: Students’ answers will vary. Camp Bow Wow’s early family-business culture was useful in the startup phase of Camp Bow Wow’s growth. However, Founder Heidi Ganahl says her company required a different culture once it became a national franchise. In particular, Ganahl says the focus had to shift from a family-based culture to a business-and-performance-oriented culture. She states that the big challenge for any franchise chain is to get hundreds of franchisees on the same page and committed to one vision and one way of achieving goals. Ganahl says this requires a strong culture that “doesn’t allow for people to color outside of the lines, yet taps into their creativity and innovation.” Camp Bow Wow needed to standardize its culture to ensure consistent quality and service across franchises, balancing its core values with scalable operational procedures. This shift was essential for maintaining brand integrity and customer trust nationally. 3. What impact does Heidi Ganahl’s story have on employees at Camp Bow Wow? Answer: Students’ answers will vary. The story of Heidi Ganahl is famous at all levels of the Camp Bow Wow organization. Consumers and franchisees who come in contact with Camp Bow Wow learn about the company by hearing the details of her story. Boulder franchisee, Sue Ryan, says that Ganahl’s story is inspiring to her because it deals with perseverance through tough times. Ryan adds that while business owners don’t experience Ganahl’s specific tragedy, they do understand adversity. Finally, the story offers a personal connection between employees and the founder. According to Ganahl, the takeaway from her story is that people inevitably face challenges in life and business, but one’s response to adversity determines whether he or she will be successful or unsuccessful. Heidi Ganahl’s story of overcoming challenges and building Camp Bow Wow from scratch inspires employees, reinforcing a culture of resilience, passion, and commitment. Her personal journey connects deeply with staff, motivating them to align with the company’s values and vision. Student Handouts Ethical Dilemma Lisbeth Kakutani is committed to making sure that her teams run as efficiently and as harmoniously as possible. When an opening comes up, she is relentless in working to find the right person, someone who has the skills and abilities to do the job but also someone who will fit the culture. Part of Lisbeth’s commitment stems from what had been fostered in the culture of Larsson-Knoff, Inc. well before she arrived. The community atmosphere at Larsson-Knoff is one that is supportive of family and oriented in group-work. Larson-Knoff’s mission speaks of working for the good of the many rather than the advancement of the individual, and for those who have been with the organization for years, it has become a true family atmosphere. As Lisbeth sorts through applications for an opening in her department, she finds herself struck by one in particular—Graham Williams. Graham has every academic and professional qualification Lisbeth could want for to fill the position, and she immediately calls him in for an interview. Graham impresses Lisbeth during the interview. His education and experience should allow him to become effective as soon as he joins the team. He is the best candidate she has seen. Lisbeth’s only reservation is that Graham seems to be something of a loner although he assures her that he can work very effectively with others. As soon as Graham joins the team, Lisbeth is aware that her concerns are well founded. Graham prefers to work on projects alone. He willingly shares his information but rarely does the work in conjunction with the other members of the department. Lisbeth is worried that Graham is completely disinterested in being a good team member. However, Graham’s work is superb, and she is well aware that clients approve whole-heartedly regarding his designs and his approaches. In fact, Graham’s work on existing clients’ accounts has enticed new ones to come aboard. Lisbeth is willing to give Graham time to develop his team skills but already the complaints are coming in from the other members of the group. Everyone has noticed Graham’s unwillingness to be a team player and they are not happy. Graham is creating a divide in Lisbeth’s department and serious problems are developing. Lisbeth really likes Graham and wants to keep him but is he worth disrupting the culture that is at the heart of Larson-Knoff? Questions 1. Using consequential, rule-based and character theories, evaluate Lisbeth’s options. Answer: Consequential Theory: Lisbeth should weigh the overall benefits of Graham’s excellent work against the disruption to team cohesion. If Graham’s performance significantly outweighs the cultural impact, keeping him might be justified. Rule-Based Theory: She should consider whether allowing one individual’s exceptional performance to undermine team harmony violates the company's principles and rules of teamwork. Character Theory: Lisbeth should reflect on her values as a leader, emphasizing the importance of team cohesion and cultural fit, and decide if compromising on these values is acceptable for achieving short-term gains. 2. What should Lisbeth do? Why? Answer: Lisbeth should address the cultural disruption by providing Graham with support and clear expectations for team integration. If he fails to adapt, she might need to consider alternative candidates who align with the company's values, ensuring long-term team harmony. What about You? Analyzing the Three Levels of Culture Select an organization you respect. Analyze its culture using the following dimensions. The artifacts of ________________’s culture are as follows: Personal enactment: Rites and ceremonies: Stories: Rituals: Symbols: Answer: Organization: Google The artifacts of Google’s culture are as follows: • Personal Enactment: Leaders and employees frequently embody values of innovation and collaboration, demonstrated through open workspaces and a casual dress code. • Rites and Ceremonies: Google hosts regular company-wide meetings like “TGIF” to celebrate achievements and discuss important updates. Annual events such as Google I/O showcase new technologies. • Stories: Success stories about Google's founders, particularly their journey from a garage startup to a tech giant, are frequently shared and celebrated. • Rituals: Employees participate in “20% time,” a ritual where they can spend 20% of their time on projects of their choosing, fostering creativity and innovation. • Symbols: Google’s logo, colorful and ever-changing Google Doodles, and its open, collaborative office environment are key symbols of its culture. The values embedded in ________________’s culture are as follows: Answer: The values embedded in Google’s culture are as follows: • Innovation: Emphasis on creativity and technological advancement. • Collaboration: Strong focus on teamwork and open communication. • Inclusivity: Commitment to diversity and equal opportunity. • Employee Well-being: Providing a supportive and flexible work environment. The assumptions of ________________’s culture are as follows: Answer: The assumptions of Google’s culture are as follows: • Innovation Drives Success: Belief that constant innovation is crucial for the company's success and growth. • Collaboration Enhances Creativity: Assumption that working together and sharing ideas leads to better solutions. • Employee Autonomy Leads to Better Outcomes: The idea that giving employees freedom to explore their interests will result in significant advancements. 1. On what information did you base your analysis? Answer: The analysis is based on Google’s publicly available information, including company culture descriptions, employee testimonials, interviews with leadership, and various news articles and reports about Google’s work environment and cultural practices. 2. How complete is your view of this organization’s culture? Answer: The view provides a broad overview but may not fully capture every nuance or internal dynamic of Google’s culture. Personal experiences and in-depth insider perspectives could offer a more comprehensive understanding. What about You? Organizational Culture and Ethics Think about the organization you currently work for or one you know something about and complete the following Ethical Climate Questionnaire. Use the scale below and write the number that best represents your answer in the space next to each item. Completely false Mostly false Somewhat false Somewhat true Mostly true Completely true 0 1 2 3 4 5 To what extent are the following statements true about your company? _____ 1. In this company, people are expected to follow their own personal and moral beliefs. _____ 2. People are expected to do anything to further the company’s interests. _____ 3. In this company, people look out for each other’s good. _____ 4. It is very important here to follow the company’s rules and procedures strictly. _____ 5. In this company, people protect their own interests above other considerations. _____ 6. The first consideration is whether a decision violates any law. _____ 7. Everyone is expected to stick by company rules and procedures. _____ 8. The most efficient way is always the right way in this company. _____ 9. Our major consideration is what is best for everyone in the company. _____ 10. In this company, the law or ethical code of the profession is the major consideration. _____ 11. It is expected at this company that employees will always do what is right for the customer and the public. Source: Reprinted from Organizational Dynamics, Autumn 1989, “An Ethical Weather Report: Assessing the Organization’s Ethical Climate” by John B. Cullen et al. Copyright © 1989, with permission from Elsevier Science. Issues in Diversity The “Browning” of Reading, PA Noe Cabello made history in July 2011. He was the first-ever Hispanic valedictorian at Reading [Pennsylvania] High, a majority white school. The city, like the high school, has experienced tremendous growth in the proportion of Hispanic residents, 58% according to the 2010 Census. Currently, 72% of Reading High School students are Hispanic. Perhaps the most visible impact of the increased number of Hispanics in Reading is on its culture. Once an “historically white city shaped by English and German ancestry,” the city’s downtown has been transformed, now incorporating artifacts representative of its newest residents—Spanish-language signs that point to ethnic foods and services, and the rhythmic sounds and beats of Latin music reverberating through the streets. Maricel Concepcin, who moved to the area in 2000, said that the downtown reminded her of cities in her native Puerto Rico. Projections of a Latino “population explosion” in the U.S. are not new. Some researchers have predicted that Hispanics will constitute a quarter of the U.S. population by the year 2050. What has been more difficult to predict is in what region(s) the population increases will occur. According to Stanton Wortham, a University of Pennsylvania researcher, “… there’s this phenomenon of Latinos moving to parts of the United States where there hasn’t been Latinos before.” A plausible explanation is that, like immigrants from other countries, Latinos are going after better opportunities—personal and professional—wherever those opportunities may be. Yes. Noe Cabello made history in July 2011. And while he understands the significance of this accomplishment, he looks forward to the day when being the “first Hispanic valedictorian” no longer qualifies as the lead story on the nightly newscast. At the rate that the Hispanic population is growing, he may not have to wait too long. Questions 1. What effect will the increased number of Hispanic residents in Reading have on the cultures of the city’s businesses? Answer: The increased number of Hispanic residents in Reading will likely lead to a cultural shift in local businesses, integrating more Hispanic influences in their operations, marketing, and services. Businesses may adapt by offering bilingual services, featuring Hispanic products, and incorporating cultural elements into their branding to appeal to the growing Hispanic customer base. 2. Despite the shift in population, Reading, PA’s culture remains one that is influenced by its German and English heritage. Do you foresee that changing in the near future? Explain. Answer: While Reading’s culture is deeply influenced by its German and English heritage, the growing Hispanic population will continue to introduce new cultural elements. This shift might not completely erase the historical influence but will gradually reshape the city's cultural landscape, making it more diverse and reflective of its current demographic composition. SOURCE: J. Anthony, “In Reading, PA., Hispanic majority is transforming the city’s culture,” USA Today (July 19, 2011). Experiential Exercise Identifying Behavioral Norms This exercise asks you to identify campus norms at your university. Every organization or group has a set of norms that help determine individuals’ behavior. A norm is an unwritten rule for behavior in a group. When a norm is not followed, negative feedback is given. It may include negative comments, stares, harassment, and exclusion. 1. As a group, brainstorm all the norms you can think of in the following areas: Dress Classroom behavior Studying Weekend activities Living arrangements Campus activities Dating (who asks whom) Relationships with faculty Eating on campus versus off campus Transportation Answer: 1. Brainstormed Norms: • Dress: Casual or business casual for classes; formal attire for presentations and events. • Classroom Behavior: Punctuality, active participation, no texting or using phones. • Studying: Group study sessions, regular library visits, adherence to assignment deadlines. • Weekend Activities: Socializing at parties, attending sports events, participating in campus clubs. • Living Arrangements: Cleanliness, shared responsibilities in dorms or apartments. • Campus Activities: Participation in student organizations, attending lectures and events. • Dating (who asks whom): Generally, either party can initiate; social norms vary by individual preferences. • Relationships with Faculty: Respectful communication, office hours for additional help, formal interactions. • Eating on Campus versus Off Campus: Dining in campus cafeterias or food courts; off-campus dining for variety or special occasions. • Transportation: Use of campus shuttles, bicycles, or walking; parking regulations for cars. 2. How did you initially get this information? Answer: Initial Information Source: This information is typically gathered through observation of daily campus life, conversations with peers, participation in campus events, and guidance from student handbooks or orientation materials. 3. What happens to students who don’t follow these norms? Answer: Consequences for Not Following Norms: Students who do not follow these norms may face social exclusion, negative feedback from peers or faculty, academic penalties, or a decrease in social acceptance. They might experience criticism, gossip, or even formal sanctions depending on the severity of the deviation. 4. What values can be inferred from these norms? Answer: Inferred Values from Norms: These norms often reflect values such as respect for shared spaces, commitment to academic excellence, community involvement, and personal responsibility. They highlight the importance of fitting in with the campus culture while also balancing individuality. SOURCE: “Identifying Behavioral Norms” by Dorothy Marcic, Organizational Behavior: Experiences and Cases (St. Paul, Minn.: West Publishing, 1989). Reprinted by permission. Experiential Exercise Contrasting Organizational Culture To complete this exercise, groups of four or five students should be formed. Each group should select one of the following pairs of organizations: • American Airlines and Northwest Airlines • Anheuser-Busch and Coors • Hewlett-Packard and Xerox • Albertsons and Winn-Dixie • Dayton-Hudson (Target) and J. C. Penney company Use your university library’s resources to gather information about the companies’ cultures. Contrast the cultures of the two organizations using the following dimensions: • Strength of the culture • Fit of the culture with the industry’s environment • Adaptiveness of the culture Which of the two is the better performer? On what did you base your conclusion? How does the performance of each relate to its organizational culture? Answer: Basis for Conclusion: Anheuser-Busch is considered the better performer due to its strong market leadership, robust brand loyalty, and consistent financial performance. The company's extensive market share and successful global presence highlight its effective performance. Relation to Organizational Culture: Anheuser-Busch's traditional and strong culture fosters brand loyalty and long-term customer relationships, contributing to its sustained market dominance. This culture emphasizes quality and community engagement, reinforcing the company's market position and stability. In contrast, Coors' more adaptive culture allows for flexibility and innovation but may lack the same level of consistent brand loyalty and market stability. SOURCE: Adapted with the permission of The Free Press, a Division of Simon & Schuster, Inc., from Corporate Culture and Performance by John P. Kotter and James L. Heskett. Copyright © 1992 by Kotter Associates, Inc., and James L. Heskett. Case Study The Mayo Clinic: An Enduring Organizational Culture The Mayo Clinic has healthcare facilities in Rochester, Minnesota; Jacksonville, Florida; and Scottsdale/Phoenix, Arizona. These three campuses collectively employ more than 3,300 physicians, scientists, and researchers, and 46,000 allied health staff. It is the largest, not-for-profit group medical practice in the world. The Mayo Clinic, founded by brothers Charles Mayo and William Mayo, has an enduring set of unshakeable values or ideals that have defined the clinic’s culture throughout its entire existence. “Those ideals—teamwork, collegiality, professionalism, mutual respect, and a commitment to progress for the organization and for individuals—make [the] Mayo Clinic a stimulating environment in which to practice medicine, teach, and conduct research.” Shirley Weis, Mayo’s chief administrative officer, indicates that these values derive directly from the Mayo brothers and the Mayo family. The primary value of the Mayo Clinic is: “The needs of the patient come first.” This primary value is supplemented by eight values statements regarding respect, compassion, integrity, healing, teamwork, excellence, innovation, and stewardship. Mayo’s website further states: “These values, which guide Mayo Clinic’s mission to this day, are an expression of the vision and intent of our founders, the original Mayo physicians and the Sisters of Saint Francis.” Shirley Weis emphasizes: “We see very much that those values need to stay the same while the world around us changes.” The authors of a study of strategic human resource management at the Mayo Clinic express the viewpoint that “[c]ulture becomes the vehicle through which problems and challenges become addressed, defined, reframed, and ultimately solved. When cultural values do not work in this fashion, they must be modified or jettisoned. The culture is not the end or goal but rather the means.” The essential means for the Mayo Clinic always has been and continues to be putting the patient first. Ken Ackerman, chairman of Minneapolis-based consulting firm Integrated Healthcare Strategies, succinctly describes the Mayo Clinic philosophy: “Putting the needs of the patient firstit’s that seven-word phrase that all 50,000 people in the Mayo system know. And they walk the talk.” According to Bob Walters, a Mayo Clinic senior administrator and former chief administrative officer of the Jacksonville campus, not only is the valuethe patient comes firstenduring, but it also is what attracts people, both the physicians and allied health staff, to Mayo. Indeed, the priority placed on patients ranks second among the top ten reasons that physicians cite for working at the Mayo Clinic. Interestingly, the top reason is having challenging patient cases on which to work and inspiring colleagues with whom to work. Taken together, the top two reasons focus on Mayo employees working together to serve patients in the most effective way possible. Although the willingness of the staff to put the patient first and to work collaboratively is the essence of the Mayo Clinic’s culture, that essence is made possible, at least in part, through the influence of the Clinic’s compensation system. Leonard Berry, writing in Organizational Dynamics about his research on leadership lessons at the Mayo Clinic, asserts that the most influential factor in preserving the Mayo brothers’ vision and values “is likely the Clinic’s approach to staff compensation. Virtually all Mayo employees are salaried with no incentive payments, separating the number of patients seen or procedures performed from personal gain.” Berry quotes one Mayo surgeon as saying that the compensation approach is a ‘‘disincentive system that works.’’ Berry also quotes another Mayo surgeon as stating: “By not having our economics tied to our cases, we are free to do what comes naturally, and that is to help one another out. ... Our system removes a set of perverse incentives and permits us to make all clinical decisions on the basis of what is best for the patient.” W. Bruce Fye, a Mayo cardiologist and a medical historian, says that with Mayo’s salary system, physicians do not have divided loyalties, and that there isn’t any “competition between doctors to take care of patients.” Clearly, the culture of the Mayo Clinic has proven to be a viable and effective means for solving problems and meeting challenges in contemporary healthcare. Can Mayo’s culture serve as a model for other healthcare organizations to emulate? Discussion Questions 1. What purpose does culture serve for an organization? Answer: Purpose of Culture for an Organization: Culture provides a shared set of values and norms that guide behavior, decision-making, and interactions within the organization. It fosters cohesion, aligns employees with the organization's mission, and influences overall performance and satisfaction. 2. Describe the Mayo Clinic’s culture from the perspective of espoused values and enacted values. Answer: Mayo Clinic’s Culture: Espoused Values: Patient-first, respect, compassion, integrity, teamwork, excellence, innovation, and stewardship. Enacted Values: The focus on teamwork and collaboration, as evidenced by the lack of financial incentives tied to individual performance and the priority placed on patient needs. 3. Using the perspective of the functions of organizational culture, explain the impact of Mayo’s values and ideals. Answer: Impact of Mayo’s Values and Ideals: Mayo's culture drives excellence in patient care and fosters collaborative problem-solving. By prioritizing patient needs and teamwork, Mayo effectively addresses challenges and enhances organizational performance and employee satisfaction. 4. What role has the Mayo Clinic’s compensation system played in developing and maintaining its culture? Answer: Role of Compensation System: Mayo's salary system eliminates financial incentives tied to individual performance, thus preventing competition and ensuring that all clinical decisions prioritize patient care and collaborative work over personal gain. 5. Do you think the Mayo Clinic’s culture provides a good model for other healthcare organizations? Why or why not? Answer: Model for Other Healthcare Organizations: Yes, Mayo's culture is a strong model due to its focus on patient care, teamwork, and non-competitive compensation. It promotes collaboration and high-quality care, which other organizations could adopt to improve their effectiveness and employee satisfaction. SOURCE: This case was written by Michael K. McCuddy, The Louis S. and Mary L. Morgal Chair of Christian Business Ethics and Professor of Management, College of Business Administration, Valparaiso University. S. Ramlall, T. Welch, J. Walter, and D. Tomlinson, “Strategic HRM at the Mayo Clinic: A Case Study,” Journal of Human Resources Education 3(3) (Summer 2009): 15. E. Finkel, “Brand of Brothers,” Modern Healthcare 39(12) (March 23, 2009): 4, 9. Anonymous, “The Mayo Culture,” The Mayo Clinic website, http://www.mayoclinic.org/physician-jobs/culture.html (accessed February 4, 2014). E. Finkel, “Brand of Brothers,” Modern Healthcare 39(12) (March 23, 2009): 4, 9. Anonymous, “Mayo Clinic Mission and Values,” Mayo Clinic website, http://www.mayoclinic.org/about/missionvalues.html (accessed February 4, 2014). Anonymous, “Mayo Clinic Mission and Values,” Mayo Clinic website, http://www.mayoclinic.org/about/missionvalues.html (accessed February 4, 2014). E. Finkel, “Brand of Brothers,” Modern Healthcare 39(12) (March 23, 2009): 4, 9. S. Ramlall, T. Welch, J. Walter, and D. Tomlinson, “Strategic HRM at the Mayo Clinic: A Case Study,” Journal of Human Resources Education 3(3) (Summer 2009): 18. E. Finkel, “Brand of Brothers,” Modern Healthcare 39(12) (March 23, 2009): 4, 9. E. Finkel, “Brand of Brothers,” Modern Healthcare 39(12) (March 23, 2009): 4, 9. Anonymous, “Top Ten Reasons Why Physicians/Scientists Choose Mayo Clinic for Their Career Destination,” The Mayo Clinic website, http://www.mayoclinic.org/physician-jobs/ten-reasons.html (accessed February 4, 2014). L.L. Berry, “The Collaborative Organization: Leadership Lessons from Mayo Clinic,” Organizational Dynamics 33(3) (2004): 230. L.L. Berry, “The Collaborative Organization: Leadership Lessons from Mayo Clinic,” Organizational Dynamics 33(3) (2004): 230. L.L. Berry, “The Collaborative Organization: Leadership Lessons from Mayo Clinic,” Organizational Dynamics 33(3) (2004): 230. E. Finkel, “Brand of Brothers,” Modern Healthcare 39(12) (March 23, 2009): 4, 9. Solution Manual for ORGB Organizational Behavior Debra L. Nelson, James Campbell Quick 9781305663916, 9781337148443