CHAPTER 2 Organizational Culture Chapter Overview The chapter begins by addressing organizational culture. Schein's three layer model of culture is discussed (visible artifacts, values, assumptions). The effects of organizational culture on organizational behavior are briefly discussed, and then a model that suggests how managers may change organizational culture is presented. Five intervention points are emphasized in this model (behavior change, justification of behavior, cultural communications, socialization, and removal of members who deviate from the organization's culture). There are four distinct cultures: bureaucratic, clan, entrepreneurial, and market. The discussion of cultures addresses the predominant, overarching culture of an organization. Paying closer attention to the compatibility of cultures would appear to be worth the time and effort. Cultures are so elusive and hidden that they cannot be adequately diagnosed, managed, or changed. Because it takes difficult techniques, rare skills, and considerable time to understand a culture and then additional time to change it, deliberate attempts at culture change are not really practical. Cultures sustain people throughout periods of difficulty and serve to ward off anxiety. One of the ways they do this is by providing continuity and stability. Thus, people will naturally resist change to a new culture. Organizational socialization is addressed by describing the three primary socialization stages (anticipatory socialization, accommodation, and role management) and the major characteristics of each stage. The characteristics of effective socialization are discussed in terms of: • The requirements of effective anticipatory socialization (recruitment programs, selection and placement practices, and realistic career pathing) • Effective accommodation socialization (which involves orientation and training programs, performance evaluation, assigning challenging work, and a demanding supervisor) • Effective role management socialization (requiring professional counseling services and flexible work scheduling) Mentoring is also discussed as an important feature of the socialization process. General functions of mentoring are covered as well as a four phase model of the mentor-mentee relationship (initiation, cultivation, separation, and redefinition). The importance of effectively managing the socialization process in the context of an increasingly diverse workforce is also discussed. The chapter concludes with a discussion of socialization as a form of organizational integration and a powerful process for transmitting the organization's culture. Learning Objectives By the end of the chapter, students should be able to: 1. Define the terms organizational culture and socialization. 2. Explain the difference in how some employees talk about a positive culture and others describe a negative culture. 3. Describe the impact of an organization’s culture on individual team behavior. 4. Explain why spirituality is considered to have some positive benefits in the workplace. 5. Identify specific practices and programs used by organizations to facilitate socialization. Lecture Outline PowerPoint Slide Material from Text to Support Slide / Additional Comments Learning objectives are listed. They are revisited on the last slide for the chapter. Despite being an important concept, organizational culture as a perspective from which to understand the behavior of individuals and groups within organizations has its limitations. First, it is not the only way to view organizations. We have already discussed the goal and systems views without even mentioning culture. Second, like so many concepts, organizational culture is not defined the same way by any two popular theorists or researchers. Some of the definitions of culture describe it as: • Symbols, language, ideologies, rituals, and myths.3 • Organizational scripts derived from the personal scripts of the organization’s founder(s) or dominant leader(s). • A product; historical; based on symbols; and an abstraction from behavior and the products of behavior.4 Organizational culture is what the employees perceive and how this perception creates a pattern of beliefs, values, and expectations. Edgar Schein defined culture as A pattern of basic assumptions—invented, discovered, or developed by a given group as it learns to cope with the problems of external adaptation and internal integration—that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems. The “pattern of basic assumptions” Edgar Schein definition refers to can be manifest in many ways. The Schein definition points out that culture involves assumptions, adaptations, perceptions, and learning. He further contends that an organization’s culture, such as Walt Disney’s or Nokia’s or Dell Computer’s, has three layers. Layer I includes artifacts and creations that are visible but often not interpretable. An annual report, a newsletter, wall dividers between workers, and furnishings are examples of artifacts and creations. At layer II are values, or the things that are important to people. Values are conscious, affective desires or wants. In layer III are the basic assumptions people make that guide their behavior. Included in this layer are assumptions that tell individuals how to perceive, think about, and feel about work, performance goals, human relationships, and the performance of colleagues. Figure 2.1 presents the Schein three-layer model of organizational culture. Organizations are able to operate efficiently only when shared values exist among the employees. Values are the conscious, affective desires or wants of people that guide their behavior. An individual’s personal values guide behavior on and off the job. If a person’s set of values is important, it will guide the person and also promote consistent behavior across situations. Values are a society’s ideas about what is right and wrong—such as the belief that hurting someone physically is immoral. Values are passed from one generation to the next and are communicated through education systems, religions, families, communities, and organizations. A society’s values have an impact on most organizational values because of the interactive nature of work, leisure, family, and community. American culture has historically given work a central place in the constellation of values. Work remains a source of self-respect and material reward in the United States. Work also serves as a place to achieve personal growth and fulfillment. As the demographics and makeup of the workforce become more culturally diverse, it will become extremely important for managers to learn about the value systems and orientations of the changing workforce. Does the value mix change or is it different for African Americans, Mexican Americans, immigrants, physically challenged workers, and others who are increasing in numbers in the society and in the workforce? This is a question that empirical studies and extensive analysis and debate will need to cover more thoroughly in the next few decades. Because organizational culture involves shared expectations, values, and attitudes, it exerts influence on individuals, groups, and organizational processes. For example, members are influenced to be good citizens and to go along. Thus, if quality customer service is important in the culture, then individuals are expected to adopt this behavior. If, on the other hand, adhering to a specific set of procedures in dealing with customers is the norm, then this type of behavior would be expected, recognized, and rewarded. Researchers who have suggested and studied the impact of culture on employees indicate that it provides and encourages a form of stability. There is a feeling of stability, as well as a sense of organizational identity, provided by an organization’s culture. In addition to stability and identity, a culture can generate a sense of loyalty and commitment. Individuals by joining an organization and working hard to perform and compete create a sense of “we” and “me.” This involves loyalty and remaining committed to the goals of an organization. It has become useful to differentiate between strong and weak cultures. A strong culture is characterized by employees sharing core values. The more employees share and accept the core values, the stronger the culture is and the more influential it is on behavior. Can a culture be created that influences behavior in the direction management desires? This is an intriguing question. An experiment to create a positive, productive culture was conducted in a California electronics firm. Top managers regularly met to establish the core values of the firm. A document was developed to express the core values as “paying attention to detail,” “doing it right the first time,” “delivering defect-free products,” and “using open communications.” The document of core values was circulated to middle-level managers who refined the statements. Then the refined document was circulated to all employees as the set of guiding principles of the firm. An anthropologist was in the firm at the time working as a software trainer. He insightfully analyzed what actually occurred in the firm. There was a gap between the management-stated culture and the firm’s actual working conditions and practices. Quality problems existed throughout the firm. There was also a strictly enforced chain of command and a top-down-only A model that illustrates the evolution of culture and its outcome is presented in Figure 2.2. The model emphasizes an array of methods and procedures that managers can use to foster a cohesive culture. In examining this model, recall the California electronics firm and the limited method it used to generate a quick-fix culture. Figure 2.2 emphasizes the core factors in creating and sustaining a positive culture, which suggests the importance of history, expectations, groups, and relationships. Theorists and researches have offered and discussed various listings of different cultures. Such listings and typologies seek to generalize major cultural properties across more than one organization. Figure 2.3 presents a systematic, organized, and practiced classification of types of culture. The vertical axis shows the control orientation in the firm or department, ranging from stable to flexible. The horizontal axis depicts the focus of attention from internal to external. The four cells present the four distinct cultures: bureaucratic, clan, entrepreneurial, and market. Some organizations have a dominant type of culture; other organizations have multiple cultures working simultaneously in different locations, departments, or projects. There is no superior, ideal, or fixed culture. There are, however, preferences by employees for particular cultures. For example, if an employee is working in a bureaucratic culture and prefers a more entrepreneurial culture, difficulties will likely develop. If the person-culture alignment becomes overly stressful, it will probably result eventually in the individual leaving the organization. Bureaucratic Culture An organization that emphasizes rules, policies, procedures, chain of command, and centralized decision making has a bureaucratic culture. The military, government agencies, and firms started and managed by autocratic managers are examples of bureaucratic culture. Some individuals prefer the certainty, hierarchy, and strict organization of such a culture. Clan Culture Being a part of a working family, following tradition and rituals, teamwork, spirit, self-management, and social influence are characteristics of the clan culture. Employees are willing to work hard for a fair and equitable compensation and fringe benefit package. In a clan culture, employees are socialized by other members. Members help each other celebrate successes together. Nordstrom department stores relies on experienced “Nordies” to induct new employees and to show them the way to treat customers. New employees can observe the teamwork, tradition, and rituals that perpetuate Nordstrom’s commitment to customer service. Nordstrom’s is an example of how the clan culture can affect the behavior and performance of employees. Entrepreneurial Culture Innovation, creativity, risk taking, and aggressively seeking opportunities illustrate an entrepreneurial culture. Employees understand that dynamic change, individual initiatives, and autonomy are standard practices. 3M is an example of an entrepreneurial culture. The internal philosophy is captured by the 3M motto. “Never kill a product idea.” Employees are encouraged and given autonomy to work on projects. 3M intends to invent new markets. The firm’s compensation packages, training programs, team-building strategies, and goal-setting programs encourage risk taking, autonomy, and innovation to achieve that goal. Market Culture An emphasis on sales growth, increased market share, financial stability, and profitability are attributes of a market culture. Employees have a contractual relationship with the firm. There is little feeling of teamwork and cohesiveness in this type of culture. The discussion of bureaucratic, clan, entrepreneurial, and market cultures is addressing the predominant, overarching culture of an organization. Within this dominant culture are subcultures. Teams, projects, divisions, regions, and units may or may not have their own subcultures. In some instances the subcultures enhance the dominant culture, while in other cases they may have the opposite effect and actually constitute a counterculture. Subcultures that are opposed to the dominant culture can create conflict, dissension, and frustration among employees. Research indicates that less than one-quarter of mergers and acquisitions are financially successful in terms of return on investment. A particular merger fails to live up to expectations for numerous reasons. A major reason for joining with another organization is to grow quickly and inexpensively. There is also the notion that by sharing resources and applying leverage, merged companies can create and seize market opportunities better. The analysis to go ahead with a merger usually applies specific financial criteria. When the numbers look right, the deal is completed. Rarely is there any discussion of the cultural compatibility of the merging firms. Culture is considered a “soft” factor that shouldn’t be a main consideration. Paying closer attention to the compatibility of cultures, however, would appear to be worth the time and effort. A limited amount of research has been done on cultural change. The difficulty in understanding culture becomes even more complex when attempting to bring about a significant cultural change. The themes that appear in the literature in discussing change are • Cultures are so elusive and hidden that they cannot be adequately diagnosed, managed, or changed. • Because it takes difficult techniques, rare skills, and considerable time to understand a culture and then additional time to change it, deliberate attempts at culture change are not really practical. • Cultures sustain people throughout periods of difficulty and serve to ward off anxiety. One of the ways they do this is by providing continuity and stability. Thus, people will naturally resist change to a new culture. These three views suggest that managers who are interested in attempting to produce cultural changes face a daunting task. There are, however, courageous managers who believe that they can intervene and make changes in the culture. Figure 2.4 presents a view of five intervention points for managers to consider. A considerable amount of knowledge suggests that one of the most effective ways of changing people’s beliefs and values is to first change their behavior (intervention 1). However, behavior change does not necessarily produce culture change because of the process of justification. The California electronics example introduced earlier clearly illustrates this point. Behavioral compliance does not mean cultural commitment. Managers must get employees to see the inherent worth in behaving in a new way (intervention 2). Typically, communication (intervention 2) is the method used by managers to motivate the new behaviors. Cultural communication can include announcements, memos, rituals, stories, dress, and other forms of communication. Another set of interventions includes recruitment and hiring (intervention 3) and then the socialization of new members (intervention 4) and the removal of existing members who deviate from the culture (intervention 5). Each of these interventions must be done Scandal and ethical lapses in global organizations have contributed to the increased demand for more attention and focus on spiritual and ethical dimensions in the organizational culture. The term spirituality has found its way into the organizational literature. The view of spirituality is that it originates from within the individual. A concise definition is offered by Smith and Rayment: Spirituality is a state or experience that can provide individuals with direction or meaning, or provide feelings of understanding, support, inner wholeness, or connectedness. Connectedness can be to themselves, other people, nature, the universe, a god, or some other supernatural power. This definition involves inner feelings, being connected to the work and to colleagues. Because work is such a major part of the lives of employees, organizational culture and practices can contribute to a person’s spiritual development and growth. Research results suggest that the encouragement and support of spirituality in the work setting can contribute to creativity, honesty, trust, commitment, personal need satisfaction, and improved organizational effectiveness. For example, Wetherill Associates made honesty an important point of attention. The company created and implemented a policy where they promised that they will be completely honest when dealing with customers and suppliers. This emphasis on honesty also carried over into all interactions within the firm. (e.g., group to group, individual to individual). The reported results included higher morale, better job satisfaction, and improved effectiveness in relationships with customers and suppliers. The spirituality benefits in addition to improved effectiveness include attaining a broader worldview; concern with working with integrity; acquiring a strong sense of community; and a willingness to work to make a positive difference by making contributions to colleagues, stakeholders, and society. In addition to these benefits there is also the individual benefit of creating a more reasonable work/life balance, attitude, and set of behaviors. A number of critics and skeptics have questioned the meaningfulness and practical aspects of spirituality. There are critics who claim that a focus on spirituality means not being able to embrace the diversity of beliefs held by employees and stakeholders. Talking about integrity, honesty, sharing with others, and being open could take on an appearance of preaching. The preaching could turn many individuals off. The research findings on the positive benefits and problems of spirituality are still sparse. There is a lack of rigor, theoretical foundation, and research design in available studies of spirituality. Until the rigor, theoretical base, and research design can be improved and evidence that is based on scientific inquiry is available, there will be many skeptics of introducing spirituality dimensions in management practices. One of the key variables in spirituality discussions is the “ability to listen” to others. Such an ability to listen needs to be more carefully studied and analyzed. Is “listening” all that is needed, or must the leader also act effectively on what he or she hears? There is also the issue of finding the type of spirituality that fits best in the organization. There is not likely to be a single form or template of spirituality. What forms are congruent with an organization’s culture? This is still a largely unanswered question that needs to be considered before attempting to introduce spiritual practices and values. Socialization is the process by which organizations bring new employees into the culture. In terms of culture, socialization involves a transmittal of values, assumptions, and attitudes from older to newer employees. Intervention 4 in Figure 2.4 emphasizes the “fit” between the new employee and the culture. Socialization attempts to make this fit more comfortable for the employee and the firm. The socialization process goes on throughout an individual’s career. As the needs of the organization change, for example, its employees must adapt to those needs; that is, they must be socialized. But even as we recognize that socialization is ever present, we must also recognize that it is more important at some times than at others. For example, socialization is most important when an individual first takes a job or takes a different job in the same organization. The socialization process occurs throughout various career stages, but individuals are more aware of it when they change jobs or change organizations. Details on this figure are on the following slides. The stages of socialization coincide generally with the stages of a career. Although researchers have proposed various descriptions of the stages of socialization, three stages sufficiently describe it: (1) anticipatory socialization, (2) accommodation, and (3) role management. Each stage involves specific activities that, if undertaken properly, increase the individual’s chances of having an effective career. Moreover, these stages occur continuously and often simultaneously. Anticipatory Socialization The first stage involves all those activities the individual undertakes prior to entering the organization or to taking a different job in the same organization. The primary purpose of these activities is to acquire information about the new organization and/or new job. The second stage of socialization occurs after the individual becomes a member of the organization, after he or she takes the job. During this stage, the individual sees the organization and the job for what they actually are. Through a variety of activities, the individual attempts to become an active participant in the organization and a competent performer on the job. This breaking-in period is ordinarily stressful for the individual because of the anxiety created by the uncertainties inherent in any new and different situation. Apparently, individuals who experience realism and congruence during the anticipatory stage have a less stressful accommodation stage. Nevertheless, the demands on the individual do indeed create situations that induce stress. Four major activities constitute the accommodation stage: all individuals, to a degree, must engage in (1) establishing new interpersonal relationships with both co-workers and managers, (2) learning the tasks required to perform the job, (3) clarifying their role in the organization and in the formal and informal groups relevant to that role, and (4) evaluating the progress they are making toward satisfying the demands of the job and the role. Readers who have been through the accommodation stage probably recognize these four activities and recall more or less favorable reactions to them. In contrast to the accommodation stage, which requires the individual to adjust to demands and expectations of the immediate work group, the role management stage takes on a broader set of issues and problems. Specifically, during the third stage, conflicts arise. A common conflict is between the individual’s work and home lives. For example, the individual must divide time and energy between the job and his or her role in the family. Because the amount of time and energy is fixed and the demands of work and family are seemingly insatiable, conflict is inevitable. Employees unable to resolve these conflicts are often forced to leave the organization or to perform at an ineffective level. In either case, the individual and the organization are not well served by unresolved conflict between work and family. Another source of conflict during the role management stage is between the individual’s work group and other work groups in the organization. This source of conflict can be more apparent for some employees than for others. For example, as an individual moves up the organization’s hierarchy, he or she is required to interact with various groups both inside and outside the organization. Each group can and often does place different demands on the individual, and, to the extent that these demands are beyond the individual’s ability to meet them, stress results. Tolerance for the level of stress induced by these conflicting and irreconcilable demands varies among individuals. Generally, the existence of unmanaged stress works to the disadvantage of the individual and the organization. Employer tasks that may support the socialization steps may include these items. More tips on the socialization process are depicted on this slide. Table 2.1 summarizes what managers can do to encourage effective socialization. In the medical field, young interns learn proper procedures and behavior from established physicians; PhD students learn how to conduct organizational research from professors who have conducted studies. What about the process of learning or working with a senior person, called a mentor, in work settings? In Greek mythology, the mentor was the designation given to a trusted and experienced adviser. Odysseus, absent from home because of the Trojan Wars, charged his servant, Mentor, with the task of educating and guiding his son. In work organizations, a mentor can provide coaching, friendship, sponsorship, and role modeling to a younger, less experienced protégé. In working with younger or new employees, a mentor can satisfy his or her need to have an influence on another employee’s career. Most mentor–mentee relationships develop over time, and there appear to be several distinct phases of mentor–mentee relationships. Table 2.2 presents a model that highlights some of the key phases of the mentor–mentee relationship. The reasons that cause movement in the relationship are described as turning points. Initiation, cultivation, separation, and redefinition cover general time periods of six months to more than five years. We hear a lot about diversity, but what it means is sometimes confusing. Diversity is not a synonym for equal employment opportunity (EEO). Nor is it another word for affirmative action. Diversity is the vast array of physical and cultural differences that constitute the spectrum of human attributes Six core dimensions of diversity exist: age, ethnicity, gender, physical attributes, race, and sexual/affectional orientation. These are the core elements of diversity that have a lifelong effect on behavior and attitudes. Secondary forms of diversity—the differences that people acquire, discard, or modify throughout their lives—can be changed. Secondary dimensions of diversity include educational background, marital status, religious beliefs, health disabilities, and work experience. Due to the changing demographics in the United States, differences in the employee pool are going to continue to increase over the next few decades. Managers will have to study socialization much more closely and intervene so that the maximum benefits result from hiring an increasingly diverse workforce. Studying the ethnic background and national culture of these workers will have to be taken seriously. The managerial challenge will be to identify ways to integrate the increasing number and mix of people from diverse national We should expect the need to understand and embrace diversity to continue. Review objectives and solicit questions. Teaching Tips Lecture Ideas 1. Have students diagnose the culture of some organization with which they are involved. This diagnosis may focus on your college or university as a whole, or some smaller unit (e.g., a fraternity/sorority or other campus organization), as well as on some organization with which they have been employed. In conducting this diagnosis, be sure that they focus on all three layers in Schein’s model – not just the visible artifacts, but also the underlying values and assumptions. 2. Though they may not realize it, all students have been socialized into at least one organization. Many students have had at least one part-or full-time job, and some students have been initiated into a fraternity or sorority or have joined some other campus organization. Have the students discuss the methods used to socialize newcomers in these various organizations, especially during the accommodation stage, as well as how they felt when they were the ones being socialized. 3. Discuss with the students the four different types of dominant culture and have them discuss the organization culture they are currently working within. 4. One important element of an individual's career advancement in an organization is being successfully socialized into the organization's way of life, work, and values. This typically occurs during Stage I. It's useful to pose these questions to students: (a) Why is successful socialization so important in career success? (b) How does an organization socialize an individual? When discussing this question, have students with work experience provide examples of socialization activities and strategies. Project and Class Speaker Ideas 1. Students could prepare a written or oral report on the nature of a major mid-life career change. The report can be based on an interview with an individual who changed careers after working for a long time in an occupation. This report can address such issues as the motivation for change, the psychological adjustments needed for the transition to a new career, and the rewards and problems that the move provided. 2. Students could also prepare a report on an actual career counseling/development program at a local business. The report can be based on an interview with the program director and can focus on the program's goals, content, and impact on employees and the company. Remember that employees should initiate a career development program. 3. Invite a human resource professional who is involved in diversity training in a local organization to discuss his or her experiences with the class. Perhaps he or she could administer some diversity exercises in class. Discussion and Review Questions 1. Organizational culture is a difficult concept to define. How would you define the culture of an organization you have been employed by or observed? Answer: In defining the culture of their example organization, students should discuss values, such as customer service, teamwork, leadership, and so on. They may be able to compare their organization with one of the four main types of culture: clan, entrepreneurial, bureaucratic, or marketing. 2. A growing number of Americans work for foreign-owned firms in the United States. Do you think that these American employees are being influenced by the foreign owner’s approach to management and the culture of the country of the owner? Answer: Yes, American employees are affected by the foreign approach to management. It would be difficult to escape its effects since an organization’s culture impacts attitudes and behaviors. You may want to introduce the class to an article or popular press account that covers this topic (i.e., a new Honda or Mercedes plant). 3. Identify the three main socialization stages. Which of these stages is most important for developing high-performing employees? Explain. Answer: Generally, it is assumed that the accommodation stage is the most important socialization stage. During this stage misinformation and misperceptions of anticipatory socialization can be reinforced or refuted with more positive ones substituted in their place. At the same time, effective anticipatory socialization can be undermined by ineffective accommodation socialization activities. Thus, from the perspective of developing attitudes, the middle stage of socialization appears to be the most instrumental. 4. If the process of organizational socialization is inevitable, why is it important that it be managed? Answer: Effective management of the socialization process can lead to better outcomes for both the employee and the organization. Careful attention to each stage of the socialization process can lead to more satisfied and committed employees. As the text points out, there are many practices that the organization can employ in order to enhance the effectiveness of each socialization stage. 5. How can a leader or founder help create a strong culture in an organization? Can any founder create a culture? Explain. Answer: Creating a strong culture is a complex process. The organization’s founder is critical to this process, but simply articulating a culture does not ensure that such a culture will take hold. There must be consistency between the values and communications espoused by top managers and company’s actual practices (i.e., reward systems, career management practices). 6. Why is it so important that organizations keep trying to encourage productive mentoring relationships between senior- and junior-level employees? What are some of the challenges associated with mentoring programs? Answer: Mentoring may facilitate new employee socialization and acclamation to organizational culture. Mentoring may also provide promote employee retention by providing an employee a person to present problems and co solve issues. Mentoring may also be seen as status enhancing to those asked to be mentors. Difficulties include finding those that will be effective at mentoring and establishing chemistry within the pair. 7. What should managers of diverse workforces know about differences in values among individuals? Answer: Managers would want to know how the differences in values among individuals will impact the effectiveness of their management strategy. Thus, depending on value differences, managers may need to alter their practices. 8. What do advocates claim about the influence of spirituality on the performance of employees? Answer: Advocates claim that the encouragement and support of spirituality in the work setting can contribute to creativity, honesty, trust, commitment, personal need satisfaction… all of which contribute to improved organizational effectiveness. Additionally, it can contribute to a broader worldview, concern with working with integrity, acquiring a strong sense of community, and a willingness to work to make a positive difference when it comes to colleagues, stakeholders, and society. 9. Why is it so difficult to change an organizational culture that is considered strong or influential in impacting the behavior of employees? Answer: Students should refer to Figure 2-3 in assessing ways in which change might be difficult. For example, it may be difficult for employees to change their behaviors when the “old way” of doing things is so deeply ingrained. In addition, it is difficult to remove employees simply because their values may no longer match the new cultural values that management is trying to establish. It is also difficult to hire and socialize new employees to match the desired culture when those processes are generally managed by employees who were hired and socialized under the old culture. Changing a strong organizational culture is difficult because it involves altering deeply ingrained values, beliefs, and behaviors that employees are accustomed to. This resistance to change stems from comfort with the status quo, established norms, and the effort required to shift collective attitudes and practices. 10. Why is culture so difficult to measure or assess? Answer: Culture is difficult to measure because it is elusive and hidden, and because it takes difficult techniques, rare skills, and considerable time to understand it. Case for Analysis: Toyota’s Culture and the “Sticky Pedal” Recall Case Summary: This case presents the recent break system issues experienced by Toyota, a company previously noted for its quality. While Toyota was famous for having a culture of continuous improvement, it was perhaps elements if Toyota’s culture that caused early indications of the problem to be closely held and not acted upon. When the failures became public, the company suffered a significant loss of reputation. Answers to Case Question 1. Why did Toyota wait so long to publically acknowledge and replace the faulty accelerator pedals? Answer: Toyota’s history of and expectation of continued success may have caused early issues to be disregarded as anomalies. The case suggests that problems within the Toyota culture are kept quiet, not only delaying meaningful response but also creating a public relations issue. The contrast between the famous public response by Johnson & Johnson with the poisoning of Tylenol and Toyota’s lack of public action may also reflect issues of national culture and the desire to safe face which is more prevalent in eastern cultures. 2. Changing a culture from one that rewards secrecy to one that is more transparent (especially in a crisis) appears to be difficult. Why? Answer: Culture change may be the most challenging activity that an organization can attempt. Organizations create systems and hire individuals with the intent, at least in part, to perpetuate the culture. Changing culture will involve changing internal systems and may require personnel changes. 3. If you were the president of the Toyota Motor Corporation, how would you have handled the unintended acceleration problems? Explain. Answer: Answers will vary but students may be inclined to note the success of Johnson & Johnson and suggest a quick public response to the issue. As president of Toyota, I would have prioritized immediate transparency and customer safety. This would involve swiftly acknowledging the issue, conducting a thorough investigation, and implementing comprehensive recalls. Additionally, I’d enhance quality control measures, improve communication with customers, and establish a dedicated team to address and prevent future problems, restoring trust and ensuring long-term reliability. Experiential Exercise: Testing National Culture Knowledge Objectives 1. To test students’ understanding of cultural differences. 2. To compare their understanding and international experiences with classmates. The Exercise in Class This should be an enjoyable exercise for students. It enables them to obtain first-hand experience and knowledge of different cultures. Having groups of students work on the exercise after each student works on the questions individually is important for two reasons: 1. Students may be able to learn from group members (who have experience with a particular culture) the rationale behind answers they answered incorrectly. 2. Working on the exercise in groups provides an excellent opportunity to reinforce some of the points from Chapter 8 (Group Behavior). For example, the directions could be altered slightly such that students can be asked to compare their individual responses with a group consensus, and comment on the effectiveness of individuals vs. groups and the factors that led to group vs. individual superiority. Ten Term Paper Topics 1. (A selected business): A Culture Profile 2. Dual Career Couples: Problems Encountered and Suggested Solutions 3. The Mid-Career Crisis Phenomenon 4. Realistic Job Previews: How Effective are They? 5. Diversity Training: Programs and Outcomes 6. The Role of Mentoring in Career Success 7. The Role of Socialization in Culture Transmission 8. Workforce 2010: Have the Predictions Come True? 9. Case Studies of Executive “Dropouts” 10. The Japanese Approach to Management Instructor Manual for Organizations: Behavior, Structure, Processes James L. Gibson, John M. Ivancevich, James H. Donnally, Robert Konopaske 9780078112669, 9781259097232, 9780071086417, 9780071315272
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